T B Z Q1 FY27 Results (NSE: TBZ)
Signal: Growth decelerated
The read
The positive trajectory continued with consolidated revenue of ₹84,097.41 lakh, +34.8% YoY, EBITDA of ₹710.23 million, +38.2% YoY, and PAT of ₹3,391.57 lakh, +50.8% YoY; the key inflection is that margin expansion persisted YoY despite gross-margin compression, but the 8.4% EBITDA margin was sharply below the 14.0% Q4FY26 level and working-capital intensity at elevated gold prices is the principal execution risk.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹840.97 Cr | 34.8% | 1.4% |
| Net profit | ₹33.92 Cr | 50.8% | |
| EPS | ₹5.08 | 50.7% | |
| EBIT margin | 8.4% |
P&L walk
Consolidated revenue grew to ₹84,097.41 lakh, +34.8% YoY and +1.4% QoQ, while EBITDA margin was 8.4%, +21bps YoY but sharply below the 14.0% implied Q4FY26 level; PAT rose to ₹3,391.57 lakh, +50.8% YoY, helped by operating growth and a lower effective tax burden versus the prior quarter.
Key positives
- Revenue from operations reached ₹84,097.41 lakh, +34.8% YoY, supported by Akshaya Tritiya demand, higher average ticket sizes and store productivity gains.
- EBITDA increased 38.2% YoY to ₹710.23 million versus revenue growth of 34.8%, a +3.4 percentage-point growth gap; employee benefits grew 9.0% YoY on a standalone basis and EBITDA margin expanded 21bps to 8.4%.
- PAT rose 56.9% YoY to ₹328.54 million on a standalone basis, with EPS increasing 56.7% to ₹4.92 and no share-capital dilution.
- Nearly three-quarters of showroom visitors were existing or returning customers, indicating disclosed customer retention strength across the 37-store network.
Key concerns
- Gross margin declined 128bps YoY to 14.9% from 16.2%, despite revenue growth of 34.8%; higher gold prices and the customs-duty increase from 6% to 15% pressured affordability and shifted demand toward lightweight and lower-karatage jewellery.
- Consolidated EBITDA margin of 8.4% was materially below the 14.0% implied Q4FY26 level, making sequential margin normalisation a key watchpoint.
- Management identifies inventory and cash conversion as the closest areas of focus because elevated gold prices increase working-capital intensity; no current-quarter inventory or cash-flow metrics were disclosed.
- Finance costs rose 17.9% QoQ to ₹1,875.28 lakh, although they increased only 6.1% YoY versus revenue growth of 34.8%.
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