Khazanchi Jewellers Ltd Q4 FY26 Earnings Analysis

- Khazanchi Jewellers targets a year-on-year revenue growth of 25% to 30% across all verticals, including wholesale and retail segments. - Retail contribution is expected to increase from the current 10% to 25% within 1 to 1.5 years, leading to improved margins and profitability. - New flagship showroom (10,000 sq. ft.) aims for approximately INR 500 crore revenue in retail division with EBITDA margins around 10-12%. - Expansion plans include opening additional company-owned stores in the near term, with potential franchisee-led growth later. - No immediate capex on manufacturing units; outsourcing production allows scalability without significant upfront costs. - Volume growth is supported by product mix optimization, including lightweight and lower-carat jewellery catering to shifting consumer demands. - Overall, management expects sustained growth momentum with enhanced retail presence, technological investment, and stronger wholesale partnerships.

- Company targets year-on-year overall revenue growth of 25% to 30% across all verticals going forward. - EBITDA margins expected to expand from the current ~6%, driven by increasing retail share with margins around 10%-12%. - PAT margins are projected to improve by 25%-30% compared to current levels with the growth in retail contribution. - New flagship showroom (10,000 sq. ft.) expected to generate INR 500 crores revenue with a payback period of ~1.5 years. - Earnings growth momentum is expected to continue, with PAT nearly doubling year-on-year recently, and management confident of sustaining similar growth in FY '27. - Retail segment expansion and premium product mix enrichment are key levers to boost operating margins and profitability. - EPS grew by over 100% recently, with positive outlook to maintain strong earnings growth aligned with revenue and margin expansions.

- Capex for the new flagship showroom (10,000 sq. ft.) was around INR 12 crores. - The new showroom is expected to generate around INR 500 crores revenue with retail margins of 10%-12%. - Payback period for the new showroom capex is estimated at around 1.5 years. - Management plans to open a few more company-owned stores in the upcoming years. - Future bigger scale expansions may consider incremental borrowings as per requirement. - Currently, all working capital requirements are met through internal accruals. - No owned manufacturing unit currently; possible plan to have own manufacturing unit in the future. - Expansion focus primarily in South India initially, then pan-India as company progresses.

- Currently, all working capital requirements are being met through internal accruals; no immediate need for external funding. - For future expansion, if larger-scale funding is required, management will decide on the necessity and mode of raising funds. - No specific plans or timelines disclosed for new debt or equity fundraising as of now. - Management remains cautious and will consider incremental borrowings only if required for significant expansion.

- Rajesh Mehta indicated the overall order visibility for Q4 and early FY '27 looks good. - Despite a short-term slowdown due to price increases, the gem and jewellery segment's prospects remain strong. - The whole industry is expected to grow at a pace of 30% to 35%. - No specific numerical data on current or expected orderbook or pending orders was provided during the call.