Rambhajo more than doubled income as inventory expanded

Advit Jewels Limited, which uses Rambhajo in its presentation, more than doubled total income from Rs 69.4525 crore in FY24 to Rs 167.0256 crore in FY26 and increased net profit to Rs 34.3879 crore. Inventory reached Rs 138.1993 crore, showing the balance-sheet commitment accompanying the expansion.

How fast did Rambhajo's annual income and profit grow?

Rambhajo increased total income by Rs 97.5731 crore between FY24 and FY26, while net profit increased by Rs 19.6775 crore. Total income rose from Rs 69.4525 crore in FY24 to Rs 124.9447 crore in FY25 and Rs 167.0256 crore in FY26. Net profit followed the same direction, rising from Rs 14.7104 crore to Rs 25.3671 crore and then Rs 34.3879 crore over the three reported financial years.

Rambhajo's revenue from operations grew from Rs 69.4426 crore in FY24 to Rs 166.0156 crore in FY26, while other income remained limited at Rs 1 lakh in FY26. EBITDA, meaning earnings before interest, tax, depreciation and amortisation, rose by Rs 30.2764 crore over the two-year period. The increase in EBITDA exceeded the Rs 19.6775 crore increase in net profit, alongside FY26 finance costs of Rs 6.4523 crore, depreciation and amortisation of Rs 1.1638 crore, and tax of Rs 7.242 crore.

What changed in Rambhajo's margins and costs?

Rambhajo's EBITDA margin was 29.48% in FY26, above FY24's 27.30% but 0.26 percentage points below FY25's 29.74%. Net profit margin moved from 21.18% in FY24 to 20.30% in FY25 and 20.59% in FY26. The FY26 result therefore delivered higher earnings than the prior two years while both reported margins remained close to their FY25 levels.

Rambhajo's cost of materials consumed increased from Rs 77.6017 crore in FY24 to Rs 131.5616 crore in FY26. Changes in inventories of finished goods, work in progress and stock in trade were negative Rs 28.1506 crore in FY24 and negative Rs 23.3203 crore in FY26, reducing reported expenditure in each year. Employee benefit expenses rose from Rs 25.40 lakh to Rs 3.3624 crore, while other expenses increased from Rs 78.58 lakh to Rs 6.1839 crore.

How much working capital did Rambhajo hold in inventory?

Rambhajo held Rs 138.1993 crore of inventories at the end of FY26, up from Rs 107.2391 crore in FY25 and Rs 44.9167 crore in FY24. The FY26 balance equalled about 83% of total income of Rs 167.0256 crore and about 91% of current assets of Rs 151.4101 crore. This makes inventory the largest disclosed current-asset category and a central component of the company's working-capital position.

Rambhajo's trade receivables fell to Rs 8.999 crore in FY26 from Rs 14.7754 crore in FY25, even as revenue from operations rose by Rs 42.7198 crore. Its receivable turnover ratio increased from 6.01 times in FY24 to 11.18 times in FY25 and 14.05 times in FY26. Trade payables also declined, reaching Rs 92.44 lakh in FY26 compared with Rs 2.5718 crore in FY25 and Rs 8.9644 crore in FY24.

Did Rambhajo convert FY26 profit into operating cash flow?

Rambhajo generated Rs 13.3317 crore from operating activities in FY26, reversing outflows of Rs 10.4933 crore in FY24 and Rs 36.9769 crore in FY25. The FY26 operating inflow was nevertheless Rs 21.0562 crore below the reported net profit of Rs 34.3879 crore. The presentation reports the shift to positive operating cash generation but does not provide a separate explanation for the difference from annual profit.

Rambhajo recorded a net decrease in cash and cash equivalents of Rs 2.3692 crore in FY26 because investing and financing outflows totalled Rs 15.7009 crore, exceeding the operating inflow. Closing cash and cash equivalents were Rs 26.25 lakh, compared with Rs 2.6317 crore in FY25 and Rs 3.8512 crore in FY24. Investing cash outflow declined from Rs 13.2638 crore in FY25 to Rs 6.67 crore in FY26, while financing cash flow shifted from an inflow of Rs 49.0212 crore to an outflow of Rs 9.0309 crore.

How did Rambhajo's balance sheet and ratios change?

Rambhajo's total assets reached Rs 171.7625 crore at FY26 end, compared with Rs 140.854 crore at FY25 end and Rs 67.2093 crore at FY24 end. Total equity rose to Rs 92.5925 crore in FY26, including Rs 32.01 crore of equity share capital and Rs 60.5825 crore of other equity. Current assets of Rs 151.4101 crore exceeded current liabilities of Rs 68.4229 crore, consistent with the reported current ratio of 2.21 times.

Rambhajo's debt-to-equity ratio fell to 0.77 times in FY26 from 1.29 times in FY25, after 0.60 times in FY24. Long-term and short-term borrowings together declined to Rs 71.0223 crore in FY26 from Rs 74.7984 crore in FY25. Return on equity, or ROE, declined to 45.63% from 55.79%, while return on capital employed, or ROCE, increased to 29.39% from 27.48%; earnings per share rose to Rs 10.74 from Rs 7.92.

Conclusion

Rambhajo's FY24-to-FY26 performance combined a Rs 97.5731 crore increase in total income with a Rs 19.6775 crore increase in net profit and a return to positive operating cash flow in FY26. At the same time, inventories increased by Rs 93.2826 crore over the two years and represented Rs 138.1993 crore of the FY26 asset base, tying the expansion closely to working-capital deployment.

What to watch next is whether operating cash flow continues to narrow the gap with reported earnings as Rambhajo manages its inventory balance. The presentation reports H1 FY27 total income of Rs 94.5068 crore and net profit of Rs 20.9458 crore, but it does not disclose an inventory target, working-capital plan or cash-flow target for the period ahead.