RBZ Jewellers Q2 PAT fell 11.7% as margin contracted 640 bps

RBZ Jewellers Ltd reported Q2 FY27 operational revenue growth of 54.9% to Rs 224.7 crore, but profit after tax fell 11.7% to Rs 16.4 crore as earnings before interest, tax, depreciation and amortisation margin contracted 640 basis points to 13.0% from 19.5% a year earlier.

Why did RBZ Jewellers’ Q2 FY27 PAT fall despite higher revenue?

RBZ Jewellers’ Q2 FY27 PAT fell because its reported expenses grew faster than operational revenue and operating profit growth was limited. Operational revenue increased by Rs 79.6 crore to Rs 224.7 crore from Rs 145.1 crore in Q2 FY26, while total expenses rose by Rs 78.7 crore to Rs 195.5 crore from Rs 116.8 crore. EBITDA increased only 3.5% to Rs 29.2 crore from Rs 28.3 crore.

The EBITDA margin was 13.0% in Q2 FY27, compared with 19.5% in Q2 FY26, a decline of 640 basis points. A basis point is one-hundredth of a percentage point. Depreciation rose 97.6% to Rs 1.7 crore from Rs 90 lakh, while finance cost increased 117.0% to Rs 5.5 crore from Rs 2.6 crore. Profit before tax declined 11.7% to Rs 22 crore from Rs 24.9 crore.

Tax fell 11.7% to Rs 5.6 crore from Rs 6.3 crore, but PAT still declined to Rs 16.4 crore from Rs 18.6 crore. PAT margin narrowed by 550 basis points to 7.3% from 12.82%. Basic and diluted earnings per share were Rs 4.10 in Q2 FY27, compared with Rs 4.64 in Q2 FY26, a decline of 11.6%.

How did RBZ Jewellers’ Q2 FY27 performance compare with Q1 FY27?

RBZ Jewellers’ Q2 FY27 revenue, EBITDA and PAT increased substantially from Q1 FY27, although both reported margins were lower. Operational revenue rose 86.0% sequentially from Rs 120.8 crore in Q1 FY27 to Rs 224.7 crore in Q2 FY27. EBITDA rose 63.0% from Rs 17.9 crore to Rs 29.2 crore, while PAT increased 80.2% from Rs 9.1 crore to Rs 16.4 crore.

The sequential revenue gain was accompanied by a 180-basis-point decline in EBITDA margin, to 13.0% from 14.82% in Q1 FY27. PAT margin declined 20 basis points to 7.3% from 7.53%. Total expenses increased 90.0% quarter on quarter to Rs 195.5 crore, exceeding the 86.0% operational-revenue growth rate.

Finance cost was Rs 5.5 crore in Q2 FY27, 31.0% higher than Rs 4.2 crore in Q1 FY27, while depreciation was Rs 1.7 crore, against Rs 1.6 crore in the preceding quarter. Other income was Rs 5 lakh, compared with Rs 10 lakh in Q1 FY27. Despite these movements, profit before tax increased 81.0% sequentially to Rs 22 crore from Rs 12.2 crore.

What do RBZ Jewellers’ H1 FY27 results show?

RBZ Jewellers’ H1 FY27 results show revenue growth of 56.6% alongside a small decline in PAT and lower margins. Operational revenue rose to Rs 345.5 crore from Rs 220.7 crore in H1 FY26, while EBITDA increased 14.4% to Rs 47.1 crore from Rs 41.1 crore. The gap between revenue and EBITDA growth coincided with a 510-basis-point reduction in EBITDA margin to 13.6% from 18.6%.

Total expenses rose 66.1% to Rs 298.4 crore in H1 FY27 from Rs 179.6 crore a year earlier. Profit before tax declined 1.0% to Rs 34.2 crore from Rs 34.5 crore, while finance cost increased 90.2% to Rs 9.8 crore from Rs 5.1 crore. Depreciation rose 95.9% to Rs 3.3 crore from Rs 1.7 crore.

PAT was Rs 25.5 crore in H1 FY27, down 0.8% from Rs 25.7 crore in H1 FY26. PAT margin fell 420 basis points to 7.4% from 11.64%, and basic and diluted earnings per share declined to Rs 6.37 from Rs 6.42. The presentation also reports H1 FY27 return on equity of 15.7% and return on capital employed of 21.4%.

How does the H1 FY27 margin level compare with RBZ Jewellers’ recent years?

RBZ Jewellers’ H1 FY27 EBITDA and PAT margins were below the FY26 levels, which were the highest figures in the reported FY23 to FY26 series. FY26 operational revenue was Rs 636.5 crore, EBITDA was Rs 91.9 crore and EBITDA margin was 14.44%. That margin compared with 13.13% in FY23, 11.67% in FY24 and 12.11% in FY25.

FY26 PAT was Rs 54.8 crore and PAT margin was 8.61%, compared with Rs 38.8 crore and 7.32% in FY25. H1 FY27 EBITDA margin of 13.6% was 84 basis points below FY26, while the 7.4% PAT margin was 121 basis points below FY26. The presentation does not provide a separate explanation for the margin changes beyond its reported expense, depreciation and finance-cost lines.

The H1 FY27 balance sheet shows inventories of Rs 523.1 crore, up from Rs 335.7 crore at FY26, and total assets of Rs 716.3 crore, compared with Rs 486 crore. Current borrowings increased to Rs 190.2 crore from Rs 118.4 crore, while non-current borrowings rose to Rs 36.5 crore from Rs 22.5 crore. Net debt-to-equity was reported at 0.39 times in H1 FY27, versus 0.46 times in FY26.

What growth actions has RBZ Jewellers disclosed?

RBZ Jewellers has disclosed a plan to expand retail access, deepen business-to-business relationships and improve utilisation of existing manufacturing capacity. The presentation identifies more than 190 retail partners, two retail stores and an approximately 20,000-square-foot retail footprint in Gujarat under the Harit Zaveri brand. It also describes manufacturing, wholesale, job-work and retail as its integrated operating channels.

RBZ Jewellers says its job-work model uses customer-supplied gold, which the presentation describes as reducing the gold funding requirement. Management’s stated retail actions are to execute a store rollout and extend consumer reach, while its business-to-business plan includes scaling private-label solutions through retailer-supplied gold. The presentation does not provide a numerical store-opening, revenue, margin or profit target.

Management also identifies a broader product and channel mix, quality and execution discipline, and higher capacity utilisation as its operating priorities. The presentation reports a three-year revenue compound annual growth rate of 30.3% and a three-year PAT compound annual growth rate of 34.9%. These historical growth rates do not establish a forecast for FY27 performance.

Conclusion

RBZ Jewellers’ Q2 FY27 result combined substantially higher revenue with lower year-on-year profitability. Revenue grew 54.9%, but expenses increased 67.3%, EBITDA rose only 3.5%, and PAT declined 11.7%. The H1 FY27 comparison showed a similar pattern, with 56.6% revenue growth, a 510-basis-point EBITDA-margin decline and PAT down 0.8%.

The next results will show whether management’s retail rollout, deeper retailer relationships and higher manufacturing utilisation affect the reported cost structure. The disclosed items to watch include finance cost, which was Rs 9.8 crore in H1 FY27, inventory of Rs 523.1 crore, and current borrowings of Rs 190.2 crore at the H1 FY27 balance-sheet date.