Retail contribution to revenue
10%
Targeting 25% in 1-1.5 years
Management aims to increase retail share from 10% to 25% of total revenue within 1-1.5 years.
KHAZANCHIJEWELLERS
Diversified
07 Feb 2026
Khazanchi Jewellers Ltd — Q3 FY26
Khazanchi Jewellers delivered a strong Q3 FY26 with revenue of ₹589.26 crore (+49.6% YoY) and EBITDA of ₹35.34 crore (+114.5% YoY), driven by festival demand, improved product mix, and operating leverage.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Khazanchi Jewellers delivered a strong Q3 FY26 with revenue of ₹589.26 crore (+49.6% YoY) and EBITDA of ₹35.34 crore (+114.5% YoY), driven by festival demand, improved product mix, and operating leverage. EBITDA margin expanded 181 bps YoY to 6.0% as the company shifted toward higher-margin verticals and reduced low-margin volumes. PAT nearly doubled to ₹25.13 crore (+103% YoY). The new 10,000 sq ft Chennai flagship showroom (opened Feb 7) recorded ₹20 crore sales in its first 10 days, and management targets retail contribution rising from 10% to 25% over 1-1.5 years, which should further lift margins. The company guides for 25-30% overall revenue growth and expects EBITDA margins to improve 20-30% from current levels as retail share increases. Key risk: gold price volatility could dampen volume growth if prices remain elevated, though management hedges effectively.
Key Numbers
New showroom revenue run-rate
₹500 crore
New flagship expected to generate ₹500-550 crore annually
The 10,000 sq ft Chennai showroom is expected to contribute ₹500-550 crore in annual retail revenue.
B2B vs B2C EBITDA margin
B2B: ~6%, B2C: 10-11%
B2C margins ~400-500 bps higher than B2B
Retail margins are 10-11% vs wholesale 5-6%, driving overall margin expansion as retail mix increases.
Inventory gain contribution
1-1.5%
Inventory gains contributed 1-1.5% to revenue in Q3
Inventory gains from gold price rise added 1-1.5% to revenue, a normal seasonal factor.
Management Guidance
Overall revenue growth of 25-30% YoY
Management expects all verticals to grow at 25-30% year-on-year, with a conservative stance but potential to outperform.
Management guidance revenueRetail contribution to reach 25% in 1-1.5 years
Retail share of revenue to increase from current 10% to 25% within 1-1.5 years, driven by the new Chennai showroom and potential additional stores.
Management guidance growthEBITDA margin improvement of 20-30% from current 6%
As retail mix increases, EBITDA margins are expected to improve 20-30% from the current 6% level, implying 7.2-7.8%.
Management guidance marginsNew showroom revenue target of ₹500-550 crore annually
The Chennai flagship showroom is expected to generate ₹500-550 crore in annual retail revenue with 10-11% margins.
Management guidance revenueKey Risks
Gold price volatility impacting volume growth
High gold prices may shift consumer preference to lighter-weight jewelry, potentially compressing volume growth despite value growth.
medium · analyst_questionCompetition from low-making-charge models
Some players offer jewelry at 3% making charges, which could pressure margins if consumers prioritize price over design.
low · analyst_questionExecution risk in retail expansion
Scaling retail from 10% to 25% contribution requires successful store operations and consumer traction; any underperformance could delay margin improvement.
medium · data_observationInventory obsolescence in premium/diamond categories
Expansion into higher-value diamond jewelry carries risk of slow-moving inventory if designs don't match demand.
low · analyst_questionNotable Quotes
Our new 10,000 ft² large format showroom in Chennai was successfully inaugurated on 7th Feb. In the first 10 days since its opening, we recorded a sale of approximately 20 crores.
We aim to increase our retail contribution from 10 to 25%. As our retail mix improves, it will naturally enhance our margin profile, drive strong profitability and create greater operating leverages.
We have grown on the volume base if you take up we have grown around 7 to 10% in between but overall the margins have been improved so much because we are working on the various verticals.
Frequently Asked Questions
What was Khazanchi Jewellers's revenue in Q3 FY26?
Khazanchi Jewellers reported revenue of ₹589 Cr in Q3 FY26, representing a +49.6% change compared to the same quarter last year.
What guidance did Khazanchi Jewellers management give for FY27?
Overall revenue growth of 25-30% YoY: Management expects all verticals to grow at 25-30% year-on-year, with a conservative stance but potential to outperform. Retail contribution to reach 25% in 1-1.5 years: Retail share of revenue to increase from current 10% to 25% within 1-1.5 years, driven by the new Chennai showroom and potential additional stores. EBITDA margin improvement of 20-30% from current 6%: As retail mix increases, EBITDA margins are expected to improve 20-30% from the current 6% level, implying 7.2-7.8%. New showroom revenue target of ₹500-550 crore annually: The Chennai flagship showroom is expected to generate ₹500-550 crore in annual retail revenue with 10-11% margins.
What are the key risks for Khazanchi Jewellers in FY27?
Key risks include Gold price volatility impacting volume growth — High gold prices may shift consumer preference to lighter-weight jewelry, potentially compressing volume growth despite value growth.; Competition from low-making-charge models — Some players offer jewelry at 3% making charges, which could pressure margins if consumers prioritize price over design.; Execution risk in retail expansion — Scaling retail from 10% to 25% contribution requires successful store operations and consumer traction; any underperformance could delay margin improvement.; Inventory obsolescence in premium/diamond categories — Expansion into higher-value diamond jewelry carries risk of slow-moving inventory if designs don't match demand..
Did Khazanchi Jewellers meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Khazanchi Jewellers Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.