Any current/future new fundraising through debt or equity?

RBZ Jewellers does not plan any equity dilution to fund upcoming store inventories; funding will come from debt raise, inventory transfer, and profit gains. Peak debt after opening new stores (including Rajkot and Surat) is expected to be around a debt-equity ratio of 1:1.2 to 1:1.5, with equity targeted around INR 300 crores. The company is currently underleveraged and comfortable with increasing debt up to a ratio of 1:1 or slightly higher (up to 1.5:1). No immediate capex is planned for manufacturing as capacity utilization is around 50-55%, and the company is comfortable. They are

Any current/future capex/capital investment/strategic investment?

RBZ Jewellers is currently not looking for any capex in the manufacturing setup as of FY26 due to comfortable capacity utilization boosted by increased gold prices. The company plans to open 4 new retail stores in the calendar year: 2 large format and 2 mid-format stores, primarily in Gujarat (Ahmedabad, Gandhinagar, Surat, Rajkot). Inventory investment for the new large-format stores is anticipated to be around INR125-150 crore per store. Funding for new stores will be through a combination of debt, inventory transfer, and profit gains; no dilution is planned. The company is open to future re

Future growth expectations in sales/revenue/volumes?

RBZ Jewellers is optimistic about retail growth, focusing on expanding store presence, particularly in Gujarat's key cities like Ahmedabad, Surat, Rajkot, and Baroda. Four new stores planned for the calendar year 2026 (2 large and 2 mid-sized), but no specific sales or revenue guidance provided for FY27 due to market uncertainties. Management takes a pragmatic approach, monitoring consumer reaction and market conditions before giving future guidance. Capacity utilization currently around 50-55%, with no immediate plans for manufacturing capex expansion; reliance on a mix of in-house and vendor

Future growth expectations in earnings/operating earnings/profits/EPS?

The management refrains from giving explicit guidance for FY27 due to recent government announcements and uncertain market reactions (Page 14). They are optimistic about growth driven by market size and consumer behavior, with expectations of store expansions and aggressive market pursuits (Pages 14,16). EBITDA for FY26 was INR92 crore with strong margin expansion; retail stores and new formats are expected to contribute positively (Pages 4,16). Capacity utilization currently at 50-55%, with no immediate plans for manufacturing capex, indicating potential for margin improvement through operati

Current/ Expected Orderbook/ Pending Orders?

Harit Zaveri mentioned that for job work services, while there was a volume degrowth due to gold price doubling, the value of merchandise increased significantly. The company prefers job work as it allows receiving gold in advance, benefiting cash flow. No specific current order book value or exact pending orders numbers were provided in the transcript. The outlook for FY27 indicates a continued preference for job work over wholesale by corporate jewellers due to rising gold prices. Overall, the company is optimistic but cautious given recent market developments and is monitoring demand and or

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RBZ Jewellers LtdQ1 FY26Consumer Durables

RBZ Jewellers Ltd Q1 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹135P/E: 9.1Market Cap: ₹499 CrSector: Consumer Durables

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→RBZ Jewellers is optimistic about retail growth, focusing on expanding store presence, particularly in Gujarat's key cities like Ahmedabad, Surat, Rajkot, and Baroda.
→Four new stores planned for the calendar year 2026 (2 large and 2 mid-sized), but no specific sales or revenue guidance provided for FY27 due to market uncertainties.
→Management takes a pragmatic approach, monitoring consumer reaction and market conditions before giving future guidance.
→Capacity utilization currently around 50-55%, with no immediate plans for manufacturing capex expansion; reliance on a mix of in-house and vendor job work expected to support growth.
→Emphasis on growing the higher-margin antique jewellery segment, while acknowledging potential in diamond/studded jewellery for future expansion.
→Inventory for new stores estimated at INR125-150 crores per large store, funded through debt and internal accruals.
→Market size is large and consumption trends are positive long term despite short-term uncertainties.

Margin guidance

Category 3

→The management refrains from giving explicit guidance for FY27 due to recent government announcements and uncertain market reactions (Page 14).
→They are optimistic about growth driven by market size and consumer behavior, with expectations of store expansions and aggressive market pursuits (Pages 14,16).
→EBITDA for FY26 was INR92 crore with strong margin expansion; retail stores and new formats are expected to contribute positively (Pages 4,16).
→Capacity utilization currently at 50-55%, with no immediate plans for manufacturing capex, indicating potential for margin improvement through operational efficiency (Page 13).
→Leverage ratio targeted between 1:1 to 1.5:1, implying balanced financial management supporting growth (Page 16).
→Focus on expanding antique jewellery segment with potential for other categories like studded jewellery acknowledged but currently less aggressive (Page 19).
→Future earnings growth expected but subject to market dynamics; detailed formal guidance to be provided once visibility improves.

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Fundraise plans

Yes

→RBZ Jewellers does not plan any equity dilution to fund upcoming store inventories; funding will come from debt raise, inventory transfer, and profit gains.
→Peak debt after opening new stores (including Rajkot and Surat) is expected to be around a debt-equity ratio of 1:1.2 to 1:1.5, with equity targeted around INR 300 crores.
→The company is currently underleveraged and comfortable with increasing debt up to a ratio of 1:1 or slightly higher (up to 1.5:1).
→No immediate capex is planned for manufacturing as capacity utilization is around 50-55%, and the company is comfortable.
→They are exploring Gold Metal Loan (GML) for financing new gold purchases in FY27 as a hedging strategy.

Order book

→Harit Zaveri mentioned that for job work services, while there was a volume degrowth due to gold price doubling, the value of merchandise increased significantly.
→The company prefers job work as it allows receiving gold in advance, benefiting cash flow.
→No specific current order book value or exact pending orders numbers were provided in the transcript.
→The outlook for FY27 indicates a continued preference for job work over wholesale by corporate jewellers due to rising gold prices.
→Overall, the company is optimistic but cautious given recent market developments and is monitoring demand and order flows closely.

Capex plans

Yes

→RBZ Jewellers is currently not looking for any capex in the manufacturing setup as of FY26 due to comfortable capacity utilization boosted by increased gold prices.
→The company plans to open 4 new retail stores in the calendar year: 2 large format and 2 mid-format stores, primarily in Gujarat (Ahmedabad, Gandhinagar, Surat, Rajkot).
→Inventory investment for the new large-format stores is anticipated to be around INR125-150 crore per store.
→Funding for new stores will be through a combination of debt, inventory transfer, and profit gains; no dilution is planned.
→The company is open to future retail expansion in Tier 3 and Tier 4 cities if consumption opportunity exists.
→Strategic focus remains on expanding retail presence in Gujarat to strengthen brand visibility and market share.
→Future capacity expansion in manufacturing will depend on market conditions and gold price movement, with no immediate plans.

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