🔍 At a glance
Kabra Jewels Ltd reported a 195% jump in profit in H2 FY25 and a 28.75% revenue growth for the full year. With gold prices soaring, you’d expect profit margins to melt — but Kabra managed to expand earnings and even squeeze out better EPS. How? Smart inventory control, lean leases, and just the right amount of bling. Let’s dive in.
🏢 About the Company
- Name: Kabra Jewels Ltd (KK Jewels)
- Listed Entity: NSE SME Platform (KKJEWELS)
- Sector: Jewellery retail and manufacturing
- HQ: Ahmedabad, Gujarat
- Key Focus: Gold, silver, diamonds, platinum jewellery & branded solitaires
- USP: Operates asset-light showrooms (leased), highly segmented outlets by product category (e.g. Silver Studio, Bridal, Atarshi)
This ain’t your local corner jeweller. Kabra has structured its operations around segment-focused showrooms and a hybrid model of trend-based inventory with sharp cost controls — all while navigating the chaos of rising gold prices like a diamond-studded ballerina.
👔 Key Managerial Personnel
| Name | Role |
|---|---|
| Kailash Satyanarayan Kabra | Managing Director |
| Board Composition | Mix of promoter family and independent directors |
| Contact Email | onlysolitaires@gmail.com |
Yes, they still use Gmail. But don’t let that fool you — they’ve built a ₹210 crore+ revenue company.
💸 Financials – FY25 vs FY24
| Metric | FY25 (₹ Lakhs) | FY24 (₹ Lakhs) | YoY Growth |
|---|---|---|---|
| Total Revenue | ₹21,088.25 | ₹16,379.00 | 28.75% |
| EBITDA | ₹2,659.73 | ₹2,146.38 | 23.92% |
| EBITDA Margin | 12.61% | 13.10% | ⬇ (49 bps) |
| Profit Before Tax | ₹1,497.16 | ₹1,221.85 | 22.53% |
| PAT | ₹1,141.38 | ₹899.54 | 26.89% |
| PAT Margin | 5.41% | 5.49% | ⬇ (8 bps) |
| Diluted EPS | ₹14.36 | ₹12.22 | 17.46% |
🧾 Note: Despite rising gold prices, Kabra improved revenue, controlled margins, and enhanced profitability — without borrowing aggressively. That’s not jewellery, that’s financial art.
🧮 H2 FY25 vs H1 FY25
| Metric | H2 FY25 | H1 FY25 | Growth |
|---|---|---|---|
| Revenue | ₹13,302.18 | ₹7,786.07 | +70.85% |
| EBITDA | ₹1,675.16 | ₹984.58 | +70.14% |
| PAT | ₹852.58 | ₹288.81 | +195.20% |
| EPS | ₹10.72 | ₹3.92 | +173.47% |
Let that sink in: EPS nearly tripled in just 6 months. Either they sold a LOT of diamonds, or someone’s inventory management spreadsheet is worth its weight in platinum.
🛍️ Segment-Wise Performance
| Segment | FY25 Revenue (₹ Lakhs) | FY24 Revenue (₹ Lakhs) | YoY Growth |
|---|---|---|---|
| Gold | ₹14,162.06 | ₹10,606.66 | 33.52% |
| Silver | ₹2,588.89 | ₹2,401.74 | 7.79% |
| Diamonds | ₹3,970.02 | ₹3,190.02 | 24.45% |
| Other (Platinum, Stones, Branded) | ₹367.28 | ₹180.58 | 103.38% |
📌 Takeaway: Gold remains king 👑 but look at that 103% growth in branded and platinum items — that’s Kabra signalling they’re ready for premium margins and market segmentation.
🏪 Store-Wise Sales Breakdown
| Store | FY25 Revenue (₹ Lakhs) | FY24 (₹ Lakhs) | Growth | Contribution |
|---|---|---|---|---|
| KK Jewels – Bridal/Diamond | 12,642.70 | 9,178.10 | 37.75% | 59.95% |
| KK Jewels – Gold | 5,027.97 | 3,551.51 | 41.57% | 23.84% |
| KK Jewels – Silver | 2,125.40 | 1,946.78 | 9.18% | 10.08% |
| KK Jewels – Silver Studio | 503.38 | 498.87 | 0.90% | 2.39% |
| KK Jewels – Atarshi | 788.80 | 1,029.48 | -23.38% | 3.74% |
| Gandhidham (Closed) | 0 | 174.26 | -100% | 0% |
🎯 Flagship = Bridal & Diamond — contributing nearly 60% to total sales. Gold and Silver are playing support acts in this bridal blockbuster.
📦 Inventory, IPO Usage & Financial Engineering
- Inventory up from ₹115.23 Cr to ₹150.24 Cr
- IPO funds used to cut bank borrowings and trade payables
- Operating lease model ensures asset-light balance sheet
- No over-hoarding despite gold rally — inventory purchased only for replacement
- Inventory valued at cost or NRV as per accounting norms, not inflated to market gold prices
💡 This is important. Despite holding more gold, they did not show bloated books. It’s prudent. It’s conservative. It’s probably the most disciplined gold strategy we’ve seen from an SME jewellery firm.
🔮 Forward-Looking Fair Value (FV)
Let’s play the forward multiple game.
- FY25 EPS = ₹14.36
- Apply a conservative P/E = 18× (jewellery retail avg.)
- 🎯 Fair Value (FV): ₹258.48
📉 CMP = ₹146
📈 Upside Potential: 77%
🚨 Disclaimer: This isn’t a buy/sell call. It’s just a fair valuation range assuming growth sustains. As always, do your own due diligence.
🌱 Management Commentary — Summed Up
Kailash Kabra (MD) basically said:
- IPO money → used wisely
- Inventory → increased, but not irresponsibly
- Gold prices up → margins slightly down due to fixed labour charges
- Expansion → new showroom opening in May 2025
- Profitability → strong, sustainable, scalable
- Strategy → stay lean, lease smart, bling more
📊 EduInvesting Take
Kabra Jewels isn’t trying to become Titan. It’s playing the SME game like a boss:
- Focus: Small store formats, segmented showrooms
- Structure: Lease model = asset light = scale fast
- Execution: Inventory control so tight, CA firms should be jealous
- Brand: Bridal + Diamond = emotional + premium = big margins
🥇 Verdict: Kabra is not just polishing gold — they’re polishing their balance sheet.
⚠️ Risks & Red Flags
- Gold volatility can still punch margins
- Heavy dependence on Bridal & Diamond — any market slowdown can hurt
- FY25 margin dip needs watching in FY26
- Competition from pan-India players like Kalyan, Senco, Titan
📌 Final Word
In a market where most SMEs flaunt growth but hide balance sheet mess, Kabra Jewels is flexing both — a rising topline and a clean playbook.
This is one jeweller that doesn’t just sell dreams. They’re selling profit too — and that’s the rarest stone in today’s SME bazaar.
Author: Prashant Marathe
Date: May 29, 2025
Tags: Kabra Jewels, FY25 Results, SME IPO, Gold Inventory, EPS Growth, EduInvesting
