Khazanchi Jewellers reported a strong Q1 FY27, with revenue climbing 45% to Rs 586.36 crore and profit after tax rising 84% to Rs 27.83 crore. Management is focusing on scaling retail operations to achieve a 40% retail contribution by 2030 and a total revenue target of Rs 5,000 crore. The company is also moving toward a main board migration on the stock exchange, expected within two months.
Khazanchi Jewellers Q1 Profit Surges 84% YoY to Rs 27.83 Crore
Revenue Jumps 45% to Rs 586.36 Crore
Reader Takeaway: Robust Q1 performance driven by B2B and B2C momentum; key risks include migration timelines and cash flow management.
What just happened
Khazanchi Jewellers posted a strong start to FY27, with revenue rising to Rs 586.36 crore from Rs 403.84 crore in the year-ago period. Profit after tax (PAT) rose 84% to Rs 27.83 crore, while EBITDA improved by 89% to Rs 39.98 crore. The company reported EPS of Rs 11.16, marking an 82% increase year-on-year. Shareholders have also approved the migration to the main board of the stock exchange, a process expected to conclude in two months.
Why this matters
The results highlight the company's ability to drive margin expansion, with EBITDA margins rising 158 bps to 6.82%. The company’s long-term strategy involves pivoting toward retail, where margins are generally higher (above 10%) compared to the wholesale segment (5-6%). Achieving the 40% retail revenue target by 2030 is central to management’s guidance for an annual growth rate of 25%-30%.
Business and Operational Performance
Management attributed the performance to improved operating leverage and demand in both wholesale and retail segments. The firm plans to open 8-10 new stores over the next 3-4 years using an asset-light leasing model. Currently, the wholesale business dominates revenue, but the retail segment is being aggressively scaled to enhance profitability profile.
Risks to watch
Cash flow remains a focus area after the firm reported negative flows in the previous year due to inventory buildup. Management anticipates a return to positive cash flow this year. Investors should also monitor the regulatory timeline for the main board migration and the company's ability to maintain retail growth without compromising working capital cycles, which currently sit at 100-120 days for the retail segment.
What to track next
The primary catalysts are the final approval for the main board migration and the pace of new store openings. The market will also watch how the company balances its ambitious 2030 revenue targets against gold price volatility, which management noted can cause temporary demand slowdowns.