T B Z Q2 FY27 Results (NSE: TBZ)
Signal: Growth decelerated
The read
Q2FY27 marks a sharp margin reset after the recent expansion arc: revenue grew only 2.5% YoY to ₹70,535.32 lakh, gross margin contracted 191bps to 17.1% as material costs reached 88.0% of revenue, and PAT fell 54.7% to ₹1,427.26 lakh; the next thesis test is whether this is transient input-cost pressure or a sustained pass-through problem.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹705.35 Cr | 2.5% | -16.1% |
| Net profit | ₹14.27 Cr | -54.7% | |
| EPS | ₹2.14 | -54.8% |
P&L walk
Revenue was ₹70,535.32 lakh, up 2.5% YoY but down 16.1% QoQ; gross margin fell to 17.1% from 19.0% as material costs rose to 88.0% of revenue, driving PAT down 54.7% to ₹1,427.26 lakh.
Segments
The group is a single Jewellery segment; the subsidiary dragged consolidated Q2 PAT to ₹1,427.26 lakh versus standalone PAT of ₹1,542.99 lakh, a ₹115.73 lakh gap.
Key positives
- Revenue still grew 2.5% YoY to ₹70,535.32 lakh despite a 16.1% QoQ decline, preserving positive year-on-year growth.
- PAT and EPS moved together, with PAT down 54.7% to ₹1,427.26 lakh and EPS down 54.8% to ₹2.14, indicating no material dilution signal.
- Standalone PAT of ₹1,542.99 lakh was ₹115.73 lakh above consolidated PAT, limiting the subsidiary drag to the group result.
Key concerns
- Gross margin compressed 191bps YoY to 17.1% as material consumption rose to 88.0% of revenue from 66.9%; the filing does not disclose the cause or the extent of pass-through.
- Employee benefits rose 26.8% YoY to ₹2,973.20 lakh against 2.5% revenue growth, while finance costs rose 16.7% to ₹1,923.07 lakh.
- H1FY27 operating cash flow was negative at ₹1,730.28 lakh while inventory stood at ₹188,093.37 lakh, raising working-capital intensity concerns.
- The 74.12% promoter stake sale agreement with GRT Jewellers and proposed 25.88% open offer introduce a material ownership-transition risk, although CCI approval was received on 13 October 2026.
Research and educational content only. Not investment advice.