T B Z Q4 FY26 Results (NSE: TBZ)
Signal: Margin expansion
The read
Standalone Q4FY26 PAT ₹6,708 lacs (+560% YoY) — the big story is the 5th consecutive quarter of margin expansion, with OPM rising 700bps YoY to 14%, driven by a sustained tailwind in input cost efficiency (raw material ratio down 670bps) and operating leverage from fixed cost control. FY26 full-year PAT ₹20,049 lacs (+177%) on revenue growth of 22% demonstrates the margin compounding. The company is a single-segment jeweller; no subsidiary-level impact. Key concern: working capital intensity — inventories jumped to ₹1,77,294 lacs (21% of revenue) and current borrowings rose to ₹78,257 lacs, though operating cash flow turned positive at ₹2,929 lacs.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹829.7 Cr | +56.9% | -21.8% |
| EBIT | ₹113.43 Cr | +302.8% | |
| Net profit | ₹67.08 Cr | +559.9% | |
| EPS | ₹10.05 | +557.8% | |
| EBIT margin | 14% |
P&L walk
Standalone-only filing; no consolidated P&L column presented separately — see standalone read.
Key positives
- 5th straight quarter of OPM expansion: from 6% in Q4FY24 to 14% in Q4FY26.
- EBITDA grew +303% vs revenue +57% — gap of +246pp, demonstrating both input cost tailwind and operating leverage.
- Employee cost (+14% YoY), other expenses (+3%), D&A (+16%), finance cost (-6%) all grew far below the +57% revenue growth, validating fixed cost control.
- FY26 full-year PAT ₹20,049 lacs (+177% YoY) on 22% revenue growth — ROCE 21.36%, ROE 27.06% per fundamentals block.
- Auditors issued unmodified (clean) opinion on both standalone and consolidated results.
Key concerns
- QoQ revenue declined 22% from Q3FY26's ₹1,06,142 lacs — jewellery business is seasonal (Q3 festive/wedding peak), but the absolute Q4 revenue of ₹82,970 lacs is the highest Q4 ever.
- Inventories rose sharply to ₹1,77,294 lacs (21% of annualised revenue) — high gold inventory is capital-intensive and exposes balance sheet to price drops.
- Total borrowings increased ~12% YoY to ₹78,570 lacs — net debt not disclosed but likely up given inventory growth.
Research and educational content only. Not investment advice.