RBZJEWEL - RBZ Jewellers Lt

📊 NSE: RBZJEWEL 🏢 Diamond Cutting / Jewellery 📅 Last Updated: 12/14/2025 11:43

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew by 61.9% YoY to INR 530.15 Cr in FY25 from INR 327.44 Cr in FY24. The retail segment (B2C) is the primary driver, contributing approximately 60% of total operating income in FY24, while the wholesale and jobwork segments provide volume stability.

Geographic Revenue Split

The company faces high geographic concentration with 100% of retail revenue currently derived from its sole store in Ahmedabad, Gujarat. However, its B2B segment supplies to 72 cities across 19 states, providing a broader national footprint.

Profitability Margins

PAT margin was 6.59% in FY24 (INR 21.57 Cr) and improved to 8.60% in H1FY25. The margin expansion is driven by a strategic shift toward the higher-margin retail segment compared to the lower-margin jobwork and wholesale businesses.

EBITDA Margin

PBILDT margin was 11.75% in FY24 and improved to 14.29% in H1FY25. Management expects to sustain margins in the 13.00%-14.00% range as the retail contribution increases.

Capital Expenditure

The company raised INR 100 Cr through an IPO in December 2023, which was primarily utilized to fund incremental capital requirements and inventory for its retail expansion, including two new showrooms.

Credit Rating & Borrowing

Maintains a 'Stable' outlook from CRISIL and CARE. Interest coverage was healthy at 4.89 times in FY24. Bank limit utilization was high at 85% on average for the 12 months through June 2025.

⚙️ Operational Drivers

Raw Materials

Gold is the primary raw material, with cost of raw materials consumed reaching INR 226.26 Cr in FY25 (42.7% of revenue). Traded goods purchases accounted for INR 212.37 Cr.

Import Sources

Raw materials are primarily sourced domestically within India, with significant manufacturing operations based in Ahmedabad, Gujarat.

Capacity Expansion

Currently operates one retail showroom in Ahmedabad and one manufacturing unit. Planned expansion includes opening a new showroom in Surat, Gujarat, by Q3 FY26, and a second additional showroom to follow.

Raw Material Costs

Raw material costs and traded goods together represent over 80% of total revenue. Procurement strategies involve utilizing IPO proceeds to secure sizeable inventory to hedge against price fluctuations.

Manufacturing Efficiency

Average revenue per square foot in the B2C segment improved to INR 1.6 lakh in FY24 from INR 1.3 lakh in FY23, reflecting higher asset productivity.

Logistics & Distribution

Distribution spans 72 cities across 19 states through a mix of jobwork and B2B routes to reach national retailers.

📈 Strategic Growth

Expected Growth Rate

30-40%

Growth Strategy

Growth will be achieved by expanding the retail footprint with new showrooms in Surat and other regions, increasing the share of high-margin B2C sales, and leveraging the established 'Harit Zaveri' brand for wedding and occasion wear.

Products & Services

Gold jewellery, including antique, bridal, and occasion wear; jobwork services for national retailers; and wholesale gold jewellery.

Brand Portfolio

Harit Zaveri

New Products/Services

Expansion into new retail markets (Surat) is expected to contribute significantly to the projected 30-40% revenue growth in FY26.

Market Expansion

Targeting expansion in Gujarat with a new Surat showroom in Q3 FY26, followed by further retail presence to reduce reliance on the single Ahmedabad outlet.

Market Share & Ranking

Approximately 1% market share in its operating segment as per management commentary.

Strategic Alliances

Maintains established relationships with national jewellery retailers for whom it performs jobwork and wholesale supply.

🌍 External Factors

Industry Trends

The industry is shifting toward organized retail and hallmarked jewellery. RBZ is positioning itself by expanding its branded retail presence ('Harit Zaveri') to capture this trend.

Competitive Landscape

Faces intense competition from large organized retailers (e.g., Titan, Kalyan Jewellers) and local unorganized players who compete on making charges and localized designs.

Competitive Moat

Moat is built on the 30+ years of promoter experience and an integrated manufacturing-to-retail model. This provides a cost advantage and design exclusivity that is sustainable but challenged by larger national chains.

Macro Economic Sensitivity

Highly sensitive to gold price volatility and consumer spending power, which is influenced by inflation and the wedding season cycle.

Consumer Behavior

Increasing consumer traction for 'occasion wear' and branded bridal jewellery, particularly during the wedding season, is driving higher volume growth.

Geopolitical Risks

Global precious metal price volatility driven by geopolitical tensions directly impacts input costs and consumer demand trends.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Bureau of Indian Standards (BIS) hallmarking regulations and gold import/export policies which can impact raw material availability and costs.

Taxation Policy Impact

The company follows standard Indian corporate tax rates; deferred tax assets and liabilities are recognized based on temporary differences.

Legal Contingencies

The company reported compliance with sections 177 and 188 of the Companies Act regarding related party transactions; no major pending litigation values were disclosed.