Revenue jumped 86.02% sequentially, but margin fell 1.84 points
Higher jewellery sales supported growth, but expenses outpaced revenue and interest costs rose 30.97% qoq.
Filed 03 Nov 2026, 13:44 IST · RBZJEWEL (RBZJEWEL)
Key takeaways
- Standalone revenue rose 86.02% qoq, but expenses grew faster and operating margin fell 1.84 percentage points to 12.99%.
- Net profit increased 80.31% qoq even as interest expense rose 30.97% and the tax rate edged up 0.31 percentage points.
- Other income contributed just 0.23% of pre-tax profit, leaving reported earnings largely tied to operations.
Sales growth did not fully flow through to operating profit
Standalone revenue rose 86.02% qoq to Rs 224.71 cr, while operating profit grew 62.95%, showing that the sales increase did not fully flow through to operating profit. The presentation attributed the quarter's performance to customer demand, higher jewellery sales and improving brand visibility. Net profit still increased 80.31% qoq to Rs 16.39 cr.
Faster expense growth drove the margin squeeze
Expenses grew 90.05% qoq, faster than revenue, and operating margin narrowed by 1.84 percentage points to 12.99%. Interest expense rose 30.97%, adding to the pressure below operating profit, while the tax rate increased by 0.31 percentage points. Other income was only 0.23% of pre-tax profit, so it did not materially support earnings quality.
The two-quarter trend points to margin compression
Operating margin moved from 14.83% in Q1FY27 to 12.99% in Q2FY27, making margin decline the clearest sequential trend. Pre-tax profit grew 80.92% qoq despite the higher interest charge and the small tax-rate increase. The quarter-on-quarter comparison is the relevant read here because no year-on-year comparison is provided.
Retail expansion is the stated growth programme
Management said the company launched a roughly 10,000 sq. ft. flagship showroom at Parle Point, Surat, on 24 September 2026. Management said a four-store rollout is planned across Q2, Q3 and Q4, with the expansion pipeline through March 2027 including a leased large-format flagship in Rajkot and mid-sized stores in Gandhinagar and Maninagar. The company also said it used targeted digital campaigns and expanded its range with the Gul, Saanjh and Polki collections.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹225 cr | ₹121 cr | +86.02% |
| Other income | ₹0 cr | ₹0 cr | -54.55% |
| Expenses | ₹196 cr | ₹103 cr | +90.05% |
| Operating profit | ₹29 cr | ₹18 cr | +62.95% |
| Operating margin (%) | 12.99% | 14.83% | — |
| Interest | ₹6 cr | ₹4 cr | +30.97% |
| Depreciation | ₹2 cr | ₹2 cr | +3.66% |
| Profit before tax | ₹22 cr | ₹12 cr | +80.92% |
| Tax | ₹6 cr | ₹3 cr | +83.06% |
| Net profit | ₹16 cr | ₹9 cr | +80.31% |
| EPS (₹) | ₹4.10 | ₹2.27 | +80.62% |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company reported healthy quarterly performance supported by robust customer demand and higher jewellery sales.
Planned next quarter
- The next phase of retail expansion will focus on a large-format flagship in Rajkot and mid-sized stores in Gandhinagar and Maninagar.
Expansion
- The company launched a roughly 10,000 sq. ft. flagship showroom at Parle Point, Surat, on 24 September 2026.
- A four-store rollout is planned across Q2, Q3 and Q4.
- The expansion pipeline through March 2027 includes a leased large-format flagship store in Rajkot.
New products
- The company broadened its offering to include the Gul, Saanjh and Polki collections across multiple jewellery categories.
New initiatives
- The company strengthened consumer engagement through targeted digital campaigns for occasion, bridal and daily-wear collections.
What to watch
- Whether operating margin moves back from 12.99% after the 1.84-percentage-point qoq decline.
- Whether expense growth moderates from 90.05% relative to revenue growth of 86.02%.
- Progress on management's four-store rollout planned across Q2, Q3 and Q4.