RBZ Jewellers Ltd Q2FY26: When 258 Kg of Gold Met 653 Crore Market Cap – And the Bling Refused to Blink

1. At a Glance

Ahmedabad’s sparkle factory, RBZ Jewellers Ltd, just pulled a glittery rabbit out of its quarterly hat. The ₹653 crore smallcap (BSE: 544060, NSE: RBZJEWEL) closed at ₹164 on 11 Nov 2025, up 4.9% on result day, because, well, when profit jumps 130% YoY, even Dalal Street’s diamond-studded calculators start beeping.

In Q2 FY26, RBZ clocked ₹145 crore in sales (up 24.4% YoY) and ₹18.6 crore PAT (up 129.9% YoY). The company runs at an OPM of 19% and ROCE of 20.4%, both far shinier than your average gold chain margin. EPS for the quarter came in at ₹4.64, taking the TTM EPS to ₹11.8 and a modest P/E of 13.8, compared to the industry’s 29.1.

And yet, despite the bling, the company’s not paying any dividends – perhaps saving for its next 23,966 sq ft gold factory expansion.

If you ever doubted whether gold can compound at 65% CAGR (profits over 5 years), RBZ’s books say, “Hold my hallmark.”

2. Introduction – The Golden Gujarati Hustle

Some companies sell dreams. RBZ sells 24 carat ones. Born in 2008 and based in Ahmedabad, the Zaveri family turned their generational jewellery chops into an organised corporate avatar that now competes with titans like Titan (pun intended) and Kalyan Jewellers.

But while others open showrooms like tea stalls, RBZ operates just one – a massive 11,667 sq ft flagship store called Harit Zaveri Jewellers in Satellite, Ahmedabad. Imagine putting all your eggs, bangles, necklaces, and bracelets in one very shiny basket.

This boutique-meets-palace retail model isn’t chaos—it’s curated. The store does 65% occasion wear (weddings and festival gold rush) and 35% daily wear. And yes, they have 92,000 Instagram followers, which in jewellery math equals roughly ₹92 crore in aspirational envy.

From job-work tinkering to ₹552 crore in FY25 sales, RBZ’s rise has been so swift that even its debt-to-equity ratio of 0.55 looks composed. The Zaveris didn’t just make jewellery—they reverse-engineered aspiration.

3. Business Model – WTF Do They Even Do?

RBZ Jewellers plays both wholesaler and retailer, an uncommon combo in India’s bling bazaar.

• Wholesale Business (₹198 Cr in FY25):
  Supplies custom-designed gold jewellery to 190 retailers across 72 cities in 20 states. Think of them as the invisible artist behind other jewellers’ shiny showcases. The segment accounts for roughly 37% of revenue, powered by bulk orders, in-house designs, and a growing client list that includes Titan, Malabar Gold & Diamonds, and Senco Gold.
• Retail Business (₹324 Cr in FY25):
  The “Harit Zaveri Jewellers” brand contributes about 61% of total revenue. The company mastered the Ahmedabad market, tripling volumes from 139 kg in FY22 to 397 kg in FY25. Retail is their real goldmine—margin-rich and meme-worthy.
• Job Work (₹1.6%)
  A rounding error, but hey, it keeps the artisans busy between Diwali and Dhanteras.

And at the centre of it all: a 23,966 sq ft state-of-the-art factory, equipped with laser cutters, 3D printers, and casting lines that can melt, mould, and market over 2 tons of gold annually. Basically, Willy Wonka’s chocolate factory—if everything were edible gold.

4. Financials Overview

Commentary:
RBZ’s quarter looked like Dhanteras every day. Sales doubled sequentially, profit more than doubled, and margins expanded to a classy 19%. Imagine going from “moderate wedding season” to “Big Fat Gujarati Wedding Marathon.”

5. Valuation Discussion – Fair Value Range Only

Let’s try three valuation lenses, shall we?

(a) P/E Approach

TTM EPS = ₹ 11.8
Industry P/E = 29.1
Company P/E = 13.8

If RBZ trades at 70–90% of industry average (fair for smallcap with growth):

• Lower range: 20 × 11.8 = ₹ 236
• Upper range: 26 × 11.8 = ₹ 307

So, Fair Value Range (P/E) ≈ ₹ 236 – ₹ 307

(b) EV/EBITDA Approach

EV = ₹ 801 Cr, EBITDA = ₹ 77 Cr → EV/EBITDA = 10.3×
Peers average ≈ 18×.
A fair smallcap discount puts a range of 10–15× EBITDA.
→ EV fair value: 770–1,155 Cr → Equity Value = ₹ 163–₹ 245 per share.

(c) Simplified DCF

Assume PAT = ₹ 47 Cr, growth 15%, cost of capital 12%, terminal 5%:
DCF fair equity value ≈ ₹ 220–₹ 250 range.

📢 Educational Fair Value Range: ₹ 220 – ₹ 300 per share.
(For learning only, not investment advice)

6. What’s Cooking – News, Triggers, Drama

Q2 FY26 results hit BSE with fireworks:

• Revenue for H1 FY26: ₹ 2,208 Cr (₹ 22,083 lakh).
• PAT: ₹ 256.9 Cr (₹ 2,568 lakh).

But before you grab your calculator, remember—those figures are in ₹ lakh, i.e., ₹ 220.8 Cr revenue and ₹ 25.7 Cr PAT.

Management guided FY26 revenue near ₹ 700 Cr with ₹ 44–45 Cr PAT, FY27 targeting ₹ 1,000 Cr topline and ₹ 55 Cr PAT. The CFO change saga (resignation + appointment in Feb 2025) and an employee fraud of ₹ 1.98 Cr disclosed in Mar 2025 did add some drama—because even gold attracts its share of thieves.

The company handled both with board-approved swiftness. A new CFO is already polishing the balance sheet, and CRISIL/CARE credit