Tribhovandas Bhimji Zaveri Limited (TBZ) is a distinguished entity in the Indian jewellery market, with a profound legacy spanning over 160 years since its establishment in 1864. The company has built a formidable brand reputation based on trust, quality craftsmanship, and innovative design, allowing it to cultivate a loyal, multigenerational clientele. Spearheaded by the fifth generation of the founding family, TBZ has professionalized its operations while maintaining its core heritage values. The company's primary focus is on the wedding and occasion jewellery segment, which constitutes approximately 65% of its sales, positioning it as a leader in this high-value, compulsion-driven market. TBZ operates a significant retail network of 37 stores across 27 cities and 13 states, encompassing over 100,000 square feet of retail space. The company has a history of pioneering industry practices, such as being the first to offer a buyback guarantee in 1938 and introducing 100% pre-hallmarked jewellery in 2004. Its business model integrates outsourced manufacturing for gold jewellery, leveraging a vast network of specialized vendors, with in-house manufacturing for diamond jewellery, which provides a competitive edge in design exclusivity and margin control. This combination of a storied history, strong brand equity, expansive retail presence, and a focused business strategy makes TBZ a key player in India's gems and jewellery sector.

Official Website: http://www.tbztheoriginal.com/

• Q3 FY26 Performance: The company demonstrated robust growth in the third quarter.

• Revenue: Grew by 14.40% year-over-year (YoY) to ₹10,614.23 million.

• Gross Profit: Increased significantly by 60.30% YoY to ₹1,854.95 million.

• EBITDA: Surged by 118.16% YoY to ₹1,320.50 million, indicating strong operational performance.

• Profit After Tax (PAT): Showcased exceptional growth of 168.26% YoY, reaching ₹817.67 million.

• 9M FY26 Performance: The positive momentum continued for the nine-month period.

• Revenue: Increased by 13.49% YoY to ₹23,732.57 million.

• Gross Profit: Grew by 44.11% YoY to ₹4,023.90 million.

• EBITDA: Rose by 76.92% YoY to ₹2,465.89 million.

• Profit After Tax (PAT): Grew by 114.60% YoY to ₹1,334.11 million.

• Operational Efficiency: The company has improved its cost structure.

• For Q3 FY26, key expense ratios declined YoY: Manpower expenses fell to 2.14% of revenue from 2.52%, and Advertisement expenses decreased to 1.46% from 1.92%.

• This disciplined cost control, combined with scale efficiencies, has been a primary driver of profitability.

TBZ delivered a strong financial performance in Q3 & 9M FY26, with significant double-digit growth in revenue and triple-digit growth in profitability, driven by improved margins and operational leverage.

• Legacy and Brand Equity: With a 160-year history, TBZ commands immense brand value and trust, attracting a multigenerational client base that ensures a steady stream of repeat business and strong word-of-mouth referrals.

• Specialized Market Focus: The company is a leader in the wedding and occasion jewellery market, which accounts for approximately 65% of its sales. This segment is characterized by compulsion-based, fixed-budget purchases, providing a stable revenue foundation.

• Hybrid Manufacturing Model:

• Gold Jewellery: Manufacturing is outsourced to a network of over 150 specialized vendors, allowing for diverse, regional designs and operational flexibility.

• Diamond Jewellery: Manufacturing is handled in-house at a dedicated facility in Mumbai. This vertical integration secures design exclusivity, better cost control, and higher margins for its diamond segment.

• Efficient Capital Management: TBZ utilizes a "Gold Metal Loan" facility, where gold is leased from banks. This model significantly reduces interest costs compared to traditional working capital loans and mitigates commodity price risk, as the company is not exposed to gold price fluctuations on its leased inventory.

The company's unique blend of a powerful legacy brand, a strategic focus on the resilient wedding market, and an efficient hybrid manufacturing and sourcing model provides distinct competitive advantages.

• Market Growth Trajectory: The Indian gems and jewellery market is on a firm growth path, valued at $78.50 billion in 2021 and projected to reach $119.80 billion by 2027, growing at a CAGR of 8.34%.

• Economic Significance: The sector is a vital contributor to the Indian economy, accounting for approximately 7.5% of the nation's GDP and 14% of its total merchandise exports.

• Key Demand Drivers:

• Demographic Tailwinds: India's middle class is expected to expand from ~30% of the population in 2021 to over 60% by 2047. This expansion, coupled with rising disposable incomes, is set to increase spending on luxury goods like branded jewellery.

• Cultural Importance: Gold is deeply integrated into Indian culture, ceremonies, and traditions, ensuring a consistent and underlying demand for jewellery.

• Evolving Consumer Trends: The market is seeing increased demand for fashion and costume jewellery, particularly from younger consumers, while the rise of e-commerce is expanding accessibility for all segments.

The Indian jewellery industry is poised for sustained growth, supported by strong macroeconomic drivers, favorable demographic shifts, and deep-rooted cultural significance.

• Strategic Retail Expansion: A core pillar of TBZ's growth strategy is the judicious expansion of its physical retail footprint.

• The company currently operates 37 stores across 27 cities.

• Recent store openings include two new locations in Ahmedabad and Hyderabad in April 2025, and one in Jaipur in Q1 FY25.

• The pipeline includes upcoming stores in Bhubaneshwar and Rourkela, further strengthening its pan-India presence.

• Product Portfolio Diversification: Growth is also being driven by catering to a wide range of customer segments. The company offers a diversified portfolio of gold, diamond, and other gemstone jewellery across various price points.

• Leveraging Brand Heritage: The company actively utilizes its 160-year brand legacy and reputation for quality to attract new customers and reinforce loyalty, converting its strong brand value into tangible sales growth.

TBZ's growth is propelled by a clear strategy of expanding its retail network into key markets, diversifying its product offerings, and leveraging its powerful brand equity.

• Capitalizing on Middle-Class Expansion: TBZ is strategically positioned to benefit from the significant growth of India's middle class. The rising aspirations and increasing purchasing power of this demographic create a substantial opportunity for a trusted, national jewellery brand.

• Dominance in the Domestic Market: The company's primary focus on the domestic Indian market insulates it from international economic volatility and allows it to concentrate its resources on capturing growth within one of the world's most promising consumer markets.

• Monetizing Trust and Authenticity: In a market where trust and authenticity are paramount, TBZ's long-standing reputation serves as a key differentiator. This allows the company to command premium pricing and foster deep customer loyalty, creating a sustainable competitive advantage.

The company's primary opportunities lie in leveraging its trusted brand to capture the spending power of India's rapidly expanding middle class within the resilient domestic market.

• In-House Diamond Manufacturing: TBZ operates its own diamond jewellery manufacturing facility located in Kandivali, Mumbai. This facility was previously expanded from approximately 6,000 sq. ft. to 24,000 sq. ft.

• Integrated Capabilities: The manufacturing unit also possesses a sizeable capacity for gold refining and the production of jewellery components, supporting its overall production needs.

The company maintains strategic in-house manufacturing capabilities for its high-margin diamond business, though specific data on current utilization rates is not provided.

• Continued Retail Footprint Expansion: The company plans to continue its organic growth by judiciously opening new stores in key locations across India to increase market share and attract new customer demographics.

• Strengthening Brand and Portfolio: Future plans involve continuing to leverage its 160-year brand value and growing its diversified product portfolio to cater to evolving consumer preferences and different market segments.

• Maintaining Financial Prudence: A key objective is to maintain a strong financial position, characterized by a solid balance sheet, lowering debt levels, and strong cash flow to support future growth and expansion initiatives.

TBZ's future strategy is centered on disciplined retail expansion, continuous brand and product portfolio enhancement, and the maintenance of a robust financial foundation.

• Gross Margin Expansion: The company's gross margin expanded significantly by 500 basis points YoY to 17.48% in Q3 FY26 and by 361 basis points to 16.96% for 9M FY26. This improvement is attributed to stronger execution and better price realization.

• EBITDA Margin Improvement: EBITDA margin showed marked improvement, expanding by 592 basis points to 12.44% in Q3 FY26 and by 372 basis points to 10.39% for 9M FY26. This reflects the benefits of operating leverage and disciplined cost management.

• PAT Margin Growth: Bottom-line profitability also strengthened, with the PAT margin improving by 441 basis points to 7.70% in Q3 FY26 and by 265 basis points to 5.62% for 9M FY26.

The company has successfully driven substantial margin expansion across the board through a combination of higher price realization, scale efficiencies, and tight cost controls.

• Commodity Price Volatility: The Gold Metal Loan facility, while efficient, carries risk. A sharp increase in gold prices would require TBZ to provide additional bank guarantees, potentially straining its financial resources.

• Financing Constraints: The ability to utilize the cost-effective Gold Metal Loan is dependent on the drawing power extended by banks. Any limitations on bank guarantees could restrict access to this financing channel.

• Inventory Management Risk: If the gold inventory leased under the loan is not sold within the 180-day contract period, TBZ must convert it into a direct purchase. This would expose the company to inventory holding costs and the full commodity price risk on that unsold stock.

The primary risks identified are linked to the company's gold sourcing strategy and are centered on gold price volatility and financing limitations.

• Marketing and Brand Campaigns:

• The company executed an integrated 360° marketing campaign, "Tyohaar Matlab TBZ," featuring brand ambassador Sara Ali Khan, to drive festive season sales.

• A new collection named "Dohra" was launched, focusing on detachable, multi-use jewellery to enhance value perception and usage occasions. This was later adapted into a bridal campaign for the wedding season.

• Customer Engagement Metrics:

• In Q3 FY26, the company recorded over 57,000 customer walk-ins.

• The customer base remains healthy, with a mix of new acquisitions (40-45%), active customers (45-50%), and reactivated lapsed customers (10-15%).

• Digital engagement was strong, with a social media reach of over 5.4 million, an Instagram community of 165,000+, and over 13 million video views during the quarter.

• Recent Awards and Recognition:

• The company received the "Exemplary Value creation for Shareholders 2025" award at the Retail Jeweller India Forum.

• Chairman & MD, Mr. Shrikant Zaveri, was honored with the "Gems and Jewellery Industry Legend" award.

• Director, Ms. Raashi Zaveri, was recognized in the GJEPC 40 under 40 list and received the "Young Leader of the Year Award".

• Corporate Social Responsibility (CSR):

• Project Pankhi: A women empowerment initiative that provided counseling and support to 793 registered cases in 9M FY26.

• Project Disha: An inclusive education initiative supporting children with disabilities, conducting over 6,248 learning and therapy sessions in 9M FY26.

TBZ is actively investing in brand building, customer engagement, and corporate social responsibility, which has resulted in strong market visibility and industry recognition.