RBZ Jewellers Q4 FY26: Profitability Surges as Gujarat Retail Expansion Takes Shape

RBZ Jewellers Limited closed Q4 FY26 with a strong year-on-year performance and ended FY26 with a visible step-up in profitability. For Q4 FY26, revenue from operations came in at INR 189.5 crore, up 38% YoY. EBITDA rose 46% YoY to INR 21.2 crore, while PAT increased 36% YoY to INR 11.7 crore. EBITDA margin for the quarter stood at 11.19% and PAT margin at 6.17%.

The full-year picture was stronger on margins than on topline growth. FY26 revenue from operations was INR 636.5 crore, up 20% YoY. EBITDA grew 43% YoY to INR 91.9 crore, taking EBITDA margin to 14.44% from 12.11% in FY25. PAT rose 41% YoY to INR 54.8 crore, and PAT margin improved to 8.61%.

Management attributed Q4 momentum to festive demand around Akshay Tritiya and a healthy wedding season. The company also highlighted continued brand and design activity, including new collections and digital marketing campaigns.

Segment mix: retail leads revenue, B2B swings between wholesale and job work

RBZ operates a blended model across retail (B2C), wholesale (B2B), and job work services (B2B), supported by an in-house manufacturing facility in Ahmedabad.

In FY26, retail remained the largest contributor among the disclosed segments. Retail revenue increased to INR 408.4 crore from INR 323.9 crore in FY25. Wholesale revenue rose to INR 221.3 crore from INR 197.7 crore. Job work services revenue was INR 6.8 crore versus INR 8.4 crore in FY25.

Quarterly movements showed the usual seasonality and mix shifts. In Q4 FY26, retail revenue was INR 121.4 crore, wholesale was INR 67.0 crore, and job work was INR 1.1 crore. Management commentary suggested that the B2B mix can move between job work and wholesale depending on client preferences, especially as gold prices and working capital dynamics change.

Table: Core financial snapshot

Operating execution: design velocity, exhibitions, and digital demand creation

RBZ’s operating narrative in Q4 was anchored around three levers: product pipeline, market outreach, and consumer engagement.

During the quarter, the company participated in two exhibitions across B2B and B2C channels, aimed at improving visibility and outreach across key markets. Digital marketing was another visible focus. The investor presentation shared a social media follower trend rising to 185,000 in 2026 from 170,000 in 2025, alongside multiple campaigns across occasion and daily wear.

Product development was highlighted as a tangible execution metric. The company stated it launched about 730 new designs in the quarter, around 8 designs per day, largely in the occasion wear segment. Management also said the company is set to commence certain products in-house in the daily wear segment from Q1 FY27 with dedicated infrastructure.

This is important because RBZ’s retail business is described as roughly 65% occasion wear and 35% daily wear on average, indicating that daily wear expansion is intended to widen repeat-purchase frequency while the bridal and occasion categories continue to anchor higher-ticket demand.

Gujarat retail expansion: Surat and Rajkot planned for Q2 FY27

The company’s most material strategic move is retail expansion within Gujarat. The investor deck states the company is targeting four new showrooms across Gujarat over the next two financial years, with two scheduled to launch by Q2 FY27.

The presentation provides specific details for two large-format stores.

On the earnings call, management reiterated that the timeline for Surat and Rajkot remains unchanged. It also discussed exploring mid-format stores of around 5,000 square feet in Eastern Ahmedabad and nearby Gandhinagar, positioning them as strategic feeder locations.

The funding and working capital implications are significant in jewellery retail because inventory is the store. Management quantified this clearly, stating a typical large-format store may require around INR 125 crore to INR 150 crore of inventory per store. It also indicated that the expansion would be supported via inventory transfer, additional debt, and profit accruals, and that the company was not considering equity dilution for this.

On leverage, management stated it prefers to keep debt-to-equity around 1:1 and suggested it could go up to 1.2 to 1.5 at peak levels.

Balance sheet signals: inventory build, receivables spike, and lease-linked growth

The FY26 balance sheet data shows a sharp increase in non-current assets, partly reflecting expansion-related spending ahead of store launches. Capital work-in-progress rose to INR 24.7 crore in FY26 from nil in FY25, and right-of-use assets rose to INR 27.3 crore in FY26 from INR 3.7 crore in FY25. Lease liabilities also increased.

On working capital, inventories increased to INR 335.7 crore in FY26 from INR 292.3 crore in FY25. Trade receivables rose sharply to INR 55.8 crore from INR 17.3 crore. Management attributed the receivables spike to sales timing from a late-March exhibition and said receivables had moved back toward normal levels afterward, with wholesale debtor days typically around 30 days.

The company also saw an increase in finance costs to INR 14.1 crore in FY26 from INR 9.5 crore in FY25, consistent with higher borrowings and lease-linked obligations.

What management did and did not guide

Management did not provide explicit FY27 revenue or profit guidance, citing policy uncertainty and the need to observe customer behavior on the ground. The call included multiple questions on recent policy announcements related to gold imports and customs duties. Management’s position was that it was too early to quantify impact and that demand trends need to be monitored beyond immediate headlines.

It did provide a few operational direction points. It said April had been very good, reiterated planned store launch timelines, and discussed the possibility of using Gold Metal Loans in FY27 for gold procurement linked to store expansion. It also described an internal practice of maintaining inventory weighted average significantly below current market price and using hedging tools if needed.

Takeaways

FY26 marked a year of strong profitability improvement for RBZ Jewellers, with EBITDA and PAT growing over 40% YoY and margins expanding meaningfully. Retail continues to be the largest reported revenue segment, while B2B demand appears to shift between wholesale and job work depending on client preferences and pricing dynamics.

The next phase is clearly defined: execute store rollouts in Surat and Rajkot by Q2 FY27, build mid-format stores in and around Ahmedabad over time, and deepen daily wear capabilities in-house from Q1 FY27. The key investor variables to track will be how working capital and leverage behave as inventory is built for new stores, and whether margin resilience holds through a volatile policy and gold price environment.