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.
Rajesh Mehta (Chairman): “Our new 10,000 square feet flagship showroom in Chennai was successfully inaugurated on 7th Feb. In the first 10 days since its opening, we recorded a sale of approximately INR20 crores.”
✨ Translation: We opened one store and immediately extrapolated ₹500 crores annual revenue. The optimism is beautiful. The math is… aspirational.
Rajesh Mehta: “Over the next 2, 3 years, we aim to increase our retail contribution from 10% to 25%. As our retail mix improves, it will naturally enhance our margin profile.”
🎯 Translation: Retail margins are 10-12% vs 5-6% wholesale. Sounds great. But we’ve opened zero additional stores yet, so this is hope, not plan.
Rajesh Mehta: “On the B2B front, we continue to expand our partner ecosystem. Our top 5 clients contribute somewhere around 15% to 20% of total revenue.”
⚠️ Translation: We’re not concentrated, which sounds good. But we’re also not dominant with anyone. Switching costs are probably low.
Investor Anil Parekh: “You’re giving guidance of 30% growth. Is that conservative? Because volumes only grew 7-10%, and the rest is value.”
💣 Translation: An investor just called out that their growth is 80% gold prices, 20% actual business. Management responded: “We define guidance conservatively and try to do better.” Fair point.
Rajesh Mehta: “Our EBITDA margins are expected to improve somewhere around 20% to 30% from here [currently 6%].”
😐 Translation: He’s projecting EBITDA margins to 26-36%. That would require either (a) retail mix to flip or (b) B2B margins to double. Neither is likely soon.
Rajesh Mehta: “We use a regular natural mechanism. Whatever we sell, we buy it back. If there are extra orders, we hedge into exchanges.”
🛡️ Translation: Gold price moves don’t hurt margins because we operate as middlemen. The spreads are protected. But growth is capped by spreads, not volume.
04 — Numbers Decoded
The Financial Breakdown
