Khazanchi Jewellers: A Sparkling Performance in Q2 & H1 FY26

Khazanchi Jewellers Limited, a prominent name in the Indian jewellery sector with over five decades of experience, has reported an exceptional financial performance for the second quarter and first half of fiscal year 2026. The Chennai-headquartered company, specializing in gold, diamonds, precious stones, and bullion, showcased robust growth driven by strategic initiatives and strong market demand.

For Q2 FY26, Khazanchi Jewellers recorded a remarkable 46.25% year-on-year increase in revenue, reaching INR 548.92 crore. This impressive top-line growth translated into even stronger profitability, with EBITDA soaring by 112.86% to INR 32.62 crore. The EBITDA margin expanded significantly by 186 basis points to 5.94%. Net profit (PAT) witnessed an astounding 119.41% surge, touching INR 23.54 crore, with PAT margin improving by 143 basis points to 4.29%. Earnings Per Share (EPS) also saw a substantial rise of 118.35% to INR 9.52.

The first half of FY26 mirrored this strong momentum, with total revenue growing by 25.94% year-on-year to INR 952.76 crore. H1 EBITDA increased by 86.81% to INR 53.78 crore, and PAT grew by 93.66% to INR 38.70 crore. This performance underscores the company's disciplined growth, enhanced inventory efficiency, and increased contribution from premium categories. Management attributed this success to the robust festive season and pre-Diwali demand across both retail and wholesale segments, alongside their team's dedication to innovation and design upgrades.

Strategic Expansion and Product Diversification

Khazanchi Jewellers is not merely relying on market tailwinds; it is actively shaping its future through strategic expansion and product diversification. A key highlight is the upcoming 10,000 sq. ft. flagship showroom in Sowcarpet, Chennai. This large-format store is scheduled for puja on December 12, 2025, with a grand launch in mid-January 2026, coinciding with the auspicious Pongal festival season. This showroom is expected to contribute approximately INR 550 crore annually to the top-line and significantly enhance profitability due to the higher-margin profile of B2C operations. The company anticipates its B2C contribution to rise from current single-digit levels to 20-25% starting FY26, targeting 22-25% by FY27.

In a significant move to diversify its product portfolio, Khazanchi Jewellers successfully launched its new brand, 'Vajraa Diamonds by Khazanchi', a premium natural diamond jewellery line. This brand, featuring lightweight and contemporary designs, debuted at the German Jewellery Fair 2025 and garnered exceptional traction, securing an impressive order book within a month. The company aims for diamond sales to constitute 5-10% of its total top-line over the next 2-3 years. Furthermore, recognizing the expanding market for affordable and modern designs, Khazanchi Jewellers plans to foray into fine silver jewellery in the coming quarters.

Operational Excellence and Market Dynamics

The company's B2B wholesale segment continues to deliver healthy performance, supported by consistent order inflows from leading jewellery houses, distributors, and retailers across India. The active B2B customer base has expanded to 2,000, reflecting increased acceptance of Khazanchi's design capabilities and dependable fulfillment. The management emphasized a strategic shift towards higher-margin segments, leading to a reduction in low-margin bullion sales, which, while impacting overall volume, has positively influenced PAT and EBITDA margins.

Khazanchi Jewellers is also investing heavily in digital transformation to bolster its operational backbone. Initiatives include implementing an advanced ERP system for end-to-end integration, adopting intelligent inventory replenishment tools for improved stock efficiency, and strengthening e-commerce and digital engagement platforms. These efforts are geared towards supporting scalable growth, enhancing operating discipline, and improving working capital efficiency.

Financial Summary (INR Crore)

Outlook and Investor Confidence

Looking ahead, Khazanchi Jewellers aims for a top-line of over INR 2,000 crore for FY26. The management's commitment to enhancing shareholder value through disciplined financial management, prudent capital allocation, strong corporate governance, and transparency remains paramount. The Indian jewellery market, valued at approximately US$80-85 billion in FY24, is projected to reach US$225-245 billion by FY35, indicating significant growth opportunities. The organized segment is also expected to increase its market share from 36-38% in FY24 to 42-43% by FY28, a trend Khazanchi Jewellers is well-positioned to capitalize on.

With its strengthened business model, expanding customer base, and a clear margin-accretive roadmap, Khazanchi Jewellers Limited is confident in delivering sustainable and profitable growth. The company's blend of heritage craftsmanship with pioneering innovation, coupled with a customer-centric approach, positions it strongly to create long-term value for all stakeholders.