EduInvesting.in | May 14, 2025
By Prashant “Polish-the-Gold” Marathe
Gold may be volatile, but RBZ Jewellers seems to have found its mojo — both in sales and storytelling. The Q4 FY25 earnings call had everything: sparkling topline growth, a retail ramp-up, a dash of scandal (yes, we’re looking at you, fraudster employee), and a not-so-minor ₹25 crore tiff with the Income Tax Department.
But let’s polish this nugget down to the essentials.
📈 Revenue Bling: 59% YoY in Q4 FY25
Let’s start with the good stuff. RBZ Jewellers delivered a Q4 that would make even Titan’s boardroom nod in approval.
- Q4 FY25 revenue up 59% YoY
- Full-year topline estimated at ₹525–535 crore
- PAT at ₹8.5 crore (vs ₹2.69 crore in Q4 FY24)
- Akshaya Tritiya sales up 30%+
- Retail had a “wonderful year” (management’s words, not ours)
This isn’t a one-season wonder either — growth has been consistent through all quarters, even if a bit glitter-coated by accounting adjustments in prior years.
📊 FY26–27: The 4-Digit Club Beckons
If management’s crystal ball is correct, RBZ wants to break into the ₹1,000 crore club soon:
| Metric | FY25 (Actual) | FY26 (Guided) | FY27 (Guided) |
|---|---|---|---|
| Revenue (Topline) | ₹525–535 crore | ₹700 crore | ₹1,000 crore |
| Profit After Tax (PAT) | ₹38 crore est. | ₹44–45 crore | ₹55 crore |
| Retail Revenue (Est.) | ₹320–350 crore | ₹500 crore | ₹600–700 crore |
Not bad for a company that just recently got listed. But let’s not forget — jewelry retail in India is a game of bling, trust, and margin math. Can RBZ pull off this expansion while keeping
its shine?
🏬 Expansion Plans: New Showrooms, Same Gold
Two new showrooms are in the pipeline:
- Surat — launching in Q3 FY26
- Rajkot — expected in Q1 FY27
Retail strategy = Exclusivity. Sell in-house manufactured designs, reduce third-party margin leakage, and improve profitability. Management claims this will give them an edge in the highly competitive wedding-and-festival market.
Also, RBZ’s factory capacity hasn’t changed, but thanks to gold prices going from ₹50K to ₹1L per gram, the value throughput has doubled. Translation: more revenue from the same infrastructure. That’s a golden arbitrage.
💰 But Wait, Where’s the Cash?
An analyst on the call asked a very real question:
“Why are your operating cash flows negative?”
RBZ’s answer?
“It’s not a concern because funds are in liquid inventory — mostly gold.”
Fair point. Gold is liquid. But so is vodka, and you don’t want your cashflow drowning in either. Negative OCF is a yellow flag, especially when inventory days are above 250–300
