1. At a Glance
Khazanchi Jewellers Ltd — Tamil Nadu’s homegrown sparkle factory — just dropped a quarterly flex that would make even Titan blush. InQ2 FY26, the company clocked arevenue of ₹549 crore, up a sizzling46.2% YoY, whilePAT skyrocketed 118%to ₹23.6 crore. For a jeweller that began in 1996 with a modest Chennai showroom, that’s pure karat growth.
At the current price of₹734, the stock trades at aP/E of 28.5x, which in jeweller land is basically “premium with potential.” With amarket cap of ₹1,816 crore, Khazanchi sits snugly among mid-tier jewellery disruptors like Thangamayil and P.N. Gadgil. The company boasts aROCE of 24.1%,ROE of 21.4%, and acurrent ratio of 3.39— basically, their liquidity is better than most wedding buffets in Tamil Nadu.
And guess what? Their Q2 OPM has climbed to6%, up from the 3% zone a year ago. That’s not just margin expansion — that’s financial body transformation. The Chennai-based jeweller’s 25+ product categories, 5 lakh+ designs, and their upcoming10,000 sq. ft. mega-showroom(opening May 2025) signal one thing: this is no longer a family jeweller — it’s an emerging southern empire of bling.
2. Introduction
Every city has a jeweller whose name your mom trusts more than the bank. In Chennai, that’s Khazanchi. They’ve been polishing profits since 1996 — from a small store selling temple jewellery to now a ₹1,800 crore public company dazzling both retail aunties and Dalal Street analysts alike.
Their rise is a perfect example of what happens when traditional Indian craftsmanship meets aggressive modern retailing. While most jewellers were busy calculating making charges, Khazanchi was calculating CAGR. Over the last3 years, sales have grown 90%, andprofits have jumped 146%— proof that Tamil Nadu’s gold obsession translates very well on the balance sheet.
But the story’s not just about gold chains and bangles anymore. The company’s expansion intolab-grown (CVD) diamondsandbullion tradingmakes it a serious B2B player. Plus, being an authorized jeweller on theIndia International Bullion Exchange (IIBX)means they can import gold directly — effectively cutting out middlemen fatter than their margins used to be.
So, what happens when a traditional goldsmith goes full IPO mode, partners with Swarovski Zirconia, and plans to build a three-storey showroom? You get Khazanchi Jewellers — part Tamil tradition, part modern retail juggernaut, and full-on financial glitter bomb.
3. Business Model – WTF Do They Even Do?
Let’s decode Khazanchi’s glittering maze of gold and gemstones.
At its core, Khazanchi Jewellers (KJL) is in thebusiness of buying and selling gold ornaments, bullion, and silver. Think of them as both your local jeweller and a small bullion exchange rolled into one.
They operate intwo main segments:
- Ornaments(~82% of FY24 revenue) – all the shiny stuff: necklaces, bangles, rings, temple jewellery, Kundan, Calcutta designs, Kerala designs — if it glitters, they sell it.
- Bullion trading(~18% of FY24 revenue) – the boring but lucrative gold bars, coins, and silver sheets that keep institutional buyers and high-net-worth traders happy.
Procurement is smart — they source most of their gold from agroup entity, Pathik Sales Pvt Ltd, which keeps costs and quality consistent.
The business model blendswholesale, retail, and institutional sales, giving Khazanchi a steady revenue stream throughout the year. Their current1,200 sq. ft. retail showroommight sound small compared to the Tanishqs of the world, but their upcoming10,000 sq. ft. flagshipin Chennai could change the game.
And if you think they’re just another jeweller, think again — Khazanchi is now thesole distributor in Tamil NaduforGunjan Jewels Pvt Ltd’s 22K gold jewellerywith freshwater pearls and Swarovski Zirconia. Because why just sell gold when you can sell gold that sparkles extra on Instagram?
4. Financials Overview
| Metric | Latest Qtr (Sep’25) | YoY Qtr (Sep’24) | Prev Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹549 Cr | ₹375 Cr | ₹404 Cr | +46.2% | +35.9% |
| EBITDA | ₹32 Cr | ₹15 Cr | ₹21 Cr | +113% | +52% |
| PAT | ₹23.6 Cr | ₹10.8 Cr | ₹15 Cr | +118% | +57% |
| EPS (₹) | 9.52 | 4.36 | 6.12 | +118% | +55% |
Figures from company filings. EPS recalculated annualized = ₹9.52 × 4 =
₹38.08 ⇒ P/E = 734 / 38.08 = ~19.3x (educational calc)
Commentary:Khazanchi’s Q2 FY26 results scream one thing — momentum. A 118% YoY PAT growth in a business where gold price volatility usually gives CFOs heartburn is impressive. Operating margins have improved thanks to scale, and that 6% OPM shows they’re managing working capital like pros.
5. Valuation Discussion – Fair Value Range
Let’s see how Khazanchi shines under three valuation lenses:
(a)P/E Method
Industry P/E = 28.9Company EPS (TTM) = ₹25.7So,Value Range = 25.7 × (24x – 33x) = ₹617 – ₹848/share
(b)EV/EBITDA Method
EV/EBITDA = 20.8 (current)Assume fair range 18x–22xEBITDA (TTM) = ₹89 CrSo,EV Range = ₹1,602–₹1,958 CrSubtract Debt (₹60 Cr), add Cash (~₹2 Cr) →Equity Value Range = ₹1,544–₹1,900 CrAt 2.47 Cr shares ⇒₹625 – ₹770/share
(c)DCF (Educational Simplified)
Assuming free cash flow growth of 15% for 5 years and terminal 4%, discounting at 11% gives₹700–₹780/share
Fair Value Educational Range:₹620 – ₹840 per share
(Disclaimer: This fair value range is for educational purposes only and not investment advice.)
6. What’s Cooking – News, Triggers, Drama
Oh, plenty. Khazanchi’s been busy like a bride before a South Indian wedding:
- May 2025 showroom launch– a10,000 sq. ft. gold temple in Chennai, expected to turbocharge retail visibility.
- Lab-Grown Diamonds– the company is officially entering the CVD diamond space. Expect Gen Z brides to love it; expect uncles to argue it’s “plastic.”
- Malabar Gold tie-up (Aug’25)– onboarding as a partner supplier to Malabar Gold boosts B2B scale and credibility.
- Trade Fair Power Moves (Oct’25)– Secured ₹85–90 crore orders at GJIIF Chennai. That’s not a trade fair — that’s a gold grabathon.
- ‘Vajraa Diamonds’ Launch– Khazanchi’s in-house premium line. Sounds like the Avengers of gemstones.
- Gold Saving Scheme App– because if fintech can have UPI, jewellers can have EMI.
It’s a perfect storm of branding, product expansion, and digital leverage. If this isn’t the definition of “new-age traditional,” what is?
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