01 — Opening Hook
The Jeweller Who Counts in Rupees, Not Carats
RBZ Jewellers walked into their Q3 call saying: “Revenue up 17%, PAT up 33%, retail grew 39%.” Analysts asked: “But what about volumes?” Management replied: “Gold price up 85%—you do the math.” This is what happens when you sell the same amount of bling for dramatically more money and call it growth. The company is transitioning from wholesale B2B (where corporates order in bulk) to retail B2C (where customers pay full price). The problem? Wholesale volumes are down, job work margins are under pressure, and gold prices are doing all the heavy lifting. Read on. This gets messier when you ask about actual logistics.
Real talk: When management says “Volumes down due to gold prices,” they’re banking on you not asking: “If volumes are down, where’s the actual strength coming from?”
02 — At a Glance
The Quarterly Numbers Play
Q3 Revenue
₹226 Cr
+17% YoY. Look good on paper, less impressive in actual grams.
Q3 PAT
₹17.4 Cr
+33% YoY. Gold prices are the unsung CFO. Margins expanded 184 bps.
9M PAT
₹43 Cr
+43% YoY. TTM at ₹52 Cr. Inventory gains dancing with margin expansion.
Retail Revenue
₹155 Cr
+39% YoY. One store doing what looks like five. Impressive but fragile.
Wholesale Revenue
₹70 Cr
-12% YoY. Corporate clients are hedging. Job work preferred over ownership.
The Reality: Gold prices up 85%, revenue up 17%, volumes down. This is a commodity call masquerading as a manufacturing story. Profits grew because scarcity, not execution.
03 — Management’s Key Commentary
What They Said. What They Really Meant.
Harit Zaveri (JMD): “The average price of gold in Q3 was INR150,000 versus INR81,000 last year. Even if a retailer does a 40% increase in revenue, they would still decline their volume significantly.”
😏 Translation: We’re selling less gold but at a much higher price. Don’t compare our 17% to peers’ 40%—we’re different because commodities.
Harit Zaveri: “Corporates have changed their preference from wholesale to job work because of gold price volatility. They want to hedge inventories.”
🎭 Translation: Our B2B clients are terrified of holding inventory at ₹150K per gram. So they outsource the risk to us through job work, which means we assume the price risk but take lower margins.
Harit Zaveri: “We have a 20-25% cushion on inventory right now, which means even if gold drops 10%, nothing will majorly affect us.”
💣 Translation: We’re sitting on a mountain of overvalued gold. If prices correct, that “cushion” evaporates faster than tap water on a hot pan.
Harit Zaveri: “We launched approximately 951 new designs in this quarter, averaging 12 designs per day, primarily in the Occasion Wear segment.”
✨ Translation: We’re hyperactive on design velocity but silent on design sell-through. More noise, unclear signal.
Harit Zaveri: “For FY26, we expect INR630-650 crores in revenue with INR50-55 crores PAT. For FY27, we’re targeting INR800-900 crores revenue with INR55-60 crores PAT.”
📊 Translation: Retail expansion (4 new stores by Q2 FY27) will drive revenue. PAT growth will slow because of INR25 Cr in marketing spend. Margins will compress even as top line inflates.
Harit Zaveri: “We’re currently testing 18-carat jewellery in the occasion wear segment. It offers the same look but at lower weight and cost.”
🔍 Translation: Consumers are getting budget-conscious. Lower carat = lower price per unit = we need volume to compensate. Pilot testing means zero revenue contribution today.
04 — Numbers Decoded
The Financial Scorecard
