RBZ Jewellers Shines Bright in Q2 FY26 Amidst Gold Price Volatility

RBZ Jewellers Limited, a prominent player in India's organized gold jewellery manufacturing and retail sector, has reported a robust financial performance for the second quarter and first half of the Financial Year 2026. Despite global gold prices reaching lifetime highs, the company demonstrated resilience and strategic agility, delivering impressive growth across its key segments. The Q2 FY26 operational revenue stood at INR 145.1 crore, marking a significant 24.4% year-on-year increase, while the Profit After Tax (PAT) surged by 130% to INR 18.6 crore. For the first half of FY26, the company recorded an operational revenue of INR 220.7 crore, an 10.9% rise year-on-year, with PAT growing by 50.3% to INR 25.7 crore. This strong performance was primarily driven by successful new design launches, enhanced productivity, and positive consumer sentiment during the early festive season.

The company's diversified business model, encompassing wholesale, job work, and retail, played a crucial role in its Q2 and H1 FY26 success. The retail segment, operating under the 'Harit Zaveri Jewellers' brand, contributed INR 86.5 crore in Q2 and INR 132.1 crore in H1, showcasing consistent growth. The wholesale segment also performed strongly, with revenues of INR 55.8 crore in Q2 and INR 84.4 crore in H1. Notably, the job work segment, while smaller in revenue at INR 2.8 crore in Q2 and INR 4.2 crore in H1, proved to be a strategic advantage. Management highlighted that the shift in customer preference towards job work, especially amidst high gold prices, allowed the company to meet demand without significant inventory investment, thereby boosting profitability and margins.

Strategic Expansion and Operational Excellence

RBZ Jewellers is not resting on its laurels; the company is actively pursuing strategic expansion, particularly in its retail footprint. Encouraged by the robust performance of its Ahmedabad showroom, which has grown from INR 2.4 crore in 2019 to INR 32.3 crore in FY25, the company plans to open four new showrooms across major cities in Gujarat. These include confirmed locations in Rajkot and Surat, with Baroda also being a strong contender. Two of these new stores are slated for launch by Q1 FY27, and one is expected to open in Q4 FY26. Management anticipates these new retail outlets, particularly in Surat and Rajkot, will achieve significant revenue milestones of INR 500 crore and INR 400 crore respectively within 4-5 years of reaching maturity.

Operational excellence remains a core focus for RBZ Jewellers. The company operates a state-of-the-art 23,966 sq. ft. manufacturing facility equipped with advanced casting, laser, and 3D printing technologies. This integrated setup, supported by over 200 professionals and 250 skilled artisans, enables in-house design, production, and quality control, leading to faster time-to-market for new trends and higher gross margins. The company is committed to maximizing the utilization of its existing manufacturing capacity by FY26 and is prepared to expand further based on future demand. Furthermore, RBZ Jewellers has adopted SAP (S/4HANA) for robust internal controls and streamlined operations, complemented by a Standard Operating Procedure (SoP)-driven work culture.

Market Adaptation and Future Outlook

RBZ Jewellers demonstrates a proactive approach to market dynamics and consumer preferences. Management acknowledged the impact of gold price volatility, noting a shift in customer behavior from outright wholesale purchases to job work services. In response, the company has adapted its strategies, including adjusting making charges and experimenting with 18-carat occasion wear to cater to evolving price sensitivities and demand for lower caratage jewellery. This adaptability, combined with successful digital marketing campaigns showcasing both festive and daily collections, has strengthened brand visibility and customer engagement.

Looking ahead, RBZ Jewellers remains optimistic about the upcoming wedding season and expects robust consumer demand, particularly in the Occasional Wear category. The company is confident in meeting its full-year guidance of INR 700 crore in topline and INR 45 crore in PAT for FY26. While acknowledging the dynamic nature of the market and geopolitical tensions, the management's focus on design innovation, diversified product mix, and operational efficiency positions the company for sustainable growth. The strategic retail expansion, coupled with a strong emphasis on customer-centricity and technological adoption, underscores RBZ Jewellers' commitment to solidifying its market position and delivering long-term value to its stakeholders.