Khazanchi Jewellers (543953) Q2 25/26 earnings summary

Executive summary

• Q2 and H1 FY2026 delivered strong growth in revenue, EBITDA, PAT and EPS; higher-margin ornament sales supported profitability as bullion sales declined.

• Festive and pre-Diwali demand, design upgrades and affordability supported retail and wholesale performance.

• Strategy focuses on retail expansion, premium natural diamonds, lightweight jewellery, and stronger inventory and digital systems.

• Unaudited Q2 and H1 results for the period ended September 30, 2025, were approved by the Board on November 14; the limited review reported no indication of material misstatement or disclosure non-compliance.

Financial highlights

• Q2 FY2026 revenue from operations was ₹54,859.50 lakh vs ₹37,515.69 lakh YoY; total income was ₹548.92 crore, up 46.25%.

• Q2 EBITDA was ₹32.62 crore, up 112.86%; net income was ₹2,354.56 lakh vs ₹1,073.29 lakh, and PAT rose 119.41%.

• H1 FY2026 revenue from operations was ₹95,234.01 lakh vs ₹75,623.13 lakh; total income was ₹952.76 crore, up 25.94%.

• H1 EBITDA was ₹53.78 crore, up 86.81%; net income was ₹3,869.58 lakh vs ₹1,998.24 lakh, and PAT rose 93.66%.

• Q2 EBITDA margin was 5.94%, up 186 bps YoY; H1 margin was 5.64%, up 184 bps. EPS was ₹9.52 in Q2 and ₹15.64 in H1.

Outlook and guidance

• FY2026 revenue expected to exceed ₹2,000 crore if conditions remain favorable; H2 ornament volume growth is expected to exceed H1’s 12%.

• H2 is expected to outperform H1, supported by demand, festivals, post-Pongal weddings and the new retail showroom.

• B2C targeted at 20%-25% of sales by FY2027; retail margins expected to rise from 9%-10% to 12%-13% as the store scales and premium jewellery expands.

• Natural diamonds targeted at 5%-10% of revenue over 2-3 years; fine silver jewellery planned for launch in coming quarters.

• Management expects profitable growth through network expansion, design innovation and customer focus; Vajraa is intended to build visibility in high-value categories.