Goldiam International Ltd (NSE: GOLDIAM) Q4 2025 Earnings Call dated May. 27, 2025
Corporate Participants:
Unidentified Speaker
Rahul Dani — Vice President, Research
Anmol Bhansali — Managing Director
Darshana J. Faldu — Chief Financial Officer
Rashesh M. Bhansali — Executive Chairman
Analysts:
Unidentified Participant
Bhavya Gandhi — Analyst
Dixit Doshi — Analyst
Shrut Bhayani — Analyst
Ankit Gupta — Analyst
Kumar Saurabh — Analyst
Raghu — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Goldiam International Ltd International Q4FY25 earnings conference call hosted by Monarch Net Worth Capital 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 concludes. 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. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call.
These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. I now hand the conference over to Mr. Rahul Dani from Monarch Net Worth Capital Limited. Thank you. And over to you, sir.
Rahul Dani — Vice President, Research
Yeah. Hi. Thank you everyone. Thank you. Good afternoon everyone. On behalf of Monarch Network Capital, we are delighted to host the senior management of Goldiam International. We have with us Mr. Rashesh Mansali, executive Chairman and Anmol Mansali, Managing Director of the company. We will start the call with opening remarks and then move to Q and A. Thank you. And over to you, sir.
Anmol Bhansali — Managing Director
Thank you. Rahul. Good evening and welcome to Goldiem’s Q4 and FY25 earnings call. I would like to thank Monarch team for hosting this call. Financial year 2025 was a landmark year for Goldie M from the financial performance point of view. As we posted strong top line and bottom line growth with robust margins. We also crossed Rupees one billion mark in profits. Let me give you a quick summary of our financial performance. Q4 consolidated revenue at Rupees 2018.4 million grew by 33%. YoY. Whereas revenue for 12 months for FY25 at Rupees 8006.4 million grew by 30%. EBITDA for Q4 at Rupees 395 million increased by 44.2%.
And EBITDA for full year at Rupees 1792 million grew by 40%. FY2025 EBITDA margin remains strong at 22.4%. Profit after tax for Q4FY25 at Rupees 232 million was also up by 30%. And profit after tax for FY 2025 at 1171 million was up by 29%. Lab grown diamond jewelry exports contributed 81.8% to the overall export sales mix during Q4FY25 compared to 54% in Q4FY24 Online revenue accounted for 29.5% of the revenue during Q4FY25. About 73% of the inventory as on March 31, 2025 is with customers as finished stock of jewelry to be sold in subsequent one subsequent months to their customers.
Goldiam’s order book position as on 03-31-2025 was at about 1400 million rupees. The board recommended rupees 1 as final dividend for FY25 over and above the two interim dividends. Rupees 1 is distributed during the year. Already cash and cash equivalent including investments were at the tune of rupees 2,883.7 million as on March 31. Financial year 2025 was also significant as it marked our entry into Indian retail business of lab grown diamond jewelry under the brand name Origen. Goldium now has six operational Origen stores in the key micro markets across Mumbai. While our flagship store at an important jewelry hub on Turner Road, Bandra West.
We will continue to expand Origin’s presence now in the national capital region followed by the southern region Bengaluru. As you may be aware, recently the board of Goldiam has passed an enabling resolution for raising of funds not exceeding Rupees four billion. The proposed fundraise is aimed at propelling a faster expansion of Origam brand across India. With that overview, I am happy to. Open the floor for questions. Thank you.
Questions and Answers:
Rahul Dani
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press char and one on the touchdown telephone. If you wish to remove yourself from the question queue, you may press char and 2. Participants are requested to use answers 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 Bhavya Gandhi from Dallal and brochure stalk broking. Please go ahead.
Bhavya Gandhi
Hi. Thank you for the opportunity and congratulations to management on very good set of numbers. So my first question is regarding the EBITDA and gross margin guidance for next two years by 26 and 27.
Anmol Bhansali
Hi Bhavya, this is Anu Bhansali here. I’ll take that first part of your question.
Bhavya Gandhi
Sure.
Anmol Bhansali
I also wanted to before I answer introduce Mrs. Darshana Patel, CFO of Godiam. She’s on the line with us as well.
Darshana J. Faldu
Hello sir.
Anmol Bhansali
Wonderful. So I will just start with that. So Ebitda and gross margin guidance. On the EBITDA side we’ve always maintained 20 approximately 18 to 22% as a broad range of EBITDA guidance. We continue to have our business geared towards this range of EBITDA guidance. We may see a slight softness in Q1 and potentially Q2 only in this financial year due to the lag of passing over the price change due to the tariffs in the US which as we know is an incremental 10% that’s been added on. We are in process of passing this over and we’ve already started splitting it with customers 5% each.
Now I would like all the participants on the call to also understand that this is a situation that has been an unforeseen event and not in control of Godiam management. However, we are mitigating it as best as we possibly can. Some things we are doing include passing on as much of the tariff slowly and steadily to our customers. I think within another quarter this should entirely be passed on to our customers, mitigating with costs and pushing down on our cost raw material cost prices, especially on the diamond side with some of our suppliers, as well as maintaining stricter cost controls in our management and operating expenses.
So that’s some of the things we are doing. We see Q1 potentially slightly Q2 to be a little bit softer by only 2 to 3 percentage points, not more beyond that. And in general, and again this is just to share, this is just something that is not very much in our control. But beyond that we definitely see that we will have our business continue to be geared on our EBITDA guided range of 18 to 22%.
Bhavya Gandhi
Fair enough. Thank you so much for the elaborate answer. And with respect to gross margin, because historically it has been in the range of 30 to 33% but this year was exceptional. I mean not exceptional, extraordinary. I would say. 34.5 is something what we’ve delivered. So for next few years, what should be the gross margin range one should work out with?
Anmol Bhansali
Sure. Thanks for the question, Bhavya. I think the gross margins will naturally tend slightly upwards. On the B2B side we are aided by a stronger buying power, especially in lab grown diamonds. Today goldiam would be probably among the top or among the top, certainly among the top five buyers of Labron loose diamonds from the growing and supply side of the pipeline. We are also aided by of course the gold price continuing to move upwards, which is a helpful benefit. And as Origem, which is our B2C AAM in India, our domestic brand in India, as that also naturally grows, Origem is currently selling jewelry at a 42 to 45% gross margin.
So as that also incrementally we should see gross margins slowly but steadily slightly inching up higher.
Bhavya Gandhi
Fair enough. Fair enough. Just one more question. If I can squeeze in with respect to the retail operations what would be the guidance for 26 and 27 with respect to store openings as well as revenue?
Anmol Bhansali
Thanks for the question, Bhavya. So what I can share is we currently as mentioned by our chairman in the introductory remarks we have six stores open making us the largest coco retailer of lab grown diamond jewelry in the Mumbai metro region. We hope to now expand this playbook in Delhi NCR as well as Bangalore, Hyderabad and few other markets. We are expecting in this current financial year to open between to have around 20 to 25 stores as per current flow of plants. Post that we will reevaluate unless of course any other change happens in terms of the store opening schedules.
Bhavya Gandhi
Fair enough. But at least can we expect like 2 crore per store revenue from these stores that you opened maybe in last six, eight months if you were to bake in?
Anmol Bhansali
Absolutely. I think what we’re seeing is we are hoping to even cross that. Cross that number.
Bhavya Gandhi
Fair enough. Thank you so much. I’ll get back in the queue. Really helpful. Yeah. Thank you.
Anmol Bhansali
Thank you, Bhavya.
Bhavya Gandhi
Yes.
Rahul Dani
Thank you. The next question is from the line of Dakshit Doshi from Whitestone Financial Advisors Private Limited. Please go ahead.
Dixit Doshi
Yeah. Can you hear me? Thank you.
Anmol Bhansali
Yes, thank you Mr. Doshi.
Dixit Doshi
Yeah. Yeah. Thanks for the opportunity. First, First a slight clarification. So as of 31st March our order book was 140 crore. And on 5th May we have given a notice of 80 crore fresh order. So let’s say it’s around 220 crore to be executed over next three to four months. Is it right?
Anmol Bhansali
I will have to double check and get back. But I think that should be correct. It would be including some deliveries would be pushed out. But approximately you should be ballpark. Correct.
Dixit Doshi
Yeah. So basically the 140 crore as of 31st March does not include this 80 crore received in this.
Anmol Bhansali
That’s. That’s correct. That’s correct
Dixit Doshi
Okay. Okay. Secondly in terms of the questions regarding the tariff. So some of the thing you have already mentioned. But just to understand more better. So let’s say as of first March we will be having around 140. So all of this will you know have 10 additional tariff. So will there be some pass on on this or on book? We will. We will have to bear it. And from next order onwards we are charging it to the client. So how does it work?
Anmol Bhansali
Sure, thanks for the question, Mr. Doshi. So let me put it this way. As soon as the tariffs got announced, there was a two week lead time before implementation of the tariffs. In those 10 days to two weeks, Goldiam worked extra hard and I have to credit our production teams. We pushed out as much as we possibly could so that there was no tariff impact on the orders in hand, certain orders that could not be done in hand. We have gone back to the customer to start discussions on reevaluating the prices and giving us an increment for the due prices.
There is no one answer. Customer to customer, it differs. While on some customers we have passed on half, 50% so 5% each, some smaller customers we’ve even managed to pass on the entire tariff increment onto them. I think it’s a challenge that is a moving challenge as and when time progresses and if, in case this is the new reality, all customers, small to large are realizing that they are going to have to accept the full brunt of tariffs in due course of time. So we are in the pipeline of doing that. So in that sense, I hope that answers your question in terms of the process of how we are passing on tariffs.
And regarding the order book, as on 31 March, some of it has gone without tariffs, some of it we will have a small tariff hit. But again it’s incremental and it is only transitory. It’s not part of our business model and not a long term structural change to our business model distribution or strength of our margin profile.
Dixit Doshi
Yeah. And this 2, 3% impact we are expecting in margins due to this. So that will be for the Q1 and Q2 and for the entire year the impact will be lower, right?
Anmol Bhansali
That’s correct.
Dixit Doshi
Okay. Okay. Now my second one more question is in terms of demand, how do you see, let’s say pre tariff, post tariff or is it a kind of non event over there?
Anmol Bhansali
Yeah, so I think the first, as soon as tariffs hit, I think, you know, though it was definitely a little bit of a shock to both retail as well as wholesale vendors like ours, like us at Goldiam. So we had a little bit of a lull period for about two to three weeks where retailers were hoping these tariffs would be phased out quickly. Also readjusting the prices, seeing how their markups are, most retailers have a 3 to 5x markup on fine jewelry in the US so for them it’s mainly a matter of adjusting their discounting level in order to not really make large changes.
And still start consuming up these tariffs as part of their cost of goods. So I think there was a two to three week lull period in terms of demand when the tariffs hit. As of today we are seeing very good order flow. Lot of customers are very bullish. Again, thanks to our design strength and our focus on lab grown diamond jewelry. Any incremental market share gain for lab grown versus Natural is in an outsized manner coming to goldiam. So I think in that sense we are positioned very well to supply jewelry into the US Mid chain.
Certainly an enviable position in our industry at the moment. And demand is at the moment not so much impacted. As I mentioned, it was probably a two to three week sort of lull period.
Dixit Doshi
Okay, and my last question on this round, so you mentioned that for FY26 we are planning say 20 additional stores because we are already 6 stores. So let’s say 20 or 25 additional store expansion. So related question is we have, you know, taken this approval 400 crore fund rate. So is it fair to assume that. This is. And this is just an resolution and we may or may not raise this fund because 20 store expansion and we are sitting on 288 crore of cash with 100 crore.
Anmol Bhansali
Absolutely. Thank you Mr. Doshi. Very, very clear. No. So we are expecting, as I mentioned, to have about 20 to 25 stores by end of this fiscal year. This is without looking at evaluating the fundraise and evaluating any fundraise that will be based on what opportunity is available to us and whether we want to enhance the growth engine of origem and speed up the store expansion faster. So this definitely does not include any fundraise. The outcome of any fundraise that we may do. The board resolution was an enabling resolution on a higher side to allow us a fundraiser up to 400 crores.
It’s at the moment an enabling resolution to allow management to react faster as and when we see fit.
Dixit Doshi
Okay, so till 25 stores we may not require fund, but let’s say in 2, 3/4 we plan for aggressive expansion. Then we may look for this fundraiser.
Anmol Bhansali
So I’ll put it. Yes. I’ll put it this way. It depends on the speed at which the expansion rollout needs to happen.
Dixit Doshi
Okay. Okay. From my side.
Anmol Bhansali
Thank you. Thank you, Mr. Doshi.
Rahul Dani
Thank you. The next question is from the line of Shrut Bayani from Ereza India. Please go ahead.
Shrut Bhayani
Yes. Hi. So for your D2C and origim retail channels like what are the customer acquisition costs and how do these compare to the retention costs for your B2B retailer partnerships.
Rashesh M. Bhansali
So it’s thanks for the question, Mr. Bhayani. It’s tough to answer because we are predominantly and brick and mortar retail. We of course have our online presence but we have not focused on it in terms of large funding into digital ads to propel customer acquisition online. In that sense, since Origen is made as omnichannel or rather brick and mortar retailer first, it’s hard to calculate a customer acquisition cost. I would like to defer this question. Hopefully maybe 2/4 out when one of our first stores would have 2 or 3/4 out when our first store would have completed an entire year of operations, we’d be able to perhaps better answer the costs incurred in store in terms of marketing activities, launch activities, guest listing, society visits, etc.
That are more neighborhood centric costs and related to that what our what flow through of actual build customers have come in. So if so perhaps we can postpone this question to 2 or 3/4 out.
Shrut Bhayani
Surely. Surely sir. Also, can you explain about the working capital intensity like and what steps are you taking to improve it?
Rashesh M. Bhansali
Sure. So on the Origam side, as you know, we are probably one of the, if not the only retailer in the world that has the ability to grow our own diamonds, manufacture diamonds. If not grown, then buy every single stone ourselves and make the jewelry ourselves. So we currently have a complete overview of jewelry of items which are sold at origem with every single part of the supply chain being done in house. As a result of that, of course there is larger inventory that comes in into the mix at origem. As we set up more stores, we’re looking at ways to mitigate that by partially adding on some vendor financed inventory.
Also, we are using gold metal loans. That process will continue as well as we open more stores in the future. It’s a work in progress. The idea certainly is to reduce the upfront investment of inventory within a store opening so that we can generate better return on capital as we expand stores down the road.
Shrut Bhayani
All right, so Rajesh, last question from me. So what is the average revenue per unit for your lab grown diamonds and also natural diamond jewelry?
Rashesh M. Bhansali
Yeah. So for lab grown diamonds I think we put this in our presentation as well. I believe on page six of our corporate deck you will see the average realization. For Q4FY25 for lab grown diamond jewelry that was $742 per unit. For mined diamond jewelry that was about $467 per unit.
Shrut Bhayani
All right. All right sir, thank you so much.
Rashesh M. Bhansali
Thank you, Mr. B.H.
Rahul Dani
Thank you. The next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead.
Ankit Gupta
Thanks for the opportunity. So my first question is on the US Business. So if we, no, we’ve seen a significant growth in our LGD volumes in the US in the export business. And you know, but the realizations of as you know of LGB have fallen quite a lot over the past three to four years. And even though if you look at our overall natural diamond volumes have fallen quite a bit in our proportion of black grown diamond is around 82% now and 8 and 18% is of national diamonds and our Q4 revenues. So is it safe to assume that we have reached a level where, you know, the, the volume growth which has been stupendous in the labor of diamonds over the past two, three years will now start reflecting more in our revenue numbers and we should start seeing at least 25 to 30% growth in our US business notwithstanding the, you know, the hiccups that we are seeing in the past two years in the past in the next two quarters or should we start assuming, you know, growth in US market can be upwards of 20 by 30%.
Rashesh M. Bhansali
Sure. So thank you for the question. Mr. Gupta. Let me answer the first part at least regarding lab grown diamond realizations. We at Goldiam, even the data we release on our corporate deck is we look at our realizations on a per jewelry piece basis because we sell jewelry. We don’t look at realizations on a per carat basis because we don’t sell loose diamonds. So even the numbers I shared earlier to Mr. Bhayani were a per jewelry piece basis. You would appreciate that over the last year or so Goldiam has been able to maintain, in fact actually grow our average realization of lab grown diamond jewelry because we’ve been able to increase the portion of our business in lab grown that comes from higher Caritage.
So as an example, just anecdotally, whereas last year we may have sold one and a half or one carat of diamonds per ring, this year we may be selling between two to two and a half carats of diamonds per ring on average. So that helped us to maintain the average realization as well as provide revenue growth. Regarding coming to your question of now, seeing that we see lab grown diamonds pricing on the diamond side hitting a base, yes, any incremental volume growth that comes to the company will very visibly show up in revenue directly because there will not be a hit in terms of value reduction on a per carat basis on the piece of Jewelry.
Regarding on growth rates, we’ve already shared that we see Q1, Q1 being a bit soft. So post that I think as tariffs because of this unforeseen transitory event that’s happened. As it gets digested and moves into US retail completely, we will be back to our long term growth rates for the US business. And yes, any volume growth will incrementally also add onto that directly to our revenue.
Ankit Gupta
So let me ask you directly, can we double our revenues in our existing business in next three years? Three to four years?
Rashesh M. Bhansali
Yeah, absolutely. You know I think that’s always the goal. We hope to do that. You know on a larger picture this is helpful for all participants. Also some of our largest customers have buying power of between 500 to 500 million to 2 billion of buying from which is an addressable market to Goldiam. At our FY25 numbers, which was our all time high of 800 crore, we were approximately. We’ve completed about 90 million of sales for the year. 90, 90 plus million of sales for the year. There is certainly possibility and visibility and that is the aim to double our sales over the next three to four years in our core B2B business.
Provided we don’t have macroeconomic issues that are truly out of our control.
Ankit Gupta
So the second question was on the retail foray that we had done and we have been doing pretty well on the store expansion and store economics trend. So you know, on a medium to longer term basis we have an advantage of being an earlier entrant and you know, with backward integration into manufacturing our own diamonds and designing our own jewelry that is okay. But let’s say you know we have been hearing some of the larger, some of our larger peers in on the natural diamond side are also planning to enter into labor and diamond jewelry.
And you know, and some of these guys operate at lower gross margins of let’s say you know, 25, 30 in India’s base category of natural diamonds while we are currently looking to generate 40, 45% gross margins. So do you see when some of those larger peers enter the industry and with competitive intensity increases, our gross target gross margins can come down to let’s say 30% kind of levels. And how will that impact the store economics going forward?
Rashesh M. Bhansali
Sure. Thank you for the question Ankita. It’s a very valid question. I in fact think our gross margins are already extremely low. See, we have a strong cost advantage by being among the largest buyers of lab grown loose diamonds from our suppliers and from the wholesale trade. That is a key and immediate Advantage to Goldium we have an additional cost advantage by not paying by producing jewelry, both manufacturing it in house as well as designing it in house. That saves us money on making charges that would otherwise be leaked out to vendors and suppliers for another retailer.
And more than anything else, we believe that given the category of Lab grown diamond jewelry any even an established large jewelry retail chain in India, I totally can imagine who you are referring to. I think they too would like to see and enter this category only with a higher gross margin than the existing distribution and existing brands in natural diamonds. There are some our largest omnichannel fine jewelry brand in the country which started off on websites and now has crossed I guess north of 300, 350 stores. They operate between 30, 35% gross margin. There’s no reason why I think if that retail company moves into Lab grown and as they do they won’t want to replicate the same if not even exceed the gross margins of those kind of brands.
So we’re fairly happy with our pricing. We don’t see pricing pressure at all. In fact if anything just to share anecdotally and actually to share the facts of the figures, Origem is the lowest priced Lab grown retailer compared to all startup competition. There’s a bunch of these startups that have opened Lab grown retail stores in various cities, Mumbai, Bangalore, Calcutta, etc. We’ve done deep pricing studies of their pricing matrix versus ours at origin and truly we are the lowest price competitor compared to any of the current competition out there. And that is also despite being at a 42 to 45% gross margin.
So we’re fairly happy. Long story short, we don’t think we will be facing a pressure even as organized large jewelry retail enters the Lab grown segment in India.
Ankit Gupta
Sure. My last question was on fundraising and expansion plan. Normally you know, in retail segment you have seen that, you know when you want to open a store it takes quite a bit of time to evaluate the location, discuss about rentals with the owners and then you know, decide upon the location of the of the store. But let’s say if you want to expand quickly, won’t we be entailing the risk of you know like expanding too fast and diluting some of the checks that we normally retailers should do before opening a new store and you know, risking the store economics.
Rashesh M. Bhansali
No fair question. Ankit. We are very conservative in the places we open. We’re not opening in any locations that large competition on the everyday fine jewelry side or the wedding day jewelry side is not already present. So from the standpoint of location matrix, the idea is pretty simple, that we want to replicate and have presence in some of the key locations where our largest peers on the natural diamond side are already there. So that sort of answers the question and reduces the worry. Yes. There is of course the other worry, that in the desire to expand fast, will you pay above market rents or anything like that? That’s not our philosophy.
We’re happy to let go of a location or review it again in the following year or following few months. We’d rather do that than pay above market rents. And I think there is also some degree of learning which will 100% be there. We are trying to mitigate it by having some of our team join us with people who have multi decade years of experience in the retail side of the business and on the longer picture, larger picture scheme of things, I think the idea is to not change the playbook so much. You know, just because we have higher gross margins does not mean we’ll be paying higher, higher than market rents as an example.
So if, if it comes down to that, you know, I’m sure, which I hope it won’t and I’m sure it won’t, I think we’re happy to then take a more prudent approach as time goes by.
Ankit Gupta
Thank you, Mishaw.
Rashesh M. Bhansali
Thanks. Thank you, Ankit.
Rahul Dani
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, we request you to limit your questions to two per participant. The next question is from the line of Sourav Kumar from Scientific Investing. Please go ahead.
Kumar Saurabh
Hi. My question is on the origin side. So if we look at the traditional jewelry retail stores, usually they break even somewhere between 8 to 15 months, depending on their capabilities, and they work on 7% EBITDA margin. And I know in previous calls you have given a number of, I think 2.5 to 3cr depending on type of store and monthly 3 to 3.5 cr revenue expected. But in terms of store economics, one, based on your experience of running these four, five stores, just looking at how historically the traditional jewelry players operate in terms of breakeven period and margin, is our origin business something similar or is there something which is different which you would like to highlight?
Rashesh M. Bhansali
So thank you for the question, Mr. Sourav. I’ll address the, you know, the breakeven directly. The benefit of, you know, building a business in the lab grown diamond segment, especially for us at goldiam, given our deep integration into supply chain, is the higher gross margin we can deliver that directly allows us to have a lower breakeven revenue and that us a faster breakeven time frame to achieving store level breakeven. So the 45 stores I’m happy to share learnings we have some stores of ours that have broken even in the first month itself and continue to break even on a store level basis.
Some stores where as an example there’s one or two stores where we have a slightly higher rent. We are flirting with a breakeven over there with few months where we’ve broken even few where we are slightly under. I think in general the time frame will be shorter than our mined diamond large retail peers. We are furthering further to that. We are also looking at how we can reduce or maintain a low level of OPEX in a store through the cost of sales and cost of sales teams that are in the store as well. This is pretty much the plan and we believe that we will be able to have breakeven on a store level basis faster than the 10 to 15 months that you shed that is achieved by other retailers.
Kumar Saurabh
That’s great to hear just one or two questions related to the same. So we also have a plan to raise money around 400 crores and I think 1.5 cr is the inventory required. So also we have aspiration to open 150200 stores in next 45 years. So is this the plan where the money is going to be deployed primarily into inventory so that once the store economics is clear we can have a rapid scale up.
Rashesh M. Bhansali
So two quick things Mr. Sourav. One as I mentioned this is an enabling resolution. It is just to allow us it’s not been confirmed yet. It’s been set in the board meeting and approved by the board to allow us at management to be able to deploy funds faster if and when we see the opportunity, hopefully as it arises when we will be able to pick up and if we believe it’s the right opportunity we will be coming to the market for that. Though this is a very high watermark level of fund funding which we just went ahead and took approval for on it as it’s an enabling resolution.
And one more thing I’d like to re clarify. You mentioned inventory of 1.5 crores per store. Actual inventory plans as we’ve shared I think you might have mistaken it from somewhere else. The inventory per store that is being built at Origem is between 2 to 2.5 crores on average. So it’s higher than the stated figure.
Kumar Saurabh
Sure, sure. Noted. Last question. Who are our closest competitors? Like we operate around 40,000 plus price band. Do we compete only with our type of premium LGBT players or do we compete also with natural diamond peers?
Rashesh M. Bhansali
Yes. So I think if you see the customer occasion to buy jewelry between 25,000 rupees per piece of jewelry to one one and a half lakh rupees is basically non wedding jewelry. It’s diamond studded, it’s you know, occasion led such as birthdays, anniversary gifting purposes in that sense. On the natural side, you know, of course there are some very prominent companies like carat lane, bluestone, etc. On the nearby Tanishq. These are the brands that are that are built in to serve this market. On the lab grown side, there are quite a few startups that have opened up but all of them address the same larger price point and this same occasion of the customer which is to buy jewelry for non wedding day purpose.
In general, we believe that as the country develops further, the reason to buy jewelry will start rather the occasion led jewelry purchase. The gifting led jewelry purchase as a segment will definitely grow much faster because people will have a rising disposable income and hopefully our designs will deliver the desire to come and buy the jewelry at original.
Kumar Saurabh
Great. That is very insightful and thanks for the great set of results and wish you all the best for next.
Rashesh M. Bhansali
Thank you. Thank you Mr. Sir.
Rahul Dani
Thank you. The next question is from the line of Ganesh Rao from Rupani Capital. Please go ahead.
Unidentified Participant
Yes, thanks . can you hear me.
Rashesh M. Bhansali
Yes.
Unidentified Participant
Thank you.
Rashesh M. Bhansali
Sorry to interrupt. Mr. Ganesh, may I. Mr. Ganesh, may I request you to speak a bit louder or move closer to your phone? You’re not very audible.
Unidentified Participant
audible.
Rashesh M. Bhansali
Hopefully it’s better right now.
Rahul Dani
Yes, please go ahead with the question.
Unidentified Participant
Yes, thank you. I know you touched on this briefly. Just to clarify, looking at the last five years, right, our receivable days have reduced and our inventory days have expanded significantly. So can you please elaborate? What is your strategy being around these to tackle them?
Rashesh M. Bhansali
Sure. Thank you for the question, Mr. Ganesh. So inventory, as we stated also inventory is part and parcel of business growth for us at goldiam. On the B2B side, every new design or a new style needs to be tested on consignment by large US retailers. As a result, that inventory sits on our books. We don’t record that sale on our consolidated balance sheet and our consolidated P and L until it is reported as sold by our retailers. Again, the way the business cycle works is the retailers see the monthly sales of new designs and for designs which have exceeded a certain percentage of sales, they will then go out and expand that merchandise and Expand that design in all their stores on a paid for purchase order basis which is a direct buyer seller relationship then.
However, in order to even get there, as I mentioned for new designs and new style testing, there is a requirement for us on the vendor side to invest in inventory. That’s usually what we see on our balance sheet and the reason for higher inventory on our balance sheet over longer duration. And I believe as we hope to over the next three, four years further increase scale of our B2B business, inventory will proportionately also increase accordingly as a percentage of sales on the receivable side. Again, it’s just working with our retailers and the push to moving into.com, which has helped to bring down the overall receivables.
As we post this data out in our investor presentation as well on page five you will see.com or online sales as a percentage of our Overall revenue for Q4 was about 30% in value terms. Now this effectively is negative working capital segment of a business for us. Because the receivables from online sales come to Goldiam within 10 to 30 days. Its growth in this segment has dramatically helped to bring down the overall receivables and increase health of the company’s B2B business. So that’s the two main reasons to share why as a trend line over three to five years, why receivables have come down and inventory has gone up.
This is what we see and how it’s happening for our B2B business. As B2C goes up we should further and origem also scales over time. We should further see overall receivables on a blended basis continue to go up and inventory hopefully to stay stable or maybe slightly increase.
Unidentified Participant
Thank you for the very elaborate answer. Just a quick follow up on that. So building up inventory is a good indicator of where we want to be from a sales perspective. But do we have a cost associated with it when the inventory is returned? And I know, I understand that we do quickly recycle them, but is there a cost associated for us.
Rashesh M. Bhansali
So not major the largest portion in terms of inventory it cost that gets lost when we recycle jewelry is just the labor that was required to produce that piece of jewelry. As we are a diamond studded company, labor is probably around 10 to 12% on the higher side of the cost of a particular piece of jewelry. So in that sense that’s pretty much the exposure we have and the risk associated with recycling jewelry.
Unidentified Participant
Fair enough. Thank you. And the last question that I have. Is in regards to the Australian
Rahul Dani
Mr. Ganesh, can we request you to return to the question queue for a follow up?
Unidentified Participant
Yep, sure. Thank you.
Rashesh M. Bhansali
Thank you. Thank you.
Rahul Dani
Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one per participant. The next question is from the line of Raghu from Travis Capital. Please go ahead.
Raghu
Thank you for. I’m just continuing the question from the previous caller regarding the market being high and the competitive intensity with the cost of capital coming down and what is exactly stopping the competitors from giving more discounts and bringing down the margin in this business. I’m talking about next three, four years. So if you open 100 stores and things like that. So don’t you feel over the long period the margins definitely cannot sustain at these levels?
Rashesh M. Bhansali
Sure. Thank you for the question Mr. Raghu. I think our margins are structurally baked in on to start with, I assume your question is regarding Ori Gem and the B2C side of the the business regarding Origam. I think our margins are structurally baked in at these levels and honestly much lower than competition and much lower than the startup competitors. To give you an idea, I know we have done deep study on where our competition is like to like. We are 5 to 30% cheaper than than funded startups in our industry so far. So I think we’re very, very aligned in terms of being the lowest cost provider for Lab Grown diamond jewelry in India as mature companies come in and large retail also comes in.
As I mentioned, Lab Grown offers the opportunity to build at a higher gross margin and build business at a higher gross margin margin. They are already. A lot of companies already have distributions which are north of 30 to 35% gross margins. I think it’s very easy for us to assume that they will not be selling lower than a 40% gross margin or 35 to 40% gross margin. This is the visibility we have and this is our understanding at the moment. I don’t believe that this will change. However, you know, let’s see how that shapes up over time and hopefully in the meanwhile as mature competition comes in.
Forigem would have already got a larger presence in the market at that point of time.
Raghu
Yeah, that’s great. But just a follow up to that I read somewhere.
Rahul Dani
Sir, maybe request you return to the question queue for a follow up question. Thank you.
Raghu
Thank you.
Rahul Dani
The next question is from the line of Harshit Singh from Green Invest llp. Please go ahead.
Unidentified Participant
Hello.
Rashesh M. Bhansali
Could you speak a bit louder?
Unidentified Participant
Yes. So I had. The question I had was in respect of the earlier in the earlier call you had mentioned that you were foreign. The UAE and Australian markets wanted to know if how the demand is right now and is it contributing to the top line currently.
Rashesh M. Bhansali
Thanks for the question Harshit. It’s small. We had just started selling in Australia. Orders continue with the same retailer and wholesaler that we’ve started working with. It’s not a large part of our overall revenue. I would say it’s still in low single digits. We continue to. Of course as we’ve mentioned in the past, the focus will always be in the US because that offers the highest profit potential. However, we do believe that our Australia business and distribution should also incrementally increase from here as we’ve cracked an entry into Australia Australian retailer. We have also started and got on board a sales specialist for the Middle East.
So we hope to open a few more retailers in that market as well.
Unidentified Participant
All right, that’s it from my side. Thank you so much.
Rashesh M. Bhansali
Thanksit.
Rahul Dani
Thank you. The next question is from the line of Utsavahedi, an individual investor. Please go ahead.
Unidentified Participant
Hello sir. Am I audible?
Rahul Dani
Yes, please go ahead.
Unidentified Participant
Yeah, I was just, I had just one question. So regarding the fundraise which we are planning maybe probably at a later time. So are we also looking to set up shop in US Maybe if the tariffs do not go as intended. So that is my question.
Rashesh M. Bhansali
Yeah, thank you. No, we have no plans to open retail directly in the US. In the US and in global markets our focus will be B2B. In India it will be B2C through origam.. Thank you.
Unidentified Participant
Okay, so thank you.
Rahul Dani
Thank you. The next question is from the line of Sarabjo Chawala from Navesia India. Please go ahead.
Unidentified Participant
Hello.
Rashesh M. Bhansali
Hi Mr. Chawla. Yeah, please go ahead.
Unidentified Participant
Yes, Mr. Bansali, firstly congratulations on a great set of numbers and I just have a question for you regarding origam. So I wanted to understand what is the current performance of the store like. If you could just give us some revenue numbers for the stores of Origam at present. And also last I remember goldium was 90% concentrated towards the US. So can we see that breakdown go to more towards the domestic side and how much revenue contribution can we expect from India? If you can just give some guidance on that.
Rashesh M. Bhansali
Sure. Thank you Mr. Chawla. So origams just, you know, just about started as on 31st March 2025 which is the, you know, quarter end and year end that we are discussing. For the year end. Origen did approximately 5 crores of sales with stores incrementally opening up from November 1st onwards up until March. So as and when they opened they’ve started making sales. And cumulatively that’s been the sales figure so far. And regarding how that sales mix will end up being and the distribution mix will end up being, I think for even this current financial year largely most of the revenue will come in from B2B side.
But from hopefully FY27 and onwards you will see that very quickly tilting towards India and B2C at origin. We have no guidance to give on that matter. But as and when we open stores of course and increase distribution, naturally that mix will start changing.
Unidentified Participant
Thank you so much. It seems like the war chest is ready to aggressively expand OD CHM stores.
Rashesh M. Bhansali
Thank you Mr. Chawla
Unidentified Participant
Yes.
Rahul Dani
Thank you. The next question is from the line of Dakshit Doshi from Whitestone Financial Advisors Private Limited. Please go ahead.
Dixit Doshi
Yeah, most of the question I have been answered, you mentioned about 5 crore top line for this financial year. If you can give some more quantitative about per store metrics, whatever metrics, you would be comfortable, that would be helpful. And just one question regarding the B2B business, do you see any advantage or any business due to this UK FDA?
Rashesh M. Bhansali
Sure. Thanks for the question Mr. Doshi. So on Origam’s top line we won’t be currently sharing per store metrics. So you know, I’m happy to perhaps share that offline also once I get through the numbers, I don’t have it readily available with me at the moment. What I can say is the model is built to do a breakeven around that 20 lakh rupee monthly revenue figure. That’s how the model has been built. We’re keeping in mind rental costs, opex costs, etc. As well as the gross margin that we are employing. So fairly achievable over time.
Hopefully fairly beatable also by a good margin. That’s the real goalpost that we have over the long period of time. Your second question regarding the India UK fta, we have started discussions with one two UK retailers. We participated in a buyer seller meet that was organized by the German Jewelry Export Promotion Council as well. It’s still in process. Honestly there was not a big duty to start with. It was about 2.5 to 3%. So that has become zero. It’s not game changer for the jewelry industry at least. But you know, it definitely helps. I think the bulk of any geopolitical tailwind will come in when India and US sign their agreement on the trade side.
Dixit Doshi
Thank you yes.
Rahul Dani
The next question is from the line of Pavya Gandhi from Dalal and brochure shop broking. Please go ahead.
Bhavya Gandhi
Yeah, hi, thanks for the follow up. Just quickly what would be our budgeted opex with respect to retail stores for next, next year and maybe year after if you have. If you would have planned and what would be marketing spend in that total opex?
Rashesh M. Bhansali
Yeah, sure Bhavya. So it depends that question. I don’t paraphrase. I don’t have that answer readily available with me right now. If you could kindly email us, I’ll get back to you. Largely it would also be dependent on the speed at which we would prefer to open stores in general. That’s why the answer is a bit difficult to achieve at the moment. But let me review the numbers and happy to get back to you on email. Sure.
Bhavya Gandhi
Marketing spends if you can just throw light.
Rashesh M. Bhansali
Yeah, it’s again depending on you know, whether we go ahead. The fund is I think it’s linked in according to that as well as how storefleet expansion continues. Certainly if we proceed with the fundraising, if the opportunity is right, we will be both expanding capex store setup and then the marketing spend altogether to build the brand faster than you know, otherwise planned. Sure.
Bhavya Gandhi
Fair enough. Thank you so much.
Rashesh M. Bhansali
Thank you.
Rahul Dani
Thank you. The next question is from the line of Raghu from Travis Capital. Please go ahead.
Raghu
Yeah, just following up on the previous question I was asking you. I was just trying to understand. I read somewhere in one of your earlier interviews that the lab grown equipment doesn’t cost more than 1 to 2 crores. I just really want to understand why is the gross margin so high in this particular line of business higher than even the natural business? Can you just explain if possible.
Rashesh M. Bhansali
So. Sure, sure. Thank you for the question, Mr. Raghu. So the gross margins honestly are pre fairly similar for jewelry production and jewelry distribution. There’s no difference for us as a jewelry designer and manufacturer and exporter in terms of no significant difference, especially today between lab grown and natural diamond jewelry. If anything, the difference exists because there is a higher carrotage that is produced with natural diamond jewelry and accordingly we can get a benefit basis on more diamonds being used per ring. But again, as I said, it’s incremental. There’s no major difference on the retailing side.
It’s related to the cost of retail and the opportunity of what’s being delivered to the customer. So you’ll see and I hope you’d appreciate also large retailers globally, even retailers of fine jewelry that play in the natural diamond segment as well as the Lab Grown diamond segment, then Lab grown margins for retailing are always higher than the natural diamond margins for retailing. That’s the way the business is built. Especially because Lab grown has a fairly limited distinction between quality grades. Almost everything is def color, VVS or VS clarity. There is no large price difference between an E color and F color or a VVS or a VS stone.
It sort of lends itself to then creating and allowing the salesperson and the retailer to sell on design and sell as per the cost of retailing, which naturally then have to result in a higher gross margin on the retail side.
Raghu
Sure. Thank you.
Rashesh M. Bhansali
Thanks. Thanks.
Rahul Dani
Thank you. The next question is from the line of Harshit Singh from Green Envelope llp. Please go ahead.
Unidentified Participant
Hello.
Rahul Dani
Please go ahead with your question.
Unidentified Participant
Hello. Yes, Hello. I didn’t catch up when you had. You have to say something about the inventory buildup in this quarter. Could you just elaborate on the reason behind the inventory increasing and resulting to a negative cash flow from operations this year?
Rashesh M. Bhansali
Sure. So two major things, Harshit. One, which is the investments being done on the B2B side in terms of new product testing with our U.S. retailers, we’ve invested in inventory, in new designs and new styling. As that moves into, improves and sells down month on month because it’s consignment, we’ll see that cash flow coming through in the following year. You’ll see even historically, in every year where we’ve increased revenue in its preceding year, there has been an increase in investment in inventory. That’s just how our business model works. So. So that’s one aspect of it.
And the other major aspect has been the setup and creation of Origam stores. Of course it requires inventory. And the idea with investing in Origam in the first place was to use the free cash which is sitting in Goldiam’s books, without being invested into the jewelry business. So of course that cash flow will move into inventory and is now available in our six stores in Origam and also constantly being built for future store openings as and when they happen.
Unidentified Participant
All right. And Mr. Bansari, thank you for giving such strong and detailed answers all the time. Thank you so much.
Rashesh M. Bhansali
Thanks so much, Harshit. Appreciate it.
Rahul Dani
Thank you. Ladies and gentlemen, due to time constraints, that was the last question. I now hand the conference over to the management for the closing comments.
Anmol Bhansali
Hi everybody. I want to thank all the participants for joining us today. If you have any further questions or need additional information, please feel free to contact Desario Consulting, our investor relations team. Thank you. And thank you, Monarch.
Rashesh M. Bhansali
Thank you so much. Thank you, Monarch. And thank you, Dusab.
Rahul Dani
Thank you on behalf of Monarch Network Capital Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. SA.