Utssav CZ Gold Jewels Limited: A Sparkling Performance in H1 FY26

Utssav CZ Gold Jewels Limited, a prominent player in India's jewellery sector, has reported a stellar financial performance for the first half of fiscal year 2026. The Mumbai-headquartered company, specializing in gold CZ and diamond jewellery, showcased significant growth across key metrics, underscoring its robust operational efficiency and strategic market positioning. The company's total income surged to INR477 crore, marking an impressive 67% year-on-year increase. This strong revenue growth was complemented by an exceptional rise in profitability, with EBITDA skyrocketing by 184% to INR45 crore, and profit after tax (PAT) climbing 197% to INR29 crore. The earnings per share (EPS) also saw a substantial jump of 124% to INR12.09, reflecting improved product mix, stronger operating leverage, and tight cost control.

The company's success is rooted in its integrated manufacturing capabilities and a diversified product portfolio. Utssav CZ Gold Jewels Limited specializes in the designing, manufacturing, wholesaling, and exporting of 18K, 20K, and 22K CZ, Rose Gold, plain casting, lab-grown, and natural diamond jewellery. This comprehensive offering includes rings, earrings, pendants, bracelets, necklaces, watches, and brooches, catering to a broad customer base. Operating on a 100% B2B model, the company supplies directly to reputed jewellery retailers across 23 states and 2 Union Territories in India, with a growing export presence in the UAE. The diversification into designer and real diamond jewellery has been a key driver for margin improvement, with management noting that profit margins are expected to increase by 4.5% to 5% at the PAT level, and EBITDA margins are projected to be sustainable at 9% to 10%.

Strategic Expansion and Future Outlook

Utssav CZ Gold Jewels Limited is not resting on its laurels and has outlined an ambitious expansion roadmap. The company is in the process of increasing its annual production capacity from 1,500 kg to 2.5 tonnes, supported by an additional 5,600 sq. ft. of production space. Commercial operations for this expanded capacity are anticipated to begin in the second half of FY26. This expansion is bolstered by continuous investment in technology and automation, including CAM machines for precision manufacturing, 3D Wax Printers for rapid prototyping, and advanced casting machines, all aimed at enhancing efficiency and quality.

Geographically, the company is deepening its engagement with leading retailers across Tier II and III cities in India. On the global front, it is actively targeting expansion into the UAE, GCC, Singapore, and USA, with plans to establish an office in Dubai. Management has provided a confident outlook, projecting FY26 revenue to close in the range of INR1,100 crore to INR1,200 crore. Looking further ahead, the company aims to achieve INR4,000 crore to INR5,000 crore in revenue by FY2030, with an annual production capacity of 6 to 7 tons. The diamond business, a recent addition, is expected to contribute significantly, with a projected capacity of INR200 crore to INR500 crore within two years.

Operational Excellence and Market Dynamics

The company's operational excellence is evident in its ability to manage the entire value chain in-house, from wax replicas to hallmarking, ensuring precision, consistency, and innovation. A skilled workforce and a dedicated team of CAD designers contribute to a library of over 70,000 designs, with more than 400 new designs introduced monthly. This focus on design leadership and advanced manufacturing technologies allows for an agile turnaround time from design to delivery, typically within 7 to 10 days.

The Indian jewellery industry itself presents a large and growing market, projected to expand from US$85 billion in January 2025 to US$130 billion by 2030. Organized players like Utssav are benefiting from rising consumer confidence in BIS-hallmarked and certified jewellery, along with supportive policy and regulatory tailwinds such as GST and export-linked incentives. The shift towards lightweight, CZ, and daily-wear jewellery, particularly among millennials and working women, aligns well with Utssav's product offerings and design capabilities.

Concluding Thoughts

Utssav CZ Gold Jewels Limited's H1 FY26 performance demonstrates strategic clarity and disciplined execution. The company's integrated manufacturing setup, diversified product portfolio, and aggressive expansion plans, both domestically and internationally, position it for sustained growth. While challenges such as customer concentration and unhedged inventory require careful monitoring, management's focus on operational efficiency, design innovation, and market expansion reinforces investor confidence in its long-term value creation journey.