Earnings Call Transcript

Khazanchi Jewellers reported strong FY26 results with total income of INR 2,051 crores, up 15.71% year-on-year, while profit after tax nearly doubled to INR 89.42 crores, a 98.87% jump. EBITDA margin expanded by 253 basis points to 6.19%, and EPS grew 98.57% to INR 36.10. The second half was even stronger, with H2 PAT up 103.6% and EBITDA margin improving 312 bps to 6.67%. Management attributed the performance to a shift toward higher-margin designer and diamond jewelry, the launch of a large-format flagship showroom in Chennai (10,000 sq ft, targeting INR 450-500 crores in sales), and growth of the Vajraa Diamonds brand. Guidance includes 25-30% revenue growth and 35% PAT growth for FY27, with retail contribution planned to rise from 10% to 25% over the next two years, supported by expansion in Tamil Nadu and other states. Expansion will be funded internally with no immediate fundraising plans, and management dismissed any material impact from the Prime Minister's recent advisory on gold purchases.