Tribhovandas Bhimji Zaveri Ltd Q2 FY26 – Gold Profits, Diamond Margins & Family Drama Sparkle in 24-Carat Precision

1. At a Glance

Welcome to the glittering chaos ofTribhovandas Bhimji Zaveri Ltd (TBZ)—the 150-year-old jeweller that’s seen everything from colonial moustaches to influencer selfies. With a market cap of ₹1,192 crore and a current price of ₹178 (down 1.4% on 21 Nov), TBZ is that one cousin in the jewellery family who’s respectable but slightly overshadowed by the “Titan” in the room.

The company’s Q2 FY26 results, however, are no small sparkle—Revenue clocked in at ₹688 crore (up21.3% YoY) while PAT stood at ₹31.5 crore (up163% YoY). Operating margins jumped to 9%, the highest in over a decade, showing that even a century-old jeweller can learn new tricks in the age of Instagram reels and gold rate trackers.

ROCE at 12% and ROE at 10.9% are respectable, while debt of ₹822 crore gives the balance sheet a slightly heavy neckpiece look—glamorous but risky if you trip. The stock trades at a P/E of 12.8x, a steal in an industry where peers like Titan and Kalyan flaunt 50x+ multiples.

So, is TBZ polishing its legacy or pawning it? Let’s take the loupe and find out.

2. Introduction

If Bollywood made a film about old Indian jewellers, TBZ would play the grand patriarch — proud, shiny, and slightly dramatic. Founded in 1864 but incorporated only in 2007 (because SEBI likes paperwork more than gold), the brand is older than your great-grandfather’s first moustache.

The company sells everything shiny—gold, diamond, platinum, jadau, and solitaires—basically, anything that could distract an Indian parent from asking “Beta, shaadi kab karoge?”.

From pioneering 100% BIS-hallmarked jewellery to introducing certified solitaires and a lifetime buyback guarantee, TBZ has been flexing innovation long before fintech bros discovered “trust signals.”

Its current strategy is clear: fewer but larger stores, a franchisee expansion model, and a deep embrace of digital glam. Their festive campaigns on Instagram and YouTube garnered a total of 16.8 million video views—proof that gold still trends, even if Gen Z calls it “vintage yellow.”

But beneath the glitz, there’s a serious story—moderate growth, high leverage, and a ruthless retail race where Titan, Kalyan, and Malabar are fighting for your mother’s necklace budget.

3. Business Model – WTF Do They Even Do?

TBZ’s business is simple in theory and dazzling in execution: sell ornaments, capture hearts, and collect margins one gram at a time.

It earns99% of its revenue from retail operations—that means no hidden diamond mining, no shady export games, just pure in-store and online sales. The remaining 1% comes from non-retail activities like selling silver coins and occasionally scaring banks with gold-backed inventory loans.

The product portfolio reads like a jewellery museum: Rings, Earrings, Necklaces, Bangles, Pendants, Bracelets, Coins, Solitaires, and Jadau sets. Each piece is handcrafted, hallmarked, and occasionally blessed by Sara Ali Khan, the brand ambassador who’s probably the most expensive diamond on TBZ’s payroll.

Their stores are strategically placed in25 cities across 12 states, with 33 outlets totaling 1 lakh+ sq. ft. Of these, 29 are large-format stores (>2,000 sq. ft.) that make you feel poor just by walking in, and 4 smaller ones where you pretend you came “just to see designs.”

TBZ’s franchise expansion model for FY25 promises asset-light growth—a phrase every CFO says before adding 100 more crores to working capital.

4. Financials Overview

At an annualized EPS of ₹18.9, the P/E works out to roughly 9.4x—cheaper than a silver anklet in a gold showroom. The operating margin at 9% sparkles after years of dull 4–6% OPMs, hinting at either better pricing discipline or someone finally told the franchisees to stop giving wedding discounts.

5. Valuation Discussion – Fair Value Range

Let’s polish some numbers.

Method 1: P/E MultipleIndustry average P/E = 28.9x.TBZ’s EPS (annualized) = ₹18.9.→ Fair