Utssav CZ Gold Jewels Ltd Q3 FY26 Earnings Analysis

- Targeting revenue of INR 4,000 to INR 5,000 crores by FY 2030 with the possibility of improved margins due to increased diamond jewelry sales. (Page 7) - Expecting volume growth with capacity expansion from 1.5 tons to 2.5 tons soon and plans to increase further to approximately 6 to 7 tons annually by 2030. (Pages 12, 13) - Annual volume growth seen recently around 25% with value growth approximately 35%. (Page 17) - Capacity utilization was around 67% in first half; expansion to 2.5 tons capacity expected to be commissioned within a month, with commercial sales to follow in H2. (Page 4) - Plans to continue expanding product portfolio including diamond jewelry and international market expansion targeting UAE, GCC, Singapore, and USA. (Page 4) - Expectation of sustained revenue growth momentum supported by upgrading technology and R&D. (Page 4)

- The company targets revenue of INR4,000 to INR5,000 crores by FY2030, with the same or better margins due to the increase in sales of real diamond jewelry. (Page 7) - EBITDA margins are expected to be sustainable at 9% to 10%, with potential improvement as diamond jewelry sales grow. (Page 4) - Profit after tax margin currently at 4.5% to 5% is expected to improve with the rising contribution from real diamonds. (Page 4) - EPS grew 124% to INR12.09 per share in H1 FY26, reflecting strong operational leverage and cost control. (Page 3) - Revenue forecast for FY26 is INR1,100 to INR1,200 crores, indicating continued strong growth. (Page 3) - Margins are expected to remain intact despite gold price fluctuations due to fixed percentage pricing agreements with customers. (Page 8)

- The company is undertaking expansion to increase manufacturing capacity from 1.5 tons to approximately 2.5 tons annually. - A new facility of 5,000 square feet is being added, which will take total space to about 13,000 square feet. - Trading and hiring for this expansion have already commenced. - Plans to ramp up capacity further to around 6 to 7 tons by 2030. - The company is participating in international exhibitions (e.g., Dubai) and aims to open an office in Dubai as part of its export strategy. - No current plan for equity fund-raising; additional capital requirements will be met through bank borrowings as needed. - Capex progress is ongoing, with expectations to see commercial revenues from expansion soon.

- Currently, there are no plans for equity fundraising as stated by Pankaj Jagawat: "No, not at present." - Future fund requirements for expansion will be met through bank borrowings as needed: "As and when there is requirement, we will be taking it from the bank." - The company plans to increase short-term borrowings to support working capital, with an additional INR 50 crores planned. - Comfortable debt-equity ratio zone is between 1.5 to 2 times, allowing room for increased debt funding. - No unsecured loans currently on the balance sheet; funding is primarily through bank loans and borrowings.

- Utssav CZ Gold Jewels Limited operates mainly on a just-in-time order basis; clients place orders as per their requirements rather than maintaining a fixed order book. - There are no confirmed or fixed yearly orders; the company does not run a traditional order book system. - Orders are received and fulfilled typically within 7 to 10 days. - The company anticipates strong demand in the second half of the year due to the festive and wedding seasons, which historically results in higher sales. - Management expects increased orders during H2 based on recurring seasonal demand patterns, not on pre-confirmed orders. - The B2B clients are fixed, but orders fluctuate as per their inventory needs with no long-term contracts specifying volumes or prices.