💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment (Jewellery). Revenue for FY25 stood at INR 210.88 Cr. For H1 FY26 (ending Sept 2025), revenue reached INR 98.40 Cr, representing a 26.38% YoY growth compared to INR 77.86 Cr in H1 FY25.

Geographic Revenue Split

Currently concentrated in Ahmedabad, Gujarat, where the company operates 7 showrooms and 1 display gallery. The company is planning Pan-India expansion and has initiated export market entry starting with Saudi Arabia (exhibition participation).

Profitability Margins

PAT margin for FY25 was 5.41% (INR 11.41 Cr PAT on INR 210.88 Cr revenue). H1 FY26 PAT margin improved to 6.67% (INR 6.56 Cr) from 3.71% (INR 2.89 Cr) in H1 FY25, driven by increased scale and operational enhancements.

EBITDA Margin

Operating profit before working capital changes for H1 FY26 was INR 14.58 Cr, a 46.09% increase over INR 9.98 Cr in H1 FY25. This growth is attributed to higher turnover and better absorption of fixed costs.

Capital Expenditure

The company follows an asset-light lease model for retail locations. Net cash used in investing activities (primarily PPE purchase) was INR 1.29 Cr for H1 FY26, compared to INR 1.33 Cr in H1 FY25.

Credit Rating & Borrowing

Long-term borrowings increased by 101.5% from INR 31.37 Cr in March 2025 to INR 63.22 Cr in September 2025 to fund inventory for new showrooms. Finance costs for H1 FY26 were INR 4.96 Cr, representing 5.04% of revenue.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include Gold, Diamonds, and Silver. Gold and Silver inventory accounts for the bulk of the INR 206.04 Cr inventory held as of September 2025.

Import Sources

Not specifically disclosed in available documents, though the company is exploring B2B and export channels in Saudi Arabia.

Capacity Expansion

Expanded from 6 showrooms and 1 display gallery to 7 showrooms with the opening of 'KK Jewel's Gold and Silver' in May 2025. Management targets 20-25% CAGR through new store maturation (typically 2-3 years).

Raw Material Costs

Purchases for H1 FY26 were INR 131.87 Cr, compared to INR 79.53 Cr in H1 FY25, a 65.8% increase. Raw material costs are highly sensitive to global gold price fluctuations which also impact labor charges.

Manufacturing Efficiency

Focus on 'inventory velocity' to drive higher turnover. The company aims for an inventory turn of at least 1x for new concept stores in their first year.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

Growth will be achieved through the maturation of the new May 2025 showroom, entry into B2B markets, and international expansion into Saudi Arabia. Management expects new stores to take 2-3 years to reach full potential in terms of footfall and revenue.

Products & Services

Retail jewellery including gold ornaments, diamond-studded jewellery, and silver articles/jewellery.

Brand Portfolio

KK Jewels, KK Jewel's Gold and Silver.

New Products/Services

Introduction of 'Gold and Silver' specific concept stores and entry into the B2B jewellery market.

Market Expansion

Expansion beyond Ahmedabad to Pan-India locations and the Saudi Arabian export market.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward organized retail and branded showrooms. KKJEWELS is positioning itself by expanding its showroom footprint and diversifying into B2B and exports.

Competitive Landscape

Faces intense competition from approximately 12 established jewellers in its immediate vicinity in Ahmedabad, as well as international brands and imitation jewellery providers.

Competitive Moat

The moat is built on an asset-light lease model and a 'concept-based' retail approach. Sustainability depends on the ability to turn inventory at least 1-2 times annually in a highly competitive local market.

Macro Economic Sensitivity

Highly sensitive to gold prices and consumer spending power in the luxury/jewellery segment.

Consumer Behavior

Consumer demand is driven by festive seasons and weddings, with a growing preference for branded retail experiences over unorganized local smiths.

Geopolitical Risks

Export plans to Saudi Arabia may be impacted by trade relations or regional economic shifts.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Section 133 of the Companies Act, 2013. The company is exempt from certain corporate governance reports (Regulation 27(2)) due to its listing on the NSE Emerge SME exchange.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 24.3% (INR 2.11 Cr tax on INR 8.67 Cr PBT).

Legal Contingencies

The company reported zero pending litigations that would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Inventory turnover risk: Management noted that achieving a 2x turnover in the first year of a new store is difficult, aiming for 1x. Failure to move stock could lead to liquidity constraints.

Geographic Concentration Risk

100% of current retail showrooms are located in Ahmedabad, making the company vulnerable to local economic downturns or regional regulatory changes.

Third Party Dependencies

Reliance on landlords for the lease model; any termination of leases in high-potential markets could disrupt operations.

Credit & Counterparty Risk

Trade receivables stood at INR 3.82 Cr as of Sept 2025. A 31.33% variation (INR 0.68 Cr) was noted between book debts reported to banks vs. actual books due to provisional accounting records.