RBZ Jewellers Lt Q2 FY27 Results (NSE: RBZJEWEL)
Signal: Margin pressure
The read
The trajectory is a sharp revenue acceleration to ₹22371.27 lakh, +54.2% YoY, but the quality of growth weakened: gross margin fell 665bps to 25.4%, EBITDA margin fell 647bps to 13.1%, finance costs rose 117.0%, and PAT declined 11.7%; negative H1 operating cash flow of ₹4670.49 lakh and higher inventory make working-capital funding the key monitor.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹223.71 Cr | 54.2% | 85.3% |
| EBIT | ₹27.49 Cr | 0.5% | |
| Net profit | ₹16.39 Cr | -11.7% | |
| EPS | ₹4.1 | -11.6% | |
| EBIT margin | 13.1% |
P&L walk
Revenue accelerated to ₹22371.27 lakh, +54.2% YoY and +85.3% QoQ, but material and stock-in-trade costs compressed gross margin to 25.4% from 32.0% and EBITDA margin to 13.1% from 19.5% YoY; finance costs rose 117.0% YoY, leaving PAT down 11.7% to ₹1638.68 lakh.
Key positives
- Revenue from operations reached ₹22371.27 lakh, up 54.2% YoY and 85.3% QoQ, showing strong near-term demand momentum.
- PPE rose to ₹6537.44 lakh from ₹3370.73 lakh at 31 March 2026, while H1 PPE and CWIP additions were ₹2332.88 lakh, indicating continued retail and operating-capacity investment.
- EPS of ₹4.10 tracked PAT, with PAT down 11.7% YoY and EPS down 11.6%, so there is no material dilution signal.
Key concerns
- Gross margin fell 665bps YoY to 25.4% as cost of materials consumed increased to 56.1% of revenue from 35.8%; the filing does not disclose the cause.
- EBITDA rose only 3.2% YoY to ₹2924.46 lakh while revenue grew 54.2%, and EBITDA margin contracted 647bps to 13.1%, indicating that the business did not convert scale into operating profit.
- Finance costs increased 117.0% YoY to ₹554.06 lakh as borrowings and gold on loan rose, increasing financing sensitivity.
- H1 operating cash flow was negative at ₹4670.49 lakh, while inventory reached ₹52308.15 lakh, highlighting substantial working-capital absorption.
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