Khazanchi Jewellers reported a strong fiscal year 2026 with total income reaching ₹2,051.02 crore and net profit nearly doubling to ₹89.42 crore. The company also announced plans to migrate to the Main Board and expanded its retail presence.
Khazanchi Jewellers Reports Robust FY26 Performance and Strategic Growth Initiatives
Total Income: ₹2,051.02 crore
Net Profit: ₹89.42 crore
Reader Takeaway: Strong profit growth driven by retail expansion and margin improvement, balanced by rising debt for inventory. ## What just happened
Khazanchi Jewellers Limited announced its financial results for the fiscal year 2026, showcasing significant year-on-year growth. Total income rose to ₹2,051.02 crore, up from ₹1,772.53 crore in FY25. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) nearly doubled to ₹126.93 crore from ₹64.93 crore. Net Profit After Tax (PAT) also saw substantial growth, reaching ₹89.42 crore compared to ₹44.96 crore in the prior year, resulting in an Earnings Per Share (EPS) of ₹36.10.
Why this matters
The strong financial performance, particularly the near doubling of profits and significant EBITDA growth, indicates improved operational efficiency and margin expansion for Khazanchi Jewellers. The strategic move to a larger retail space and the launch of premium diamond products aim to further boost profitability. Furthermore, the proposed migration from the BSE SME platform to the Main Board of BSE and NSE signifies the company's growth and increased stature, potentially leading to greater investor visibility and liquidity.
The backstory
Khazanchi Jewellers has been operating with a focus on expanding its reach in the jewellery market. In FY25, the company had total income of ₹1,772.53 crore and a PAT of ₹44.96 crore. The recent fiscal year marks a period of accelerated growth, supported by strategic initiatives like opening larger format stores and introducing new product lines.
What changes now
The company has proposed migrating from the BSE SME platform to the Main Board of BSE and NSE. This transition is expected to provide a broader investor base and potentially enhance the stock's trading liquidity. Operationally, the company has opened a new 10,000 sq.ft. flagship showroom in Chennai, increasing its retail revenue contribution to 10% in FY26 from 5% in FY25. The launch of 'Vajraa Diamonds by Khazanchi' is also expected to positively impact blended margins.
Risks to watch
Investors should note the increase in the company's working capital intensity. The debt-to-equity ratio rose to 0.35x in FY26 from 0.28x in FY25, driven by higher inventory stocking. While strategic, this increased leverage and inventory build-up, especially in gold, exposes the company to commodity price volatility. The company has identified commodity risk, particularly gold price fluctuations, as a key concern impacting inventory valuation and margins.
Peer comparison
While specific peer data for FY26 is not provided in the filing, Khazanchi Jewellers' performance shows significant year-on-year improvement. Competitors in the organised jewellery retail sector often focus on similar strategies of expanding store footprints, introducing exclusive collections, and leveraging digital platforms. Companies like Titan Company and Kalyan Jewellers also invest heavily in brand building and retail expansion.
Context metrics (time-bound)
- Total Income: ₹2,051.02 crore (FY26) vs. ₹1,772.53 crore (FY25)
- EBITDA: ₹126.93 crore (FY26) vs. ₹64.93 crore (FY25)
- PAT: ₹89.42 crore (FY26) vs. ₹44.96 crore (FY25)
- EPS: ₹36.10 (FY26)
- EBITDA Margin: 6.19% (FY26) vs. 3.66% (FY25)
- PAT Margin: 4.36% (FY26) vs. 2.54% (FY25)
- Debt-to-Equity Ratio: 0.35x (FY26) vs. 0.28x (FY25)
- Inventory Turnover Days: 63.36 days (FY26) vs. 49.13 days (FY25)
What to track next
Investors should closely monitor the success of the new flagship store in Chennai and the 'Vajraa Diamonds' product line in driving higher margins. Tracking the company's debt levels and working capital management will be crucial, especially in light of inventory build-up. The progress and timelines related to the migration to the Main Board of BSE and NSE will also be key events to watch.