01 — Opening Hook
When One Showroom Becomes Your Growth Story
Picture this: A jeweller that’s been around since 1971, sitting in South India, minding its business with a wholesale operation. Then, on February 7th, 2026, they cut a ribbon on a shiny new 10,000 sq ft showroom in Chennai, made ₹20 crores in the first ten days, and decided this is the future. Suddenly, their entire investor narrative shifted. Retail. Premium. Expansion. Margins at 10-12%. The dream is real.
Khazanchi Jewellers posted Q3 FY26 revenue of ₹589 crores (up 50% YoY), PAT nearly doubled at ₹25 crores, EBITDA margins expanded to 6%, and they promised to increase retail contribution from 10% to 25% over the next 2-3 years. The numbers look good. But one showroom, a ₹12 crore investment promising payback in 1.5 years, and a 30% growth guidance across all verticals? Let’s see if the arithmetic checks out.
Read on: Gold inventory gains mask real volume growth. B2B still carries 90% revenue. And “constrained guidance” is corporate speak for “we’re being cautious but expect better.” Sometimes caution is wisdom. Sometimes it’s fear of missing targets.
02 — At a Glance
The Sparkle & the Sweat
Q3 Revenue
₹589 Cr
+49.6% YoY. Gold prices up = value growth party. Volume growth a modest 7-10%. Math doesn’t scream organic.
Q3 EBITDA
₹35 Cr
+114% YoY. B2B margins at 6%, retail dreams at 10-12%. New showroom hasn’t moved needle yet.
Q3 PAT
₹25 Cr
+103% YoY. Inventory gains contribute ~1.5%. Strip that out, growth is respectable but not stellar.
9M Revenue
₹1,542 Cr
+34% YoY. Growth decelerating. Wholesale dominates. Retail still a baby.
9M EPS
₹25.76
TTM EPS at ₹30.86. P/E 21.1x. Decent for 21.4% ROE, but jewellery is cyclical.
Working Capital
~50 Days
Down from 83 days (Mar’25). Cash & carry model works. Inventory doesn’t linger.
The Honest Truth: Gold prices tripled the revenue story. Strip that out, 7-10% volume growth is solid but not “empire-building” territory. B2B is 90% of sales. One retail showroom doesn’t flip the script—yet.
03 — Management’s Key Commentary
What They Said. What They Really Meant.
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