Q1 2027 RBZ Jewellers Ltd Earnings Call Transcript
Key Points
- Revenue from operations grew 60% year-on-year to ₹121 crores, driven by robust consumer demand and higher jewelry sales.
- Retail revenue surged 70% year-on-year to ₹78 crores, reflecting strong brand traction and successful marketing campaigns.
- Wholesale revenue grew 47% year-on-year to ₹42 crores, supported by strong order bookings from corporate clients.
- Management plans to open four new stores in FY27 (Surat, Rajkot, Maninagar, Gandhinagar), targeting high-growth Gujarat markets with a clear expansion strategy.
- The company is transitioning towards a gold metal loan (GML) strategy to hedge inventory and reduce interest costs, improving long-term financial efficiency.
- EBITDA margin declined to 14.9% from 16.5% year-on-year, impacted by stagnant gold prices, higher employee costs, and pre-opening expenses for new stores.
- Profit after tax margin fell to 7.5% from 9.2% year-on-year, reflecting increased finance costs and lease liabilities.
- Capacity utilization remains at only ~50% (900-1,000 kgs out of 1.8-2 tons), indicating underutilized manufacturing potential.
- The company's inventory level of ₹400 crores is nearly equal to its market cap, posing a significant working capital risk if not efficiently hedged.
- Management refrained from providing detailed segment-wise EBITDA or revenue forecasts for new stores, citing competitive reasons, which may limit investor visibility.
Ladies and Gentlemen, Good day and welcome to RBZ Jewelers Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant 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 pressing *, then 0 only touchstone 4. Please note that this conference is being recorded.
I now hand the conference over to Ms. Via Daria from EY Investor Relations Team.
Thank you and over to you Ms. Daria.
Thank you, Renju. Good afternoon to all participants on the call. Welcome to the Q1 FY27 earnings call of RBZ Jewelers Ltd. 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
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