KHAZANCHIJEWELLERS Q1 FY27 earnings call.

Guidance to track

• Management targets 25-30% YoY revenue growth across both B2B and B2C segments, supported by retail expansion and deepened client engagement. Q1 FY27 45% growth ahead of this range but full-year expectations remain at 25-30%.
• Company plans to open 8-10 company-owned stores (combination of flagship showrooms and minimal jewelry boutiques) over 3-4 years, initially in Tamil Nadu before expanding to other states. All stores will operate on asset-light satellite model.
• Retail contribution targeted to increase to 40% of total revenue by 2030 from current low-single-digit levels, driven by flagship store scaling and new store launches. This mix shift expected to improve overall EBITDA margins significantly.
• Ambitious topline target of ₹5,000 crore by 2030 implying ~2.4x growth from FY26 base of ~₹2,049 crore, requiring sustained 25-30% CAGR over four years with execution risk on retail expansion plan.

Risks flagged

• Inventory levels increased to ₹460 crore (from ~₹395 crore in Q4 FY26) primarily due to flagship store stocking. With 8-10 retail stores planned, working capital requirements will continue to rise. FY26 cash flow was negative due to inventory buildup, though management expects positive cash generation in FY27.
• Recent surge in gold prices caused 2-week demand slowdown before price digestion. Management acknowledges this pattern repeats during steep price increases. Customer conversion rates and gram-per-bill ratios normalize once prices stabilize. Any sustained gold price spike could impact near-term volume growth.
• E-commerce platform for retail lightweight/minimal jewelry (including silver and diamond pieces) is 'under progress' and 'will be launched very shortly'—language that suggests delays from original timelines. This digital channel is key to scaling B2C while managing fixed cost overheads.
• Analyst raised concerns about intensifying competition from large organized jewelry chains and strong regional players on pricing, customer acquisition, and store expansion. Management responded with legacy design capabilities and direct manufacturing cost advantages, but competitive dynamics in South India remain fierce.

Key quotes

• We are forced to achieve a revenue mark of 5,000 crores by 2030. We are targeting annual revenue growth of approximately 25% to 30% supported by our strong B2B foundation, expanding B2C and digital ecosystem, and value creation across every segment of the business.
• The fact that EBITDA and PAT grew considerably faster than revenue during the quarter is particularly encouraging. It reflects an improving business mix, operating leverage, and benefits of scale as we continue to expand the business.
• We have been continuously doing it in a business cycle. We do not have clients which have been running with us for a there is a possibility that say 20% of the client can move on and once again they will join and we are into the process of adding up new clients also in that whole process we are adding up client so that that growth strategy can be achieved.