Khazanchi Jewellers reports a 45% surge in first-quarter revenue driven by retail growth and higher margins, as the company sets sights on reaching Rs5,000 crore in revenue by FY2030 with plans to expand stores and digital platforms.
Khazanchi Jewellers reported a sharp jump in first-quarter earnings, with revenue rising 45% from a year earlier to Rs586.36 crore as the company continued to benefit from a bigger retail presence and stronger operating leverage. EBITDA climbed 89% and net profit increased 84%, while margins improved on a better product mix and higher retail contribution, according to the company’s earnings call and a report carried by GuruFocus. The latest figures build on a strong FY26, when total revenue rose 15.71% to Rs2,051.02 crore and profit almost doubled, reflecting a steady run of margin expansion at the jewellery maker.
Management said the flagship showroom is now generating monthly revenue of about Rs30 crore to Rs35 crore, putting it on course for an annualised target of Rs500 crore. Rajesh Mehta, chairman and joint managing director, said the company expects the main-board migration process for the BSE and NSE to finish in about two months, subject to approval. He also reiterated a longer-term goal of Rs5,000 crore in revenue by FY2030, with retail expected to account for about 40% of sales, up from a much smaller base. Earlier industry reports had already pointed to an aggressive retail strategy, with the new showroom designed to be a major profit driver rather than just a branding exercise.
The quarter was not without caveats. Mehta said underlying volume growth was closer to 15%, with much of the top-line expansion helped by higher gold prices rather than pure unit growth. Inventory days rose to 73 from 63 in the previous quarter, as the company stocked up for the new store, and management acknowledged that retail working capital cycles are longer than wholesale. Even so, the balance sheet remains relatively clean, with no long-term debt and only a working capital limit of Rs100 crore. The company also said its B2B client book is diversified, with no single customer contributing more than 5% to 6% of revenue.
Looking ahead, Khazanchi Jewellers is betting on a mix of more stores, digital sales and higher-margin products to sustain growth. Management said it plans to open eight to ten additional outlets and launch an e-commerce platform, including a silver jewellery offering, while also expanding its app-based tools for clients. The company is already using ERP systems to sharpen inventory and design decisions, and it said old gold exchange now makes up about 15% to 20% of retail sales. With bridal collections still dominating the retail mix, the group believes it can keep growing at roughly 25% to 30% a year across its wholesale and retail businesses, although rising competition and volatile gold prices remain near-term risks.
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