Revenue
Margin
Demand
Guidance
Tone
Event Participants
Executives
2 Anmol Bhansali, Rashesh Bhansali
Analysts
9 Agam Bhansali, Ankush Agarwal, Anubhav Mukherjee, Bharat Gyanani, Dixit Doshi, Kumar Saurabh, Rahul Dani, Vikshit Doshi, Vivek Gautam
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Revenue | ₹3,637 million | ~55% YoY growth on an elevated base (Q1 FY26: ₹235 crores), which was itself inflated by pre-tariff shipments ahead of US duties; LGD jewelry at 90.7% of exports (vs 87.8% YoY) |
| EBITDA | ₹1,039 million | +120% YoY; includes one-time tariff refund, with steady-state margin expansion driven by dual-cast manufacturing |
| EBITDA Margin (Steady-State) | 24% | +400 bps YoY post tariff refund calibration; management computes margins including other income, given forex/exchange income is structural to the export model |
| Profit After Tax | ₹740 million | More than doubled YoY (Q1 FY26: ~₹370 million) |
| Other Income | ~₹37 crores | ~₹22 crore tariff duty refund (fully received in cash); balance from forex gains and treasury income |
| Order Book | ₹2,250 million | Vs ₹1,400 million at Q1 FY26 end; signals robust Q2-Q3 pipeline |
| Cash & Investments | ₹4,566.7 million | Strong liquidity to fund consignment inventory build and Origin store expansion |
| Online Revenue Share | 19.3% | Via dot-com platforms where Goldiam is an empaneled, end-to-end operator for large US retailers |
| Inventory with Customers | ~64% of finished jewelry | Consignment stock placed with US retailers for sale in subsequent months |
| Bonus Issue | 1:3 (37.6M shares of ₹2 each) | Allotted in July 2026, utilising ₹7.53 crores of reserves |
Geographic & Segment Commentary
- B2B Exports (US + International): US accounts for 90-95% of export revenue, with 85-90% of US sales direct to retail and balance through wholesalers. Bridal (~85% of US mix) remains the core focus; new bracelet and necklace categories launched in H2 FY26 are gaining traction with select wholesale customers and have enabled new customer additions. Non-US geographies (Middle East, Israel, Australia) still small but growing, with management expecting double-digit non-US share by FY27 end. The dual-cast manufacturing model (US + India casting) delivered steady-state EBITDA margin of 24%.
- Origin (India B2C Retail): 26 operational stores with Q1 FY27 revenue of ₹81.56 million (~₹8.16 crores) and an operating loss of ₹5-6 crores for the quarter. Seven additional stores signed, targeted to open pre-Diwali/Dhanteras. Store-level run rates vary: 25-35 lakhs/month for the better-performing stores and 40-45 lakhs/month for the best store, with management expecting improvement as new enablers mature. Introduced 9-karat gold LGD jewelry and old gold exchange scheme across all stores in Q1 FY27.
Company-Specific & Strategic Commentary
- Dual/Hybrid Casting Model: US-based casting combined with India manufacturing mitigates tariff risk and protects margins; FY27 is the first full year of this model. Management credited this for the 400 bps steady-state margin gain.
- Category Expansion (Fashion Jewelry): High-value fashion (tennis bracelets, necklaces) introduced with select US wholesalers; retail customer testing cycle of ~1 year expected before scaling, targeting higher ASP and utilising bridal-grade craftsmanship.
- Geographic Diversification: Australia and Canada (similar consumption patterns to US) are near-term targets, with one large Australian retail group already in consignment testing; Middle East and Israel operate on outright purchase model similar to India.
- Origin Digital & Sales Enablers: Launched India's first Digital 3D Ring Builder in Q4 FY26; WhatsApp AI bot expected soon. Business model remains physical-first given ASP above ₹70,000, with digital used for lead generation; lower-priced lines (silver, 9K) may enable e-commerce over time.
- Customer Share Expansion: Largest US customer (~$6 billion retail sales) represents only ~2% of Goldiam's addressable wholesale wallet with them ($35-40 million of $2-2.5 billion) — scope to triple/quadruple share. Costco currently does not offer lab-grown diamonds; management is engaged with buyers.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Origin Store Count | 7 new stores pre-Diwali/Dhanteras (Q2 FY27) | Takes network to ~33 stores; post-Diwali review will calibrate further expansion based on mall partnerships and regional performance |
| EBITDA Margin | ~24% steady-state for FY27 | First full year of dual-cast manufacturing; margin expansion expected to continue through mix shift toward high-value fashion |
| Non-US B2B Share | Double-digit by FY27 end | Driven by Middle East, Israel, Australia wholesale-led traction; repeat orders strong |
| Origin Store Target | ~100 stores (medium-term, 2-3 years) | With stronger per-store sales metrics; expansion pace contingent on store maturity and same-store sales growth |
| B2B Growth | Continue strong growth over record FY26 (₹1,000 crore revenue) | New categories, customer deepening, non-US expansion; no explicit numeric guidance provided |
Risks & Constraints
| Risk | Context |
|---|---|
| Lab-Grown Diamond Price Erosion | Management believes wholesale LGD prices have hit a base, with smaller sizes even increasing, driven by labour costs and rough pricing. Any supply surge (e.g., Chinese CVD) could pressure pricing, though management sees this as supply-side benefit for a jewellery manufacturer |
| US Tariff Policy | Q1 FY26 base was distorted by tariff-driven pre-shipments. Dual-cast model mitigates tariff exposure, but policy shifts could still affect customer inventory behaviour and order timing |
| Origin Store-Level Economics | Operating loss of ₹5-6 crores in Q1; store performance varies widely (25-45 lakhs/month), with some stores below target. Mumbai rentals and customer conversion are cited challenges |
| Competition in Indian LGD Retail | Several VC-funded entrants; management notes funding for smaller players is drying up. Differentiation rests on design pedigree (rings pre-sold 200-250 times globally), mall distribution, and parent-company financial backing |
| Fashion Category Testing Cycle | New high-value fashion lines require ~1-year consignment testing cycle with US retailers before scaling, delaying revenue contribution |
| LGD Penetration Variability at US Retailers | LGD share varies 40-60% depending on retailer segment; any reversal in consumer preference toward natural diamonds could impact demand assumptions |
Q&A Highlights
B2B Growth Drivers & Q2-Q3 Demand Outlook
- Question: What drove the ~40% YoY growth in Q1, and how is demand shaping for Q2-Q3? Has the bracelet/necklace category launch shown traction? (Vikshit Doshi)
- Answer: Bracelets and necklaces launched in H2 FY26 have performed well with select customers, including new wholesale additions solely for this category. Growth was driven by deepening US retail relationships and new non-US customers (Middle East, Israel). Order book at ₹225 crores vs ₹140 crores last year signals confidence. Chairman added: retailers' goods sold exceptionally well; LGD demand in the US is picking up strongly over natural diamonds. (Anmol Bhansali, Rashesh Bhansali)
Margin Definition & Other Income Breakdown
- Question: You include other income in EBITDA margin — if we exclude it, margins haven't improved. What's in the ~₹37 crore other income? (Vikshit Doshi)
- Answer: Management consistently includes other income because forex/exchange income is structural to an export company domiciled in a SEZ with US-memo inventory. Of the ~₹37 crores, ~₹22 crores is a tariff duty refund; the balance is forex and treasury gains. Even excluding the refund, substantial growth over Q1 FY26 stands. Margin expansion is from the dual/hybrid casting method, which delivers US-origin product while avoiding tariff impact. (Anmol Bhansali)
Tariff Refund — Cash vs Accrual
- Question: Has the tariff refund been received in cash or is it unrealised? (Agam Bhansali)
- Answer: The refund has been fully received in cash and is already within the company. (Anmol Bhansali)
Origin Store Expansion & Differentiation
- Question: How many more Origin stores this year? Any franchisee model or brand ambassador plans? (Vikshit Doshi)
- Answer: Seven additional stores signed, opening pre-Diwali/Dhanteras; expansion pace will be reviewed post-festive season based on mall partnerships and regional performance. No franchisee or ambassador plans announced. Differentiation rests on design strength (every ring pre-sold 200-250 times globally), mall distribution (Phoenix Palladium, Elante, Nexus Koramangala), and financial muscle via Gold Metal Loan that subsidises gold inventory at new stores for first 4-6 months. (Anmol Bhansali)
ASP Drivers & Wholesale Pricing Trends
- Question: What is driving the sharp increase in realisation? How are wholesale and retail LGD prices trending? (Anubhav Mukherjee)
- Answer: ASP increases are driven by higher gold prices and greater caratage per piece in lab-grown jewellery. Wholesale LGD prices have reached a base — smaller sizes have actually moved up on labour cost and rough pricing. Management sees limited scope for erosion and believes it is an opportune time to invest in inventory. Retail pricing is not disclosed/controlled by Goldiam. (Anmol Bhansali)
LGD Market Share & US Customer Wallet Opportunity
- Question: What is Goldiam's share of the US LGD market, and what is industry growth? (Bharat Gyanani)
- Answer: LGD penetration at major US retailers is 40-60% in the addressable (upper-middle/premium) segment; industry growing at healthy double digits. Goldiam's largest customer does
$6 billion retail and ~$2-2.5 billion wholesale; Goldiam supplies $35-40 million annually (2%) — scope to triple or quadruple share with existing customers alone. (Anmol Bhansali)
B2B Growth Runway — Bridal vs Fashion Mix
- Question: Given low share with large retailers and fast LGD growth, why isn't B2B growing faster? Is some part of the business not growing? (Ankush Agarwal)
- Answer: Bridal (85% of US mix) is deliberately prioritised for higher ASP and margins. Fashion is being entered strategically through high-value tennis bracelets/necklaces. Testing cycles take ~1 year on consignment before scaling. Chairman noted Q1 FY26 (₹235 crores) was inflated by pre-tariff shipping, yet Q1 FY27 still grew ~50% on that base — growth is broad-based across bridal, fashion, wholesale and retail. (Anmol Bhansali, Rashesh Bhansali)
Europe Expansion & Geographic Strategy
- Question: Any plans for UK/Germany/Europe B2B expansion? (Kumar Saurabh)
- Answer: Europe is a medium-term goal but structurally unattractive — no continent-wide retailers (150-200 store caps), thin middle/premium consumption class, and product profile skews to low-end/low-carat jewellery, hurting margins. Near-term focus is Australia and Canada (similar consumption to US) and Israel/Middle East (outright purchase model). (Anmol Bhansali)
Origin Business Model — Physical vs Digital
- Question: Is Origin pursuing a physical-only, digital-only, or omnichannel model? (Kumar Saurabh)
- Answer: Largely physical because Origin's ASP is north of ₹70,000 — difficult to convert online at that price point. Digital is used for top-of-funnel activation (WhatsApp, Instagram, upcoming AI bot) with conversion in-store. As silver and 9K lines bring inventory below ₹20,000, e-commerce relevance will increase over the next fiscal year. (Anmol Bhansali)
Gross Margins, Costco & Costco LGD Plan
- Question: Gross margins were ~30%, the lowest in ten quarters — is that accurate? Any new US clients like Costco? What is Origin's quarterly revenue run-rate? (Vivek Gautam)
- Answer: Management believes gross margins are in fact higher and will re-verify the numbers. New customers added include US fashion wholesalers and Middle East retailers/wholesalers. Costco does not currently carry lab-grown diamonds; management is engaging with buyers but a corporate decision is pending. Origin's Q1 FY27 revenue was ~₹8.1-8.2 crores. (Anmol Bhansali)
Origin Store Run Rate & Maturity
- Question: What is the current monthly run-rate of the earliest (Mumbai) stores vs the ₹10-11 crore mature-store target? (Kumar Saurabh)
- Answer: Earliest stores (Mumbai, ~1 year old) are mixed: some crossing ₹25-35 lakhs/month, others below. Chairman: best store consistently crosses ₹40-45 lakhs/month