RBZ Jewellers Limited (RBZJEWEL.BO) Q1 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the RBZ Jewellers Limited Q1 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Nupur Jainkunia from Valorem Advisors. Thank you, and over to you, ma'am.

Thank you. Good evening, everyone, and a very warm welcome to you all. My name is Nupur Jainkunia from Valorem Advisors. We represent the Investor Relations of RBZ Jewellers Limited. On behalf of the company and Valorem Advisors, I would like to thank you all for participating in the company's earnings conference call for the fourth quarter of financial year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings conference call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and the information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and the financial quarter under review. Let me now introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with us Mr. Harit Zaveri, Joint MD and CFO of the company; Mr. Harshit Gandhi, Internal Financial Controller; and Mr. Bhavesh Sabnani, Senior Manager Accounts and Finance of the company. Without any further delay, I request Mr. Harit Zaveri sir to start with his opening remarks. Thank you, and over to you, sir.

Thank you, Nupur, and good evening, everyone, and welcome to our earnings conference call for the first quarter of the financial year 2026. Before I give you the highlights of the quarter under review, let me first start by giving you a brief overview of the company for some of those participants that may be new to our company. RBZ is one of the leading organized manufacturer of gold jewelry in India. We are a unique jewelry company with a diversified business model, wherein we offer products to national retailers on a wholesale and a job work basis as well as direct to customers from our flagship retail store in Ahmedabad. We have a state-of-the-art manufacturing facility equipped with advanced casting laser and 3D printing technology, which is supported by 200-plus professionals and 250 skilled articians. Because of our manufacturing setup and presence across both wholesale and retail segment, we are able to garner better margins than our peers. We offer a diverse range of jewelry collections comprising of different manufacturing techniques and varieties, but our specialty lies in antique gold bridal jewelry. Our flagship showroom, Harit Zaveri Jewellers in Ahmedabad offers bridal occasion wear and daily wear jewelry across diverse price ranges. The retail product portfolio features a diverse section of gold, silver and studded and other jewelry, including bangles, chains, necklace, rings, earrings, et cetera. We are also planning to expand our retail presence in Rajkot and Surat and Ahmedabad as well. Now coming on to the first quarter of the financial year 2026 under review. Our revenue from operations has declined by 8% year-on-year for quarter 1 financial year '26, primarily due to the absence of major festivals or wedding-related demand during the quarter. While 45% of the quarter-on-quarter decline in the revenue was on account of a preponement of demand in quarter 4 FY '25 as Akshaya Tritiya fell in April this year. You may remember that we had already guided for this in the last earnings call. EBITDA for the quarter was INR 13 crores, also lower by 8% Y-on-Y, while EBITDA margins improved marginally by 9 basis points to 17.2%. PAT for the quarter stood at INR 7 crores with PAT margins at 9.39%. In terms of segmental performance for quarter 1, our retail revenue stood at INR 45 crores, which was slightly higher than the last year's revenue. Wholesale revenue was INR 29 crores, reflecting 20% decline in the same period, while job work revenue grew by 8%. Our outlook for the coming quarter remains positive, and we are confident that we will close the financial year with a very healthy growth. While with the expectation of stable domestic economic environment, our focus on quarter 2 FY '26 will be on inventory optimization, launching festive collection and accelerating both occasion wear and daily wear lines. We participated in IIJS exhibition held in Mumbai during July and August, where we have received a strong response in B2B segment with a significant advanced order booking in wholesale segment for the upcoming festival and wedding season. Festivals like Raksha Bandhan and Janmashtami and so on and so forth are expected to boost the consumer demand in quarter 2, while the upcoming wedding season should drive the strong growth in the occasion wear segment as well. With this, I now open the floor for question-and-answer session. Thank you.

[Operator Instructions] Our first question comes from the line of Vivek [ Logaria ] from Nirbhay Asset Management.

Sir, Am I audible?

Yes, you are audible.

Yes. And my first question for capacity utilization expansion plans. Your currently installed manufacturing capacity is a little over 2 tonnes annually with utilization in FY '25 is around [ 66%, ] and you guided for 100% utilization by FY '26. So can you share specific operational steps you are taking to reach that? Or we are expecting an announcement of another 4 to 5 tonne factory expansion plan?

So see, when the IPO was launched in fiscal '24, the gold prices were INR 50,000 and the capacity was 2,000 kgs. With this, the effective revenue or the potential revenue churn would have been INR 1,000 crores. Now with the gold prices going up to INR 1 lakh, the revenue potential for the same factory with the same set of karigars would be around INR 2,000 crores. So because of the sudden increase in gold prices, as of now, we are very much right in terms of our manufacturing facility. We have enough manufacturing facility for the coming 2, 3 years. And also the expansion is going on in the retail segments with the addition of 2 stores, Rajkot and Surat, which will be one of the largest store in the city. So I think with this said, there is no -- right now, we don't feel that there is a requirement of -- we already have enough capacity for sustaining this, and there is no need of CapEx as of now.

Okay, sir. So my another question for your retail capacity, sir. Your Ahmedabad store has a INR 500 crores to INR 600 crores capacity. With Surat, we are projecting for INR 400 crores and Rajkot for INR 300 crores in coming time. How did you determine the market absorption capacity per city? What competitive mapping data we used?

So generally, what we do is we study the balance sheets of peers, be it from any kind of available public reports or from the MCA side. And we study the balance sheets. We understand the walk-ins and the data also from any of the primary sources that we can. And with this, it is very much determined that on the economical side also -- economic side also, like for an example, the GDP of Rajkot versus Surat versus Ahmedabad are quite interlinked like in terms of [ million dollar ] GDP, if you calculate. So with this, we can -- we are able to know an approximate size of the market. And it is possible to determine by studying the peers also with that matter.

Okay. So sir, can you please share segment level EBITDA margin for retail, wholesale and job work separately?

For competitive reasons, we don't share the margins separately, but I can just tell you that margins in retail are higher than wholesale and job work.

Okay. So can you please share that over the last 2 years, revenue growth is occupied largely due to gold price inflation. Given the capacity is measured in tonnes, what is your internal volume only CAGR for FY '26 to '28, if gold price remain flat or declining? How do you plan to let the PAT growth if value tailwinds reversal?

So if I'm getting your question clear, you are asking me the projection of volumes, right, year-on-year for the next...

Yes, FY '26 to FY '28.

So this year, we are expecting the volume to remain flat as gold prices have itself spiked up by around 25%, 30% or maybe a single-digit growth of volumes can be seen. We are hopeful that last year, we did a volume growth of around 18% with a price increase of 20%, 25%. That was a clear increase in the -- and the revenue also increased by 61% if you see the full fiscal year. So this year, we have given the projection of around INR 700 crores of revenue and INR 45 crores of PAT. I think we will be meeting those guidance. And so far as Q1 results are there, we are very confident that we had projected a profit of INR 35 crores last year, we delivered INR 39 crores. The delivery was due to the preponement of Akshaya Tritiya. Otherwise, it would have been like somewhere around INR 35 crores, INR 36 crores. So it was very much as per the guidance that if you check the TTMP right now, it is INR 37 crores. So we are very hopeful that in the coming financial year, we will be doing a profit of around INR 45 crores with a revenue of around INR 700 crores. And with respect to volumes, the volume will increase in the single digit in the coming year. And then we need to check the macroeconomic factors of what the gold prices are or how does it react and how the consumer reacts.. But for the coming financial year, I'm certain that the volume growth will be only in single digit.

So sir, my last question for the retail footprint. Retail volume has grown from 271 kgs in FY '24 to 397 kgs in FY '25. You announced Surat and Rajkot stores. By FY '27, what proportion of total revenue do you expect from B2C revenue or what for wholesale and job work?

So in terms of quantity, it will be 50%, 50% because we have a job work volume, which is quite high, around 600 kgs plus. But in terms of revenue, it will be -- more or less, retail would do around 70%, 75%.

So are you saying in terms of volume, they are 50-50 or in terms of revenue, retail part 75% or job work and wholesale part was 25%. Am I right?

In terms of revenue, yes. But in terms of -- again, in terms of volumes, it will be 50-50. So we will remain a B2B, B2C company, but transition towards opening a new showroom. So, yes.

[Operator Instructions] Our next question is from the line of Sahil Patani from Strokes Capital.

I wanted to understand on a broad level, most of the retailers in this quarter, whether you look at PNG or Senco, Kalyan have reported like a lot of massive growth on a Y-o-Y basis. So is there a reason why we kind of have a slight degrowth compared to the previous year because the retailers have grown a lot? So if you could just explain that mismatch?

Nice question, Sahil. See, if you see predominantly, RBZ is a B2B and a B2C company. So most of the demand that we have got was in the month of March -- February and March because of the preponement of Akshaya Tritiya. So that is why when you compare it to our peers, none of the peers in the last year has performed around 60%, 61% of a spike in terms of revenue. And also the profit from last year was INR 22 crores to INR 39 crores. But the projection was INR 35 crores. So INR 39 crores was because the Q4 went very, very strong because of the preponement again of the Akshaya Tritiya festival. Now if you see, the B2B revenue has dropped because of the first quarter having -- the demand was already preponed. So first quarter was done, which I already guided in my last earnings call. It was very clear that I made that Akshaya Tritiya day, the demand was very good. It went up by 30%, but the overall demand for 45 days or 43 days was flat, which I upfrontly told. Now I also guided that the revenue would remain flat. Yes, your second part that what happened to the retail business because everyone has grown in retail, so why not you? So in the retail, there was a clear spike in prices for everyone. Now we being, again, in retail, occasion wear player majorly, like 65% of the demand comes from occasion wear. In that -- those are high grammage consumptions, in which people -- because of the spike in prices have, no, they were on hold. The demand was on hold for some while. I mean the decision taking was not happening. That is what we used to see in our data. Now the daily wear consumption was quite normal. It was as usual. But occasion wear took a hit, and that is why the retail revenue did not really spike up. Still considering the second quarter, we are seeing a very positive outcome. Those preponement of demand or the postponed demand, which was there in the retail section are getting covered up. And we are hoping to see a very strong quarter 2 in terms of all the 3 job work, wholesale or retail segments. But yes, somehow -- I must agree that quarter 1 has been a little sluggish, a very strong swing in the complete year -- last fiscal year, a very strong swing in retail was there. The first quarter, I think we might have hit and miss a little bit here and there. But then I think the quarter 2 are not showing any such kind of signals. So the data of walk-ins plus the conversion data, plus the sales data, everything are in pipeline when it comes to quarter 2. So I think hopefully, we'll be getting a very strong result in -- we should be getting a very strong outcome in quarter 2. The order bookings are nice. Walk-ins are good, healthy. So Sahil, yes, preponement of demand one, and retail remained flat, which generally, it should not have remained flat. It should have grown seeing the graph that it was growing very strongly. But postpone of demand, if it is there at all, then quarter 2 or quarter 3 [Foreign Language]. So I never reduced my guidance this time. In fact, the profit guidance and the revenue guidance, both are same. I think we will match it up, Sahil. And this was more expected, right? If you were -- last earnings call [Foreign Language] INR 35 crores to INR 39 crores, we'll match it up. I think company is fundamentally on a correct part.

Okay. Yes, that's good to hear. And my second question is around the 4 retail stores that we are planning to open over the next 2 years. So if you could just explain what locations are we specifically looking at? And any updates regarding those stores? Because I think 2 of them are going to open by Q1 FY '27. So if you could just provide updates on these 4 stores?

So I think 2 of the stores will be in Surat and Rajkot. That means 1 store in Rajkot and 1 store in Surat. Another 2 locations we are trying to pinpoint and finalize. But generally, there are 4 major cities, 4 major economies of state Gujarat, that is Ahmedabad, Surat, Rajkot and Baroda. So if we are able to have in these 4 locations, nothing like it. And then the GDP of Gujarat, 50% is contributed by these 4 major cities. We have already a good presence in Ahmedabad, and we are opening 2 flagship stores in Surat and Rajkot each. So -- and they are strong in terms of size. So we'll be coming with a strong [ bang ] in those markets, plus the retail brand, Harit Zaveri Jewellers with its Instagram and exhibitions going on, the marketing efforts going on is quite strong. So hopefully, I think I have guided for the 2 stores, 2 locations that I need to -- 2 more locations that I need to guide, I think maybe a store in Ahmedabad -- additional store in Ahmedabad or we can explore another region for an additional store. There are a lot of good potential small markets also, but the focus will remain on the 4 major cities of Gujarat.

Okay. And once all these 4 kind of, let's say, once they come online, let's say, 2 or 3 years in the future, what is the kind of revenue breakdown you expect each from like retail, job work and manufacturing?

So we are in a clear set lines to have -- see a potential store of Ahmedabad or Surat should be around INR 400 crores each. But even if you are not reaching a potential, if you're reaching at even 75% to 70% of that same, still, I don't think so there is any guidance, which is less than INR 1,000 crores if all the 4 stores are up and pumping. So yes, that is a fair assumption to make. Retail in Ahmedabad is right now INR 323 crores. This year, we are hopeful to reach by around INR 350 crores to INR 400 crores or so. So I think we are on -- Surat is almost 90% or 80% to Ahmedabad and Rajkot is 70% or 65%, 70% to Ahmedabad, Surat. So Baroda is equal to Rajkot in terms of economics. So yes, this is the set of numbers that we are thinking. And studying peers, I think, makes sense with these numbers.

[Operator Instructions] Our next question comes from the line of Aakash Jha from AJ Wealth.

Am I audible?

Yes, you are audible.

So you have maintained the revenue guidance for this year. So does this mean that on a full year basis, you are confident that the retail business will achieve INR 400 crores to INR 500 crores as guided in previous calls?

It should achieve -- see, I think we have maintained the revenue guidance and -- in both revenue and PAT levels. We are keen on looking on quarter 2. Retail should achieve around as expected figures of INR 400 crores or so. And I think with the good orders coming in both the segments, I think we will be meeting the guidance quite -- as of now, very certain with this matter. Let's see if anything changes because quarter 1 was very transparent that what would happen, it is flat and this and that, but there is no signal of any pessimism right now. There is -- the orders are there and the things are functioning. It is -- I think if you take it from management perspective, we are very clear that quarter 2 is going to be strong and quarter 3 also -- quarter 3, we can announce in quarter 2 earnings call. But quarter 2, as of now, it's very clear. For the full year also, we are very hopeful that we are going to achieve the targets.

Got it, sir. And since we are expanding our retail footprint, and I mean we are primarily an antique occasion jewelry focused player, so do we have any plans to diversify our design towards daily wear and impulse wear similar to our peers?

Yes. In retail, we have got daily wear and occasion wear both. And both the things are functioning well. Still occasion wear remains the leader in retail segment also. And this is a unique specialty. With this -- see, we are having a manufacturing setup and the manufacturing to retail pipeline gives us a very good neck of profitability. So even though the competition is very harsh, we decide on the making charges. We can still -- like we can fight till the end when it comes to making charges. As the cost itself is quite low, and we can -- see, all we can do is either we want to have the price war or we can want to juice up the margins. So if you see the balance sheet also, it's quite healthy when it comes to margins. So we are looking forward. I think, again, when you have manufacturing strong in hand, going for retail, adding up a few more stores in retail, having the hold of cost in hand, it seems to be a very healthy bet because retail itself is a scalable model. I think adding up daily wear, we are -- in daily wear model, we are having the right set of vendors. We are also trying to develop daily wear in-house. So I think those kind -- by the end of this fiscal year, a good amount of daily wear jewelry also, we should be able to produce in-house. We will be trying, not good amount, but we should be trying to produce a healthy amount or some unique differentiation that we can bring to the showroom. But occasion wear right now in Ahmedabad, we are good as a brand.

Got it, sir. And one more question. For the upcoming stores that we are planning to open, what would be the breakeven period? And would they have any short-term impact on our margins?

So I think marketing expense would be there. But still, I think going on a complete year-on-year projections, it is a little part to say, it could have an impact on margins because of the marketing expense going up. But we are still planning out that how to make the marketing more effective, if there any other strategy that can work like social media works for all the 4 regions, right? It is like -- that expense will not get increased. But hoardings and radio and newspaper things are very regional. So those expenses will get increased. Also, that the newspaper can be used very strategically because now there are more showrooms. So a newspaper ad pan Gujarat can have effect on all the 2, 3 showrooms that we will be having. So I think if you see on a long-term basis, in the western -- in the Gujarat state, can we be the leading player in retail? So when it comes to leaving the pan-India players aside, so if this is a question that we can answer, I think the rest of the top line and bottom lines of near term can be, for a time being, ignored. And as a company, we would want to look on a transform -- like what can we do in the next coming decade or so. So that is in the mind with a long-term vision. I think short-term things can have it -- we will be transparent in communicating the short-term things. But yes, the long-term perspective is how scalable can the company go.

Got it, sir. One last question related to this, sir. I mean what is our aspiration in terms of over the next 3, 5 years? I mean, will retail be our main growth driver? Or will the mix remain the same in terms of volume, roughly 50-50 between retail, wholesale and job work?

So we want to -- see, we are a -- we have a unique business model. We have a specialization in terms of antique jewelry. Antique jewelery runs very strongly with the western market, the northern market. We are doing...

Excuse me, sir, you are not audible if you are speaking at the moment. Members of the management, you are connected, but you are not audible. Ladies and gentlemen, please stay connected while we address the situation with the line for the management. Ladies and gentlemen, thank you for staying connected. We thank you for your patience. We have now reconnected with the management. Over to you, sir.

Yes. I think the last question was more or less answered. If there's any question -- queries regarding the last previous question, I can once again...

We still have Aakash Jha on the line, the question -- who had asked the question last. Aakash, do you have any further questions?

Yes, sir. I mean I was unable to hear you. So if you can explain regarding the last query.

So Aakash, your question about daily wear and location wear in the retail category, right?

My last question was related to our business model going forward. Our escalation over the next 3, 5 years.

So Aakash, with the business model going forward, we are into manufacturing. We would be wanting to expand into retail by maintaining also the uniqueness of the manufacturing that we are having. So with this kind of uniqueness, I think B2B or the job work that we are doing will be still remaining with us. It is -- but it's a slow transition that the expansion will happen into different cities of Gujarat, at least the 4 major cities of Gujarat. Going forward, you can take it up as a jeweler who is originally a manufacturer and getting into forward integration by maintaining its uniqueness also, so the margins can help us. And the expense that the brand will take can be set off by the manufacturing cost that we have an advantage of. So -- because a retail expansion would need that brand has a lot of brand expense and everything. And that is to be taken care by the cost advantage that [Technical Difficulty]

Sir, sorry to interrupt, but your line is breaking up in between at the moment.

Yes, is it now clear?

Yes, this is clear, sir.

So you should see us as a manufacturing player getting into a forward integration, expanding retail showrooms in 4 major cities of Gujarat. And I think 3 of them are Ahmedabad, Surat and Rajkot should be operational in the quarter -- last quarter of this fiscal or the quarter 1 of the next fiscal year. And Baroda or the fourth city should be -- we'll understand how fast we can open that. But going forward, yes, it is going to be a B2C prominent company. Volumes coming 50-50 from B2C and B2B as well. So B2B are low-margin business, the volume can really be high, but B2C are high margin business and scalable.

[Operator Instructions] Our next question comes from the line of Raj Shah from RK Family Office.

So my first question is, I'm assuming that our 2 showrooms land will be on the lease basis. So I wanted to know what will be the investment in the inventory for these 2 showrooms?

So I think for competitive reasons, I really cannot give you the clear data of the inventory for those 2 showrooms, but it will be one of the largest showrooms in the cities, both the showrooms will be in their own way, the largest showrooms in their respective cities, one of the largest. And I think the inventory will be capable to achieve the turnover that we have expected on the ongoing basis. Even I have communicated that we are expecting a INR 1,000 crore top line in the coming 2, 3 years. And once all the 3, 4 showrooms are up and pumping. So I think the inventory will be in line with the retail turnover that is approximately 2, 2.5x.

Okay. So sir, my question was mainly because in the last con call, we also spoke that we are heavily investing in our entry. So to open 2 new showrooms, we need funds, right? So it will all will be debt, like all 4 showrooms or all 2 showrooms inventory will come from debt?

So from the retained earnings also. So last year, profit was INR 39 crores. This year, we are expecting, let's say, INR 45 crores. So additionally, the retaining of the profits will be also there. And those will be deployed in the inventory plus the debt equity ratio is very low. right now. So at least matching up to 1:1 debt equity ratio will help you figure out the complete -- it will give you a clear picture of how much to invest where in the regions. And plus the retained earnings for all the 3 financial years will be -- the max is there.

Okay. Okay. So my next question is, you mentioned that you signed a significant wholesale order book. So can you quantify it like how much it is for this year?

Again, to quantify it, I don't think so it will be good for, again, competitive reasons. But if you see, we -- if I'm telling you that we will match up the volumes that we have done last year, I think you can self-analyze it that second quarter will be quite robust. Also, the same signal has been already there in the fiscal year '24, wherein the first quarter was low and the second quarter was then very high. The same reflection is going to come in this also -- this year also.

Okay. Okay. So at the current gold price, how -- in how much time we are expecting to fully utilize our manufacturing facilities at current gold price?

It doesn't -- see it is not just about manufacturing facility. It is a 2,000 kg facility. We are doing manufacturing of approximately 900,000 kgs right now. I think we don't have to worry about at least 3 years, 3 years from here. We don't know what the macroeconomic factors. Gold is very volatile. It changes rapidly. This -- I think if we really need an additional 2 tonnes or 3 tonnes more, we can easily get it from -- on a job work basis from the market, right? It is -- we should know -- like to invest INR 40 crores, INR 50 crores in CapEx, okay? That is one thing. The other thing is the market already has 5, 10 tonnes of EV capacity, which is there, utilize that capacity from the market with a little bit of cost, 0.5%, 1%, 1.5% increase in costs, we can utilize that thing. There is no waste of going into a very large expansion of manufacturing facility. Right now, the volumes of all the players in organized segments are also growing by just single digit. Nobody's volume is growing -- if the revenue is growing by, let's say, higher double digit, still the volumes would be the single digit or neutral.

Okay. So sir, daily wear is also gaining traction or rising very fastly. So have we considered going into job work or wholesale business of daily wear?

So right now, we will be adding daily wear as a variety in this fiscal year. But one -- I think we are still dominantly going to be in the business of occasion wear jewelry where the demand is very much robust. Indian wedding seasons are always very high. So daily wear is great when it comes to spreading geographically like many, many showrooms or in one particular city, many areas because a person with 5, 10 grams of purchase wouldn't want to travel, let's say, 1 hour or so. But in occasion wear, people are -- it's a compulsory event to buy. And I think it's a good area for us to stick in. Well, we are exploring daily wear slowly and steadily, but no major plans for daily wear for until this fiscal. We are experimenting how can we differentiate in the daily wear market. That is 100% there. The design team is also working on differentiating the daily wear market. But one, it has to get fundamentally [Foreign Language].

Okay. So sir, basically, I was asking this because by introducing or concentrating on daily wear expands our market size. And players like Sky Gold are increasing rapidly in daily wear segment by wholesale or a job working of daily wear segment. That's why I was asking that.

Correct. Correct. So see, every company will have a different perspective. And as of -- see, one can see hopes in daily wear, the other can see hopes in occasion wear, but both the categories are doing great in terms of retail, right? So expansion of retail will mean that daily wear and occasion wear both will move forward. Now you're just talking about one thing daily wear [Foreign Language]. So the daily wear manufacturing right now. We are not keen at -- we are trading daily, like we are getting daily wear from vendors. We are hopeful to make daily wear on job work basis for others. So that is still there. In the retail, both has to run hand in hand. But on the wholesale side or on the manufacturing -- in-house manufacturing capability side, no. For this fiscal year, we are just experimenting on how to differentiate the daily wear products. Once we have these products in hand, which are differentiated, then we can throw in the market for maybe wholesale or retail or job work.

[Operator Instructions] Our next question comes from Deepesh Khemka with Perfect Research.

I just wanted to understand why are you planning to expand retail stores in Gujarat and Northern metro cities like Delhi, Mumbai, et cetera?

We have tested our pilot store in Ahmedabad. Ahmedabad store, we grew very significantly in terms of volumes. Our marketing channels and -- are very much showing us data that our jewelry has been liked by the Gujarati market. Just to give you an example -- like just to give you a very base level example of the industry. Every -- like how every state has a differentiated food and differentiated in terms of textile, jewelery is also very fragmented, very diversified. So the data clearly shows that in Gujarat, we are attracting this Patel community, Jain community, Marwadi community, which are very predominant in the state of Gujarat, be it Surat, Baroda, Rajkot, Patels are dominantly there, seeing the demographics. So that is the reason we are wanting to spread in the state of Gujarat and not otherwise. It's a more safeguarded plan. Ahmedabad proven [Foreign Language]. Ahmedabad is the major economy of India, the seventh biggest economy of India, the first best economy of Gujarat or [Foreign Language] that it clearly shows that we could expand into at least the 4 major cities and capture the unaddressed market.

Got it, sir. So any plans in the coming future to expand into areas apart from Gujarat?

See, these are very long-term questions. Let us first explore Gujarat.

Okay. Got it. And any plans to sell online through your own marketplace or website?

Yes, e-commerce, see, we have a very strong Instagram presence. As of now, Instagram is 163,000 followers. None of our peers who are independent jewelers or midsized corporates have such a kind of Instagram or a social media presence. Now if you see on Instagram, the brand is very strong. It is booming. We are trending very nicely. With this kind of -- the opportunity that we should take is how fast can we go and address this particular market. After that, I think rest of the questions can -- the rest of the cities or anything can be looked into. But as of now, we can look into Gujarat.

[Operator Instructions] Our next question is from the line of [ Chinta RamaKrishna, ] an individual investor.

Can you hear me?

Yes.

My question is regarding the -- I think there is some income tax notice in the past, sir. So just wanted to get any latest update on that one.

See, if you go into the detail of the notice, this notice is issued to us when we were a private limited company. We did issue bonus shares. Now when the bonus shares are issued, we were 100% part of the -- the total stake was holded by us. Now this shares were issued just to make sure that when we go public, the share prices are in the range of INR 100, right? So it was a very capital structural thing that we had done. We are very strong that this notice does not have any base. And I have repeatedly told that in my previous 2 earnings call also. We have signed a CIT appeal. We are waiting for a very positive result. I really want people to go into the detail of the notice than just assume that INR 25 crores [Foreign Language]. Go into the detail of the notice, it is nothing. I mean, the case one would look at, one should ask there, it is nothing. There is no significance that I relate to it.

Sure, sir. And on the current tariff situation, sir, do you see any impact for our business from the tariffs perspective?

Our major area is India. If there is any indirect effect, I have not yet -- we have not yet seen in our data. But because of the geographical tension, the gold prices are volatile in nature. And this has a relation with the customers' mind and everything. So still being on the occasion side of the jewelry segment, the demand is sure going to be there. It can get postponed, but not denied. So that is my statement always being in occasion wear segment. So I think right now, I can -- we are not able to witness any strong change because of any tariffs hike or anything. There is no signal as of now.

Sure, sir. And also, thank you for the aggressive guidance for the FY '26 and FY '27, sir. So you mentioned that for FY '26, INR 700 crores top line and INR 45 crores bottom line. And for FY '27, INR 1,000 crores top line and INR 55 crores bottom line. So we are still confident that we can achieve these figures, right, sir?

See, we are confident to achieve the FY '26 guidance. As and when we get nearer to the fiscal year, we will be understanding the guidance more better, but from INR 700 crores to INR 1,000 crores, yes, there should be a jump because of the retail showrooms coming up. So these are achievable figures at least from our side. You can take it on an approximate level. For FY '26, we are in the quarter 2 -- starting of quarter 2. FY '26, quarter 2, we are seeing a very strong positive demand.

And the 2 storerooms that we are opening, Surat and Rajkot, which quarter, sir, measured to get the time lines, in which quarter...

One should be in the last quarter of this month -- of this year, last quarter of this fiscal year and the other one should be in the quarter 1 of the next fiscal year.

Okay. So back-to-back quarters from Q4 this year onwards?

Yes.

Okay. And the IPO amount, INR 100 crores we have collected, did we line that one, sir? Or do we still have any surplus to use for the future business?

We have utilized the complete amount in the last fiscal year itself.

Okay. And the -- to open the remaining 4 showrooms, are we looking for any equity dilution or any further more debt, sir?

Once we are through with these 2, 3 showrooms that we are planning, we should understand -- gauge the profitability, understand the market and then the company on the ongoing basis will have proper expansion plans. The vision is very clear. It is -- right now, the time is to raise debt. Right now, the time is to optimize the inventory, churn it, 100% the capital market for this.

Sure, sir. And also the nature of business that we do, recently, we are seeing some security concerns for the jewelry shops, even I think one yesterday happened in Hyderabad. Are we sure that all our showrooms, we have the enough security to make sure that no bad incidents will happen -- these kind of situations will not occur for our showrooms?

See, we have gotten security measures. Some unforeseen events in our showroom has also happened previously. But with that, we have a complete 100% insurance. So -- and again, I think, one cannot -- you are true with this statement that one has to be very alert when it comes to the security nature. With this one incident, we are actually alert, and we hope not that anything happens plus the insurance and everything are right on track. So with this expansion, yes, we are cautious about the security measures, we are cautious about the insurance measures. And being an organized company, having investors, being a transparent one, we will be -- we are owing the responsibility of public money. So one has to be very careful. And in that category, we are careful.

Sure, sir. One last question, sir. Now we normally see our volumes are -- I mean, the stock exchange volumes are a little low. Just looking, is there any future like face value split or something to improve our volumes on the exchanges from the investors' perspective?

So as of now, this is the first time I've received the remark on the earnings call. Right now, we do not have any such plans. But once the remark or the feedback has come, let us understand it more going in more deeper. The reason why volumes can be high or low basis on delivery or basis on trading is a different subject altogether. My expertise still remains on giving you the performance that I have committed, which I have delivered in the last year or previously also. We started with a very humble start, the company was very small [indiscernible] have come this way. We have a future to go way forward. These are my strengths. And -- but this feedback is taken. Let us understand it. And rest, I think it is upon the shareholders.

[Operator Instructions] Our next question is from the line of Harshit, an individual investor.

Sorry, if my question is repetitive since I joined just now. [Foreign Language] moving towards diamond jewelry [indiscernible] is also get increasing? So lightweight jewelry fashion [Foreign Language]. Since we are primarily into the antique jewelry, so how do you see the demand have -- I mean, [Foreign Language].

[Foreign Language] and we are selling it quite well. [Foreign Language] they are lowers of gold. We are wanting to stay in this segment. It is a safe segment. [Foreign Language] it is a profitable segment to us. If you see our balance sheet, we are in a better margin position than rest of the peers. We are growing -- we grew nicely. I know this year, we are expected to grow very strongly. [Foreign Language].

[Foreign Language] because they want to localize their manufacturing and they want to [indiscernible] customers, but they are moving more towards the price-sensitive market away from premium markets. So [Foreign Language].

[Foreign Language] This is a very nice point also. So there are pan-India players who are going ahead with manufacturing facilities. They have their front end. They are now aggressively moving towards their back end. So we have back end, which is prepared. We can go for front end. [Foreign Language]. So that is a structural shift that is also happening in the industry apart from the shift of being organized and unorganized.

Understood. [Foreign Language].

[Foreign Language].

[Operator Instructions] Our next question comes from the line of Dipesh Jay Sancheti with Manya Finance.

Just wanted to understand, first of all, I hope the IIJS was very good and you did more business than last year. And if you can give an update on that? And secondly, you have mentioned that you will open 2 showrooms -- launch 2 showrooms in Q1 FY '27. I just wanted to understand the -- with the current gold prices and I mean a little bit of slack in business, how do you see that? You remain confident that these showrooms will be launched at that time? Or do you want to extend that time period?

Mr. Sancheti, [Foreign Language] We are -- lease agreement and all are to sign. And with a matter of 6, 8 months [Foreign Language]. But ultimately, this is the right model to move forward to. [Foreign Language].

Sure. And what is the growth in our store right now? I mean the 1 store which we have, what is the growth? [Foreign Language]

[Foreign Language].

INR 300...

[Foreign Language] growth, approximately 70% or so. And in fact, retail a few years back, 3 years back, 2021, retail retial was INR 24 crores.

So that gives you the confidence that for the next 2 stores also?

Yes, yes.

If you can just throw some light on IIJS also. What was the demand? And did it surpass? I mean, what is the order book right now, which you're having?

35% walk ins [Foreign Language]. We are very happy with the IIJS performance. And that is why have also said that quarter [Foreign Language] we are going to remain in the healthy order book [Foreign Language] that will be delivered in August, September and October. So that's why we are hopeful for the quarter 2 results.

Our next question comes from the line of Sahil Patani from Strokes Capital.

Just a follow-up on my previous question. So I wanted to understand that you were in the process of looking at a CFO. And you -- obviously, Harit, you are worthy interim CFO. So are you still searching for that? Or will you be continuing in that role?

So I think right now, I'll be continuing the role for again an interim -- but it will be an interim role. If not, it will be sooner or later passed on to a professional. And we are wanting that the person who comes as a role of CFO has to have a 2, 3 years of experience when it comes to -- in RBZ itself and then has to be promoted to the role of CFO. So in that matter, nothing -- there is no one who is going to just come from outside and take up the role. Somebody will be promoted from the company itself. That is what right now we are in. But the CFO role, which I am holding is for an interim period only.

Okay. So right now, you will be continuing, but as things...

It is for a small period of time that we'll be continuing.

Our next question comes from the line of Akash Jha with AJ Wealth.

So one question related to our B2B business. I mean, I think we are not very aggressive in acquiring new clients or targeting mid and small retailers unlike our B2B competitors. So I mean, I understand our strategy is to focus more on expanding in the B2C segment. So does this mean we should expect a similar approach going forward? I mean that is not aggressively pursuing and onboarding clients?

So Akash, we are strongly doing B2B exhibitions. This -- let me clear you that we are acquiring new clients. Those are independent jewelers, but we have a very strategic partnership with Titan going on, and it is going strong. Titan, Malabar and those type of corporates are one of the very prominent consumers of RBZ. Now in the -- when we do a retail business like wholesale exhibition like IIJS, I just told that we witnessed a 30% hike in terms of walk-ins. Now those walk-ins are retailers right? So -- and if you check the records, still the volume of job work and wholesale is good. So the -- this is a transition that it is happening in the company that company is opening up, let's say, 2 more stores or so. But when it comes to wholesale, we are keeping our manufacturing uniqueness in place. And because of that, we are driving demand in the B2B segment also. When it -- see, I'll just explain you, it will take one minute more. Retail is a market which is related to budget. So let's say, Ahmedabad market can have a typical market size of, let's say, INR 5,000 crores or XYZ it can have -- but it will have some size in terms of rupees, whereas the wholesale market completely works in terms of volumes. So -- or the manufacturing facility, it works in terms of volume, like let's say, 1 karigar, we can do 1 kg. Now that rate can be INR 50,000 or that rate can be INR 1 lakh. But 1 kg is constant for that karigar. So we have a manufacturing facility of 2,000 kgs. We are doing B2B exhibitions. We are taking orders. We are having new clients in place. We are strengthening, tightening those markets. Last year also, we did well in terms of B2B area, wholesale plus job work. And this year also, we are continuing to do good in that area. Expansion in other geographies will happen because the tonnage will differ in retail. Retail works on budgets, right? [Foreign Language] So this is the reason that there is an expansion in retail. But at the same time, we are not ignoring anyway the B2B part of the story. We are transitioning. [Foreign Language]. That is for sure.

Got it. Got it, sir. And one last question, sir. As we -- I mean, expanding our retail business and our aim to build a brand in this segment, so -- I mean, I wanted to understand how we will manage design exclusivity between what we showcase in our own stores and what we deliver to our clients and because we are also their competitor?

Yes, yes. So even right now, we are doing retail now since 2014. [Foreign Language] then we increased again a little more space. [Foreign Language] and we have been -- for the past many years, we have been into B2B. So we -- as an ethics of the company also we don't take the designs that we sell to corporates or anyone. We make our own individual designs or we get it from the market also, we source it from market. [Foreign Language] we have to maintain that uniqueness and we have to have that ethical barrier also. So given whatever the grade may be, but there is no situation as of now. [Foreign Language] this is something as a promise that we keep that whatever we sell as a design to our corporate clients, we will not keep them in-house or we will not keep them or sell them with our stores. We will have our original designers. We will have our original -- we'll have a design team. We will have original designs that caters to the need of the market, and we can do well with that. And we have done well with that in this past 4, 5 years when it comes to retail.

Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the conference over to the management for closing comments. Over to you, gentlemen.

So thank you all for participating in this earnings conference call. If you have any further questions or you would like to know more about the company, please reach out to our Investor Relations Manager at Valorem Advisors. Thank you.

Thank you. On behalf of RBZ Jewellers Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.