1. At a Glance
Khazanchi Jewellers Ltd — Tamil Nadu’s homegrown sparkle factory — just dropped a quarterly flex that would make even Titan blush. In Q2 FY26, the company clocked a revenue of ₹549 crore, up a sizzling 46.2% YoY, while PAT 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 a P/E of 28.5x, which in jeweller land is basically “premium with potential.” With a market cap of ₹1,816 crore, Khazanchi sits snugly among mid-tier jewellery disruptors like Thangamayil and P.N. Gadgil. The company boasts a ROCE of 24.1%, ROE of 21.4%, and a current ratio of 3.39 — basically, their liquidity is better than most wedding buffets in Tamil Nadu.
And guess what? Their Q2 OPM has climbed to 6%, 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 upcoming 10,000 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 last 3 years, sales have grown 90%, and profits 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 into lab-grown (CVD) diamonds and bullion trading makes it a serious B2B player. Plus, being an authorized jeweller on the India 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 the business 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 in two 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 a group entity, Pathik Sales Pvt Ltd, which keeps costs and quality consistent.
The business model blends wholesale, retail, and institutional sales, giving Khazanchi a steady revenue stream throughout the year. Their current 1,200 sq. ft. retail showroom might sound small compared to the Tanishqs of the world, but their upcoming 10,000 sq. ft. flagship in Chennai could change the game.
And if you think they’re just another jeweller, think again — Khazanchi is now the sole distributor in Tamil Nadu for Gunjan Jewels Pvt Ltd’s 22K gold jewellery with 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 = 28.9
Company EPS (TTM) = ₹25.7
So, Value Range = 25.7 × (24x – 33x) = ₹617 – ₹848/share
(b) EV/EBITDA Method
EV/EBITDA = 20.8 (current)
Assume fair range 18x–22x
EBITDA (TTM) = ₹89 Cr
So, EV Range = ₹1,602–₹1,958 Cr
Subtract Debt (₹60 Cr), add Cash (~₹2 Cr) → Equity Value Range = ₹1,544–₹1,900 Cr
At 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
