RBZ Jewellers Ltd (RBZJEWEL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to conference call for discussion on unaudited financial results as on 30th September 2026 of RBZ Jewellers. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by press-
Moderator: star then zero on your touchtone phone. Please note, this conference is being recorded. I now hand the conference over to Ms. Riya Dhadhalia from EY Investor Relations. Thank you, and over to you, ma'am.
Riya Dhadhalia (EY): Thank you. Good afternoon to all the participants on the call. Welcome to the Q2 and H1 FY '27 earnings call of RBZ Jewellers Limited. Before we proceed with the call, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties and other factors. It must be viewed in conjunction with our business risks that could cause future results, performance, or achievements to differ significantly from what is expressed or implied in such forward-looking statements. Please note that we have mailed the results, and the same is available on the exchange. The investor presentation will be uploaded shortly. In case you have not received the same, you can write to us, and we will be happy to send the same over to you. To take us through the results today and answer your questions, we have the management of RBZ Jewellers, represented by Mr. Harit Zaveri, Joint Managing Director and CFO; Mr. Harshat Gandhi, Internal Financial Controller; and Mr. Bhavesh Sabnani, Senior Manager Accounts and Finance. We will start the call with a brief overview of the quarter gone past, and then conduct the Q&A session. With that, I hand over the call to the management. Over to you, sir.
Harit Zaveri (RBZ Jewellers Ltd): Good evening, everyone. And thank you for joining us today for RBZ Jewellers earnings conference call to discuss our performance for second quarter and half yearly results of FY '27. On behalf of the management, I extend a warm welcome to all the investors, analysts, and stakeholders participating in today's call. Before I take you through the financials and operational highlights for the quarter, I would like to briefly introduce our company for those who may be engaging with RBZ for the first time. RBZ Jewellers is one of the India's leading gold organized manufacturers with a growing presence in retail jewelry segment. Over the years, we have built our business on three enduring pillars: trust, craftsmanship and design. These principles have enabled us to forge lasting relationship with our customers, retail partners, and stakeholders, and continue to shape the way we grow and create long term value. At the at the heart of our philosophy is an unwavering commitment to transparency, integrity and strong governance. This is reflected across the way we conduct our business. At our retail business, Harit Zaveri Jewellers, we follow strict zero cash transaction policy, ensuring transparency and traceability across every customer transaction. For us, trust extends well beyond the quality, purity, and craftsmanship of our jewelry. It is equally defined by the integrity of our practices, the professionalism of our conduct, and the responsibility with which we build our business. This principle remains fundamental to strengthening our brand, deepening stakeholder relationship and creating sustainable value over the long-term. As a listed company, we recognize that strong governance, transparency and financial discipline are fundamental to building enduring stakeholder trust. We remain firmly committed to the highest standard of corporate governance, regulatory compliance, and ethical business conduct. Our ambition is to get recognized not only as a leading retail jewelry company, but as an institution distinguished by its integrity, transparency, and professionally managed operations, creating sustainable value for all stakeholders. As you're aware, RBZ Jewellers operates a distinctive and diversified business model with a presence across both manufacturing and retail. We cater to a leading national jewelry retailers through our wholesale and job work business, while also serving end consumer through our flagship retail brand, Harit Zaveri Jewellers. This integrated presence provides us with a deeper understanding of evolving consumer preference and market trends, while enabling us to participate in opportunities across multiple segments of the jewelry value chain. Our manufacturing capability remains a key pillar of our competitive strength. Our state-of-the-art manufacturing facility is equipped with advanced casting, laser, and 3D printed technologies, supported by a team of 200+ professionals and approximately 250 skilled artisans.
Harit Zaveri (RBZ Jewellers Ltd): Design-led approach enable us to stay relevant to evolving consumer preferences and the name consumer engagement and reinforce competitive positioning. Our portfolio spends a wide range of jewellery categories, techniques and price points addressing requirements across bridal, festive occasions and everyday wear. We are We have developed particular expertise and recognition in antique gold bridal jewellery wherever craftsmanship and design capabilities have established helped establish a strong market position. Through Harit Zaveri Jewellers, we complement this strength with comprehensive retail offering across gold, silver, studded and other jewellery categories encompassing both traditional and contemporary designs. Looking ahead, retail expansion presents an important pillar of our next phase of growth. We intend to leverage a strong brand equity that Harit Zaveri Jewellers has built in Ahmedabad, to progressively deeper our presence across Gujarat. Our focus is to strengthen our footprints within Ahmedabad including East Ahmedabad, while selectively expanding into attractive markets such as Gandhinagar and Rajkot. As a part of the strategy, we recently expanded our retail footprint with opening a new store in Surat towards the end of September. This marks an important step in taking the Harit Zaveri Jewellers brand beyond our established Ahmedabad market, and strengthening our presence across key jewellery consumption centers in Gujarat. The store was inaugurated in presence of renowned actor Vicky Kaushal, with whom we have had partnered to further strengthen the brand visibility and recall his strength is strong connecting audience across age groups complements our efforts to build a more contemporary and aspirational identity for Harit Zaveri Jewellers. While retaining the trust, craftsmanship and heritage that have always been at the core of our brand. Together, these initiatives are aimed at building a strong consumer franchise and supporting the next phase of growth for our retail business. Our approach to expansion will remain disciplined and measured, with a focus on building sustainable store economics, strengthening brand visibility and replicating the consumer trust we've established at our home market. Over time, we believe this will enable us to build Harit Zaveri Jewellers into a stronger and more scalable retail franchise, complementing our established manufacturing capabilities, and creating other meaningful avenues for long-term growth. Our long-term vision is to build Harit Zaveri Jewellers into a leading and trusted Indian jewellery brand known for distinctive designs, superior craftsmanship, transparency, and exceptional customer experience. With our integrated manufacturing capabilities, strong design expertise and expanding retail presence, we believe that we will we are well positioned to capture the growing shift towards organized jewellery and create sustainable long-term value for our stakeholders. With that, let me now take you through the financial operations performance for the quarter. We are pleased to report that a healthy performance of quarter two financial '27, delivering a revenue growth in line with the guidance shared in previous quarter. For the quarter under review, we delivered strong revenue growth of 55% Y-o-Y to 225 crores reflecting healthy demand and higher jewellery sales. EBITDA increased 3.5% Y-o-Y and INR 229 crores translating into healthy margins of 13%. PAT stood at 16 crores with a margin of 7.3%, lower to 12% Y-o-Y primarily account of In terms of segmental performance, we witnessed strong growth across all three business during the quarter. Retail grew at 72% Y-o-Y to 148 crores continuing to be to be the key driver. Wholesale grew at 31% and job work stood at approximately 3.3 crores growing at 19%. Overall the quarter reflected healthy in broad-based growth across diversified business model. During the quarter we also strengthened our market presence through active participation in five major jewellery exhibition and trade shows in Saurashtra region, North Gujarat, Ahmedabad, and key locations. This platform enabled us to showcase our latest collection, deepen engagement and trade partner, enhance our reach among prospective customers. With that being said, I would like you open the floor for question-and-answer session. Thank you, and over to you.
Moderator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shikhar from Vivaugh Commercial Limited. Please go ahead.
Shikhar (Vivaugh Commercial Limited): So yeah hi. So just wanted to understand the margin drop year-on-year. So how much of it is due to the gold prices with which have been dropping recently and how much is it due to the new expenses which have been new expenses due to the store opening, at the retail side?
Harit Zaveri (RBZ Jewellers Ltd): So, hi. If you would see, there is a You're talking about gross margins or EBITDA level margins? Just want to understand.
Shikhar (Vivaugh Commercial Limited): Both, gross margin as well as EBITDA. Gross margins have declined by I think 6% if I'm not wrong year-on-year. So Yeah. So is it, have you had some inventory loss also because gold prices have been on a downtrend?
Harit Zaveri (RBZ Jewellers Ltd): No, we right now have not got any inventory loss. The gross margin has declined. Yes, we had, limited gold gain because you know, this fiscal year we have understood that, you know, gold has not actually appreciated anyhow. So, in fact, gold has only got depreciated, but there has been no inventory loss as of now. And, on the, on the side of, let's say, EBITDA level or PAT level, there are because of the Surat store opening which was done on the end of September. Now, there is an inventory build up, so the finance cost has risen from 2.55 crores to 5.54 crores. So, this was clearly due to the stock which was held with us. It got a bit delayed, and hence, that that, inventory carrying cost is there, which was there in interest form. Other Other than that, the depreciation was also grown by around, two and a half, three-folds, from 86 lakhs to 1.7 crores. And other expenses or one-time expenses of promotion have, you know, shot up by around, 5, 6 crores. Hence, you are able to see the cumulative effect of this goes down to the PAT. If you neglect all of this, you will see that in normalcy, company has done good at all levels. Considering the gross margin level, I would want to specify this point and highlight it that our B2B, business, in which the gold has been shifted from B2B to B2C, and we have got payments to vendor, so a little bit of proportion of that is coming from sale of bullion also. Hence, the margin is lower.
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