💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew 21.30% YoY in Q2 FY26 to INR 687.83 Cr and 12.77% YoY in H1 FY26 to INR 1,311.84 Cr. FY2025 operating income grew 14% YoY to INR 2,620.7 Cr, driven by buoyant gold prices despite a reduction in low-margin corporate sales of bars and coins.

Geographic Revenue Split

TBZ operates 33 retail showrooms in 25 cities across 12 states, with a significant historical presence in Maharashtra and Gujarat. Specific percentage split per region is not disclosed.

Profitability Margins

Gross margin expanded by 318 bps to 16.87% in Q2 FY26 and by 247 bps to 16.53% in H1 FY26. Operating profit margin (OPM) improved to 6.6% in FY2025 from 6.1% in FY2024 and 4.9% in FY2023 due to cost optimization and a shift away from thin-margin corporate sales.

EBITDA Margin

EBITDA margin improved to 9.18% in Q2 FY26 (up 279 bps YoY) and 8.73% in H1 FY26 (up 195 bps YoY). EBITDA rose 74.15% YoY in Q2 FY26 to INR 63.13 Cr and 45.27% YoY in H1 FY26 to INR 114.54 Cr.

Capital Expenditure

The company has no major capex plans in the medium term as store expansion is being pivoted toward the franchisee route to maintain a light balance sheet. Long-term debt repayment obligations are nominal at INR 1-3 Cr per annum till FY2028.

Credit Rating & Borrowing

ICRA reaffirmed [ICRA]A- (Stable) in October 2024. CRISIL Ratings reaffirmed [CRISIL]A- (Stable). Interest coverage ratio improved to 3.1 times in FY2025 from 2.8 times in FY2024.

⚙️ Operational Drivers

Raw Materials

Gold, Diamonds, and Precious Gemstones. Gold inventory typically represents 4-5 months of sales, while diamonds represent approximately 1 year of inventory.

Import Sources

Sourced through bullion imports and metal loan funding. Specific countries of origin are not disclosed in available documents.

Capacity Expansion

Current network consists of 33 retail showrooms. Future expansion is planned primarily through the franchisee route to leverage brand value without heavy capital investment.

Raw Material Costs

Raw material costs are highly sensitive to gold price volatility. A sharp rise in gold prices in FY2025 led to inventory gains on unhedged stock but increased working capital requirements.

Manufacturing Efficiency

Operating efficiency is improving through cost optimization and the closure of non-performing stores, leading to a sequential rise in OPM from 4.9% to 6.6% over three years.

📈 Strategic Growth

Expected Growth Rate

13%

Growth Strategy

Growth will be achieved through 'early teens' revenue expansion driven by a design-led product mix (bridal, festive, everyday fine jewellery), calibrated retail footprint expansion via the franchisee route, and digital innovation including shop-from-home and video call services.

Products & Services

Gold jewellery, diamond-studded ornaments, and precious gemstone jewellery catering to bridal, festive, and everyday wear segments.

Brand Portfolio

TBZ - The Original

New Products/Services

Focus on design-led high-margin products and everyday fine jewellery to attract younger consumers and increase purchase frequency.

Market Expansion

Judicious expansion of retail footprint across key locations in India, primarily through franchisee-owned stores to increase market share while maintaining profitability.

Strategic Alliances

Expansion through franchisee partners; Tribhovandas Bhimji Zaveri (Bombay) Limited acts as a wholly-owned subsidiary for diamond ornament manufacturing.

🌍 External Factors

Industry Trends

The industry is seeing accelerated formalization, benefiting organized retailers like TBZ. Consumers are evolving toward design-led and everyday fine jewellery, growing at a steady double-digit rate.

Competitive Landscape

Intense competition from organized national players and a highly fragmented unorganized sector which limits pricing flexibility.

Competitive Moat

Moat is built on a 160-year brand legacy, trust, and craftsmanship. This sustainable advantage allows TBZ to maintain a premium position in the bridal and festive segments despite intense competition.

Macro Economic Sensitivity

Highly sensitive to gold price volatility and consumer discretionary spending trends. Buoyant gold prices led to a 14% revenue growth in FY2025 but impacted volumetric demand.

Consumer Behavior

Evolving consumer trends toward digital engagement (video calls) and a preference for branded, authentic jewellery for both festive and daily use.

Geopolitical Risks

Geopolitical tensions affecting gold imports or international bullion prices directly impact input costs and inventory valuation.

⚖️ Regulatory & Governance

Industry Regulations

Subject to mandatory PAN disclosure on high-value transactions, bullion import restrictions, and metal loan limitations which can impact liquidity and sales volumes.

Environmental Compliance

Environmental risk is considered low, though stores are exposed to physical risks like flooding or excessive rainfall in operating regions.

⚠️ Risk Analysis

Key Uncertainties

Volatility in gold prices (potential 5-10% impact on margins), regulatory changes in bullion sourcing, and intense competition in a fragmented market.

Geographic Concentration Risk

Concentrated in 12 states with a heavy reliance on the Western Indian market (Maharashtra and Gujarat).

Third Party Dependencies

Dependency on banks for working capital limits (INR 625 Cr) and metal loan facilities.

Technology Obsolescence Risk

Low risk of product obsolescence, but failure to adapt to digital retail trends could result in market share loss to more tech-savvy competitors.

Credit & Counterparty Risk

Low credit risk as most sales are retail/cash-and-carry; however, advances from customers (INR 111.4 Cr in FY2025) represent a key working capital source.