Khazanchi Jewellers Ltd (BSE: 543953) Q3 2026 Earnings Call dated Feb. 18, 2026
Corporate Participants:
Harshil Ghanshyani — Investor Releations
Rajesh Mehta — Chairman and Joint Managing Director
Analysts:
Unidentified Participant
Vinod Shah — Analyst
Rajshah — Analyst
Priya Jain — Analyst
Presentation:
operator
Foreign. Ladies and gentlemen, good day and welcome to Q3 and 9 month FY26 results conference call of Kazanchi Dwellers Limited hosted by Kirin Advisors Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation continues. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshil Ghanciani from Kiran Advisors Private Limited. Thank you.
And over to you, sir.
Harshil Ghanshyani — Investor Releations
Yes, thank you. On behalf of Field Advisors, I welcome you on the conference call. Khajanji Jones Limited for Q3 and 9 months FY26. From the management team we have Mr. Rajesh, Chairman and Joint Managing Director. We have Mr. Mehta, Chief Financial Officer. Now I hand over the call to Mr. Rajesh Mehta. Over to you, sir.
Rajesh Mehta — Chairman and Joint Managing Director
Hello everyone. Rajesh Mehta, Chairman and Joint Managing Director of Kajanshi Jewelers. It’s our pleasure to welcome you as we discuss our performance for Q3 and the first nine months of FY26. Q3 FY26 marks another milestone quarter for the company characterized by strong revenue traction, margin expansion and disciplined execution. The quarter benefits from sustained festival movement and improved product mix and healthy demand across both wholesale and retail channels. Our diversified model once again demonstrate resilience and operating leverage enabling us to deliver robust growth while maintaining tight control over cost and our inventory cycle. On the B2B front, we continue to expand our partner ecosystem and deepen relationship with jewelry houses, wholesalers and organized retail chains across India.
Our ability to execute large volume orders with precision, timely delivery and design differentiation remains a key competitive strength in the wholesale gold segment. Our B2C business also delivered encouraging traction during the quarter supported by festival demand and improved realization. I am pleased to share that our new 10,000 sq ft large format showroom in Chennai was successfully inaugurated on 7th February. In the first 10 days since its opening, We recorded a sale of approximately 20 crores. This strategic addition significantly strengthened our retail footprint, enhance the customer experience and position us strongly in the premium jewelry segment.
This new flagship showroom will play a pivot role in driving higher retail contribution and margin expansion going forward. Our expansion into the natural diamond category under our premium brand Vajra by Khajanshi continues to gain momentum. The positive response at trade exhibitions and subsequent orders inflows validate our strategic move into higher value categories which are expected to meaningfully support profitability and brand premiumization over the medium term. Looking ahead, we have a clear strategic vision. Over the next 23 years, we aim to increase our retail contribution from 10% to 25%. We plan to achieve this by expanding our product portfolio, onboarding new brands and further strengthening our retail presence.
As our retail mix improves, it will naturally enhance our margin profile, drive strong profitability and create better operating leverages in the years ahead. Let me now briefly walk you through Our financial performance 9 months FY26 financial highlights are as Total revenue of 1542.02 crores year on year Growth of 34.04% EBITDA of 89.12 crores year on year Growth of 96.91% EBITDA Margin of 5.78% Year on year expansion of 185 basic points PAT of 63.82 crores year on year Growth Of 96.92% PAT Margin of 4.14% Year on year expansion of 132 basic points EPS of 25.76 Year on year growth of 96.64% Now I will give you the results of Q3 FY26.
The financial highlights are Total revenue of 589.26 crores year on year Growth of 49.6% EBITDA of 35.34 crores year on year Growth of 114.51% EBITDA Margins of 6% Year on year expansion of 181 basic points VAT of 25.13 crores year on year Growth of 103.02% VAT Margins of 4.26% Year on year expansion of 112 basic points EPS of 10.12 Year on year growth of 102.4% this performance highlights our improving operating leverage, efficient cost structure and strong product mix. Looking ahead, we remain focused on strengthening our wholesale partnership, accelerating growth in the diamond jewelry segment, scaling our expanded retail footprint and investing in technology and design innovation.
With a strong nine month performance and an enhanced retail presence, we are confident in sustaining our growth momentum and delivering long term values for our stakeholders. Finally, I would like to extend a warm invitation to all of you to visit our flagship showroom and experience firsthand the craftsmanship, collection and elevated retail environment. With these remarks, I now open the floor for your questions. Thank you.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press N1 on their touchstone Telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vinod Shah from Versus Ventures. Please go ahead.
Vinod Shah — Analyst
Yes. Hi, Good afternoon, sir.
Rajesh Mehta — Chairman and Joint Managing Director
A very good afternoon.
Vinod Shah — Analyst
Yes sir, Congrats on good set of numbers.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you so much.
Vinod Shah — Analyst
Order visibility look for like Q4 and early FY27.
Rajesh Mehta — Chairman and Joint Managing Director
Would you repeat the question louder please?
Vinod Shah — Analyst
Yes. How does order visibility look for Q4 and early FY27?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah. The overall segment of German jewelry looks good. Only as the prices are increasing, there is a slowdown for a shorter period of time. But overall the prospective is very good. The whole industry is going to grow at the pace of 30, 35% I believe.
Vinod Shah — Analyst
Okay, and so what is our current working capital cycle and how is it moving? Like on quarter, on quarter basis.
Rajesh Mehta — Chairman and Joint Managing Director
That’s what current working capital is. That’s what our stock rolling cycle is. Somewhere around 50 days.
Vinod Shah — Analyst
Okay, and so do you see any like change in inventory levels due to the fluctuation in gold prices? How is the inventory levels right now?
Rajesh Mehta — Chairman and Joint Managing Director
So the. There are the fluctuations in gold prices but the demand is. The demand has not impacted much. So I believe that the working cycles and the stock rolling cycle would be nearly same only maybe here and there there is a variation possibility of 10%.
Vinod Shah — Analyst
Are you witnessing like any like competition from organized and like unorganized. So how is competition over there.
Rajesh Mehta — Chairman and Joint Managing Director
Now that is an improvement into the whole German jewelry segment. Now when there is a. There is a shifting of business from unorganized sector to organized sector as the quality prospective and resale value prospective, all the consumers are believing to buy a right product at the right price. So it all depends upon the design. And gradually things are improving and based on designs, the margins are also improving.
Vinod Shah — Analyst
Okay, and so what is like the revenue contribution from our top five clients.
Rajesh Mehta — Chairman and Joint Managing Director
In the B2B segment? That’s what on a broader side, if you see to it, the maximum top five clients would be contributing somewhere around 15 to 20% of the total revenue.
Vinod Shah — Analyst
Okay. And going forward, what do you think? How will that mix look like?
Rajesh Mehta — Chairman and Joint Managing Director
Since we have been progressing on all the, all the various parameters of our various verticals of our business, we are expanding into B2B segment, B2C segment and everything. So we are, we are on a constrained basis, we are defining that we are going to grow at a pace of 30% in all verticals. And since we have come up with the new showroom and our retail spread is going to give a bigger share in the upcoming years.
Vinod Shah — Analyst
What is the like the area of the showroom? The new showroom?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, the new share room is total build up area is of 10,000 square feet.
Vinod Shah — Analyst
Okay. Okay. And like on the. Like on the geographic print. So what is the geographical breakdown of our avenger? Like how diversified is since we have.
Rajesh Mehta — Chairman and Joint Managing Director
Been in primary phase in South India, most of the revenues are from Tamil Nadu and some upper parts of Andhra and few parts of Karnatak. Primarily our presence is in South India.
Vinod Shah — Analyst
So for like the. The gold prices are quite volatile. So are we using any hedging mechanism to manage this gold price wall identity?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, we have been using that regular natural mechanism as we have been operating with the refilling strategy. Whatever we sell, we buy it back. And if there is any extra orders, we buy it and we hedge it into the exchanges. Also when we follow that regular natural. Mechanism
Vinod Shah — Analyst
and they have been like effective in protecting our margins. Correct?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, obviously correct. There is no impact in fluctuation as per our margins are concerned. Margins are intact for that.
Vinod Shah — Analyst
Okay. Okay. And so what was the like volume of code sold in Q? 3.
Rajesh Mehta — Chairman and Joint Managing Director
Exact quantums I cannot define now currently. I will share you later.
Vinod Shah — Analyst
Okay, thank you. That’s all from my. Yeah.
operator
Thank you. Before we take the next question, a reminder to all the participants that you may press star N1 to ask a question. The next question is from the line of Anil Parekh, an individual investor. Please go ahead.
Unidentified Participant
Thank you for taking my question. Am I audible?
Rajesh Mehta — Chairman and Joint Managing Director
Yes, sir.
Unidentified Participant
Okay, I guess my question was a slightly general question. It’s a reasonable expectation that the current circumstances, the global circumstances, particularly the war, might end soon. So if that were to happen and if gold prices were to correct by say 15% or whatever, to what extent do you think that this would be good for demand? Because at such high prices, currently a lot of the growth by jewelry retailers and wholesalers are coming from just the value growth as opposed to a massive volume growth. So do you think that there might be a huge upsurge in volume of take if gold prices were to correct by 15%?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah. In the near term scenario we do not see that there is a huge correction of 50% is anywhere possible. But even then when there is a correction, the volumes are gradually very high. And this has been happening in a very all long period of time. Whenever we say the steep correction in the prices, the demand goes up. Sometimes it have even reached dual. So the demands will surely improve if the prices come down.
Unidentified Participant
And kindly opine on, you know, the growth that you’ve shown this particular quarter. Unless of course you’ve already mentioned in your opening remarks, which I mean missed, sorry, what percentage of this close to 50% growth has been on account of volume as versus value?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what the value growth is around. As for the revenue of last Q3, if you check then it has been around 49.6% year on year for this quarter and overall value growth of 34.04% for the nine months. And since we are into various verticals of business and we are some lower margin verticals, we have good lowest lower turnover and higher margin verticals, we have improved a lot that has added up to improve our EBITDA margins and pat margins.
Unidentified Participant
And my final question sir, is that you’re giving a guidance of about 30% going forward. Is that a conservative guidance? Because it seems like you where you are geographically in the southern part of India, it seems like you’re right where there’s a lot of demand for gold and gold jewelry.
Rajesh Mehta — Chairman and Joint Managing Director
Yeah. Obviously we always define in a constrained basis only. We always try to define constraintly and prove better. So that has been our style of working and we feel that yes, we are going to achieve much better than that, but we are defining a growth of 30%.
Unidentified Participant
Thank you. I will get back in the queue.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you so much.
operator
Thank you. The next question is from the line of Vidhi Pohit from hni. Please go ahead.
Unidentified Participant
Hello.
Rajesh Mehta — Chairman and Joint Managing Director
Yes.
Unidentified Participant
So sir, I just wanted to understand your current depth position and as you look at the expansion over the next few years, do you plan to fund it largely through internal accruals or should we expect incremental borrowing?
Rajesh Mehta — Chairman and Joint Managing Director
Now as per the current requirements, all the all the fulfillment of working capital requirement has been filled by the internal segments for the future date. If any expansion is planned on a bigger level then if any funds is required, that may be planned accordingly when and then the management decides about it.
Unidentified Participant
Okay. So as the retail mix increases, how should we think about revenue growth and margin trajectory over the next two, three years? Any broad guidance or directional targets that. Investor can anchor to,
Rajesh Mehta — Chairman and Joint Managing Director
that’s what overall, since we have been in lesser participation previously into the retail segment, now we are planning to expand on the retail legs and we are in upcoming two years we are planning that at least 25% of the total volume will be shared by the retail B2C sales. So in that case our bottom line is also going to improve and we are going to have an additional revenue from B2C.
Unidentified Participant
Okay, so on the B2C side, could you elaborate on how you are leveraging technology whether in design, I mean whether in design, autom, automation, CRM or analytics to improve the customer acquisition and repeat the business?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, obviously on we have been working on various ERP systems for making our designing easy recognition of requirement, the customers demand market scenario. Everything has been analyzed and all the unit based on that analytical data, we are trying to get those products which are selling very fast. That is the primary reason that our working cycle is running fast. And we have been working with various technologies for improving much more on that.
Unidentified Participant
Okay, so given increasing competition from organized and national jewelry players, what do you believe? Differentiate your value proposition whether in pricing, design, innovation or customer loyalty.
Rajesh Mehta — Chairman and Joint Managing Director
That’s what. Since we have been in the industry for more than five decades, we have a very wide design library and our designs are widely accepted among both the segments B2B and B2C. And we have been always working on the technologies and the client requirement understanding and designing products in such a fashion that it does not fall very heavy on the pockets of the clients also because the prices are increasing. So we have been always concerned about considering the requirement of our clients and preparing the designs accordingly. So in that case we have our own design library which has been widely accepted.
That is the taxes and what they say that represents Kajanshi as a very different among the other peer competitors.
Unidentified Participant
Okay, so my last question is in Q3, FY26, revenue growth was strong around 49.6%. So could you help us understand like how much of that was the volume driven versus realization led? I mean considering gold price movements during the, during the quarter.
Rajesh Mehta — Chairman and Joint Managing Director
That’S what we have grown on. The volume base, if you take up, we have grown around 7 to 10% in between. But overall the margins have been improved so much because we are working on the various verticals. On the various verticals. So some other verticals where the margins are less, we have reduced our margins, we have reduced our volumes there. And on other verticals where our margins are high, we have improved on that. That has improved our EBITDA margins and pat margins.
Unidentified Participant
Okay, thank you sir. That’s all from my side.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you.
operator
Thank you. The next question is from the line of Mahesh Seth from VY Capital. Please go ahead.
Unidentified Participant
Yeah, hi, can you hear me?
Rajesh Mehta — Chairman and Joint Managing Director
Yes, sir.
Unidentified Participant
Yeah, so our EBITDA margin has expanded to 6% in this current quarter. So how much of this improvement is sustainable like versus festival led operating level?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, that’s What I told you since we have been working on various different type of projects, higher value addition varieties and we have also introduced various brands for selling up of premium jewelries that have added up additional margins of Ebitda and we have been constantly working on that. And we are going to. Our EBITDA margins are going to improve much higher as the share of B2C segment is also going to improve at a higher pace as our showrooms are open.
Unidentified Participant
Okay. And like with our pad nearly doubling year on year. So should we expect this similar earnings growth in FY27 or like will. Will it get moderated going further?
Rajesh Mehta — Chairman and Joint Managing Director
Oh as the. As the demand for our designer products has been increasing and we have been working on the better higher margin products, our EBITDA margins are fats. Margins are going to improve at the same pace we believe.
Unidentified Participant
Okay. Okay. And can you also break down your revenue mix between plain gold jewelry, studded jewelry and diamonds? Like how this mix is evolving.
Rajesh Mehta — Chairman and Joint Managing Director
Currently I don’t have the handy data I can give you. You can drop in your question in the mail or with the Kiran advisory so that I can answer it with details to you.
Unidentified Participant
Okay, sure. I’ll connect with Kiran.
Rajesh Mehta — Chairman and Joint Managing Director
Okay.
Unidentified Participant
Okay. And like what is the current same store sales growth for your retail business? Like how should we think about this trajectory over the next few quarters?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what as we have opened up our new Showroom here on 7th of Feb. From there in the last few days alone we have made a turnover of nearly 20 crores here. So as projected we are planning that yes, the store is at least going to fetch us a revenue of nearly 500 crores. And in the upcoming years we are going to add up a few more showrooms and things are going to improve on a retail basis which are going to improve our PAT and Ebitda.
Unidentified Participant
Okay, Got it. And like one more thing. As we see a lot of peers in the industry are expanding aggressively by opening more showrooms and increasing their geographical presence. So how does company view this trend? And like as you already told that we’ll be planning this more showroom site for going forward. So like since we have, since we.
Rajesh Mehta — Chairman and Joint Managing Director
Have started up with our flagship showroom now we are going to have an very what they say, right? Type of managed system. Understanding that clearly and on later all we will think of expanding on aggression.
Unidentified Participant
Okay. Got it. Good. Thank you. Thanks.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you.
operator
Thank you. A reminder to all the participants, if you wish to ask a question, please press star N1. The next question is from the line of Bhaskar Kanra from three Head Capital. Please go ahead.
Unidentified Participant
Hello. Good afternoon, sir. I am audible.
Unidentified Participant
Yes, sir.
Unidentified Participant
Yes, thank you. First of all, congratulations for good stuff. Number. Sir, my part can you. Sir provided Q3 revenue mix each segment B2B contribution and B2C and each segment margin.
Rajesh Mehta — Chairman and Joint Managing Director
That’s what I told you. Till last year we have been contributed. Our B2B2B has been the primarily 90%. And 10% was our B2C participation. As our B2C bigger showroom flagship showroom has come up only this. So the impact of this B2B expansion would be seen into the Q4. And as for the margins are contained concerned. Our B2B margins are EBITDA margins. If you define would be somewhere around 6%. And for the retail segment, these margins are around 10 to 11%.
Unidentified Participant
Thank you, sir. So my second question is in the next year FY27. How store extension plan, how much, how many stored. We are adding any plan.
Rajesh Mehta — Chairman and Joint Managing Director
We cannot define. Now the management is under the discussion of how the things are going to operate in the upcoming year. That would be defined as and when it has been decided.
Unidentified Participant
Okay. Sir or sir, my last question is this year, this quarter, any inventory again in this quarter.
Rajesh Mehta — Chairman and Joint Managing Director
Inventory gain you are talking about?
Unidentified Participant
Yes.
Rajesh Mehta — Chairman and Joint Managing Director
Generally the overall contribution if you take there are inventory gains of around 1.5%. Other it differs. It is not fixed. It differs somewhere around 1 to 1.5%.
Unidentified Participant
Okay, sir. Thank you, sir. And best for your patience. Thank you.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you.
operator
Thank you. The next question is from the line of Rajshah from Shah Ventures. Please go ahead.
Rajshah — Analyst
Yeah. Hi, good afternoon. I have some couple of questions. Yes. So sir, can you tell me what is your average ticket size in retail versus wholesale? Like how does customer behavior. Like how does. How does customer behavior differ across segments?
Rajesh Mehta — Chairman and Joint Managing Director
It all depends upon the client requirements. As per the B2B is concerned. We have clients who have been taking ornaments from us. They have. They buy it in the what they say. On a lower category clients also we have who are operating with the small showroom. And we have bigger clients also who have been working on multiple branches also.
So in that case it is a diversion. So it is not. It cannot be defined as per the ticket size. So some jewelers which are having what they say many branches spread over. They are buying much higher than us. They are one single client. They have some 5% of our total volume. That and there are clients which are which of the lower denominations also.
Rajshah — Analyst
Okay. Okay. Yeah. And I also want to know about the working capital. Like how much incremental working Capital will be required to support the targeted increase in retail consumption.
Rajesh Mehta — Chairman and Joint Managing Director
That’s what for the new showroom we have planned.
We have planned that we are going to take up an inventory of somewhere around 150 crores in that and we have started operating that. So based on that inventory requirements we would be able to achieve what we have defined.
Rajshah — Analyst
Okay. And sir, are you seeing any shifts in consumer demand like towards a lightweight or lower carrot jewelry? Like if you see like there is a very much of increasing gold prices as well. So do you see any shift?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah there is. There is a shift in the what they say lighter weight jewelry for the marriage purposes.
There is a prediction of say 20, 25% in the weight range of the same product. So we have been catering and we have been working on those designs that we can reduce the quantum of cold and give the output of same size. And that has been happening and we have been catering much better for all the demands of that client. And yes lower carrot phase demand also for the minimal jewelries people prefer to buy lower carrot age and we have been manufacturing lower category jewelry also. So as far as the south is concerned up to 18 and 22 carats are of on the mark but there is a demand for 14 carats and lower carrots are very low.
Rajshah — Analyst
Okay. Okay sir, I also want to know about like your business expansion like what is your strategy like to build brand recall nationally like especially outside your core geography.
Rajesh Mehta — Chairman and Joint Managing Director
That’s what on a future company management has a future plans also since we have a strong presence in South India, we have plans of expanding in South India primarily we have a very big market here in South India. So we are planning to expand in South India initially. Then later on as the company progresses there are plants that we can diversify. Pan India.
Rajshah — Analyst
Okay, let’s. I also want to know about EBITDA margins like over the medium term what would be the ideal steady state for the EBITDA margin profile once the retail mix stabilizes?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what since the overall retail share of in overall sales the retail shares or we are the.
We are of the vision that it is going to improve from 10 to 25%. So the EBITDA margins are going to obviously improve. So since the EBITDA margin is at 6% now currently so it is expected to improve somewhere higher 20 to 30% from here.
Rajshah — Analyst
Okay. Okay, that’s great sir, thank you so much for giving us the about the insight for the business.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you. Thank you so much.
Rajshah — Analyst
Yes, yes, thank you so much. That’s all from my Side. Yes, thank you.
operator
Thank you. The next question is from the line of Priya Jain from Green Capital. Please go ahead. Miss Jane, your line is unmuted. Please proceed with your question.
Priya Jain — Analyst
Yeah, hello, am I audible?
Rajesh Mehta — Chairman and Joint Managing Director
Yes, yes,
Priya Jain — Analyst
there are a few questions with me. Yes, I mean I think we have one store of 10,000 square fit which is a flaxseed sodium. So what capex was incurred for that Flaxseed sodium and what arrow do you expect?
Rajesh Mehta — Chairman and Joint Managing Director
Hello. Yeah, your question is not clear. Your voice is breaking it seems.
Priya Jain — Analyst
Sir, I’m asking what cap is what was incurred for the 10,000 sq ft flagship showroom and what ROI do you expect?
Rajesh Mehta — Chairman and Joint Managing Director
Capex for the coming showroom was around 12 crores. And for the total revenue what you have defined that what we are expecting from this showroom is somewhere around 500 crores for the retail division. And as I have defined already that our retail margins would be of somewhere around 10 to 12%. In that case that would be the return on the new showroom. Return from the new showroom.
Priya Jain — Analyst
Okay. And what is the payback period for a new showroom investment based on current performance benchmark?
Rajesh Mehta — Chairman and Joint Managing Director
Somewhere around what they say we are overall stock inventory you are talking about or you are talking about Capex.
Priya Jain — Analyst
So I’m talking about the cafe.
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, Capex part it can be covered in one and a half years.
Priya Jain — Analyst
Okay. Then you incurred around 12 crores from that flagship. So okay, so you aim to increase detail contribution and what at what percent in two, three years and how many new stores we can expect?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, I cannot define on the figures currently but the management is planning to open few more stores in upcoming year. And as for the retail share is concerned we are going to improve the retail share from 10% to 25%.
Priya Jain — Analyst
Are any plans, you know like will future retail expansion be company owned or franchisee led?
Rajesh Mehta — Chairman and Joint Managing Director
Initially Whatever plan we have currently would be company owned. Only later on when the expansion plan is on a very wide range we can think of the second portion.
Priya Jain — Analyst
And sir, like you know, you are, I, I mean scaling the retail part. So what will be the impact on the employee cost and store level operating expense as there will be a lot of maintenance involved and what percent of like revenue expense as percent of revenue.
Rajesh Mehta — Chairman and Joint Managing Director
That would be? That’s what as the retail store is concerned. I’ve already defined that. As for the ebita, if you calculate on EBITA it would be somewhere around 1 to 1.5% of the EBITDA 1%.
Priya Jain — Analyst
And so one last question, do you. Foresee any risks of inventory of sellers of sense has you expand into premium and diamond categories.
Rajesh Mehta — Chairman and Joint Managing Director
I could not get your question. Your voice is breaking them.
Priya Jain — Analyst
Do you see foresee any risks of inventory? You know, like as you expand into premium and diamond categories?
Rajesh Mehta — Chairman and Joint Managing Director
There are no much risk here because always as we are catering lots of designs and patterns and diamonds also we are procuring as per the requirement. Higher quality diamonds are only sold in South India quality only. So in that case we don’t find any risk for that.
Priya Jain — Analyst
Answer one more question. What is you know like margin difference between wholesale and retail segment?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what Margins with regards to wholesale are somewhere around 5 to 6% and retail margins are 10 to 12%.
Priya Jain — Analyst
Okay sir, that’s from my. Thank you.
operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star N1. The next question is from the line of Anil Parekh, an individual investor. Please go ahead.
Unidentified Participant
Thank you again. So the management just mentioned that you want to take your retail contribution to about 25%. Just wondering when is that likely to happen? How long is it likely to take? A year or longer than a year.
Rajesh Mehta — Chairman and Joint Managing Director
As for our performance here in the current store, we are confident that it can be reached easily in one to one and a half years.
Unidentified Participant
And what would be the steady state that margin, you know, once you do get to 25% retail contribution of your.
Rajesh Mehta — Chairman and Joint Managing Director
Top line, that’s what same page as we are going to. As we are going to what they say, going for an 10 to 25% of our detailed share. In that case, obviously we are going to achieve our margin somewhere around 25 to 30% better than here.
Unidentified Participant
So 4.1% is what you have today. And you think you might do 25% more than that. That’s the idea.
Rajesh Mehta — Chairman and Joint Managing Director
Yeah. Yeah.
Unidentified Participant
And just kind of thinking about where you would like strategy wise this business to be four, five years from now. Where would you like the retail contribution to be? So are you happy at 25% or would you like it to be much higher?
Rajesh Mehta — Chairman and Joint Managing Director
It should be much higher only. But we are always defining at a constraint level. And since all the other verticals also we are going to grow at a 30% pace. In that we are going to achieve much higher only. But we are defining at a constraint level.
Unidentified Participant
Thank you so much.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you.
operator
Thank you. The next question is from the line of Charjit Malu from hni. Please go ahead. Charchit, your line is unmuted. Please proceed with a question. Chachut, are you able to hear me? As there is no response from the current participants. So we’ll take the next question from Arpan, an individual investor. Please go ahead.
Unidentified Participant
Congratulations on the new showroom. How has the footfall been so far, sir?
Rajesh Mehta — Chairman and Joint Managing Director
Football has been very nice. It is much more than what we expected and we have been working on various marketing strategies and advertisements also. So we are expecting a very better output here.
Unidentified Participant
What would be your marketing expense as a percentage of your revenue.
Rajesh Mehta — Chairman and Joint Managing Director
Out of the total revenue for this current year? We are planning somewhere around. Somewhere around 0.75 to 1%.
Unidentified Participant
Okay, so there has. There have been videos on social media where dwellers are claiming that they are selling every jewelry for around 3% flat mix charges. Do you think that model is sustainable and is that a threat to the entire industry or especially the retailers like you who are working on a very big level?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, it is not that actually is mainly concerned on the designing perspective. It is not that whatever we define a similar type of product, it is cannot be taken as an just an investment. Prospective selling at 3% item and all would be somewhere there which is of machine mechanism are very, very minimal with the design which are just for the investment purpose sort of design. So that is not there. There is a grace for designer jewelry always and things have been working because people spend like to spend. They are spending say 1 lakh rupees on buying a gold in that case.
Additionally if they Pay, they pay 5,000 extra, 7,000 extra. They are buying a piece of jewelry which defines their dignity. So it is always been decided by the client in such a fashion. So in that case I don’t find any threats of that.
Unidentified Participant
Okay, so you have been selling change for around 1% which has been seen online. So how do you think that would be sustainable? Or is that. Is there any other product which you have been selling at around this 1%?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what, that’s what I told you know, that is an selected few designs which are machine made and which are the one production and it is an opening attraction. We are definitely so to increase our footfall so very, very minimal portion of stock. We define that way. Okay, so you do have your.
Unidentified Participant
Do you have your own manufacturing unit or is everything closed up from outside?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what we have tie ups with all the major factories pan India and we have been working on that style only. Since our primary focus is on what they say, diversified design. We cannot bring all the best under one roof. So we have been working on that type of module.
Unidentified Participant
Okay, fine. And what about the. Have you kept only South Indian jewelry in your retail showroom? Or you have been catering to other North Indian and west Bengali jewellery as you say.
Rajesh Mehta — Chairman and Joint Managing Director
So we have been procuring designs from Pan India. We have tires with factories all over the all over India. And it’s not constrained South Indian jewelry only. And since there is an what they say, after the Internet expansion and various Instagrams and everything, it is all type of jewelries are preferred by all type of clients. It’s not restricted to one particular design or one particular market. Okay.
Unidentified Participant
Now your major client base is South Indian customers. So that is what we wanted to know if you have North Indian customers also.
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, we have North Indian clients. And so we have South Indian clients also. We have clients from all over. We are catering the all type of jewelry whereas we have been selling everything which are primary designs used for north Indians. So it is an what they say blended of Pan India client range. Everybody likes and every type different type of design.
Unidentified Participant
Okay, so what is the revenue mix between your South Indian, which is your forte and.
Rajesh Mehta — Chairman and Joint Managing Director
That separately database we don’t have. But overall jewelry turnover. Since we are in South India primarily we are focusing on customer requirements. It cannot be diversified as whether sold to South Indian or North Indian. Okay, question.
Unidentified Participant
What would be the average margin at which each average wastage of the product?
Unidentified Participant
It all depends. The chain items and all the start with 3%, 4%. And Kundan Jadao Polki goes to 22% also. 23% also. Thank you so much.
operator
Thank you. The next question is from the line of Charchit Malo from hni. Please go ahead.
Rajesh Mehta — Chairman and Joint Managing Director
Yes, yes.
Unidentified Participant
So like my question is regarding the revenue from the showrooms. So like what kind of revenue are we targeting for the next quarter and for FY27 from the showroom business?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what in upcoming years we are planning to have a revenue of around 500 to 550 crores from this showroom.
Unidentified Participant
Like I think they have the margins of 10, 11%. Right. Because they are more or less into retail segments. Yeah, right. And so like. And so overall what kind of are we targeting for like Q4, F26 and FY27 and what will the EBITDA margin going forward?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what the share of this new showroom share would be for another one, one and a half months only for the Q4, the participation of this new show revenue would be there in the upcoming year. Surely we are, we are working on achieving what we have defined.
Unidentified Participant
No sir, I’m talking about overall revenue. Like at the business level.
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, overall revenue. That’s what the constraint level we are defining that we are surely going to grow in all verticals by somewhere around 25 to 30%. Yeah. Year on year.
Unidentified Participant
Okay, sure. And EBITDA margins will be expanding from 6%. Like is it sustainable?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what the share of retail is going to increase? No. So they are going to obviously improve.
Unidentified Participant
Okay. Okay. Okay. Thanks.
operator
Mr. Malo, you want to ask more questions?
Unidentified Participant
No, that’s it for me.
operator
All right, thank you.
Unidentified Participant
Thank you.
operator
The next question is from the line of Sakshi Shinde from Shah Consultancy Ltd. Please go ahead.
Unidentified Participant
Hello.
operator
Yes, your line is unmuted. Please proceed.
Unidentified Participant
Am I audible?
operator
Yes, yes you are.
Unidentified Participant
So my question is what safeguard are in a place to manage credit risk in the wholesale segment?
Rajesh Mehta — Chairman and Joint Managing Director
Primarily we do not have any style of credit strategy. We do not give much credits to the client. Our portfolio type of business is on mainly primarily focused on designs and cash and carry business. Our average credit cycle is only two weeks. So we do not find any threat on receiving that.
Unidentified Participant
Okay, and how much capacity utilization are you currently operating the manufacturing and is there a room to scale without significant capex?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what I am telling you know, the company do not own any their own manufacturing unit on a future date. They have a plan of having their own unit. And since we have been working with various factories pan India so we do not find any difficulty as and when required by what type of product is required in much demand we manufactured that way.
Unidentified Participant
Okay, what is your dividend policy and how should investors think about capital returns versus reinvestments.
Rajesh Mehta — Chairman and Joint Managing Director
As and when? We have already defined two dividends here being a startup government just now we’re being listed and it is two and a half years and we have defined two dividends in the upcoming years. Yes, the policy of strong division policy would be defined and the management would be sharing their progress with the shareholders and stakeholders.
Unidentified Participant
Okay, thank you.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Harshil Ghanciani for closing comments. Over to you sir.
Harshil Ghanshyani — Investor Releations
Yes, thank you. Thank you everyone for joining the conference call of Khajan Limited. If you have any queries you can write us@research.com Once again, thank you everyone for joining the conference.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you so much. Thank you everyone and all. Thank you. Thank you everyone.
operator
Thank you very much on behalf of Kirin Advisors Private Limited. That concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.