RBZ Jewellers Limited ($RBZJEWEL)

ladies and gentlemen, good day, and welcome to the Q4 FY '26 Earnings Conference Call of RBZ Jewellers Limited, hosted by Valorem Advisors. [Operator Instructions] I now hand the conference over to Ms. Hena Khatri 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 Hena Khatri 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 and full year ended 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 management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any intent decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and the financial year 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 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 Sabhnani, Senior Manager, Accounts and Finance of the company. Without any further delay, I request Mr. Harit Zaveri to start with his opening remarks. Thank you, and over to you, sir.

Thank you, Hena, and good evening, everyone. Welcome to our earnings conference call for discussing our performance for the fourth quarter financial year 2026. Before I give you the financials and operational highlights of the period under review, let me first start by giving 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 manufacturers of gold jewelry transforming itself into a B2C segment. We are a unique jewelry company with diversified business model wherein we offer products to national retailers on a wholesale and job work basis as well as direct to consumers from our flagship retail store in Ahmedabad. We have a state-of-art manufacturing facility equipped with advanced casting laser, 3D pending technologies supported by 280-plus professionals and 200 still artisans. 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 collection 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, occasional and daily ware jewelry across diverse price ranges. The product portfolio features of diverse selection of gold, silver, studied and jewelry, including bangles, chains, necklace, rings, earings, et cetera. We are also planning to expand our retail presence in Rajkot, Surat and Ahmedabad as well. Now coming to the financial highlights for the period energy. The company recorded reported a healthy performance during the quarter with the revenue growth broadly in line with the guidance and expectations shared with investors in the previous quarter. The growth momentum was supported by festive demand, particularly during Akshaya Tritiya season. For the quarter under review, revenue from operations stood at INR 190 crores, registering a strong growth of 38% Y-on-Y. EBITDA for the quarter came in INR 21 crores, reflecting a healthy growth of 46%, with EBITDA margins improving to 11.19%, up 63 basis points year-on-year. Profit after tax for the quarter increased by 36% year-on-year to INR 12 crores, translating the PAT margins of INR 6.17 crores -- 6.17%. For the financial year 2026, revenue from operations stood at INR 637 crores, reflecting the growth of 20% year-on-year. EBITDA for the year increased significantly by 43% to INR 92 crores, with EBITDA margins improving to 14.44% and expansion of 233 basis points. Profit after tax for the yearly increased by 41% year-on-year, INR 55 crores with PAT margins at 8.61%, reflecting continued improvement in profitability and operating efficiency. In terms of segmental performance for the quarter, retail revenue stood at INR 121 crores, registering a healthy growth of 31% year-on-year. Wholesale revenues stood at INR 67 crores, reflecting a strong growth of 57% Y-o-Y while job work revenue stood at approximately INR 1 crore. Now coming to the operational highlights of the period under review. During the quarter, we actively participated in key exhibitions, including national level and state level across B2B and B2C segments further strengthening the brand visibility, market presence and customer outreach across market. We launched multiple digital campaigns to strengthen customer engagement and brand visibility across both occasion wear and daily wear categories. In occasion ware segment campaigns such as Shwet, Kesudo for Holi and red breakers showcase companies gold Polki and antique jewelry collections. Additionally, the company continued to strengthen the positioning of its light weight and elegantly designed daily portfolio through targeted digital campaigns such as Viva and Polk-Bridal across social media platforms, enhancing brand recall and customer outreach. During the quarter, we launched 730 new designs averaging 8 designs per day, primarily in occasion wear segment further strengthening our product portfolio, Additionally, we are set to commence certain products in-house in the daily wear segment from quarter 1 FY '27 with delegated infrastructure in place. On the retail front, encouraged by the strong performance of our Ahmedabad store, we are now planning to expand in other key Gujarat markets, including Surat and Rajkot, both the storms are targeted to commence operations by quarter 2 of FY '27. Further, we are actively exploring strategic location in Eastern Ahmedabad and nearby cities such as Gandhi Nagar for midsized stores around 5,000 square feet and aimed at strengthening the regional presence and driving incremental growth. Overall, we concluded the financial year 2026 on a strong note and remain focused on carrying this momentum into the current fiscal year, supported by the preparation of upcoming wedding season and key regional festive across core markets. We continue to witness steady consumer demand in occasion wear segment ahead of the wedding season, while also optimizing our inventory mix with a greater focus on lightweight and budget-friendly product offering to cater to evolving consumer preference. With this, I now open the floor for questions and answer session. Thank you.

[Operator Instructions] We take the first question from the line of Udit Shah from Vimala Capital.

I just had a few questions. So first is due to recent increase in custom duty and the advance on import of gold that was announced yesterday. Do you see any impact on volumes or revenue or margins?

So see, these are very immediate events or it has just been a few days that these all things are happening. And generally, we would take some time, let's say, a week or 2, in fact, a little bit more to understand what -- how the market and the consumers are reacting. While I understand that there are news and all, but this type of appeals the government has also done in the past. We have seen in the previous government that things were announced. Now what we are really waiting or what we are really wanting to see is what is happening on the actual ground levels, right? Like are the customers slowing down? Or is there exchange happening more? So as like you, even we are studying. Certainly, I think these restrictions are not advantageous, but up to what level there is an impact this is crucial. Now when you talk about the industry quarter 1 post Akshaya Tritiya remains low in terms of sentiments and all in the buying -- there is no buying season as such in late quarter 1. So even if there is an impact on -- it can be quite low because this has not come in the period of Navratri, Diwali this type of announcements. So this is also seen as a positive sign that, okay, what will happen in the quarter -- upcoming quarters and in the year, I know we have to just understand and see. But generally, like you, we are also understanding what is happening on ground. It doesn't look that discouraging, but certainly, on the wholesome perspective, we have witnessed things like this in the past. I don't have my comments on this until unless there is something really concrete to tell you. But we are on it...

Sure, sir. And then the second question is slightly more related to the geopolitical scenario right now. So has that changed any of our strategies around going particularly around the gold metal loan that we have been doing it in the past, but are we anticipating to increase that in future? Or do we plan to keep it at the same level?

So we will be exploring GML in this financial year perhaps for buying -- the new buying of gold that will happen for the upcoming stores. And we -- how we generally play a safeguard is we have our weighted inventory at about 20% to 25% lower than the current market price. So whatever we buy, we try to maintain it in the range of, let's say, whatever the new buying or new absorption of gold has happened, it should still -- the weighted average still has to remain at least 15% lower to current market price. Now so if there is a correction in all, we can straightaway hedge it on the forward markets. So to answer your question, yes, we are looking for GML. The practices are quite good. We are not a company who is looking forward to realize all our profits once the gold price has gone up and jump in to sell all the gold in the market, et cetera. We maintain certain percentage of certain percentage wherein of cushion that is required. Even if there's an absorption of gold, to what extent can absorb? And then obviously, once the pricing are coming to parity, we are sure to hedge it.

We take the next question from the line of Raj Shah from RK Family Office.

Am I audible?

Yes, Raj.

Yes. So this year, there was a volume degrowth in our job box business. And in the last quarter, you had told that job box services are in demand and due to the price rise, job work of services are in demand. So what is the outlook for FY '27? How many AGs do we target? And what is the order book?

So generally, if you see the value of merchandise in job work last year and this year, you will find that there is a significant increase. Now when you say about the quantity, if the gold price has doubled and, let's say, the revenue has not doubled, that means there is certainly going to be a dip in terms of quantity. Now what we see and what I had told in the last quarter was that there is a preference that corporate jewelers are having because of steep increase in price that they are going for job work instead of wholesale business. And thus, there is a change in how the demand is getting to us. And we, as a company, will always prefer job work because we get gold a little bit in advance, hence it's a better thing for us. But given that in quarter 4, we are seeing some difference. In quarter 4, the wholesale sales actually increased to 56%. And some of the people who were doing job work tilted their demand into wholesale. The better way of looking at this is combining the B2B segment of both the streams that is job work KG plus wholesale KGs or -- and then multiply it by the average value. So just to give you a perspective, the total amount of value of merchandise this year that we have sold is INR 1,251 crores. The retail segment has done INR 408 crores, and the B2B segment has done INR 843 crores. So this will be a better picture to look at. And thus both the things will get combined. So -- and looking forward, we don't know whether the demand will -- is going to come from job work much or the demand is going to come from the wholesale. But in whichever way the B2B demand is coming, we are just equipping ourselves to serve it. If you ask my preference, I would really go for job work despite it not should be to...

Very correct. So the reason I asked this question because I think in the current year, like bulk of like a significant portion of our profit is because of our job work services. And if in next year, the job work services are lower, then it will take a good hit on other profits. So that is the reason why I'm asking about this.

So if you check the value of merchandise now if it is coming from job work for wholesale, the value of merchandise should actually increase. What is the value of merchandise? This year, it is INR 1,251 crores. Now say, next year, job work remains -- for an example, just a case if job work remains consistent at, let's say, INR 621 crores and wholesale increases, let's gain a couple of hundred crores. Still the bottom will be secured. If you're talking about margins that the margins will improve and improve depending on the sales mix because job work is contributing highly in terms of the motor margins, et cetera, then your point is valid. But if you're talking about the absolute number change, then we should look at the value of merchandise.

Okay. Got it. Then currently, there is INR 336 crore KG of gold on our balance sheet. And the gold prices rise and there is a reduction in volumes in all our 3 segments because of, of course, price has increased. So do we still need INR 200 crore more gold for Rajkot and Surat or it has reduced and some of our current goal can transfer -- the transfer.

So there is a INR 336 crores of inventory, which is lying, I don't think it's KG. That is fine. So -- but the intention of your question is quite clear that how much do we need in Surat and Rajkot. So these are large format stores like how we have in Ahmedabad. A typical large format store will need an inventory of somewhere around INR 125 crores to INR 150 crores. So there will be inventory shift. There will be an additional debt which will be required. And hence, all the showrooms will be funded. We see Surat and Rajkot both is as a very potential market. Ahmedabad ranks #7, Surat ranks #9 and Rajkot ranks in the top 20 economies of India. Hence, the large stores are -- there has to be a large store, and it is in the right prominent location where the gold market is basically situated. And thus, the amount of inventory that we are forecasting is required doing all the competitor analysis, the consumers, et cetera. We have previously done exhibitions also in these areas to -- and we have got sufficient marketing budget to push it.

So sir, the reason I'm asking because...

Raj, I would request you to...

It's in continuation. It's in continuation. This is the last question I'm asking. So what I'm asking is gold price has risen and volumes have reduced. And because of that, do you think that the earlier estimate of our INR 150 crore, INR 125 crore of gold in our new showrooms are required because due to rise in gold prices, volumes have decreased. That's why I'm asking that INR 120 crore, INR 150 crore had it reduced. And because volumes is not coming in our current business, some of our current gold can get transferred to for Rajkot and Surat?

Correct. Correct. So again, I think I had answered this. So there will be a transfer of stock in terms of KGs. But your fundamental question was that if we are allocating some rupees, then will it get reduced? The answer is no. Why? Because people generally when the gold prices are rising, still their value does not -- that the budget does not change, [Foreign Language] like for an example. Okay. Now [Foreign Language], that is different. But generally, people -- the behavior of consumers to buy from a budget perspective. Now...

It will be increased, right? Our gold will be a peaked after we take this loan because currently, INR 120 crores are in short term debt.

We want to stay -- to keep the debt levels at 1:1 ratio ideally or 1:1 point, maybe leverage to 1.4, 1.5. But generally, right now, I think for these 4 showrooms, it will be around 1:1.2 for this fiscal year that I am understanding.

We take the next question from the line of Shikhar Mundra from Veeva Commercial Limited.

Haritji, congrats good set of numbers. What is the approximate inventory gains this year because of the increase in gold prices?

So it's a nice question. So currently, I do not have a number on it. But in future, let me take this up into a number of categories and et cetera, stuff. But I think assuming that around INR 10 crores to INR 12 crores or INR 10 crores to INR 11 crores to INR 12 crores should be an inventory gain number. That is what we are anticipating on the -- I mean, if gold not to increase, I think somewhere around INR 40 crores, INR 45 crores should be the pact. I still see this is just a very, very -- don't take me on numbers because if we are having it, I would have said it. Right now, we don't have that inventory gain number as such. What we really have is the cushion that we have from the current market price to the inventory, and that is around 20%, 25%.

Okay. But like assuming no inventory gains, then what would have been our profit growth like compared to last year, FY '25, I'm just trying to get. So if you say INR 40 crores, INR 45 crores that's not a...

Yes. So supposedly, it -- so generally, when we calculate gold if we were to do GML, like how other players do, then the interest cost should have been half, right? So we will be seeing somewhere around INR 8 crores in our interest cost. And subtract the inventory gain maybe. And that will be the max. But exactly -- if I could have the number, I would have given it to you. Right now, we don't. But I hope that in future, this number of transparency will be better. I just hope. There is no commitment.

Got it. Got it. Got it. And my second question is, our trade receivables have jumped like from 17 to 56, what's the reason for the same? So this must be...

24th of March, there was an exhibition in Bangalore, IHS Tritya, and now there because of exhibitions, there was a spike in sales. That's it. Akshaya Tritiya this year came in a little early if you understand, from 30th of April 2025 to 19th April 2026. Hence, that last 10 days of March were a little bit up -- there was a little bit spike in sales. And the data. Now it has come down again to a normal level.

We take the next question from the line of Yash from Dana Equity.

So just wanted to understand, I think you shared a number I kind of missed it. What would be the inventory required for the next upcoming 2 stores?

So inventory generally, both the stores are large format stores. We anticipate about INR 125 crores to INR 150 crores of inventory for each store.

Are we anticipating any sort of dilution to fund this?

No. I think the days of debt plus inventory transfer, plus the profit gain would actually suffice it.

Okay. As far as the next 3 years are concerned, because I think you're very focused on Gujarat as you state, right? Just wanted to understand by the focus on Gujarat, is it because you're a local player there? Because, I mean, you anyways, do a lot of wholesale, right? So assuming you have supply chain networks throughout, why not Mumbai, right? Why not any other city, just curious, not questioning anything.

Yes. So that is fine. It's a good question, in fact. So if you look at Gujarat and pinpoint the pan-India players that are present in Gujarat, there are 4 to 5 players who are having approximately a 0-level presence in Gujarat. They are having maybe some 6, 7 stores. Just take out the data from any stats and maybe all the pan India who can take it out. Apart from one player, there is no other player who is parented Gujarat market or being successful. And in Gujarat, there is particularly no chain brand. So that's a clear white space that we are having.

But why is that?

Why is that if the market is great. There are southern pan-India jewelers who have not been able to cater to this market well. And hence, we are in -- we have an opportunity over here. I mean we should realize this as fast as possible. We should become good jeweler a chain store in Gujarat and because there's a clean white space. Just take out the number. I cannot -- but if you take out a number of, let's say, an Eastern player or a Southern player having X number of stores in a particular state in which it was their home ground, I think those many numbers of stores we should be having in our home ground, if the GDP data and population data matches and which matches right? Gujarat is a prosperous state, and that's a clear white space available. And hence, this thought, after a lot of debates and things have come out to be very clear that yes, we should go forward for this thing.

But is it -- do you -- so just the original question. Do you think in the next 3 years or 4 years or 5 years when you're looking at growing your retail business, which you obviously are, do you think it's wise to be concentrated in just one state. I got your POV in terms of the lack of retail chain presence in organized in Gujarat, but what would you think like 5 years ahead or 3 years ahead? Do you think it's wise for...

There will be -- there is no Yes, yes. So there is a vision and aspirations 100% are there. in future to expand. We are certainly -- right now, we are a single flagship store. We are going to have, let's say, 4 stores in this calendar year. But and we are talking about becoming a good player in state of Gujarat. But we are not restricted to Gujarat itself. Let us first play out this 4, 5 stores, et cetera, well, and let the pulse come. I think we are 100% aggressive in terms of scaling. If you look at post IPO things, you will understand that when we came to IPO our turnover of around INR 300 crores. Now we have reached, let's say, INR 600 crores. The profit margin was at level was 22%. We have reached 50, 55. We'll be scaling and the company has got aspirations to become big. We are not restricting to any of our states or anything like that. Let the opportunity come capital.

Right. So what will...

Yash, I request you to please join back the queue for follow-up questions. [Operator Instructions] We take the next question from the line of Rajan Darpasi from NP Analyst.

Am I audible?

Yes, you are audible.

Yes. So my first question is Initially, we plan that we are going to tap on the 2 cores like 1 in early Q2 and the other 1 may be in late Q2. So is the time line still correct? And about the showroom third and showroom fourth, do we have any estimated time lines now previously because you didn't provide any estimated time lines for the third and fourth showroom which you're talking?

Yes. So I think the time lines for Surat and Rajkot remains same. And the time lines for the third and the fourth store, still, it is a little early to give, but we should be opening in the season time.

But within this year?

Yes, within this calendar year.

Okay. And the other question would be regarding a sharp increase in the fixed basis as well as a sharp increase in the print work in progress. So is it related to these 2 showrooms which are going to be open in Q2?

Correct.

Okay. And as you mentioned that Akshaya Tritiya came in early this year, right, on 19th of April and on a big sale in the Bangalore side in the late of March. And that increase to 56 So what is the current status of receivables as of today?

The current status has gone to a normal level, basically, cannot actually disclose the number, but you will certainly get it in the quarter 1 of the results. But yes, there was a spike and it has now reduced. Generally, the data taste in are approximately 30 days. So the realization has happened.

Okay. And how this quarter has been for us up until to part since because now there has been a peak and industry-wide is sentiment is...

No, no, no, very honestly, I'll tell you, see, post Modi, we are also gauging, right, and you are also engaging. And whatever the anticipation is, I think ground level reality will matter the most. All the assumptions, et cetera, we will not be working on that. We will be working on what the customers and the real-time demand is. Now how has been April? April has been very good.

We take the next question from the line of Om Kola from Wealth Advisory.

Am I audible?

Yes, please go ahead.

Sir, my question is recently that like our Prime Minister told that everyone should not purchase gold for 1 year, right? And also, we are planning to fund new stores in Q2 and Q3, right? So how we are going to face the situation, like what will be our strategy to pull the demand and all? So this is my first question.

So see, the Prime Minister has requested -- you all know what the announcement is. And let us see what the impact of that words are and how will it remain. India is much rooted and a traditional country. So certainly, if there is wedding, then the Prime Minister has said, et cetera, stuff, will that really stop the mining of gold jewelry and you need to have social status. There is a lot of traditions that are going on. I don't think so things are going to really -- let's see, again, what you're telling me about what you're asking me is about strategy and what we are seeing is that there is a huge market, there is a new market that we are exploring. And we are in this game for a very long term. And hence, these kind of things will come. And because of our marketing spend, if you were expecting X, it will be X minus some percentage, but in the overall city, it has to really grow. Currently, I really don't have that level of -- I really don't have exact strategy saying that exchange of gold is one thing that everyone is looking forward. Likewise, we will also look forward. Is that going to make everything just perfectly okay? We don't know. The best part about our company is, we are in occasion jewelry more. Hence, all the demand is linked through weddings. So daily wear purchases here and there can really take a pause, but I don't think so daily wear, occasion wear we will actually take a pause. And perhaps let us go all in for the occasion -- the upcoming market like in the season time, I think rest -- see, we, as an organization, will go all in for the season times. We will not -- I understand the sentiments and et cetera, but the announcement has come on a very favorable time. It's low season time. If the announcement has come on the Akshaya Tritiya day and et cetera, it will be very different, but not that condition as of now. And let us see. Let us see, yes.

We take the next question from the line of Sourav Dole from Fies Asset Management.

I have 2 questions. First is, when you say the stores that you plan to have in, let's say, a city like Gandhi Nagar, I'm curious to know why would you start with a small store, is it for capital constraints or you're not as positive about this particular market versus net state or Ahmedabad market? So that is question one. And the second one is, can you talk about the 2 stores code. What is the -- how much time will it take for these stores to kind of come to Ahmedabad-level sales? You did about 400-odd in FY '26 from Ahmedabad. I mean roughly on a volume and equivalent basis, when do you think it will -- I mean, Surat, Rajkot touched these levels.

So first question was Gandhi Nagar location. Gandhi Nagar comes into the northern side of Ahmedabad. From center Ahmedabad, it's 10-kilometer or 12-kilometer radius kind of circle city. And Gandhi Nagar just comes at around 15 kilometers or so. It's a very good location to have -- basically, we are having a presence in the North of Ahmedabad. It is going to act as a feeder store and also certain kind of -- it's the right catchment area because it is any catchment, which is spread 7 kilometers far is considered to be a good area to open a retail store. It is itself a nice city. It is one of the prominent city in Gujarat. A lot of advantages is what we are able to see. There is a market over there. And also the brand itself, the brand presence -- if the people are seeing multiple modes of that same brand again and again here and there in the city, the brand is going to increase, the visibility is going to increase basically. So yes, Gandhi Nagar seems to a very promising and strategic location. The second store will be on the eastern side of Ahmedabad. Again, it will really have a good impact on the brand overall because then we are having 3 stores in Ahmedabad or in and around in Ahmedabad. Now the second question about Surat and Rajkot, how the sales are going to turn up, et cetera. See, we are -- whenever the store is happening, it is happening for a very long period of time. We -- generally, we were long-term lease agreement. So we -- this is too much a nascent kind of a stage wherein you would comment anything. And I don't know, ultimately, what it will land to. But let us look -- let us be the time pass, let a month past we will understand how the market is reacting, right? There might be another news coming up suddenly. We don't know. The market will change sentiments. And I think you people are much better in understanding how quickly market changes the sentiment. So we will just wait and watch. We are good at our domain at what we do, and we will continue to do that meet expansion, be it generating better profitability, be it growing the organization, be it fundamentally investing in the company's infrastructure, this is all things that we will continuously do.

Right. The first question, the main thing was that why would you start with a smaller store, is it just because you wanted to be single store...

It's a strategy. It's a large format, mid-form and small format are 3 formats of stores that this company will generally have. We have got 2 large format stores in Surat and Rajkot and 2 mid-form stores to start with Gandhi Nagar and Nagar, which are considered to be a strategic location. So any market which has a lesser population will have mid format stores. Let's say, if a market has a 50 lakh population, like Ahmedabad some 70 lakh, 80 lakh population. This will be a large format stores go over there. if Rajkot market has a population of, let's say, 20 lakhs, 30 lakhs to be a large forever. If for a market is having the population of, let's say, 10 lakh people or 8 lakh people or 6 lakh people, then there will be a good format store. It depends on the size of the market, and then the decision will be made. It has got nothing to do with other things.

We take the next question from the line of Sahil Pattani from Strokes Capital.

So I wanted to understand what is the capacity utilization for FY '26?

The capacity utilization is approximately 50% or 55%.

Okay. I know in one of your slides, you mentioned that you are targeting maximum peak capacity utilization by '26. So is this, can we say like 50% to 55 percentage of peak? Or do you think we have more room to grow before like going into like further CapEx and gaining on more expansion?

See, when I IPO, it was in 2023 December, let's say, '24 fiscal year, the price was INR 16,000, okay? My single was able to do, let's say, 800 grams to 1,000 grams per month. And hence, I calculate the capacity to be, let's say, 2 tonnes, they have 200 [Foreign Language]. Now the gold prices has increased from INR 60,000 to INR 1.5 lakh. Now the same artesian is still doing 1,000 grams, okay? He has not -- his potential is to do 1,000 grams. So in rupee-wise, my capacity has increased to, let's say, INR 3,000 crores from, let's say, INR 1,200 crores before, right, when I did the IPO. So because of the value of commodity price gets getting increased, it is -- right now, we're in a comfortable state still despite doubling our revenue. And I think right now, we are not looking for any kind of CapEx in manufacturing setup. We are in a comfortable scenario.

Got it. Got it. And my second question is, Harit, with these 4 new stores coming up this year, by how much are you expecting to grow your top line and bottom line for '27?

I think in the scenarios like this, we would really not give out the guidance for this year. Not that we are not optimistic for it or anything, but let us reserve this guidance. Let us talk about the month of April or mid-May. It has been good. April has been very good. May we are yet to have 15 days more. So we cannot even comment about them today. But I think we -- to talk about future or coming season or et cetera, we are optimistic. I can just say that we are investing, but we don't know exactly what is going to be -- how the scenarios are going to turn up, et cetera, et cetera, et cetera. The market is huge, market is big. It is not that India is a concrete consumer market. So nothing inverse is going to happen. We are -- and hence, we are looking for the market very aggressively. That might be a hair cut here and there. But we don't know even if that is going to happen or not. Let us wait and watch. There is no guidance for this year, frankly saying.

Okay. Yes, that is fine. Basically because previously, whenever you've guided, you've more or less met it, right? So it's fine that you are taking a pragmatic approach. But we expect in the coming quarters, when you see kind of the picture getting clear, you kind of give some sort of in the future.

I would be very honest in that case, you would be getting guidance or et cetera, stuff. Once -- see, it is too early. The government has just announced it in a very recent time. We -- the market has reacted in a different way. We are waiting how the consumers are reacting. And it is too less time for me to judge, generalize or understand anything and tell you.

We take the next question from the line of Deepesh Sancheti from Maanya Finance.

Can you hear me? Can you hear me?

Yes.

Harit, sorry, Id joined late, just landed that's why. Just wanted to understand, I have only 2 questions. One with Shingar coming into wedding jewelry. How much of a competition would you face? Have you -- especially into the B2B?

Not really. I mean, seeing there -- I think they are coming into a plain gold segment of wedding jewelry. We are into an antique segment of bedding juries. So as such, there is no competition. On the other side, they are -- the Ahmedabad antique jewelry is very different from another regional antiquity jewelry. And generally, when a company comes, it takes time to mature itself in terms of any goods, whatever the product category they offer. Right now, we are not seeing any impact of Shingar as such.

Okay. Great. That's very happy to do. And the second thing is now with the current I mean with gold prices increasing, the government focus on reducing gold imports with more of -- especially with this duty and sales increasing, a lot of gold from the black market would come in. How much do you see that the corporate business will be affected because of this, because there will be a difference in the prices which the corporate will offer and what the normal jewelers can offer?

So see, you are partially correct that the prices of the unorganized or the local drillers would be different from the corporate jewelers or their cost would be different, let's say. But the consumer market will run on the brands and you know the trust that they have, et cetera. So let me let this again too soon for to gauge anything because the news are very recent. Let the time pass. I think a couple of months or 1 month at least to observe will be a very nice thing. In fact, a quarter will be a very right thing. I think by August 12, when we come up, you should be able to say something more better in concrete. And how the IIJS turns up, I know you have been visiting IIJS and et cetera. I think market sentiment -- so I think let's just look at the market. And I think still from the company's point of view, we are optimistic, but at the same time, we are conservative. We are conservative in the sense that we will -- we are not the -- from the current market level, the inventory is 20%, 25% conservatively kept. And I think those are the good signals that we are having. Otherwise, we are optimistic in terms of a long-term expansion plan.

Right. And if I can squeeze in one more question, that how confident are you, especially with the new store openings you think that even in this kind of scenario, you will be having all the openings on the prescribed date only or you want to go slow. How you as an entrepreneur are looking into this?

So we want to enter the market in a season time. Market is big. Opportunity is there. There is a clear transformation from the unorganized market to the organized market. We really think there is an opportunity, doing all the studies about the pan-India players and et cetera, in Gujrat, their presence, et cetera, is really motivating us to go ahead very as fast as possible and covering the market on that. I think we should -- from the company's point of view, we should not waste more time and scale as much as possible. Short-term hiccups and all are okay. We are here for the business and for the long term. So there is no question about consumption, and there is no question about the transformation, both are happening. The short-term things can -- yes. I mean, ultimately, if you see, Modi has told that 1 year purchase [Foreign Language]. It will not be -- it is not going to be long term otherwise also, this is a lighter note, but the statement will let us see in a month or 2, what is actually happening. Otherwise, we are in for store expansions.

We take the next question from the line of Aranka from Aurum Capital.

Sir, I want to understand, you made around INR 92 crores EBITDA in FY '26. So can you provide a breakup how much of it was in B2C and some B2B like a ballpark number to understand?

I think I don't have the numbers very much handy as of now. You are talking about margins and et cetera. But what I can really tell you is I think from the revenue contribution side, sales of merchandise, if you look at it, we have INR 1,251 crores, which is the total value of merchandise. Now if you divide into B2C and B2B around INR 850 crores or INR 840 crores is into B2B and INR 408 crores are into retail. Now breaking that up, I think it's 33:66 ratio. And generally, we get a lesser margins in wholesale and in the B2B segment and in the B2C segment. I think there is a 3% or so margin difference. So I think that will be sufficient for me to derive every numbers, be it EBITDA, OPM, et cetera.

Okay. And also like we are into antiwear is like the highest margin against margin segments in terms of markups or whatever.

1 In terms of gold jewelry yes., Diamond would be the highest margin segment. But in gold jewelry. Antique will be the highest margins.

Okay. So generally, like what -- the difference between gross margins in B2B and B2C would be just 3%.

So when you talk about B2B and B2C, the gross margins I was talking about the OPM, but even if you say the gross margin, it depends on the national retailer or the regional retailer or the local jeweler whom you sell.

Would you like provide you a range at which like, for example, I think retail would be around 10% to 15% gross margins you might have and the...

Yes, retail would be around 12% or 14% GP. Wholesale will be around 7% to 8% GP. B2B will be around 6% to 7% and 8% I've got a couple of questions. I will get back on.

We take the next question from the line of Raj Shah from RK Family Office.

Am I audible?

Yes, Raj.

Yes. So sir, after considering Rajkot and Surat, what will be the peak debt? And are we comfortable at that number.

See, business is fundamentally right. Now leveraging that, we are right now under leveraged. I think we are very much comfortable given the position we are in to even have this year, we are having an equity of INR 300 crores. By the time we open showroom half year, we are almost in the quarter 2 of the next year. So I think we are in a very comfortable situation with respect to net equity ratios, et cetera. I don't see any challenge over there.

So 1:1, we are targeting like INR 300 crores of equity and INR 300 crores of debt overall like broadly?

1:1, 1.2:1, 1.5:1 is what we are targeting. It should be good. I mean, that's the right -- we particularly believe even if you see in the peers competition, et cetera. People work at high debt levels and meet any of the larger companies, et cetera. And I think those debts are reasonable enough. 1:1 is in fact the right thing, but we can leverage it to 1 to 1.5 also.

We take the next question from the line of Rishi Kotari from Capital Bridge Advisors.

On the retail front...

Audio is not clear. Could you please use handset.

Is it audible now?

Yes, please,.

On the retail front, which more or less company's focus is on going forward. As you said that we have 2 sets of the retail store and one is flagship and others midterm market segment kind of a format, right? So that you categorize as secular population thing that all the sort of open this particular thing. We have our retail format channel property. But those factors that influence the sort of retail format we go with population recur were open to from that.

So basically, the demographic study that you'll be asking for, what is the grammage of gold consumption per capita is what will be understanding. We'll be sending the competitive market. We'll be studying the space that we really have inside that area, et cetera. We would be wanting to study in the catchment area of, let's say, around 7, 6 kilometers, do we have another opportunity? What -- there's a lot of research that goes into it. But ultimately, ultimately, if there is a marketplace -- and if it's a growing market space place, we would certainly want to go in. We have an understanding about merchandise quite deeply as we are attracting into the same market of Gujarat, right? So Ahmedabad, we have got a very good success despite having 0 legacy. The store is new, fresh, the brand is new fresh, and we have prove that in the few years in retail, even in the jewelry segment, things can roll up very easily. And it gives us a real motivation to actually go forward and live in other marketplaces.

Okay. Understood. Makes sense. So following up to this question, I mean, of course, you already have to open new stores in but do we have any sort of future presides I know it's a bit early to ask for it that or positivity of think there's a small set of jewelry shop format that I think most of the market that you're looking at is pretty much on organization. I think that's where the real market capture could be for us. So we have that sort of future focus for the company?

See, if you're talking about placing the brand into Tier 3 or Tier 4 cities, if there is a consumption, I mean, why won't the brand go let us map out which are the low-hanging fruits. And this is on that the strategy will be prepared there to really place ourselves or not. Currently, if you look at it in Gujarat, Ahmedabad, Surat, Rajkot, Baroda are 4 prominent cities. We should be targeting at opening these kind of cities and making the brand more stronger by opening more stores within the same city. So if there is a good opportunity for a Tier 3 or Tier 4 city, we see that we will go forward and we will do it. But as of now, in this calendar year, 4 stores is what is coming up, 2 large and 2 mid. The company is open for any kind of any kind of retail stores for the coming year -- in the coming years, if the opportunity is there.

We take the next question from the line of Yash from Dana Equity.

Yes. So just wanted to understand, I kind of understood what you just explained about how your wholesale manufacturing capacities at 50% to 60%. With our retail growth endeavor for the next 2, 3 years, when you think our capacity will hit higher 80, 85 digit numbers in terms of capacity utilization?

See, even if the retail stores are coming, the retail model is also getting the work done, we are also getting the job work done from other vendor players. So this first is that using the in-house capacity versus doing the combination of getting the products sourced plus doing in-house. The combination really works well. And at least for a couple of years, let us understand where the gold price is heading, what is actually happening and then take a call. See, to increase the capacity is not -- it is not going to be that much of a problem. The supply basically is not a problem. So the issue would be that if the gold price jumps from here to, let's say, 2x, I don't know whether it's going to happen on or again, [ 60,000 ] we thought the prices are high. So if there will be almost no need of increasing capacity from here on. But let us study, let us understand the market. Right now, we are at 50%, 55%, that is the truth.

Right. My second question is regarding this whole started deli segment. that seems to be the highest margin, highest growth business. You're looking at Bluestone, CaraLane, a couple of new players coming in, especially, I don't know about West India, but at least as far as South India is concerned, state is doing very well in terms of margins, growth revenue growth, top line growth. What -- I do get the focus on anti jewelry. But I want to understand from you that from lab-grown diamonds to studded jewelry, every day jewelry, what's your view on these segments? And when are we going to do something in this sort of market?

So right now, we are not doing lab-grown diamonds. Right now, we are into the daily wear jewelery and the occasion jewelery be antique diamonds. How much aggressively we are looking for steel that is a diamond July that if you're asking that type of a question, company will have -- a company as a whole has a view of still being into the segment of antique jewelry and realizing its potential. So you have seen that, okay, diametrally does well in terms of margin. But in gold category, being the safest category, antique has a very good margins. So -- and it's a very safe thing to play. Now with gold, you can really take the -- you can really take the risk of expansion and there is no cash flow stoppage in this because gold itself is liquid. So it's a good place to be and if you strategically look at it, you can explore, experiment. And if it fails even, let's say, 5%, 10%, then you can remelt it and reuse it. With diamond it becomes tough, you need a very different kind of an ecosystem, et cetera. We, as a company, will be developing that. And the strength is antique jewelry, we will be utilizing the strength for the expansion. So we are keen on taking aggressive steps to in all the categories or taking forward the steps in all the categories, but aggressively looking at antique right now.

Right. No. But do you see potential in the categories that I just mentioned to you.

Yes, yes, I see potential in diamond jewelry, studded jewelry. Why not, there is a market.

Right. Because obviously, I mean, just on the diamond jewelry, I did read a post by economic desk saying diamond national diamond jewelry hit a decade low or 2 decade in terms of their pricing, right, natural diamonds jewelry. So that is one thing. And the second thing is the at least as far as the next generation is concerned, right, the Gen Z or the generation above that. As far as they are concerned, I think they are more into everyday jewelry, nothing too flashy and Solitaire and lab-grown diamonds and study were in a very basic sense. So you only hope to kind of look at that segment too a little more seriously. The antique is a great segment, but I also believe that the study will rise low capital-intensive business compared to pure gold business.

I mean, let us look at the market, see the size of market for antique jewelry is very big vague, so when you're talking about other markets, like are we having diamonds? Yes, we are having diamonds in the category. Are we looking forward for that thing? Yes, we are looking forward for nothing. Now lab-grown and all, we are really not looking for it. And as for the consumer behavior goes, the Gen Z and all, the first shopping that any girl does by herself is her wedding jewelry, right? So you can really take an example of your own families that when a girl genuinely selects a jewelry for her own, that is the first and is always the bridal location. And post then, when she enters the stage of 30s, she basically enters into the daily wear segments of jewelries, celebrating our anniversaries and joyous occasions, et cetera. So when they are selecting the part jewelry, we are right on it. We are sitting on the antique jewelry segment. So who is catering to the first customer who is going to be a Gen Z customer looking forward for a gold jewelry, it will be our brand, the positioning way. I mean the occasion wear, what you're talking about daily were, yes, Gen Z will wear daily wear, but when are they going to daily wear jewelry like gold and all-in college times? No. Post the college time when they are getting married, they are getting married in the occasion wear and then they will be buying the daily jewelry on their any versus, et cetera, what I mentioned. Hence, this is how the consumer behavior is working for us.

We take the next question from the line of Rajendra Pasi from MP Analyst.

Am audible?

Yes. Yes.

So I wanted to ask like as the gold prices have risen so much, right? So across industry, we are seeing a trend that there will be exchange of gold will happen more as compared to the new gold buying by the customer. So what kind of trends are we seeing right now? And what do you anticipate from this part?

See, the sense of -- it is too early to comment on what the trend that we are seeing. Like you, we are also observing. Are there walk-ins in the store? Yes, there are walk-ins in the store. Is the business happening? The business is happening. Now if you're telling me to show a trend, basically, we will be motivating people to exchange gold. Do they really want to exchange? Depends on them. Do they want to listen, not listen behave in whatever ways we are here to analyze and then react, okay? Our intention is to sell jewelry and whichever medium it is possible, be it exchange or be it a fresh buy. Now I think more or less, it is -- the gold prices have risen, et cetera. This has happened in past, in historic ways, gold has always risen. And we see that generally 40% to 50% of the jewelry is exchanged and 40% to 50% -- or 50% to 60% is a new buy. Will this trend change? I don't know. Let me gauge it for at least a month or 2 or a quarter.

As of now, you're saying that it is already...

Yes, it is showing the same momentum a little bit exchange has increased, but this is too soon or data. I mean, what I will tell you in 3, 5, 10 days.

Yes, that is fine. And my second question is like from -- and if I have heard it correctly, you mentioned that from the starting of FY '27, we have started on the segment as well. So what kind of growth are we expecting? Or do we have any internal numbers from the retail side? Or what kind of products are we expecting? Or have you had any discussions from our wholesale side, whether it is from the job work or B2B side? So any inside...

So we are in daily wear segment, we are already doing good delivers in terms of our retail store. The consumption is approximately 35% of daily wear and 65% of occasion wear. Now when it comes to B2B segment, we are doing a pilot testing. In IIJS, we will be launching a few varieties of driver. Let us sense how this comes across. And post that, I think -- post the learnings and the learning curve will be developed, and then we will be telling you how are we really launching it? Or this is just a pilot testing that we are doing for B2B side.

And in carat terms, like what all have you launched as of now, like from 10 carats or maybe 18 carat, 20 carat?

So antique jewelry, 18 carat is what we have really sold in the quarter 3, there is a good interest of corporates looking for 18 carat antique jewelry. The company has also made some color stone collection, which was needed again by corporate. And it has turned out to be a positive response. But these are collections, let us see the longevity of it. No, let us then understand what kind of market. Generally, the sense is that low carat antique jewelry is still an experiment, this season or this coming year, we'll actually be able to translate at what how much cash will be produced in that category. But yes, we are producing 18 caret jewelry as well as a little bit of color stone jewelry also that we have got orders than we have dispatched.

And what about from the daily wear side on the carat side?

So daily wear side, we are right pilot testing has been done. And in August, we will understand what is the -- how did it work? Did we get orders? Do we need to improve our products much better? What has to be done? That segment will -- we will understand it better once we get the reviews from the market in a very stronger way. And that is the right platform for that would be an exhibition.

Got it. But as you already mentioned, that we are already doing 35% in our retail showroom, right? So can you provide like the details on that part, like what kind of customers really picking up...

18 carat generally picked up more in terms of growth, 18 carat is gaining more growth than 22 carat. But 22 carat still remains a prepared category.

Ladies and gentlemen, due to time constraint, that was the last question. And we conclude the question-and-answer session. I now hand the conference over to the management for their closing comments.

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

Thank you. On behalf of Valorem Advisors, that concludes this conference call. Thank you for joining us. You may now disconnect your lines.