been reading about RBZ Jewellers this week
they make gold jewellery in Ahmedabad. mostly heavy antique bridal pieces
they supply big jewellery chains, and run one big showroom of their own, Harit Zaveri Jewellers
that one store did ₹408 Cr of sales last year
I went through their May results call and a talk the joint MD gave at a broker conference on 30 September
analysts kept asking how much of the profit was just gold going up
jumped from ₹146 to ₹201 in one week in early September
₹199 now, going sideways under ₹217, a level it has hit twice
why the numbers moved
last 12 months to June, against the 12 before:
sales ₹523 Cr to ₹682 Cr
profit ₹37 Cr to ₹57 Cr
OPM 12% to 14%
April–June 2026 alone, against a year before:
sales up 60%, to ₹120.8 Cr
profit ₹7.1 Cr to ₹9.1 Cr
OPM 17.2% to 14.8%
1. gold going up, and old stock going out at new prices
they keep their gold stock at well below today’s price
“we have our weighted inventory at about 20% to 25% lower than the current market price.”
— Harit Zaveri, joint managing director and CFO, call of 15 May 2026
when gold rises, stock bought earlier goes out at today’s price
so profit goes up, but only while gold keeps rising
asked how much it added last year, his rough answer was ₹10–12 Cr. then:
“if gold prices were not to increase, I think somewhere around INR40 crores, INR45 crores should be the PAT.”
— Harit Zaveri, call of 15 May 2026
reported profit last year was ₹55 Cr
for April–June 2026, gold prices were flat. the gain from gold:
“it was almost nothing.”
— Harit Zaveri, call of 30 September 2026
April–June OPM 14.8%, with almost no gold gain in it
our 16-lever read calls this a one-off gold gain
April–June, gold flat: sales up 60%, operating profit up 38%
2. more retail in the mix
“Yes, retail would be around 12% or 14% GP. Wholesale will be around 7% to 8% GP.”
— Harit Zaveri, call of 15 May 2026
April–June retail sales ₹78 Cr, up 70%
wholesale ₹42 Cr, up 47%
April–June sales ₹120.8 Cr, against ₹75.6 Cr a year ago
but gross margin still fell, 30.9% to 25.8%
the 16-lever read: no proof yet, gross margin and OPM both below a year ago
3. new store costs, before any new store sales
Surat opened 24 September. Rajkot, Maninagar and Gandhinagar come next
hiring, training, ads and interest went up in April–June
none of the new stores had sales in that quarter
depreciation ₹0.85 Cr to ₹1.64 Cr
his profit number for this year:
“I expect the bottom line to be 55-60 crores.”
— Harit Zaveri, call of 30 September 2026
last year was ₹55 Cr
his reason is spending on the brand while four stores open
4. borrowing to fill the stores with gold
“A typical large format store will need an inventory of somewhere around INR125 crores to INR150 crores.”
— Harit Zaveri, call of 15 May 2026
debt ₹91 Cr to ₹170 Cr, in the year to March
interest in April–June ₹4.23 Cr, was ₹2.58 Cr
operating cash last year ₹−7 Cr, against ₹55 Cr profit
negative every year since March 2023
their plan is gold loans. they borrow gold instead of cash
“When we shift from a CC limit to a GML limit, the interest rate comes down by half.”
— Harit Zaveri, call of 30 September 2026
so far a very small part, they said
with gold loans, a rise in gold stops adding profit
The good and the bad
retail sales ₹78 Cr in April–June, up 70%
the Ahmedabad store alone, before any new store opened
Surat store open since 24 September
10,000 sq ft, their first outside Ahmedabad
profit last 12 months ₹57 Cr, was ₹37 Cr
some of that is gold gains, by their own estimate
₹10–12 Cr of last year’s profit was gold gains
his estimate, not a reported number
operating cash ₹−7 Cr last year, profit ₹55 Cr
the profit is stuck in gold stock and money owed by customers
debt ₹91 Cr to ₹170 Cr in a year
they’re okay with debt at 2 times equity on gold loans
What did management say
last year’s guidance, they hit it
in February they gave sales of ₹630–650 Cr
it came in at ₹636 Cr
profit ₹50–55 Cr, it came in at ₹55 Cr
store dates slipped
in May both big stores were due by September
Surat opened on time, Rajkot moved:
“After this store, the next one is Rajkot, which we expect to open before Diwali.”
— Harit Zaveri, call of 30 September 2026
on guidance, May:
“There is no guidance for this year, frankly saying.”
— Harit Zaveri, call of 15 May 2026
September: ₹55–60 Cr profit for the year
on debt, May:
“we want to keep the debt levels at 1:1 ratio ideally”
— Harit Zaveri, call of 15 May 2026
September, with gold loans:
“With GML, can we afford a debt-to-equity ratio of 2:1? The answer is yes, because the interest payout remains the same.”
— Harit Zaveri, call of 30 September 2026
asked about profit per store:
“We are not looking at unit economics in very great depth at this stage because of our strategy.”
— Harit Zaveri, call of 30 September 2026
four new stores, no store-level numbers yet
this one bugs me
P/E 14.1, usual level about 15.8
the next thing I’m checking
OPM in October–December, the first quarter with the new stores open
the same quarter a year ago was 13.1%
above 13% with store costs in, I’d say the retail shift is working
under 11%, I’ll be worried
and operating cash for the full year, after the stores fill up with stock
July–September results get discussed on 3 November
October–December is the one I’m watching
he says Surat is a walk-through store, no sitting at a counter
anyone been inside?
that’s it from me, see you tomorrow
— Roshan, Sector Alpha
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Prices as of 16 October 2026 · results to Apr–Jun 2026 · business analysis from 10 October 2026
Sector Alpha shows what has happened in published results and market data, and explains the business behind it, so you can study a stock yourself. It is never a recommendation to buy or sell, and Sector Alpha is not registered with SEBI as an adviser. Data as of 22 October 2026. Full data page: https://sectoralpha.in/stocks/RBZJEWEL