Q1 2027 Khazanchi Jewellers Ltd Earnings Call

August 25, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Q1 FY27 Results Conference Call of Khazanchi Jewellers Limited, hosted by Kiran Advisors. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day and welcome to the Q1 FY27 results conference call of Khazanchi Jewellers Limited, hosted by Kirin Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing * and then 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Parth Acharya from Kirin Advisors. Thank you, and over to you, sir.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Parth Acharya from Kiran Advisors. Thank you, and over to you, sir.

Speaker #2: Thank you. On behalf of Kiran Advisors, I welcome you all to the conference call of Khazanchi Jewellers Limited. From the management team, we have Mr. Rajesh Mehta, Chairman and Joint Managing Director.

Parth Acharya: Thank you. On behalf of Kirin Advisors, I welcome you all to the conference call of Khazanchi Jewellers Limited. From the management team, we have Mr. Rajesh Mehta, Chairman and Joint Managing Director, Mr. Vikas Mehta, Chief Financial Officer. With that, I now hand over the call to Mr. Rajesh Mehta. Over to you, sir. Thank you.

Speaker #2: Mr. Vikas Mehta, Chief Financial Officer. With that, I now hand over the call to Mr. Rajesh Mehta. Over to you, sir. Thank you.

Speaker #3: Yes. Hello everyone. A very happy good afternoon, and thank you for joining us today. It's a pleasure to welcome you to the Khazanchi Jewellers Limited Q1 FY earnings call.

Rajesh Mehta: Yes. Hello, everyone. A very happy good afternoon, and thank you for joining us today. It’s our pleasure to welcome you to Khazanchi Jewellers Limited Q1 FY27 earning call. For all those joining us for the first time, Khazanchi Jewellers is a legacy jewelry company with over five decades of experience across B2B and B2C segments. Over the years, we have built a strong presence through our design capabilities, traditional craftsmanship, stringent quality standards, and dependable execution across gold, diamond, and precious stone jewelry. Q1 FY27 has been a strong start to the financial year with healthy momentum across both our B2B and B2C operations. We are particularly encouraged by the progress following the launch of our flagship showroom and the implementation of dedicated ERP systems. The strong customer response and increasing retail scale reinforce our confidence in Khazanchi’s growth strategy.

Speaker #3: For all those joining us for the first time, Khazanchi Jewellers is a legacy jewelry company with over five decades of experience across both B2B and B2C segments.

Speaker #3: Over the years, we have built a strong presence through our design capabilities, traditional craftsmanship, stringent quality standards, and dependable execution across gold, diamond, and precious stone jewellery.

Speaker #3: Q1 FY27 has been a strong start to the financial year, with healthy momentum across both our B2B and B2C operations. We are particularly encouraged by the progress following the launch of our flagship showroom and the implementation of dedicated ERP systems.

Speaker #3: The strong customer response and increasing retail scale reinforce our confidence in Khazanchi's growth strategy. Coming to our Q1 FY27 financial performance, revenue increased by 45% year on year to ₹586.36 crore, versus ₹403.84 crore in Q1 FY26.

Rajesh Mehta: Coming to our Q1 FY27 financial performance, revenue increased by 45% year on year to INR 586.36 crores versus INR 403.84 crores in Q1 FY26. EBITDA increased by 89% year on year to INR 39.98 crores versus INR 21.15 crores. EBITDA margins improved by 158 basis points to 6.82%. Profit after tax increased by 84% year on year to INR 27.83 crores versus INR 15.15 crores. PAT margins improved by 99 basis points to 4.75%. EPS increased by 82.35% year on year to 11.16. The fact that EBITDA and PAT grew considerably faster than revenue during the quarter is particularly encouraging. It reflects an improving business mix, operating leverage, and benefits of scale as we continue to expand the business.

Speaker #3: EBITDA increased by 89% year-on-year to ₹39.98 crore, versus ₹21.15 crore. EBITDA margins improved by 158 basis points to 6.82%. Profit after tax increased by 84% year-on-year to ₹27.83 crore, versus ₹15.15 crore.

Speaker #3: PAT margins improved by 99 basis points to 4.75%. EPS increased by 82.35% year on year to $11.16. The fact that EBITDA and PAT grew considerably faster than revenue during the quarter is particularly encouraging; it reflects an improving business mix, operating leverage, and the benefits of scale as we continue to expand the business.

Speaker #3: And now, I am going to recap our growth journey since listing. I am very happy and delighted to share that your company has successfully completed three years since its listing on the BSE SME platform in August 2023.

Rajesh Mehta: Now I am going to recap our growth journey since listing. I am very happy and delighted to share that your company has successfully completed three years since its listing on the BSE SME platform in August 2023 and is now progressing towards migration to the main board, including a proposed listing on the main board of both BSE and NSE, subject to necessary regulatory approval and fulfillment of all applicable requirements. Over this period of three years, our revenue grew 5x from INR 481 crores to FY23 to INR 2,049 crores in FY26. While our PAT grew 10x from INR 8 crores to INR 89 crores.

Speaker #3: And is now progressing towards migration to the main board, including a proposed listing on the main board of both BSE and NSE, subject to necessary regulatory approvals and fulfillment of all applicable requirements.

Speaker #3: Over this period of 3 years, our revenue grew a mixed 5x from ₹481 crores in FY23 to ₹2,049 crores in FY26, while our PAT grew 10x from ₹8 crores to ₹89 crores. The progress we have achieved over the past 3 years reflects the continued confidence of our shareholders in the management and strategy of the company.

Rajesh Mehta: The progress we have achieved over the past 3 years reflect the continued confidence of our shareholders in the management and strategy of the company, the trust of our customers and business partners, and the sustained commitment of our employees. We thank all our stakeholders for their support and we build the next phase of Khazanchi’s growth story. Your company is poised to achieve a revenue mark of INR 5,000 crores by 2030. We are targeting annual revenue growth of approximately 25% to 30%, supported by our strong B2B foundation, expanding B2C and digital ecosystem and value creation across every segment of the business. We have always delivered more than our projections. Our growth outlook on our B2B business. Our B2B business continues to provide scale, stability, and consistency to the company.

Speaker #3: The trust of our customers and business partners, and the sustained commitment of our employees—we thank all our stakeholders for their support as we build the next phase of Khazanchi's growth story.

Speaker #3: Our company is poised to achieve a revenue mark of ₹5,000 crore by 2030. We are targeting annual revenue growth of 25% to 30%, supported by our strong B2B foundation, expanding B2C and digital ecosystem, and value creation across every segment of the business.

Speaker #3: We have always delivered more than our projections. Our growth outlook on our B2B business—our B2B business continues to provide scale, stability, and consistency to the company.

Speaker #3: Over the years, we have built strong and enduring relationships with jewelry houses, wholesalers, and organized retailers across India. These relationships are supported by our ability to meet large volume requirements, offer differentiated designs, maintain stringent quality standards, and ensure reliable and timely execution.

Rajesh Mehta: Over the years, we have built strong and enduring relationships with the jewelry houses, wholesalers, and organized retailers across India. These relationships are supported by our ability to meet large volume requirements, offer differentiated designs, maintain stringent quality standards, and ensure reliable and timely execution. Going forward, our focus will be on strengthening and broadening our geographical reach while expanding our client base across existing and new markets. We aim to deepen engagement with existing customers by increasing our share of business and product offerings, while also adding new customers across geographies. This will enable us to grow both the breadth of our customer network and the depth of our relationships, reinforcing the long-term scalability and resilience of our B2B business. Now, growth outlook for our B2C segment.

Speaker #3: Going forward, our focus will be on strengthening and broadening our geographical reach while expanding our client base across existing and new markets. We aim to deepen engagement with existing customers by increasing our share of business and product offerings, while also adding new customers across geographies.

Speaker #3: This will enable us to grow both the breadth of our customer network and the depth of our relationships, reinforcing the long-term scalability and resilience of our B2B business.

Speaker #3: Now, the growth outlook for our B2C segment: The B2C business will be the key growth driver going forward, and we have a very aggressive plan to launch 8 to 10 stores over the next 3 to 4 years across geographies.

Rajesh Mehta: B2C business will be the key growth driver going forward, and we have a very aggressive plan to launch 8 to 10 stores over the next 3 to 4 years across geographies. These stores will be a combination of our flagship store and premium boutique minimal jewelry stores for minimal jewelry and our latest lightweight designs. Our retail expansion is aimed to accelerating our B2C growth and increasing the B2C contribution to approximately 40% of overall revenue by FY2030. I would also like to highlight an important development in Khazanchi's capital market journey. At the recently concluded annual general meeting, our shareholders approved the resolution for migration from the BSE SME platform to the main board of both the exchanges, BSE and NSE. This remains subject to necessary regulatory approval and fulfillment of all applicable requirements.

Speaker #3: These stores will be a combination of our flagship store and premium boutique minimal jewelry stores, offering minimal jewelry and the latest lightweight designs. Our retail expansion is aimed at accelerating our B2C growth and increasing the B2C contribution to approximately 40% of overall revenue by FY 2030.

Speaker #3: I would also like to highlight an important development in Khazanchi's capital market journey. At the recently concluded Annual General Meeting, our shareholders approved the resolution for migration from the BSE SME platform to the main board of both the exchanges, BSE and NSE.

Speaker #3: This remains subject to necessary regulatory approvals and fulfillment of all applicable requirements. The proposed migration comes at an important stage in the company’s journey, following a significant expansion in scale and profitability since our BSE SME listing in August 2023.

Rajesh Mehta: The proposed migration comes to an important stage in the company's journey following a significant expansion in scale and profitability since our BSE SME listing in August 2023. Looking ahead, we will continue to strive and deliver beyond our conservative outlook by strengthening our B2B business, expanding our B2C presence, and increase the contribution for higher value categories, particularly natural diamond jewelry, enhance our product and brand portfolio, and explore opportunities in silver jewelry category. Overall, our aim is to build Khazanchi into a stronger consumer-facing jewelry brand while retaining the scale, relationships, and execution capabilities developed over several decades. We sincerely thank our shareholders for their continued trust, support, and confidence in the company. Your encouragement remains central to our commitment to create sustainable long-term value. We will continue to focus on disciplined execution, responsible growth, strong governance, and transparent communication.

Speaker #3: Looking ahead, we will continue to strive and deliver beyond our conservative outlook by strengthening our B2B business, expanding our B2C presence, and increasing the contribution from higher value categories, particularly natural diamond jewelry.

Speaker #3: Enhance our product and brand portfolio, and expand opportunities in the silver jewelry category. Overall, our aim is to build Khazanchi into a stronger consumer-facing jewelry brand while retaining the scale, relationships, and execution capabilities developed over several decades.

Speaker #3: We sincerely thank our shareholders for their continued trust, support, and confidence in the company. Your encouragement remains central to our commitment to creating sustainable long-term value.

Speaker #3: We will continue to focus on disciplined execution, responsible growth, strong governance, and transparent communication. We look forward to your continued support as we pursue the next phase of our journey.

Rajesh Mehta: We look forward to your continued support as we pursue the next phase of our journey. With this remark, I would now like to open the floor for questioning. Thank you so much.

Speaker #3: With this remark, I would now like to open the floor for questions. Thank you so much.

Speaker #1: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star, then 1, on their touch-tone phone.

Operator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Rajesh Mehta, an individual investor. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Rajshree Mehra, an individual investor. Please go ahead.

Speaker #2: Thank you for the opportunity. First of all, congratulations on the strong Q1 performance. My first question is: Where are we currently in the main board migration process, and can we expect the listing in the next month or two?

[Analyst]: Thank you for the opportunity. First of all, congrats on the strong Q1 performance. My first question is, where are we currently in the main board migration process? Can we expect the listing in the next month or 2 months?

Speaker #3: Yeah, we are into the submission process of the application and all the documentation part, and we are going to submit the documentation very shortly.

Rajesh Mehta: Yeah. We are into the submission process of the application and all the documentation part, and we are going to submit the documentation very shortly. Surely, the migration process will be completed in another 2 months, we believe.

Speaker #3: Currently, we believe the migration process will be completed in another two months.

Speaker #2: Okay. And my last question: you just mentioned the ₹5,000 crore target. So, what will drive us to that scale, and by when do you expect to achieve it?

[Analyst]: Okay. My last question, you just mentioned a INR 5,000 crore target. What will drive us to that scale, and by when do you expect to achieve it?

Speaker #3: That's what. As you know that we are we were able to achieve 2,000 plus crores this financial year, and we have been into the expansion part of both our legs, B2B and B2C.

Rajesh Mehta: That's what. As you also know that we were able to achieve INR 2,000 plus crores this financial year, and we have been into the expansion part of both our legs, B2B and B2C. We have been seeing a constant growth of 25% to 30% on both these segments. On the expansion plan, we have already defined that we are coming up with a few more showrooms by FY23. All these expansion plans and all these growth strategies will help us to achieve our top line of INR 5,000 crores.

Speaker #3: We have been seeing consistent growth of 25 to 30 percent in both these segments, and regarding the expansion plan, we have already defined that we are coming up with a few more showrooms by FY23.

Speaker #3: So, all these expansion plans and growth strategies will help us achieve our top line of ₹5,000 crore.

Speaker #2: Okay, that's it from my side. And all the best for the future.

[Analyst]: Okay. That's it from my end, and all the best for the group.

Speaker #3: Thank you.

Rajesh Mehta: Thank you.

Speaker #1: Thank you. Your next question comes from the line of Keval Mehta from Mehta Securities. Please go ahead. Keval Mehta, your line is unmuted. Please proceed with your question.

Operator: Thank you. Your next question comes from the line of Kewal Mehta from Mehta Securities. Please go ahead. Kewal Mehta, your line is unmuted. Please proceed with your question.

Speaker #3: Yeah, hi. Good evening, sir. Congrats on the good set of numbers. Thank you. Sir, you mentioned FY27 revenue grew by 45% year-on-year to ₹5–6 crores.

Kewal Mehta: Yeah. Hi. Good evening, sir. Congrats on

Rajesh Mehta: Yes

Kewal Mehta: the good set of numbers.

Rajesh Mehta: Thank you.

Kewal Mehta: Sir, Q1 FY27 revenues grew by 45% YOY to INR 586 crores. What was the underlying growth in jewelry volumes or grams sold during the quarter?

Speaker #3: What was the underlying growth in jewelry volumes or grams sold during the quarter? The growth in quantum was around 15%. Okay.

Rajesh Mehta: That's what, the growth in the quantum was around 15%.

Kewal Mehta: Okay.

Speaker #3: Yeah. Yeah. But can you also tell me that what was the underlying growth in jewelry volumes? Like or tell me that how much you sold how much grams of you have sold during the quarter?

Rajesh Mehta: Yeah.

Kewal Mehta: Yeah. But can you also tell me what was the underlying growth in jewelry volumes? Or tell me how much grams you have sold during the quarter.

Speaker #3: The quantum numbers—if you want, I can share them with you at a later date. You can drop me a mail, so that I can share the number with you.

Rajesh Mehta: The quantum numbers, if you want, I can share you on a later date. You please drop in an email so that I can share you the numbers.

Speaker #3: Yeah, sure, sir. And sir, Q1 was the first full quarter of the new flagship showroom. So, what revenue and store-level EBITDA did the showroom generate?

Kewal Mehta: Yeah, sure.

Rajesh Mehta: Yeah.

Kewal Mehta: And, sir, Q1 was the first full quarter of new flagship showroom.

Rajesh Mehta: Yeah.

Kewal Mehta: So what revenue and store level EBITDA did the showroom generate?

Speaker #3: That's what. We are in, what they say, naturally targeted— we have already defined that the showroom is going to affect us and the revenue of around ₹500 crore.

Rajesh Mehta: That is what we are in, what they say, in match with the target. We have already defined that the showroom is going to fetch us the revenue of around INR 500 crores, and somewhere around 80% to 85% of that we have been working, and we are achieving that.

Speaker #3: And somewhere around 80 to 85% of that, we have been working, and we are achieving that, okay. And where does that current monthly revenue run rate stand?

Kewal Mehta: Okay. Where does its current monthly revenue run rate stand?

Speaker #3: What? I couldn't get you, sir. Sir, that new showroom—your new flagship showroom, right? Where does its current monthly revenue run rate stand?

Rajesh Mehta: What? I couldn't get you, sir.

Kewal Mehta: Sir, that new showroom, which is your new flagship showroom, right?

Kewal Mehta: Where does its current monthly revenue run rate stands?

Speaker #3: Sir, this is around the monthly figure — you said it will be approximately ₹30 to ₹35 crore, correct? Okay. And after delivering about 45% revenue growth in Q1, versus the earlier FY27 guidance of 25% to 30%, what growth range are you now targeting for the full year?

Rajesh Mehta: Sir, it is around, monthly figure you say, it is approximately around INR 30 to 35 crores.

Kewal Mehta: Okay.

Rajesh Mehta: Yeah.

Kewal Mehta: After delivering about 45% revenue growth in Q1 versus our near FY27 guidance of 25% to 30%.

Rajesh Mehta: Yeah

Kewal Mehta: What growth range are you now targeting for the full year?

Rajesh Mehta: That is what we are going to attend the top line, if it grows at the same pace, and we are very confident of achieving the already defined figures with our retail sales. 25% growth we are expecting in our B2B segment also. In that case, yes, that overall, the today's top line, if you consider, we would be able to achieve 30% growth.

Speaker #3: We are going to attend the top line if it grows at the same pace, and we are very confident of achieving the already defined figures with our retail sales and the 25% growth we are expecting in our B2B segment also.

Speaker #3: In that case, yes, overall, if you consider today's top line, we would be able to achieve 30% growth. Okay. Got it. Got it, sir.

Kewal Mehta: Okay, got it, sir.

Rajesh Mehta: Yeah.

Speaker #3: Yeah, that's all from my side. Thank you. Thank you so much.

Kewal Mehta: Yeah. That is all from my side. Thank you.

Rajesh Mehta: Thank you so much.

Speaker #1: Thank you. Participants, you may press star, then 1 to ask a question. Your next question comes from the line of Rohit with Miranthar Capital.

Operator: Thank you. Participants, you may press star and then one to ask a question. The next question comes from the line of Rohit with Mirantur Capital. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: Yeah, hi. Sir, thanks for the opportunity. Sir, you have given guidance of about 25 to 30 percent growth, and on an absolute basis, you said ₹5,000 crores.

[Analyst] (Mirantur Capital): Yeah. Hi. Sir, thanks for the opportunity. Sir, you have given a guidance of about 25% to 30% growth.

Rohit Guntur: Yeah. Hi. Sir, thanks for the opportunity. Sir, you have given a guidance of about 25% to 30% growth.

Rajesh Mehta: Yes, sir.

[Analyst] (Mirantur Capital): On an absolute basis you said INR 5,000 crores. If I take 30% growth, then it comes to about INR 5,800 crores.

Rohit Guntur: On an absolute basis you said INR 5,000 crores. If I take 30% growth, then it comes to about INR 5,800 crores.

Speaker #3: So if I take 30% growth, then it can it comes to about 5,800 crores. Just trying to understand, right, the growth here earlier you had given a split of or target of taking your retail share to about 20, 25 percent.

Rajesh Mehta: Okay.

[Analyst] (Mirantur Capital): Just trying to understand the growth here. Earlier you had given a split or target of taking your retail share to about 20% to 25%. Would that now change with the target that we have in our mind? Because earlier you said that you expect both verticals to grow equally.

Rohit Guntur: Just trying to understand the growth here. Earlier you had given a split or target of taking your retail share to about 20% to 25%. Would that now change with the target that we have in our mind? Because earlier you said that you expect both verticals to grow equally.

Speaker #3: So, would that now change with the target that you have in mind? Because earlier, you said that you expect both verticals to grow equally.

Speaker #3: That's right. Now, since we have plans to improve our bottom line to a greater strength, we have been working on the growth of both segments.

Rajesh Mehta: Now since we have plans of improving our bottom line to a greater strength, we have been working on the growth of both the segments, and we have been focusing on expanding our retail leg also. So in that case, our bottom line will be very much better and we would be able to give a high PAT margin. Ultimately we are also planning for expansion of both business as well.

Speaker #3: And we have been focusing on expanding our retail leg also. So, in that case, our bottom line will be much better, and we would be able to give a high PAT margin.

Speaker #3: And ultimately, we are also planning for expansion. Sorry, 25 to 30 percent CAGR was for PAT, and ₹5,000 crore revenue was for—this is—this was, the CAGR was not for revenue, right?

[Analyst] (Mirantur Capital): Sorry, 25% to 30% CAGR was for PAT and 5,000 crore revenue, this CAGR was not for revenue, right? Just to understand.

Rohit Guntur: Sorry, 25% to 30% CAGR was for PAT and 5,000 crore revenue, this CAGR was not for revenue, right? Just to understand.

Speaker #3: Just to understand—yeah, it was both. You can define at the same pace, 25 to 30 percent. We are trying to achieve it. We are already defining it on a constraint basis.

Rajesh Mehta: Yeah, it was both. Both you can define at the same pace, 25% to 30%. We are trying to achieve it. We are already defining it at a constrained basis.

Speaker #3: Okay. Okay. Yeah. Now, sir, these two segments—let's say B2B—let me just take B2B first. Do you expect the growth to come from the existing clients that we have?

[Analyst] (Mirantur Capital): Okay.

Rohit Guntur: Okay.

Rajesh Mehta: Yeah.

[Analyst] (Mirantur Capital): Now, sir, let's say within these two segments, our B2B, let me just take first B2B.

Rohit Guntur: Now, sir, let's say within these two segments, our B2B, let me just take first B2B.

Rajesh Mehta: Okay.

[Analyst] (Mirantur Capital): Do you expect the growth to come from the existing clients that we have? We have somewhere around 1,000 clients, right? But we are able to actively bill only 501.

Rohit Guntur: Do you expect the growth to come from the existing clients that we have? We have somewhere around 1,000 clients, right? But we are able to actively bill only 501.

Speaker #3: We have somewhere around 1,000 clients, right? But we are able to actively bill only 501. So, are you expecting more of the revenues or more of this growth to come from wallet share gains from existing ones, or have you taken any steps to drive growth from the clients that we are not able to bill?

Rajesh Mehta: Yeah.

[Analyst] (Mirantur Capital): Are you expecting more of the revenues or more of the growth coming from wallet share gains from existing ones, or have you taken any steps to drive the growth from the clients which we are not able to bill? Or have you hired more people or in that case?

Rohit Guntur: Are you expecting more of the revenues or more of the growth coming from wallet share gains from existing ones, or have you taken any steps to drive the growth from the clients which we are not able to bill? Or have you hired more people or in that case?

Speaker #3: Or have you hired more people in your team? That we have been continuously doing, either business cycle. We do not have clients which have been running with us for a window.

Rajesh Mehta: That we have been continuously doing it. In a business cycle, we do not have clients which have been running with us forever. There is a possibility that, say, 20% of the client can move on, and once again, they will join. And we are into the process of adding up new clients also. In that whole process, we are adding up clients so that growth strategy can be achieved.

Speaker #3: There is a possibility that, say, 20% of the clients came on, and once again they will join. We are clients also. In that whole process, we are adding up clients.

Speaker #3: So that growth strategy can be achieved. So, just trying to understand, have you hired more people in your team? Therefore, does it give you the confidence that we will be able to drive more growth even on the B2B side, which probably was, let's say, subdued earlier?

[Analyst] (Mirantur Capital): Mm-hmm. Just trying to understand, have you hired more people in your team? Therefore, it gives you the confidence that we will be able to drive more growth even on the B2B side, which probably was, let's say, subdued earlier.

Rohit Guntur: Mm-hmm. Just trying to understand, have you hired more people in your team? Therefore, it gives you the confidence that we will be able to drive more growth even on the B2B side, which probably was, let's say, subdued earlier.

Speaker #3: Yeah, already we are we are on the increasing our staff strength and all the approaching our all with all our product line and marketing strategies to add up more clients.

Rajesh Mehta: Yeah, already we are increasing our staff strength and approaching with all our product line and marketing strategies to add more clients.

Speaker #3: Okay. And regarding our retail strategy, sir, as you said that you still hold this target of about taking the retail share to 20, 25 percent, which would mean at 5,000 crore, about 1,250 crores revenue or 1,200 odd crores revenue from retail source, right?

[Analyst] (Mirantur Capital): Okay. Regarding your retail strategy, sir, as you said that you still hold this target of taking the retail share to 20%-25%, which would mean at 5,000 crores, about INR 1,250 crore revenue or INR 1,200 crore revenue from retail stores, right? Your current store, this flagship store will do somewhere around INR 500 crore peak revenue.

Rohit Guntur: Okay. Regarding your retail strategy, sir, as you said that you still hold this target of taking the retail share to 20%-25%, which would mean at 5,000 crores, about INR 1,250 crore revenue or INR 1,200 crore revenue from retail stores, right? Your current store, this flagship store will do somewhere around INR 500 crore peak revenue.

Speaker #3: Your current store, this flagship store, will do somewhere around ₹500 crore peak revenue. So, ₹700 crore of revenue, obviously, will come from the new stores that you are targeting.

Rajesh Mehta: Yeah.

[Analyst] (Mirantur Capital): So INR 700 crores of revenue obviously will come from the new stores that you are targeting.

Rohit Guntur: So INR 700 crores of revenue obviously will come from the new stores that you are targeting.

Speaker #3: So for that, again, have you hired a retail and merchandising team, or regarding your experience from the current flagship store, what can you take to your newer stores, right?

Rajesh Mehta: Yes.

[Analyst] (Mirantur Capital): For that, again, have you hired a retail and merchandising team? Regarding your experience from the current flagship store, what you can take to your newer stores, right? Do you want to open the stores only in Tamil Nadu, or you want to expand in other geographies as well?

Rohit Guntur: For that, again, have you hired a retail and merchandising team? Regarding your experience from the current flagship store, what you can take to your newer stores, right? Do you want to open the stores only in Tamil Nadu, or you want to expand in other geographies as well?

Speaker #3: Do you want to open the stores only in Tamil Nadu or you want to expand in other geographies as well? Initially, we have plans of opening up stores in Tamil Nadu and since we have defined and period of say three to four years period and based on that initially we are we are planning to open up in Tamil Nadu alone and later on as per the management decision and as per the expansion plans we can even have stores in some other states also.

Rajesh Mehta: Sir, initially, we have plans of opening up stores in Tamil Nadu, since we have defined that in a period of, say, 3 to 4 years. Based on that, initially, we are planning to open up in Tamil Nadu alone. Later on, as per the management decision and as per the expansion plans, we can even have stores in some other states also. That is our base plan.

Speaker #3: So, that is our base plan. Okay. And what has been the experience from the implementation of the ERP that we did, I think, a couple of months back?

[Analyst] (Mirantur Capital): Okay. What has been the experience from the implementation of the ERP that we did, I think, a couple of months back.

Rohit Guntur: Okay. What has been the experience from the implementation of the ERP that we did, I think, a couple of months back.

Rajesh Mehta: We have been having a great experience with regards to the ERP implementation in our new showroom. Here, we are able to understand which product is moving fast, what is the average customer's demand. Based on that demand, we are modifying our product requirements, reordering levels, and everything. We are making a concrete ERP system so that it can be replaced on a replica basis for the upcoming showrooms.

Speaker #3: We have been having a great experience with regards to the ERP implementation in our new showroom. Here, we are able to understand which products are moving fast, what the average customer demand is, and based on that demand, we are modifying our product requirements, reorder levels, and everything.

Speaker #3: We are making a concrete ERP system so that it can be replaced on a replica basis for the upcoming showrooms. Understood. And that's what gives you the confidence that to scale other stores, new stores up, it will not take as much time as this one.

[Analyst] (Mirantur Capital): Understood. That is what gives you the confidence that to scale other new stores up, it will not take as much time as this one.

Rohit Guntur: Understood. That is what gives you the confidence that to scale other new stores up, it will not take as much time as this one.

Speaker #3: Because the fast learning will get replicated over there. And just last one or two questions, sir. On this growth part, 25% to 30%, how much of the growth do you expect to come from volume and how much do you expect from price realization?

Rajesh Mehta: Yes

[Analyst] (Mirantur Capital): because the fast running will get replicated over there.

Rohit Guntur: because the fast running will get replicated over there.

Rajesh Mehta: Yes.

[Analyst] (Mirantur Capital): Just last one or two questions, sir. On this growth part, sir, 25% to 30%, how much of the growth do you expect to come from volume and how much you expect from price realization? Obviously, price realization can come from the mix change you have, like this natural diamond and those kind of things, right? Virtual jewelry.

Rohit Guntur: Just last one or two questions, sir. On this growth part, sir, 25% to 30%, how much of the growth do you expect to come from volume and how much you expect from price realization? Obviously, price realization can come from the mix change you have, like this natural diamond and those kind of things, right? Virtual jewelry.

Speaker #3: And obviously, price relation can come from the mixed change you have, like this virtual diamond and those kind of things, right? Virtual jewelry. So, that is that, that when there is—it is actually already digested in the minds of the clients or customers that when there is a growth of, say, nominal 10 to 15 percent, they try to invest into the same type of quantum.

Rajesh Mehta: That is there. When it is actually already digested in the minds of the clients or customers, that when there is a growth of, say, nominal 10% to 15%, they try to invest into the same type of quantum. They can even increase their quantum requirement. But if the prices are very high, say, there is a price increase of, say, 25% to 30%, then there is a correction in the volume quantum. In that case, you would be able to achieve volume, I believe, and later on, as per the price movements, we can decide things.

Speaker #3: Or they can even increase their quantum requirement. But if the prices are very high, say there is a price increase of, say, 25 to 30 percent, then there is a correction in the volume context.

Speaker #3: In that case, you would be able to achieve volume, I believe. And later on, as per the price movements, we can decide things. Okay.

[Analyst] (Mirantur Capital): Okay. On this volume and price realization, any idea you have, sir? Any ballpark figure you have in mind that approximately how much could come from volume growth and how much from the price realization?

Rohit Guntur: Okay. On this volume and price realization, any idea you have, sir? Any ballpark figure you have in mind that approximately how much could come from volume growth and how much from the price realization?

Speaker #3: And on this volume, and price realization, any any idea you have for any any ballpark figure you have in mind that approximately how much could come from volume growth and how much from this price realization?

Speaker #3: Sure. When we are into the expansion plan and we are adding up additional stores and all, yes, we are surely — we have confidence that we are going to give, if the prices only stay the same, then the growth would be around, say, 25 to 30 percent on a quantum basis also.

Rajesh Mehta: When we are into the expansion plan and we are adding up additional stores and all, yes, we surely have the confidence that we are going to give, if the prices are on the same stance, then the growth would be around, say, 25% to 30% in the quantum basis also. If there is a certain increase in the prices, we are trying to achieve on both the sides, volume-wise also and quantum-wise also, the same growth.

Speaker #3: If there is uncertain increase in the prices and we are we are trying to achieve on both the side, volume wise also and quantum wise also the same growth.

[Analyst] (Mirantur Capital): Understood. That is quite helpful. Sir, last thing. On the margin side, retail stores generally have higher margins. Your B2B is about, let us say, 5% and 6%. Your retail stores have north of 10%, right?

Rohit Guntur: Understood. That is quite helpful. Sir, last thing. On the margin side, retail stores generally have higher margins. Your B2B is about, let us say, 5% and 6%. Your retail stores have north of 10%, right?

Speaker #3: Understood. That's quite helpful. The last thing on the margin side: you know, retail stores generally have higher margins. Your B2B is about, let's say, five to six percent.

Speaker #3: Your retail stores have north of 10 percent, right? So, as the retail contribution goes up, do you expect the margins to inch up significantly?

Rajesh Mehta: Yeah.

[Analyst] (Mirantur Capital): As the retail contribution goes up, do you expect the margins to inch up significantly? Not significantly, let us say, even from 6% to 7.5% over the next one, two year? Or because of the investments that you are undertaking, you expect the margins to remain at these levels for next one years, but then can sharply pick up thereafter?

Rohit Guntur: As the retail contribution goes up, do you expect the margins to inch up significantly? Not significantly, let us say, even from 6% to 7.5% over the next one, two year? Or because of the investments that you are undertaking, you expect the margins to remain at these levels for next one years, but then can sharply pick up thereafter?

Speaker #3: Not significantly. Let's say even from 6 to 7, 7.5 percent over the next two years. Or, because of the investments that you are undertaking, do you expect the margins to remain at these levels for the next one year?

Speaker #3: But then it can sharply pick up thereafter, since the overall share of retail is going to increase to 40 percent. We are targeting to reach at least 40 percent of retail sales by FY 2030.

Rajesh Mehta: Since the overall share of the retail is going to increase to 40%, we are targeting to reach at least 40% of the retail sale by FY2030. In that case, the share of retail increases, then our retail margins will be high. In that, our bottom line will also improve. In that case, overall, our EBITDA and PAT margins will improve.

Speaker #3: So in that case, if the share of retail increases, then our margins—what they say, retail sale—our margins, retail margins, will be high.

Speaker #3: In that, our bottom line will also improve. In that case, overall our EBITDA and part margins will improve. Okay. So you are expecting retail sales to go up to 40 percent from 25 percent, right?

[Analyst] (Mirantur Capital): Okay, you are expecting retail sales to go up to 40%, not 25%, right? Not 20%, 25%. You said 40%.

Rohit Guntur: Okay, you are expecting retail sales to go up to 40%, not 25%, right? Not 20%, 25%. You said 40%.

Speaker #3: Not 20, 25 percent. You said 40 percent. What, we are going to have 40 percent share by 2030? That's what—understood. Yeah, by 2030, expected to go up to 40 percent.

Rajesh Mehta: We are going to reach the 40% share by 2030. That is what.

[Analyst] (Mirantur Capital): Understood. Yeah, by 2030, expect it to go up to 40%.

Rohit Guntur: Understood. Yeah, by 2030, expect it to go up to 40%.

Speaker #3: Yes, understood. That's quite helpful, sir. And all of that's for your journey. Thank you, and congratulations, sir, on the good quarter. Yeah, thank you.

Rajesh Mehta: Yes.

[Analyst] (Mirantur Capital): Understood. That is quite helpful, sir. All the best for your journey. Thank you, and congratulations.

Rohit Guntur: Understood. That is quite helpful, sir. All the best for your journey. Thank you, and congratulations.

Rajesh Mehta: Thank you so much.

[Analyst] (Mirantur Capital): Sir, for the good quarter.

Rohit Guntur: Sir, for the good quarter.

Operator: Thank you. Thank you so much. Thank you. The next question comes from the line of Miten Shah, an individual investor. Please go ahead.

Rajesh Mehta: Thank you. Thank you so much.

Speaker #3: Thank you so much. Thank you. The next question comes from the line of Mithen Shah, an individual investor. Please go ahead. Yeah, thank you for giving me the opportunity, and congratulations on posting a good set of numbers.

Operator: Thank you. The next question comes from the line of Miten Shah, an individual investor. Please go ahead.

Miten Shah: Yeah. Thank you for giving the opportunity, and congratulations on posting good set of numbers. My first question would be regarding this working capital days. What would the blended working capital days, and also if you can give split of working capital days in wholesale and retail separately as well?

Speaker #3: So, my first question would be regarding working capital days. What would the blended working capital days be? Also, if you can give a split of working capital days in wholesale and retail separately as well?

Speaker #3: Yeah. In what they say in wholesale, the average working cycle is around 40 to 45 days. I mean, in the retail segment, it is nearly 100 to 120 days.

Rajesh Mehta: Yeah. It is in wholesale, the average working cycle is around 40 to 45 days, and in the retail segment, it is nearly 100 to 120 days.

Speaker #3: Okay, okay. So, my question is: if you see the cash flow last year, it looks to be negative as such.

Miten Shah: Okay. My question is, if you see the cash flow last year, it looks to be negative as such. Do you see any improvement in the cash flow generating positive cash in the current fiscal and subsequent fiscal as such?

Speaker #3: So, do we see any improvement in cash flow, generating positive cash in the current fiscal and subsequent fiscal as such? Yeah.

Speaker #3: That's why, obviously, we see we have an expansion plan. We had added up additional inventory—stock inventory—for the new retail store. That's what the cash was there for.

Rajesh Mehta: Yeah. That is what, obviously since we have an expansion plan, we had added up additional inventory, stock inventory for the new retail store. That is what the cash was there. It is converted in the form of stock.

Speaker #3: And it is converted in the form of stock, so the cash flow has been negative. But we will be improving the cash flow, and as per the requirements, we should be able to generate cash.

Miten Shah: Okay.

Rajesh Mehta: That the cash flow has been negative, but we would be improving the cash flow, and it would be as per the requirements, we would be able to generate cash.

Speaker #3: Yeah, yeah. The reason I'm asking is because I understand we are in the expansion of retail showrooms, and our aspiration is also to increase the retail showrooms.

Miten Shah: Yeah. Because the reason I am asking, I understand, because we are in the expansion of retail showrooms, and our aspiration is also to increase the retail showrooms by 40%.

Speaker #3: You know, by 40 percent by 2030. So in that case, you know, the inventories will always keep on rising and, hence, my concern is again the same—you know, would it still be able to generate positive cash flow?

Rajesh Mehta: Yeah

Miten Shah: by 2030. So in that case,

Rajesh Mehta: Yes sir.

Miten Shah: the inventories will always keep on rising and hence my concern is again the same. Would it still be able to generate positive cash flow because as the plan is to increase the retail footprint.

Speaker #3: Because as as the plan is to increase the retail footprint. Yeah. Definitely, sir. This year we will be having a good cash positive cash flow because we have an what they say correct fund plans with regards to how we are going to operate with for the fulfill the stock requirement of the upcoming stores.

Rajesh Mehta: Yeah, definitely. This year we will be having a good positive cash flow because we have an, what they say, correct fund plans with regards to how we are going to operate to fulfill the stock requirement of the upcoming stores.

Speaker #3: Got it, got it. So, you know, recently—in the last one month, or especially the last one to two weeks—we have seen a huge surge in the gold price again.

Miten Shah: Got it. Recently, say in last one month or especially last one to two weeks, we see a huge surge in the gold price again. Is there any, what you call, slowdown in the traction in the business per se regarding the increase in the gold because of this increase in the gold price?

Speaker #3: So, is there any, you know, what you’d call a slowdown in the traction in the business per se regarding the increase in gold, because of this increase in the gold price?

Speaker #3: Hey, that's what the movement in the gold price has been there from a very long period of time. And every time when there is a steep rise in the prices, yes, there is a certain slowdown of, say, for a fortnight or two weeks.

Rajesh Mehta: That is what, the movement in the gold price has been there from the very long period of time. And every time when there is a steep raise in the prices, yes, there is a certain slowdown of, say, for a fortnight or two weeks. Then that price get digested and once again, the upcoming seasons are coming up, marriage seasons are there, festival seasons are there.

Speaker #3: Then that price gets digested. And once again, the upcoming seasons are coming up—marriage seasons are there, festival seasons are there. So we are seeing very good demand in the upcoming near future.

Rajesh Mehta: We are seeing a very good demand in the very upcoming near future. This price raise will be easily digested.

Speaker #3: So, this price range will be easily digested. Got it, got it. And since we want to, you know, increase our retail footprint, we're targeting a contribution of somewhere around 40 percent by FY20.

Miten Shah: Got it. Since we want to increase retail footprint, say contributing somewhere around 40% by 2050, is there any, I mean, obviously CapEx would be required for that. Is there any plan to further increase, I mean, to borrow money or how would that be planned out to achieve this 40%? I mean, where does the fund

Speaker #3: So, is there any—I mean, obviously capex would be required for that. So is there a plan to further increase—I mean, to borrow money, or how would that be planned out, you know, to achieve this 40 percent?

Speaker #3: I mean, where do funds be? Yeah. Planning to we are planning retail development of 40 to to reach there. We have another internal internal earnings we will be utilizing it for expansion.

Rajesh Mehta: That is what, we are planning a retail development of 40%. To reach there, we have our internal earnings, we will be utilizing it for expansion. Certain cases as and when required, either the management will be deciding as and when it may be raised by debts or some other means.

Speaker #3: In certain cases, as and when required by the management, it will be decided as and when it may be raised by debts or some other means.

Speaker #3: Got it, got it. So as of now, what is the debt on the company's long-term or short-term separately? The company is having a total bank limit of ₹100 crore till date.

Miten Shah: Got it. As of now, what is the debt on the company for long-term or short-term separately?

Rajesh Mehta: That is what, the company is having a total bank limit of INR 100 crores still date.

Speaker #3: Yeah, yeah. I'm talking about any long-term? Nothing, sir. That is only the limit. Except for the working capital? No, no, no. Okay, okay. That's what—that is the working capital we are using from the bank.

Miten Shah: Yeah. I am talking about any long-term.

Rajesh Mehta: Nothing, sir, that is only the limit.

Miten Shah: Except for the working capital?

Rajesh Mehta: No.

Miten Shah: Okay.

Rajesh Mehta: That is what. That is the working capital we are using from the bank.

Speaker #3: Yeah. And we have, sir, around 1,000 customers in B2B. So what would be the contribution from the top 10 clients in terms of percentage from B2B?

Miten Shah: Yeah. We have served around 1,000 customers in B2B. What would be the contribution from top 10 clients in terms of percentage from B2B?

Speaker #3: So, as we have a diversified portfolio of clients, we have been dealing with all the clients who have been there for nearly decades and have two showrooms, three showrooms in all the district headquarters of all Tamil Nadu and some parts of South India.

Rajesh Mehta: That is what. As we have a diversified portfolio of clients, we have been dealing with all the clients who have been there nearly a decade and having two showroom, three showroom on all the district headquarters of all Tamil Nadu and some parts of South India.

Speaker #3: So we are dealing with all the clients. None of the clients shares more than 5 to 6 percent of the total revenue. Oh, fantastic.

Miten Shah: Okay.

Rajesh Mehta: We are dealing with all the clients. None of the clients shares more than 5% to 6% of our total revenue.

Miten Shah: Oh, fantastic. Somewhere in the presentation I heard, it is an asset-light model business model. I did not understand that correctly. I mean, what do we mean by asset-light business model as such?

Speaker #3: Fantastic. And you know, somewhere in the presentation, I heard, you know, it is an asset-light model business model. So I didn't understand that correctly.

Speaker #3: I mean, what do we mean by asset-like business model as such? Since it was like that because there was a question—they stated that since we have been invested, what do they say, capitalizing fund for developing this company-owned flagship showroom.

Rajesh Mehta: Since it was like that because there was a question they stated that since we have been invested, what they say, capitalizing fund for developing this company-owned flagship showroom.

Speaker #3: So in the upcoming period, are we going to have the same type of module, where all the assets will be owned by the company?

Miten Shah: Yes.

Rajesh Mehta: So in the upcoming period, are we going to have the same type of module that all the assets will be owned by the company? We said, "No, we are going to operate with an asset-light model so that we will have and lease the property for that and use it for our development.

Speaker #3: We said no, we are going to operate with an asset-light model, so that we will lease the property for that and use it for our development.

Speaker #3: Okay. And any contribution from e-commerce platforms as such as of now? No. Till now, we have not seen much contribution from e-commerce, but we are on track to make a concrete plan for an e-commerce platform where we are going to sell lightweight, minimal jewelry products—diamond jewelry, rose gold, and even silver jewelry also.

Miten Shah: Okay. Any contribution from e-commerce platform as such as of now?

Rajesh Mehta: No. Till now we have not much contribution from e-commerce, but we are on the run to make a concrete e-commerce platform where we are going to sell lightweight, minimal jewelry products of natural diamond jewelry, rose gold, and even silver jewelry also. So yeah, that is under progress and it will be launched very shortly.

Speaker #3: So we are — that is under progress and it will be launched very shortly. Got it. And when you say other states, you know, basically this is referring to 25 percent.

Miten Shah: Good. When you say other states, basically this is representing 25%. Which are those other states and predominantly, which is the highest after Tamil Nadu?

Speaker #3: I mean, which are those other states, and predominantly, which is the highest after Tamil Nadu? After Tamil Nadu, it is Andhra, sir. Andhra. Andhra.

Rajesh Mehta: After Tamil Nadu, it is Andhra, sir.

Miten Shah: Andhra.

Speaker #3: Got it. Got it. Thanks. Thanks a lot for replying so candidly, and I really appreciate your candid answers. I wish you all the best.

Rajesh Mehta: Yes.

Miten Shah: Got it. Thanks a lot for replying so candidly, and really appreciate your candid answers, and wish you all the best.

Speaker #3: Thank you. Thank you so much. Thanks a lot. Thank you. Your next question comes from the line of Vidhi Purohit with Phoenix Capital. Please go ahead.

Rajesh Mehta: Thank you.

Miten Shah: Thanks a lot.

Operator: Thank you. Your next question comes from the line of Vidhi Purohit with Phoenix Capital. Please go ahead.

Speaker #3: Hello. Hello. Yes. Sir, what were the inventory days and overall working capital cycle at the end of Q1? And now that the flagship showroom is operational, have you started seeing some normalization in the working capital cycle?

Vidhi Purohit: Hello.

Rajesh Mehta: Hello. Yes.

Vidhi Purohit: Sir, what were the inventory days and overall working capital cycle at the end of Q1? Now that the flagship showroom is operational, have you started seeing some normalization in the working capital cycle?

Speaker #3: Yeah, that's why there is a little increment in the inventory turnover days, because we have opened new retail stores. But there is not much difference.

Rajesh Mehta: Yeah. There is a little increment in the inventory turnover days because we have come up with new retail stores. There is not much difference. All over the last year's Q4 FY26, if you take the inventory turnover, the ratio was 63, and now it is 73.

Speaker #3: It has all over the last year's as Q4 FY26 if you take that inventory turnover ratio was 63 and now it is 73. 73.

Speaker #3: And so current borrowing increase meaningful in FY26 along with the rise in inventory. So with the new store new I mean, with the new store now operational should be expect borrowing to stabilize from here or could they continue to increase as the business scale up?

Vidhi Purohit: Current borrowings increased meaningfully in FY26 along with the rise in inventory. With the new store now operational, should we expect borrowing to stabilize from here, or could they continue to increase as the business scales up?

Speaker #3: No, no. As we are, the plan is— we are, that's what we are— the borrowing has been increased for the new store only, and for the further expansion plan, if we have— we have internal earnings, and if anything is required, it may increase if further projects of expansion execute.

Rajesh Mehta: No. The borrowings has been increased for the new store only and for the further expansion plan, if we have an internal earnings and if anything is required, it may increase if further projects of expansion executes.

Speaker #3: And so, sir, I mean, Khazanchi has built up fairly large proprietary design libraries. So, how much of your current sales comes from the new your, I mean, new designs, and how quickly do you typically refresh designs that are not moving as expected?

Vidhi Purohit: And sir, Khazanchi has built a fairly large proprietary design library. How much of your current sales comes from your designs, and how quickly do you typically replace designs that are not moving as expected?

Speaker #3: So, we have been analyzing, and now with the new showroom, we have implemented an ERP system which is analyzing and giving us data with regards to the fast-moving items and the reordering level at the fastest rate.

Rajesh Mehta: We have been analyzing now with the new showroom. We have come up with an ERP system which is analyzing and giving us data with regards to the fast moving items and reordering level at the fastest level. In that case, we have been analyzing designs in that fashion. Since we have a very vast experience of more than five decades of designing things into our B2B segments also, and that all designs have been widely accepted all over South India. In that case, we have a very strong profile of designing our own products and giving it. Most of the designs, we do not find anything that are very slow moving. Proportionately, we have been adding up new designs and getting designs from all our manufacturers. We make our own blender products so that it is unique and it is moving very fast.

Speaker #3: So, in that case, we have been analyzing designs in that fashion, and since we have a very vast experience of more than five decades of designing things in our B2B segments also.

Speaker #3: And all those designs have been widely accepted all over South India. In that case, we have a very strong profile of designing our own products and offering them.

Speaker #3: So, for most of the designs, we did not find anything that was very slow moving. So, proportionately, we have been adding new designs and getting designs from all our manufacturers.

Speaker #3: And we make our own blender products, so that it is unique and it is moving very fast. Okay. Thank you, sir. Thank you. Thank you.

Vidhi Purohit: Okay. Thank you, sir. I really appreciate my time.

Rajesh Mehta: Thank you.

Operator: Thank you. A reminder to all the participants, if you wish to register for a question, please press star and then one. Also requesting participants to ask questions via handsets. Our next question comes from the line of Yash Rathore with Unique Solution. Please go ahead.

Speaker #3: A reminder to all the participants: if you wish to register for a question, please press star, then one. Also, we request participants to ask questions via handsets.

Speaker #3: Our next question comes from the line of Yash Rathod with Unique Solution. Please go ahead. Hello, am I audible? Yes, sir. Making chart competition has become aggressive across the jewelry industry.

Yash Rathore: Hello, am I audible?

Rajesh Mehta: Yes, sir.

Yash Rathore: Sir, making charge competition has become aggressive across the jewelry industry. Are you seeing any pressure on making charges in the flagship store or is design differentiation allowing you to protect them?

Speaker #3: Are you seeing any pressure on making charges in the flagship store, or is design differentiation allowing you to protect them? That's what is always there, with regards to design—only the making charges are charged.

Rajesh Mehta: That is what. With regards to design only, the making charges are charged. Already we have been creating various designs which are adding up good value to our profit. In that case, we have been doing very good and competitively we are able to source the right product at right making charge rather than higher lower making charge compared to the market. Since we have been dealing with both B2B and B2C segment, and based on our quantum requirement, we are getting better pricing so that we are able to offer it at a manufacturing cost to our clients also. In that case, we are on the better side compared to our peers.

Speaker #3: So already, we have been creating various designs which are adding good value to our profit. So in that case, we have been doing very well, and competitively, we are able to source the right product at the right making charge, as well as at a lower making charge compared to the market.

Speaker #3: Since we have been dealing with both B2B and B2C segments, and based on our quantum requirement, we are getting better pricing so that we are able to offer it at manufacturing cost to our clients as well.

Speaker #3: In that case, we are on the better side compared to our peers. Okay, understood. And what progress has been made on the app and omnichannel strategy, and is digital currency currently being used mainly for customer discovery or for actual transactions?

Yash Rathore: Okay, understood. What progress has been made on the app and omnichannel strategy? Is digital currently being used mainly for customer discovery or for actual transactions?

Speaker #3: You are talking about app development, right? Yes. Yeah. For the B2B segment, we have our design and product selection app already, so that the clients can have a look at all our designs and place orders selected from our, what they say, from the app and send orders.

Rajesh Mehta: You are talking about the app development, right?

Yash Rathore: Yes.

Rajesh Mehta: For B2B segment, we have our design and product selection app already so that the client can have a look of all our designs and give orders or select it from the app and send orders. For the retail segment, yes, we are coming up with an e-commerce. We have been working on it, and very soon we will be launching that too. We have a gold savings chit app that is very helpful for customers to buy gold at any price and save it in the form of gold.

Speaker #3: And for the retail segment, yes, we are coming up with an e-commerce platform. We have been working on it, and very, very soon we will be launching that too.

Speaker #3: And we have a, what they say, Gold Savings Chip app that is very helpful for customers to buy gold at any price and save it in the form of gold.

Speaker #3: Okay. And sir, how many new stores are you planning? What will be the approximate store format and CapEx per store? And what is the total CapEx and timeline for the rollout?

Yash Rathore: Okay. Sir, how many new stores are you planning? What will be the approximate store format and CapEx per store? What is the total CapEx and timeline for the rollout?

Speaker #3: That's what we are planning—to open up eight to ten stores by 2030 in the retail segment, which is a blend of both flagship showroom and boutique type of store.

Rajesh Mehta: That is what we are planning to open up 8 to 10 stores by 2030 in the retail segment. It is a blend of both flagship showroom and boutiques type of store, coming up with the minimal jewelry boutique store type. Based on the immediate near timing as what type of store we are opening, then only we could be able to define the exact CapEx required for that particular store. So that will be defined as and when it is finalized.

Speaker #3: Coming up with a minimal jewelry boutique store type. So since based on the immediate near timing as what type of store we are opening then only we could be able to define the exact capex required for that particular store.

Speaker #3: So that will be defined as and when it is finalized. Okay. Thank you, sir. That's all from my side. Thank you. Thank you. The next question comes from the line of Priya Jain with Green Capital.

Yash Rathore: Okay. Thank you, sir. That was from my side.

Rajesh Mehta: Thank you.

Operator: Thank you. The next question comes from the line of Priya Jain with Green Capital. Please go ahead.

Speaker #3: Please go ahead. Hello, sir. I have a few questions on the retail part. For expansion in retail, how do you plan to extend Khazanchi's brand visibility beyond Chennai, and how much was spent on marketing and advertising in Q1? What are your plans for that going forward?

Priya Jain: Hello, sir. I have a few questions on the retail part. For expansion in retail, how do you plan to strengthen Khazanchi's brand visibility around Chennai, and what is spent on marketing and advertising in Q1? What are your plans for the remaining quarters?

Speaker #3: That's what, since we have come up with the opening of our new stores, we have always, what they say, tied up with an advertising agency and we have been working for marketing.

Rajesh Mehta: That is what, since we have come up with an opening of our new stores, we have always, what they say, have tied up with an advertising agency and we have been working for marketing. For the Q1, we have spent around

Speaker #3: And for the Q1, we have spent around—I'm not able to hear you. Yeah, yeah. Overall, we have a budget of, say, five to seven percent of the total earnings for our marketing.

Priya Jain: Sir, I am not able to hear you.

Rajesh Mehta: Yeah. Overall budget, we have, say, of 5% to 7% of the total earning for our marketing.

Speaker #3: Is this around the gold correction part, like gold prices have corrected from the recent? Are you seeing any improvement in, you know, like an increase in the grams per bill conversion rate, or, you know, in jewelry purchases in July and August?

Priya Jain: Also, sir, on gold correction part, like gold prices have corrected from the recent peak. Are you seeing any improvement in increase in the gram per conversion rate or in jewelry purchase in July and August?

Speaker #3: Say I couldn't get you the question. You're saying that the gold prices have increased or decreased? Yes. Yes, it is corrected now from the recent peak.

Rajesh Mehta: I couldn't get you, the question. You're saying that the gold prices have increased or decreased?

Priya Jain: Yes. It is corrected now from the recent peak. Are you seeing any-

Speaker #3: So are you seeing any like like more this portion this percentage of corrections and upward and downward movement is very normal in regards to gold ornaments when the prices are prices are low.

Rajesh Mehta: No, but this percentage of corrections and upward and downward movement is very normal in regards to gold ornaments. When the prices are low, obviously, the people try to buy more quantum of gold compared to when the prices are high. Whenever the prices go up in a shorter while of, say, a period of it is an, call it, saturation period, or it is a digestion period for them to digest that raised price. In that case, yes, for a certain period of time, 5 to 10 days or 2 weeks, the business is little slow or even the quantum requirement is slow. Later on it is routine, and it gets to the normal.

Speaker #3: Obviously the people try to buy more quantum of gold compared to when the prices are high. But when whenever the prices go up in a shorter while of say period of it is and for the saturation period are it is a digestion period for them to digest that raised price.

Speaker #3: In that case, yes, for a certain period of time—five to ten days or two weeks—the business is a little slow, or even the quantum requirement is slow.

Speaker #3: Later on, it becomes routine and gets back to normal. And, you know, are there any strategies or marketing tactics that you internally, or Khazanchi, is planning to do for customer retention, especially related to repeat purchases?

Priya Jain: And what, any strategies or marketing tactics internally Khazanchi is planning to do for customer retention especially and repeat purchase?

Speaker #3: Yeah. We have given lots of different types of offers, different types of schemes we have in our store. Each and every time, based on the festival and based on the item requirements, we have been creating schemes for them.

Rajesh Mehta: Yeah, we have given lots of different type of offers, different type of schemes we have in our store. Each and every time based on the festival and based on the item requirements, and we have been creating schemes for them. Based on that, we provide discounts. That has been a regular activity, and it has been done on month-on-month basis. There are always different type of schemes that we are implementing for improving the sales and retaining the customer.

Speaker #3: So based on that we provide discounts. So that has been a regular activity and it has been done on month on month basis. So there are always a different different type of schemes that we are implementing for improving the sales and retaining the customer.

Speaker #3: Okay, sir. For the next set of retail store launches, what format are you considering in terms of approximate, you know, store size and Khazanchi's investment in it, inventory requirements, and break-even period?

Priya Jain: Also, sir, for the next set of retail store launches, what format are you considering in terms of approximate store size and Khazanchi's investment in it, inventory requirements and breakeven period?

Speaker #3: That's what we are planning—two types of stores, based on what they say, based on the venue when we finalize. So, based on the venue at that place, what is the size of requirement there.

Rajesh Mehta: That's what, we are planning of 2 types of stores based on the venue when we finalize. Based on the venue at that place, what is the size of requirement is there. We'll be defining things when we finalize that on a later stage.

Speaker #3: So, we would be defining things when we finalize that at a later stage. Okay, sir. Looking forward to the updates. Thank you. Yeah, thank you.

Priya Jain: Okay, sir. Looking forward to the update. Thank you.

Rajesh Mehta: Yeah.

Operator: Thank you. A reminder to all the participants, you may press star and then one to ask a question. Your next follow-up question comes from the line of Kewal Mehta from Mehta Securities. Please go ahead.

Speaker #3: A reminder to all participants: please give me a star, and then one to ask a question. Your next follow-up question comes from the line of Keval Mehta from Mehta Securities.

Speaker #3: Please go ahead. Yes. Sir, are you planning to expand through the franchise model as well, or will the upcoming stores remain company-owned? Initially, we have plans of adding only company-owned stores.

Kewal Mehta: Yes, sir. Are you planning to expand through a franchise model as well, or will the upcoming stores remain company-owned?

Rajesh Mehta: Initially, we have plans of adding up company-owned only, sir.

Speaker #3: Company owned only? Okay, yes. I also want to know about retail sales as well. What percentage of retail sales is currently coming from old gold exchange?

Kewal Mehta: Company-owned only. Okay.

Rajesh Mehta: Yes, sir.

Kewal Mehta: I want to know about retail sales as well. What percentage of retail sales is currently coming from old gold exchange?

Speaker #3: Sir, old gold exchange is total out of the total sale old gold exchange is somewhere around 15 to 20 percent. Now it has increased.

Rajesh Mehta: Sir, out of the total sale, old gold exchange is somewhere around 15% to 20%. Now it has increased. Last year it was less. After the Modi Ji statement, it has increased.

Speaker #3: Last year it was less; after the Modiji statement, it has increased. Okay. And how much of the upcoming festival and wedding season demand is already visible through advance bookings or confirmed B2B orders?

Kewal Mehta: Okay.

Kewal Mehta: How much of the upcoming festival and wedding season demand is already visible through advance booking or confirmed B2B order?

Rajesh Mehta: That's what, as the season starts now from 15 days, after 15 days, all the order books are already in execution, and there are upcoming shows also where we have planned to participate. In that case, we have a good demand, and the demand is quite feasible, and as per the, what could I say. It is not applied to any fixation of orders or something because the consumer always purchases on the ready purchases. So in that case, always that happens as the season starts. But we foresee a very good quarter next.

Speaker #3: That's what as the season starts now from 15 days after 15 days all the order books are already in execution and there are upcoming shows also where we are plan to participate in that case we have a good demand and it is or the the demand is quite feasible and the as per the what could I say it is not applied any fixation of orders or something because the consumer because you know always purchases only ready ready purchases.

Speaker #3: So in that case, that always happens as the season starts. But we foresee a very good quarter next. Okay. Got it. Got it. Yeah.

Kewal Mehta: Okay. Got it, sir.

Kewal Mehta: Yeah.

Speaker #3: All right. That's helpful, thank you. Participants, if you wish to register for a question, give me a star and then one. Your next question comes from the line of Aditi Jain with Wealth Management.

Kewal Mehta: All right. That's all, sir.

Operator: Thank you. Participants, if you wish to register for a question, you may press star and then one. The next question comes from the line of Aditi Jain with Wealth Management. Please go ahead.

Speaker #3: Please go ahead. Hello. Yes, so my question is, is there scope to improve—sorry to interrupt, Aditi ma'am, but you're sounding quite muffled. May we request you to use the handset, please?

Aditi Jain: Hello, sir. Hello.

Rajesh Mehta: Yes.

Aditi Jain: My question is there scope to improve-

Operator: Sorry to interrupt. Aditi, ma'am, you are sounding quite muffled. May we request you to use the handset, please?

Aditi Jain: Okay, sir.

Speaker #3: Yeah. Is there any scope to improve B2B profitability through higher making charges rather than relying on volume growth, and are you already seeing this in newer designs?

Operator: Yeah.

Aditi Jain: Is there any scope to improve B2B profitability through higher making charges rather than relying on volume growth? Are you already seeing this in a newer design?

Speaker #3: Yeah. We have been improving on the B2B segment also, and we are into what they say, expansion of our higher margin products also, so we have added up jewelry and even diamond jewelry for our B2B segment also.

Rajesh Mehta: Yeah, we have been improving on B2B segment also, that is why we are into, what they say, expansion of our higher margin products also, so that we have added up Kundan, Gota jewelry, and even diamond jewelries for our B2B segment also. So we have been working on improving the margins of B2B. On both sides we have been working, because for the B2B segment, the volume growth is also very much required, so that we have to give work to all our manufacturing units on contract manufacturer. Based on that, we have been working on both sides to improve our top line and bottom line for B2B.

Speaker #3: So, we have been working on improving the margins of B2B. And on both sides, we have been working, because for the B2B segment the volume growth is also very much required, so that we have to give work to all our manufacturing units and contract manufacturers.

Speaker #3: So, based on that, we have been working on both sides to improve our top line and bottom line for B2B. Okay. And what is the current inventory level as of today, or 30th June?

Aditi Jain: Okay. What is the current inventory level as of today or 30 June?

Speaker #3: Inventory level means? I couldn't get you. So, I asked what is the current inventory level as of today or as of 30th June? Inventory level means you are talking about what is the total inventory?

Rajesh Mehta: Inventory level means? I couldn't get you.

Aditi Jain: Sir, I asked what is the current inventory level as of today or 30 June?

Rajesh Mehta: Inventory level means you are talking about what is the total inventory?

Speaker #3: Yes. Yeah. Inventory is approximately around 460 in total. Okay. And what is the typical lead time from receiving a customized retail order to final delivery? And is there any scope to shorten this as volumes scale?

Aditi Jain: Yes.

Rajesh Mehta: Yeah, inventory is approximately around INR 460 crores.

Aditi Jain: Okay. What is the typical lead time from receiving a customized retail order to final delivery? Is there any scope to shorten this as volume scale?

Speaker #3: It depends upon the type of inventory, because we have been primarily working on the handmade designs. Our primary focus is on manufacturing of handmade designs.

Rajesh Mehta: It depends upon the type of inventory, because we have been primarily working on the handmade designs. Our primary focus is on manufacturing of handmade designs. So it depends upon the orders of the clients, so that what type of orders they are giving it, as the delivery times differs from 7 days to 21 days also.

Speaker #3: So, it depends upon the orders of the clients—so what type of orders they are giving us, as the delivery times differ from 7 days to 21 days also.

Speaker #3: Okay. And are you planning to introduce or scale customer advance or gold saving schemes to improve repeat purchases and partially fund retail inventory? Yeah.

Aditi Jain: Okay.

Rajesh Mehta: Yeah.

Aditi Jain: Are you planning to introduce or scale customer advance or gold saving schemes to improve repeat purchases and partially fund retail inventory?

Speaker #3: Already, you heard, our retail clients—we have already introduced a customer gold saving plan. We have already launched that plan, and from this quarter, it has been in operation. We have been promoting it to all the clients so that they can save in the form of gold, so that they do not feel the pinch of increased pricing.

Rajesh Mehta: Yeah, already for our retail clients, we have already introduced a customer gold savings plan, and we have launched already that plan. From this quarter it has been in operation, and we have been promoting to all the clients so that they can save in the form of gold, so that they do not feel the pinch of increased pricing and can make repeated purchases at our store.

Speaker #3: And can make repeat purchases at our store. Okay. Okay, sir, thank you. That's all. Thank you. Thank you. Thank you. Your next question comes from the line of Mayur Parekh with VY Capital.

Aditi Jain: Okay. Okay, sir. Thank you. That is all.

Rajesh Mehta: Thank you.

Operator: Thank you. Your next question comes from the line of Mayur Parekh with VY Capital. Please go ahead.

Speaker #3: Please go ahead. Yeah, I can hear you. Hello, sir. Yeah, so I just wanted to know, what percentage of retail sales come from bridal and wedding jewelry?

Mayur Parekh: Yeah. Hi, can you hear me?

Rajesh Mehta: Hello, sir.

Mayur Parekh: I just wanted to know what percentage of retail sales come from bridal and wedding jewelry.

Speaker #3: That slipper, that exact slipper, we do not maintain. But on a broader scale, if you feel, yes, 60 percent of our sales come from bridal and all that, because we have a lot of collections and designer collections, and antique Nagar jewelry, temple jewelry, and all types of collections which are of the bridal nature. And we have a huge collection of minimal jewelry also.

Rajesh Mehta: That exact figure we do not maintain. But on a broader scale, if you see, it is 60% of the sale come from bridal and all that jazz, because we have lots of collection and designer collection and antique Nagas jewelry, temple jewelry, and all type of collections which are for the bridal nature. We have a huge collection of minimal jewelry also. In that case, our whole turnover comes under bridal collection. On a broader scale, if you want, we can define that, yes, 60% of the sales coming from the bridal collection.

Speaker #3: In that case, our whole turnover comes under the bridal collection, and on a broader scale, if you want, we can define that yes, 60 percent of the sales come from the bridal collection.

Speaker #3: Okay. Okay. And with competition intensifying from, you know, large organized chains and strong regional jewelers, where is Khazanchi seeing the most competitive pressure today? Like, is it in pricing or any other area, like customer acquisition or store expansion?

Mayur Parekh: Okay. With competition intensifying from large organized chains and strong regional jewelers, where is Khazanchi seeing the most competitive pressure today? Is it in pricing or in other, like customer acquisition or store expansion?

Speaker #3: That's what all segment yes competitions are coming up but since Khazanchi has a very long legacy creating designs that is widely accepted and focusing on customer requirement matching their what they say budget and everything and manufacturing teams according to their requirement as the prices are increasing we have been producing a very different type of lightweight jewelry which seems to be heavier but it is light in budget so all that we have been working it.

Rajesh Mehta: That's what. All segments, yes, competitions are coming up. But since Khazanchi has a very long legacy creating designs that are widely accepted and focusing on customer requirements, matching their, what they say, budget and everything, and manufacturing things according to their requirement. As the prices are increasing, we have been producing a very different type of lightweight jewelry, which seems to be heavier, but it is light in budget. So all that we have been working it. In that case, since we have a very wide experience of our own manufacturing things and distribution, our products are widely accepted. Since we are into the manufacturing directly, we are able to provide at a better pricing compared to others. In all that aspects, Khazanchi stands different from others.

Speaker #3: In that case since we have a very wide experience of our own manufacturing things and distribution our products are widely accepted so and since we are into the manufacturing directly we are able to provide at a better pricing compared to others in all that aspects Khazanchi stands different from others.

Speaker #3: Okay, okay, got it. And just to close this out, where do you see Khazanchi in the next four to five years? That's where we are targeting a top line of around ₹5,000 crores by 2030, with retail participation of 40 percent in that.

Mayur Parekh: Okay. Got it. Just to close this out, where do you see Khazanchi in the next four to five years?

Rajesh Mehta: That's what. We are targeting a top line of around INR 5,000 crores by 2030, with a retail participation of 40% in that.

Speaker #3: Okay. Okay, got it. Thank you for answering. Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to Mr. Parth Acharya for closing comments.

Mayur Parekh: Okay. Got it. Thank you for answering.

Operator: Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to Mr. Parth Acharya for closing comments. Over to you, sir.

Speaker #3: Yes. Thank you, everyone, for joining the conference call of Khazanchi Jewellers Limited. If you have any further queries, you can write to us at research@redkittenadvisors.com.

Parth Acharya: Yes. Thank you everyone for joining the conference call of Khazanchi Jewellers Limited. If you have any further queries, you can write us at research@kirinadvisors.com. Once again, thank you everyone for joining the conference call.

Speaker #3: Once again, thank you everyone for joining the conference call. Thank you. Thank you, everyone. Thank you, members of the management. Thank you, Parth Sir.

Rajesh Mehta: Thank you. Thank you, everyone.

Operator: Thank you, members of the management. Thank you, Parth, sir. On behalf of Kirin Advisors, that concludes this conference. Thank you everyone for joining us, and you may now disconnect your lines.

Q1 2027 Khazanchi Jewellers Ltd Earnings Call

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