Khazanchi Jewellers Ltd (BSE: 543953) Q1 2026 Earnings Call dated Aug. 19, 2025
Corporate Participants:
Unidentified Speaker
Rajesh Mehta — Chairman and Joint Managing Director
Analysts:
Unidentified Participant
Mahesh — Analyst
Priya Jain — Analyst
Presentation:
operator
IT SA. SAM SA. Sa. Ladies and gentlemen, good day and welcome to Kajanshi Jewellers Limited Q1FY26 earnings conference call hosted by Kiran 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 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. I now hand the conference over to Mr. Harshal Ganshani from Kiran Advisors. Thank you. And over to you, sir.
Unidentified Participant
Yes. Thank you. On behalf of Kiran Advisor, I welcome you all of the conference school of Khajanti Dwellers Limited. From the management team, we have Mr. Rajesh Mehta, Chairman and Joint Managing Director. We have Mr. Vikas 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
Yeah. Hello everyone. A very warm good afternoon and thank you for joining us today. It’s my pleasure to share an update on our performance, strategic initiatives and industry outlook. Our company, Khajanji Jewelers Ltd. Founded in 1971 and headquarters in Chennai is a trusted name in gold, diamond and precious stones jewelry with a legacy starting over 50 years with BIS Hallmark certification and recognition as an authorized dealer of India International Bullion Exchange. The company serves both B2B and B2C market. In Q1FY26, we sustained healthy growth momentum with a significant in our revenue mix compared to Q1 FY25.
With gold prices raising, we strategically focus on lightweight jewelry, foaming jewelry, lightweight diamond jewelry and traditional closed setting jewelry. These initiatives contributed to an improve in ebitdata margin from 3.53% in Q1FY25 to 5.24% in Q1FY26 while PAT margins rose from 2.41% to 3.75% during the same period. This reflects our continued focus on higher margin business driving both revenue quality and overall profitability. As you all know, the first season Akshayat, the sale was very good and due to which there was a raise in our margin. Over the last two years we have delivered exceptional results with revenue ranging from 481.82 crores in FY23 to 1,772.53 crores in FY25 reflecting a CAGR of 92%.
Rajesh Mehta — Chairman and Joint Managing Director
EBITData increased from 16.78 crores to 64.92 crores delivered a CAGR of 97% while BAT grew from 0.56 crore to 44 point and improved CAGR of 44%. These achievements demonstrate our ability to scale while in efficiency. We remain confident of sustaining this trajectory as we strengthen our market position, expand our retail presence and deepen customer relationships. Our flagship showroom in Saukarpet, Chennai continues to be the key pillar of our B2B business. Offering a curator selection and addition of new product categories and adding 100 plus new designs in our design library. At the same time, our company caters to bulk buyers and institutional clients national wise, ensuring both scale and liquidity.
Looking ahead, our flagship showroom, 10,000 sq ft showroom in Sokarpet, Chennai, slated to open soon will mark a major step forward in strengthening our B2C presence. We see this as a catalyst for margin improvement. Now I come to the financial highlights of this quarter. In Q1FY26, we reported total income of 403.8 crores up 5.94%. Year on year, EBITDA grew by 57.07% to 21.15 crores with EBITDA margins of 5.24%. Profit after tax stood at 15.15 crores up 64.73% year on year with EPS raising 64.52% to 6.12 rupees. These results clearly demonstrate our ability to deliver growth with improved margins even as several industry players face margin contraction.
I would like to conclude our strong Q1 FY26 performance combined with our dual B2B B2C strategy, upcoming retail expansion, digital innovation and favorable industry reforms position us for sustainable growth and improved profitability. We are confident that the pace of the growth achieved over the past two years will continue and we aim to build on this momentum in the quarters ahead. I would like to thank our shareholders, customers and employees for this. Thank you so much once again.
operator
Yes, sir. Should we open up for question and answer session? Hello?
Rajesh Mehta — Chairman and Joint Managing Director
Yes.
operator
Okay. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, if you wish to ask a question, you may press star and 1. The first question comes from Mahesh, an individual investor. Please go ahead.
Mahesh — Analyst
Hello? Why is it not audible?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah. Yeah.
Mahesh — Analyst
Can you hear me now?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah. Yeah.
Mahesh — Analyst
So. Company like grows rapidly so what steps are being taken to like strengthen the risk management in terms of like gold price volatility, inventory control and no credit risk in B2B clients.
Rajesh Mehta — Chairman and Joint Managing Director
That’s one. As the company is growing and since the management has invite experience with regards to it and the fluctuation of prices have been happening in gold from a very longer period and the management has a very systematic plan for taking care of that. And regarding inventory part, we have always taken a special care to check what is required in the market and we manufacture things accordingly which are of fast moving and which are high in demand.
Mahesh — Analyst
Okay. Something regarding the credit list from B2B. Client. That’S what the average credit period for B2B client average the stock inventory cycle, what we give them and manufacturing period, all workouts to maximum of somewhere around 55 to 60 days. So the credit period, what we provide to our B2B client is two weeks to the max average. Okay, two weeks. Okay.
Mahesh — Analyst
Okay. And like my next question will be like with a rising urbanization and you know like disposable incomes for the people. So are you considering expanding your product categories like such as lightweight daily wear jewelry or new age design or to target younger demographics?
Rajesh Mehta — Chairman and Joint Managing Director
Yes, yes, we are working on it. And we have already started production of lightweight jewelry and it has been on high demand among our clients and we have already started that and we are catering all categories of clients. We have a product range for all range of people. All clients for working moments, for marriages and for all type of festivals.
Mahesh — Analyst
Okay, so like we are already like you know like starting entering into that segment.
Rajesh Mehta — Chairman and Joint Managing Director
Yes, yes, yes. That’s what no we have. We are analyzing the market as and when the things are changing. Our requirement of the clients are updated. We bring up the product so that we can improve our sales.
Mahesh — Analyst
Okay, got it. Fine. Like the next one will be like how is our company is leveraging its position as an authorized dealer on Indian International Bullion Exchange like to enhance sourcing efficiency or manage costs.
Rajesh Mehta — Chairman and Joint Managing Director
That’s what being a member of India International Bullion Exchange we are getting bullion as and we are has been selected as in qualified jewelers. So there is an allotment of gold which is quite a little cheaper compared to the market.
Mahesh — Analyst
Okay. Okay. So that helps us for you know like cost management.
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, obviously. Correct. Yeah.
Mahesh — Analyst
For now. That’s it from my side. Thank you. Okay, thank you.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you. Thank you.
operator
The next question comes from Kalush Kumar, an individual investor. Please go ahead.
Unidentified Participant
Okay. Thank you for the opportunity. So your company has demonstrated strong B2B traction with a 29% year on year growth. How do you, how, how are you looking to balance your B2B scale scalability with higher margin opportunities in B2C without straining, you know, resources?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what the main, the main criteria for improving the sales in the B2B sector or in a jewelry industry is the designing part and the consumer demand as the prices are increasing. We have already been into the manufacturing of lightweight jewelry and latest minimal jewelries also. And we are already into the what they say, bigger type of jewelry which are meant for marriages and all. So in that case, as the demand in the market for which product is improving, we are focusing on that production and as we have a very vast experience, so all our designs are highly approved by most of the B2B.
Unidentified Participant
Okay, answer. With this increasing demand for lighter hallmark jewelry and transparent pricing, how do you plan on capturing the market share against, you know, larger organized players in the industry?
Rajesh Mehta — Chairman and Joint Managing Director
So there has been competition in the jewelry industry for always. But those who produce a better product, which are highly acceptable in the customer, customer among the customers, then they are continuously growing. That’s what I think.
Unidentified Participant
Okay. And sir, with EBITDA margin improving to 5.24% in Q1FY26, what is your medium term margin guidance and which factors will drive the further expansion?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what we have been focusing on. The production of lightweight jewelry and even on the lower carat jewelry as 18 correct jewelers have started coming up in the South Indian also the demand is gradually increasing, increasing. The margins are quite high in that and we have been focusing on the manufacturing of diamond jewelry also. So we are gathering all type of customers from what they say, for daily use jewelry and on higher segment jewelries also. So the margins will gradually improve.
Unidentified Participant
Okay, I’m sure digital innovation was mentioned as a growth lever. So if you could provide more clarity on the digital initiatives being implemented and their expected impact on sales and customer engagement, it would be really helpful.
Rajesh Mehta — Chairman and Joint Managing Director
Yes sir. Now the digital platform as is gradually the demand for online customers is increasing. We have already been into customers purchase a plan that they can save in multiple multiple rupees and then get the gold at the end of the period so that we are doing it. And on the opening of our flagship showroom we are going to have an online presentation of all our goods which are going to add up an additional sales on it.
Unidentified Participant
Okay, thank you for answering that sir. I’ll join back in the queue. If I have any more questions, I’ll join in again.
Rajesh Mehta — Chairman and Joint Managing Director
Sure. Thank you.
operator
Thank You. Before taking the next question, we would like to remind participants that you may press Star and one to ask a question. The next question comes from Sanchita Sood with robocapital. Please go ahead.
Unidentified Participant
Hi. Thank you for the opportunity. My question was that, you know, over the past three years we’ve been growing at a CAGR of almost 90%. So going forward, can we expect the same growth rate for the next say two, three years?
Rajesh Mehta — Chairman and Joint Managing Director
We have been growing it in master phase. But conservatively we define that we grow at a pace of 25 to 30%.
Unidentified Participant
Okay. Okay. And so you mentioned that we’ll be seeing margin improvement gradually. So would it be possible to quantify what kind of margin improvement we’ll be seeing and by when.
Rajesh Mehta — Chairman and Joint Managing Director
Opening of our flagship showroom? Yeah. Since we are going to have a better B2C sale and that has a higher margin. Say now B2C sales, when we are going for diamond jewelry, Jada, Upundan, Polki and all premium items, then the margins are around 13%. 13 to 14%. So in that case. And we have been focusing on various other lightweight jewelry which are of high premium jewelry in Alto B2B segment also. So the margins are gradually going to improve.
Unidentified Participant
Okay. All right. That’s all from my side. Thank you.
operator
Thank you. Thank you. A reminder to all participants that you may press Star and one to ask a question. The next question comes from Dhruv with Tiger Asset. Please go ahead.
Unidentified Participant
Hello. Yeah, first of all like congratulations on your gold regions. So my question is has on the press. Yeah. On the preference, I have seen that there is a strong presence in southern part of India by the both operations in wholesale and retail market. So can you give me the split. Of the wholesale and retail markets? Like how do you like for the revenue side for the few ones? Yeah.
Rajesh Mehta — Chairman and Joint Managing Director
On an average basis we have 90% of our contribution from B2B segment and somewhere around 10% into B2C segment.
Unidentified Participant
Okay, sir.
Unidentified Participant
Okay. Thank you so much sir. That’s it. That’s my question.
operator
Thank you. Thank you. Participants, to ask a question, you may press star and 1. The next question comes from Dinesh Sane with Invest for Edu. Please go ahead.
Unidentified Participant
Hi, can you hear me? Yes, sir. Hi, good evening sir. Congratulations for good set of numbers in quarter one. So my question was regarding your new upcoming showroom of 10,000 square feet in Chennai. So can we know that the operations will be commenced?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what the it will be shortly. We will declare the date of opening very shortly.
Unidentified Participant
Correct. So and so in last call you Mentioned about it will be in quarter two of FY26. So can we expect in. In this month or maybe next month?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, we are working on it. There was some delays in approval and since we are making it an exclusive showroom. So initially it is taking the time, but would be surely the second quarter.
Unidentified Participant
Sure. So the. So overall. Revenue which you mentioned of 150 crores for this showroom. So is it. Can we expect that it will be the same revenue?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, we have defined at a very constraint level. We will surely be achieving better than that.
Unidentified Participant
Sure. And one question is on the recent partnership. So you have partnered with Malabar Gold and Diamonds. So can you specifically tell us what will be the impact on your B2B revenues?
Rajesh Mehta — Chairman and Joint Managing Director
No, no, the revenue part and all we cannot declare, but we have just added him as our client.
operator
Sure. And one last question from my end. Can you tell us about your plans to invest your increased profitability to expand your retail footprint over the next year? Maybe two to three years?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what after the opening of our initial flagship showroom and working with it and getting good numbers of revenue from that showroom, we have an expansion plan which we have already previously defined.
Unidentified Participant
Sure. That’s it from my end. Sir. Thank you. All the best. Thank you.
operator
The next question comes from Palush Kumar, an individual investor. Please go ahead.
Unidentified Participant
Yeah, so you have delivered a pretty good CAGR across revenue, EBITDA and PAT over the last two years. Now, as you scale further, what structural growth levers will help sustain this trajectory? And what do you see the inflection point for operating like leverage kicking in.
Rajesh Mehta — Chairman and Joint Managing Director
That’s what we have given a very good performance in past two years. But constantly we always define that we grow at the pace of 25%. 25 to 30%.
Unidentified Participant
Okay. Service upcoming 10,000 square feet. Flagship showroom in Socarpet is expected to be a major growth catalyst. What is your broader roadmap for retail expansion? So like, do you intend to replicate this flagship model in other tier one and tier two cities and.
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, we do. Yeah, we do have an expansion plan, but everything will be decided after opening of this showroom and we get as good set of revenue numbers from this and later on.
Unidentified Participant
Okay, sir, what incremental revenue contribution do you project from this format?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what constraintly we define that we will have an additional B2C sale of 150 crores.
Unidentified Participant
Okay. With consumer preference shifting towards lightweight hallmark jewelry, how are you innovating in designs and product categories?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, we have. We already have a design team who have Been working on it and day to day we get lots of inputs from all the factories from which we are working. And we are getting a design update. And we are already into the production of lightweight jewelry.
Unidentified Participant
So I can see there’s an increase in segment, ornamental segment. So by 88% year on year in Q1 FY26. What specific strategies or customer engagement initiatives are driving this growth and how sustainable do you see this momentum in the coming quarters?
Rajesh Mehta — Chairman and Joint Managing Director
So we have improved a good customer base and we have been producing goods which are in high demand for them. And gradually we are focusing in production of lightweight jewelry. And we have improved in our marketing. So we have able to reach that.
Unidentified Participant
Okay sir, I’ll once again join back the queue. If I have any questions I just join in again.
Rajesh Mehta — Chairman and Joint Managing Director
Okay.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, you may press Star and one. The next question comes from Harsh with Sri NS Jeweller. Please go ahead. Sorry to interrupt sir. Harsh has left the queue. We’ll move on to the next question is from the line of Jakta Kadam, an individual investor. Please go ahead.
Unidentified Participant
Hello sir. Very good afternoon. Good afternoon. And my question is the company has achieved a strong tight growth in Q1FY26. And how much of the profitability improvement is structural versus seasonal and can we expect a similar levels going forward?
Rajesh Mehta — Chairman and Joint Managing Director
Yes, there is an always in every quarter in south region. If you see there is a season in the first quarter you can see Chitia second quarter that is Navaratri and Raki. And third quarter we have got Diwali and fourth quarter Pongal. So every quarter there is a season and along with that marriage seasons are there and always we have been focusing on the lightweight manufacturing and lightweight jewelry also. So it would be equally distributed in all quarter. The growth will be the same as projected.
Unidentified Participant
Okay sir. And I have another question. Once again with the retail showroom in our show Carpet already playing a key role and how do you plan to replicate this model in other urban centers? And what criteria will guide your location strategy?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what initially we have been see since we have been in this area for a longer period of time we have plans to open our flagship showroom here. And based on the success of this flagship showroom and we will always expand as per the analysis of the management.
Unidentified Participant
Okay sir. And the jewelry sector is seeing a gradual shift towards the banded and organized players. And what steps are you taking to sending Kazanji Jewelers? Brand recall and customers loyalty.
Rajesh Mehta — Chairman and Joint Managing Director
That’s what. Since we are there in the Past five decades we have been operating in this area. We have got a huge customer base and goodwill and we have been following all the government norms and we have been giving up all certified jewelries. In that case, we are always on the right path and growth.
Unidentified Participant
And so B2B sales remain the largest revenue contributor for our currency. And how exposed is the business to fluctuations in a wholesale demand cycles? And what safeguards do you have to make?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what. We have been manufacturing all different type of jewelries which are required by all our B2B claim. And based on the requirement and based on the experience of the management, it has always been accept. Our designs have been widely accepted and we are also producing jewelries which are of high margin. And we have been on the marketing on day to day basis and we are updating our designs accordingly. So we are getting a better B2B client range and our products are widely accepted.
Unidentified Participant
Okay sir. And so our financial show of steady improvement in epl. Do you have any plans to enhance shareholder returns through dividend or a buyback in these new terms?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, the management have some discussions regarding it. Not yet decided but it will be updated shortly.
Unidentified Participant
Okay sir. And sir, gold price volatility is a structural industry challenge. So beyond hedging, how are you planning to insulate your business model from such a fluctuations? Perhaps through product diversification, branding or customer financing schemes.
Rajesh Mehta — Chairman and Joint Managing Director
Regarding fluctuation, the jewelry industry has been on a fluctuation segment from a very long time and the management has a very wide experience of managing that. And we have gotten what they say as per the business module to reach our target. We have been always working on design and for our B2C expansion and good customer base we have been working making on marketing.
Unidentified Participant
Okay sir. And so the company has a strong margin expansion with EBITDA margin improving to 5.2%. So what is your true long term margin expectations or target and what specific operational or product mix improvement will dilate?
Rajesh Mehta — Chairman and Joint Managing Director
So the margins have improved since we have been. Margins are improved and for every quarter we will be working at this phase and margins are going to improve since we are going to produce. We are into diamond jewelry for B2B and all premium segments. Also we have started in B2B.
Unidentified Participant
Okay sir. And as you organize retailer payment function rises in the dwelling sector. Competitive competition is intensifying from both national chains and regular regional players. What differentiates Kalanti dualist brand propositions. And how did you plan to gain a share in this competitive landscape.
Rajesh Mehta — Chairman and Joint Managing Director
Anyway? We have a strong presence years and all our products what we have been manufactured is widely accepted by all our B2B clients. And we have been always understanding customers requirement and manufacturing goods accordingly. So the competition has been lasting for forever in all sectors. But we have been overcoming with all our experience and our product line.
Unidentified Participant
And sir, digital innovation was mentioned as a growth level. Could you elaborate on your digital strategy and are you looking at E commerce or many channel retail or technology driven customer acquisition models to expand beyond physical presence?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, we have been. We have been on the as the opening of new or flagship showroom. Along with that we are going to represent all our products online. And for the development of B2B segment, we have been participating into various exhibitions which are very popular in South India and expanding our B2B presence.
Unidentified Participant
Thank you. Can provide a revenue guidance for FY26.
Rajesh Mehta — Chairman and Joint Managing Director
So FY26 is going to be a very good year. As the demand in the first quarter when even the prices are high, you were able to achieve an higher margin and good business. So it is going to grow the constrained business. We can define that it will grow at 25 to 30%.
Unidentified Participant
Okay sir, thank you sir, they accepted my side and all the best.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you.
operator
Thank you. The next question we have from Balush Kumar, please go ahead.
Unidentified Speaker
Thank you again for the opportunity. Sir, I have some last couple of questions. So the first one is are there plants to diversify to adjacent categories, you know such as silver, platinum or even luxury watches to capture wallet share and mitigate concentration risk on gold.
Rajesh Mehta — Chairman and Joint Managing Director
Yeah. The company do have plans to expand to silver jewelry. As the demand for silver jewelry is gradually increasing. But the major portion would be gold only. You’ll be focusing on gold only.
Unidentified Participant
Okay. And sir, with the profitability improving, Sarpi, do you have plans to reinvest aggressively into growth so buying new stores, branding or digital platforms or will the company focus more on strengthening balance sheet metrics and shareholders returns.
Unidentified Speaker
That’s what the. Whatever the profit making is reinvested into the company only. And company is always focusing on expansion plan and whatever the and it is going to operate expand its digital presence after opening of the flagship showroom.
Unidentified Participant
Okay, that’s it from my side. So thank you so much.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you.
operator
A reminder to all participants that you May Press Star N1 to ask a question. The next question comes from the line of Mahesh, an individual investor. Please go ahead.
Unidentified Participant
Hello, can you hear me?
Rajesh Mehta — Chairman and Joint Managing Director
Yes sir.
Unidentified Participant
Yeah, so like I had some couple of more questions. First of all like could you elaborate on how like this strategic shift is impacting like your overall working capital Requirement in profitability profile.
Rajesh Mehta — Chairman and Joint Managing Director
That’s what requirement of working capital. We have been always working with the existing capital only and whatever the earnings the company reinvest into the for the betterment and progress of the company.
Unidentified Participant
Okay. And like next question will be like. Like our upcoming flagship showroom which is of around 10000 square feet and show carpet churning. Like what incremental revenue contribution and you know like margin uplift do you expect from these expansion?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what I defined you. It is on constraint basis we see that there would be an B2C sale improvement of somewhere around 150 crores. And the margin ratio what we are predicting there is somewhere around 13 to 14.
Unidentified Participant
Okay. Gross margin. Okay. Like if you see at the CAGR of revenue which is at around 92% at CAGR around 140 to 144% like for the last three years. So like how do you plan to sustain such a high growth rate at base?
Rajesh Mehta — Chairman and Joint Managing Director
Like base gets larger. What will be the key driver going forward? Yeah, we have been. We have been performing good and we have got good results for the past two years. But on the constraint basis we always as a management we define that we are going to grow at the pace of 25 to 30% and if something is better in there, it is always there.
Unidentified Participant
Okay, got it.
Rajesh Mehta — Chairman and Joint Managing Director
Fine. Thank you.
operator
The next question comes from Priya Jain with Green Capital. Please go ahead. Priya Jain, your line has been unmuted. Please go ahead with your question.
Priya Jain — Analyst
Yeah, hi. Am I audible now?
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, so.
Priya Jain — Analyst
So. Hello. I’m actually new to the company but very interested to track looking forward. So I have few questions with me. Like you know like with the rapid urbanization in tier 2 tier 3 cities are becoming more jewelry consumption homes. How does Kazanzia plan to expand into this geographies and what would be a preferred entry mode like company owned showrooms or franchises?
Rajesh Mehta — Chairman and Joint Managing Director
That’s what initially since we have a very strong presence in the area where we are here, here we are going to open our flagship showroom. And based on the success of this flagship showroom we are going to diversify mainly in the southern part of Tamil Nadu.
Priya Jain — Analyst
Are you like exploring a multi brand strategy to address both the premium and mass market segments like Organized player are increasing rapidly launching sub brands to tap into different price point and demographics.
Rajesh Mehta — Chairman and Joint Managing Director
That’s what we have been already into the both premium segments and regular items. We are into both and we have been supplying premium items to most of the B2B jewelers also. And on the future after opening up Our flagship showroom expansion plans will be declared accordingly.
Priya Jain — Analyst
Also you have a good you know balance sheet growth. So do you see opportunities for inorganic expenses such as acquiring regional jewelers to expand retail presence faster because you know penetration can happen that way.
Rajesh Mehta — Chairman and Joint Managing Director
That’s true. The management always define a constraint level of growth but expansion plans are sure there.
Priya Jain — Analyst
Like you know like gold is an investment is deeply embedded in Indian household. Is Kalanchi exploring gold saving schemes, exchange programs or digital gold offering to recurring customer engagement and deepen the retail relations.
Rajesh Mehta — Chairman and Joint Managing Director
Yeah, already we have a purchase plan where the consumer can purchase gold and convert fix the prices accordingly and then finally on renewal they can buy gold.
Priya Jain — Analyst
Also sir, we have you know upcoming wedding seasons which is a festival in India as you know. So do you think this monsoon heavy monsoon will affect in any way?
Rajesh Mehta — Chairman and Joint Managing Director
No, always the second quarter is always good because lots of marriages are happening and various festivals are also there. So it is always a better.
Priya Jain — Analyst
Yeah but do you think this hard monsoon will have any adverse effect?
Rajesh Mehta — Chairman and Joint Managing Director
I don’t think such because there is not much impact of the monsoon here because marriage season everybody is already they purchase jewelry based on their savings and they do not depend upon the constraint immediate income.
Priya Jain — Analyst
Any any you know like focus on catering like Genji people any particular brand you want to launch or something like we have a lot of Sanpi jewelry brands coming out and which source gold jewelry and you know like silver jewelries but in a very fancy, very Genji focus. Are you planning to do something like that?
Rajesh Mehta — Chairman and Joint Managing Director
So we have been working with the all our traditional jewelry and all lightweight jewelry which is required by the hour both our B2C and B2B claim. So we are majorly focusing on that and we have a good volumes for that good demands for that.
Priya Jain — Analyst
Good to know. I think that’s from my side. All the best.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you.
operator
Participants. To ask a question you may press star and one. Thank you. As there are no further questions from the participants I would now like to hand the conference over to Mr. Harshal for closing comments.
operator
Yes. Thank you everyone for joining the conference. Call up Kazanchi. If you have any queries you can write us@researchadvadkiran advisors.com Once again thank you for joining the One.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you so much.
operator
Thank you on behalf of Kirin Advisors Private Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.
Rajesh Mehta — Chairman and Joint Managing Director
Thank you.