Goldiam International (NSE:GOLDIAM) Q1 2027 Earnings Call

0:01 Ladies and gentlemen, good day, and welcome to Goldiam International Limited Q1 FY 'twenty seven Earnings Conference Call hosted by Monarch Networks Capital Limited. Before we begin, a brief disclaimer. 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 date of this call. These statements are not the guarantees of future performance, and it may involve risk and uncertainties that are difficult to predict. 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. Please note that this conference is being recorded.

0:58 I now hand the conference over to mister Rahul Dhani from Monarch Network Capital Limited. Thank you, and over to you, sir. Yeah. Good afternoon, everyone. Thank you,. On behalf of Monarch Network Capital, we're delighted to host the senior management of Goldiam International. We have with us mister Ashish Bansali, executive chairman, and we have Mr. Anmol Bansali, Managing Director of the company. We will start the call with opening remarks from management and then move to Q and A. Thank you, and over to you, sir. Thank you, Rahul. Good afternoon, everyone, and welcome to Goldiam's earnings call for the quarter ended 06/30/2026. I would like to thank Monarch team for hosting this call. Goldiam continues its strong growth momentum in Q1 of FY 'twenty seven. Goldiam reported total revenue of 3,637 million dollars for Q1 FY twenty seven.

1:52 Other income of Q1 FY twenty seven included tariff refund received by the company. Goldiam's EBITDA for Q1 FY twenty twenty seven grew by 120% to INR1039 million. Steady state EBITDA margin post tariff refund calibration grew by 400 basis points to 24%. Profit after tax for Q1 FY twenty twenty seven more than doubled at INR $740,000,000. Lack grown diamond jewelry exports contributed to 90.7% to the overall export sales mix during Q1 FY twenty seven compared to 87.8% in Q1 FY twenty six. Online revenue accounted for 19.3% of the revenue during Q1 FY twenty seven, About 64% of the inventory finished jewelry as on 06/30/2026 is with customers as finished jewelry stock of jewelry to be sold in subsequent months to their customers. Goldiam's order book position as on 06/30/2026 was about 2,250 million rupees.

3:02 Cash and cash equivalents including investments were at rupees 4,566,700,000 as on June 30. In July, the company allot... Allotted 3 crores 76 lakh $39,002.81 equity shares of rupees 2 each as fully paid up bonus equity shares in the proportion of one is to three by utilizing an amount of rupees 7 crore 52 lakh $78,005.62. Now let me share updates on Origin, our India focused b to b lab grown diamond jewelry retail brand. As on date, Goldiam has 26 operational stores under the brand name Origin across key cities.

3:47 For q one FY twenty seven, Origin recorded a total revenue of rupees 81,560,000 rupees. The Origin team is working on sales improvements, strategies by introducing various sale enablers across the stores. In quarter four... In q four of f y twenty twenty six, we had introduced India's first digital three d ring builder. During q one FY twenty twenty seven, we introduced lab grown diamond jewelry in nine carat gold and introduced gold gold exchange scheme across all the stores. With that... With this overview, I'm happy to open the floor for questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and 1 on their touch tone telephone.

4:36 If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of from Whitestone PMS. Please proceed with your question. Can you hear me? Yes, sir. Yeah. Thanks for the opportunity and congrats for the excellent performance, especially into the b to b segment.

5:25 So if I see our... Of June and our orders, it was $2.25 kuru. And the last year, at the end of June quarter, it was $1.40 kuru. So it clearly shows that there is a good, order book year on year. But if you can elaborate more into the demand for Q2 and also for Q3, considering Q3 is seasonally our best quarter. So how are you seeing demand at the ground level in U. S? And what led to specifically the 40% Y o Y growth in the Q1, if you can elaborate a bit more on that? Also, you have, you know, last quarter touch upon the launch of breastplate and neck aesthetic in The U. S. So have we done that? And how was the initial response you can mention?

6:18 Mr. Doshi, Anwar Dansali here. I will take that question on and then open it up and request our Chairman to add any comments. So let me start with your follow-up questions. We have launched the category of bracelet and necklaces in the later half of the last financial year. That has played out very well with select customers. We've, in fact, been able to add some new customers in the wholesale segment in The US, particularly solely for the braces necklace categories. We are still working on adding and increasing our share of this category and introducing it to our large retail customers.

7:05 That is... That will further add fuel and growth to our overall business profile in the b to b segment. Overall, this along with deepening presence with our existing retail customers in The US as well as deepening and introducing new customers in other geographies, particularly Middle East, Israel, have led to the enhanced growth seen in Q1 FY twenty twenty seven this year. We've been able to successfully add and deepen new customers in these geographies, which are non U. S. Geographies, as well as, of course, as for our ongoing strategy, deepen presence with our existing retail customers in America.

7:55 With regards to Q2, Q3, we again are very confident moving forward into the coming quarters on our sales pipeline and building as seen in the order book and further deepening of presence as seen in Q1 FY twenty twenty seven. We are looking forward to a robust Q2, Q3 compared to already record FY twenty twenty six and we hope to continue the growth. It will be our endeavor to provide further stronger presence for Goldiam for our key retail customers in U. S. And globally now.

8:41 I'll request our Chairman to add any comments if missed on anything. So Mr. Doshi, also the reason, very important reason why we had 40% growth this quarter was also that a lot of goods that were with our retailers actually sold. This sold very well. Lab grown demand all over America is picking up very strongly over natural diamonds, and Goldiam is a clear beneficiary for the same. Thank you. And you mentioned about Middle East and Israel. So can you give some number? How is... How much would be our outside US b to b business? So close to outside US b to to b business is still remains small because we started this last year, but the traction and order repeats are very strong. And bracelet and necklaces that we've introduced in Middle East and in Israel is doing very well. So we hope to increase that number in a good way by the end of the year. So we'll be able to report to you that we'll have a double digit growth in non American areas as well.

9:50 Okay. And now my second question is regarding, you know, margins. So you did, you know, mentioned last quarter that FY '27, we will see margin expansion. And, you know, so there was one doubt, let's say, when you report the numbers, you include the entire other income and calculate the EBITDA margin. Generally, we, you know, exclude the other income in comparison with the margin. So if I exclude the other income, then the margins are... Margins have not gone up. So how to look at it? And, you know, in this 37 crore other income, that 20... I think $15.16 crore would be tariff refund. So for the remaining amount, was there any, you know, ForEx gain that's why you included in the EBITDA margin?

10:40 Or it is more or less, you know, interest income on the treasury? Sure. Thanks for the question, Mr. Doshi. So we have been consistent even in our prior calls to state that our EBITDA margins we look at including our other income because always a substantial portion of other income at Goldiam is stemmed from exchange and ForEx changes. As of... I mean, last year or a year and a half ago, we were a 100% export company. And even till date, we are over 90, 95% an export company other than Auriga. So given the current standing and the build of our business model, the exchange income is a natural outcome of our business where we are investing in in demo inventory and a sales pipeline in The US while being domiciled in an SEZ in India.

11:41 Having said that, even in the prior fiscal year's call, I was happy to state that we will have a steady state margin expansion over the prior year. This is as per our definition, including OI. And yes, we are happy to showcase these results in Q1 FY 'twenty seven where steady state margin EBITDA margin has in stock to 24%, significantly higher than Q1 FY 'twenty six or FY 'twenty six as a whole. This is, again, walking the talk as to what we have shared on our prior commitment and driven by the dual and hybrid casting method where we are casting in The U.

12:27 S, delivering US product of origin as a key supply chain solution for our customers, whilst also not bearing the brunt of changing tariffs regardless of what they are. So because of this dual casting method, we are able to inch margins upward. FY 2027 will be most likely a full financial year where this dual costing method will be employed throughout the year. Regarding Q1 itself, out of the other income described, 22 crores approximately has come from tariff refund, tariff duty refund. The balance has come split between ForEx gain as well as treasury gain.

13:19 That even if you keep consistent over the quarters, you will see that even removing the INR22 crores, there is a very substantial growth over Q1 FY 'twenty six, taking the same metrics into consideration and all other things being equal. So we're happy to inch upwards as committed and shared with our investors in the prior call, and we hope to maintain and continue this margin profile as FY 'twenty seven will have a full financial year of The U. Casting and dual hybrid casting model. Thank you. Yes. Just one question on the origin and then George back in the queue. So how many more stores we are planning to add for the remaining of this financial year?

14:07 And any thoughts on franchisee model or a brand and business? Sure. Thank you, Mr. Doshi. So we have signed about another seven stores, will be active. These seven stores will come in in... Come in between now and our target is to get them open before... At... By three Diwali, 300. And then post that, we will review the business of Origin and the whole and sole work is being put in place to increase sales per store through our program of sales enablers as our chairman had rightly identified in the opening remarks. I'm happy to share more details on that later in the call as well and the sort of work that's going on to further increase and make the business ongoing monthly business of OHIJAM on a per store basis even healthier.

15:03 We will then, of course, calibrate basis on opportunities available from real estate, key mall partners as well as if there's any successful regions which we want to expand faster than regular due course due course of of affairs. Alright. Thank you, sir. Thank you, mister. The next question is from the line of from Dalal and Broja Stock Broking Private Limited. Please proceed with your question. Oh, yeah. Hi, sir. Thanks for the opportunity. First of all, congratulations on great set of numbers. So I just have one accounting question. So other income has increased this quarter, which includes a tariff related refund. So can you clarify whether this refund has already been received in cash or it's yet to be realized?

15:57 Yes, Mr. Gantali, the refund has fully been received in cash by Goldiam USA Incorporated and already within the company. Okay. Okay. And one more question. So as more players enters the LACROM diamond jewelry space, so how do we see the competition evolving, and how we're able to differentiate it? Yes. So, you know, great question. I think this is the, you know, ongoing situation with lap grown retail in India. We believe that Origin, we have two to three key differentiators, which will be very visible over a long term standpoint. One, of course, is the design strength that comes from what we see globally, global bestsellers and the backing of a large... Of a publicly listed entity like Goldiam, which is a vendor of choice for a lot of retailers in The US. We are leveraging that design experience in order to bring the right and high quality of design and manufacturing into Origin.

16:58 A quick example is that especially in the zinc segment, which is Goldiam specialty in The US market, almost every ring at Origin has been sold at least 200 to two fifty times globally before we even introduce it at Origin. This is an ongoing exercise that we do every month and every quarter. Secondly, on the aspect of team. Right? So Goldiam has specialty in manufacturing, sourcing of diamonds, manufacturing of jewelry, design expertise, and we are marrying this with a very strong, well performing team on the retail side that has come in from some great great retail background companies.

17:45 We believe this is already shown in an... As an example in the sort of distribution that Ouija must track just within about a year and a half of launch. As a young brand, we are perhaps one of the only ones present at some of the key malls of our country, few of which are like Phoenix, Palladium, Mumbai, R City, Mumbai, Elanti, Chandigarh, South City, Calcutta, Nexus, Kormungla, soon to be in Phoenix Phoenix, Bangalore as well, and so on and so forth. Phoenix, Chennai as well. So again, the distribution strength, which where we are known to be a partner for key malls and mall based companies will further help define the longer term trajectory for our company.

18:35 And see, I think given again, Goldiam's strength, we have a financial muscle that's available to us partly, yes, as the QRP funds are within the company and partly also through the ongoing sort of backing of Goldiam through things like gold medal loan, which helps extend and sort of minimize the outlay of immediate inventory when we open a new store such that we can sort of help have our sales from the first four to six months of a store itself subsidized partially the gold that's being invested in each new store opening. Again, this is due to having a parentage in the form of Goldiam that is an established jeweler and jewelry manufacturer in the country, which otherwise would not be available.

19:28 This along with... This is unique thing, which are unique to Goldiam, which no start up can really compete with, where I think, again, the benefit of which would play out in the longer term. In the more short and medium term, we believe distribution will be a key edge, and we are hoping to continue build the right quality and high quality of distribution, which currently no other young competitor can compete with. Number two, further working on claims and moodlers, as our chairman has mentioned, that effectively through multiple different ways and efforts that are going on, Effectively, the end goal is to increase revenue per store. That itself will help create an...

20:15 Revenue per store and increase the ongoing customer base of origin such that year on year same store sales growth is extremely strong. And I think these are the initiatives which will differentiate us in the more short to medium term. We will, you know, hopefully announce new tech tech driven leadership sort of opportunities as we have with the ring builder in the coming quarters too, along with policy changes, which will differentiate Aurigon further to help that sales enabler standpoint become even stronger. And then tied to that is the fact that I don't think VC funding will be as prevalent for your number five, six, seven, eight player as it has been in the earlier days, which was effectively till date for the lab grown diamond industry, jewelry retail industry in India.

21:09 So we are confident that as the next two years come through and store maturity increases for OlyGems store depth and numb... And store breadth also increases, we will stand out amongst competition due to the short and long term factors mentioned earlier. Okay, sir. Okay. Thank you, sir. The next question is from the line of from Crescent Capital. Please proceed with your question. Hello, am I audible? Yes, sir. Yeah. So my like last year, last financial year to this financial year.

22:10 Mr. Mukherjee, it's a little hazy, but I believe your question is on the realization on per piece of jewelry on the b to b business. Again, that is... Perfect. Perfect. So so that is defined by... We only sell finished jewelry again, complete diamond studded jewelry. We don't do any plain gold nor do we do any loose diamonds. So on a finished jewelry standpoint, there are two factors that, of course, drive our ASP. I think that, of course, our quarter on quarter changes, but on a overall standpoint, the movement into lab grown has been very positive for our ASP as a company as a whole. Now these two factors are one gold, which has, of course, gone up year...

22:57 On a year on year basis, and the other is diamond value. Particularly in lab grown, what that means for us is that the value of diamonds utilized per piece of jewelry has also gone up driven by the fact that we use a much higher number of carats in lab grown jewelry than we do in natural diamond jewelry. And it's this consistent movement towards more caratage per piece of jewelry in in terms of diamonds as well as the baseline effect of gold and gold prices. Together, that helps drive our ASP. So this is this is the main reason. Yes, sir. And, sir, like, how are you seeing the trend of, like, both wholesale and retail prices of lab gone diamond in, like, your key markets?

23:55 So as mentioned even in our FY twenty twenty six calls, have been consistently saying that lab grown diamond prices have reached a base. In fact, in this quarter, we have even seen prices move upwards for certain sizes, especially the smaller sizes of lab grown diamonds. This is driven by, of course, labor increases as well as the pricing of rough. But it continues to come back to the point that we see wholesale prices hitting a base, and we don't see large scope for erosion of prices from where they currently stand. In that sense, we believe it's a great time to invest in inventory to sell both b to b as well as in b to c market in India.

24:49 On retail, I'm I'm sorry, mister Mukherjee, but we won't be able to provide great clarity there as we don't control or really review the retail prices of our customers. However, at least on the wholesale side, we can share that there is very strong there's a strong base established and prices have been fairly consistent, if not even increasing on some of the smaller prices. Yes. Thanks for that perspective. And sir, like I was reading that there is some medium long, but like I read one article that said that there is some increased competition from like Chinese CVD manufactured lab grown diamonds.

25:40 And there's more increased acceptance of like at least in the smaller heritage. So are you seeing any impact of that like some perspective? Sure, sure, Mr. Mukherjee. So it's a great point of clarification also. At Goldiam, as we don't do cutting for manufacturing of diamonds or at least not on scale other than our own grown production from eco friendly diamonds LLP. Any of such articles that talk about the prevalence of Chinese CBD diamonds or Chinese HP, HC diamonds or local grown enhancement of capacity of CBD, etcetera, in fact, don't really impact us because that formed the supply side to to Goldiam and our Goldiam's active team. As a largely pure play jewelry manufacturer and distributor, any increase or change in quantum of diamond supply available will, of course, any large change will only serve two in the long term benefit Goldiam and add to our supply chain strength by enhancing the number of vendors that we work with.

27:00 Again, to clarify, we don't do any loose diamond sales, no loose diamond trading. And other than our own rough, grown through eco friendly, no loose diamond manufacturing either. Everything is purchased as per jewelry demand and jewelry requirements when orders are presold to customers. So I hope that explains where we stand with articles regarding diamond supply. Get that. But sir, just a small follow-up. The increased supply, does it not put any pressure on the like wholesale pricing of GOLDIAM well? Or like we are insulated from that?

27:46 So so on the... Again, this is on loose diamonds, not on finished jewelry. On loose diamonds, wholesale prices have been fairly consistent. Any increase in supply is coming in with demand growth itself. Prices again on the wholesale side are very, very nominal compared to the cost of production itself. So there has to be a sea change in technology to further drive costs down from where they are today. Again, we are not in a position to comment if that is happening, who is working on it, where that's happening. To the best of our knowledge, given the current method of production, prices on the wholesale side are fairly at a strong base with with... Without major scope for erosion from here.

28:38 Yes, sir. And sir, my last question is on the final demand side over a two to three year period. Can you share your perspective on how do you see the on the demand side, what are the trends here? Sure, absolutely. So let's just dividing that question into B2B and B2C. I think the B2B business is firming up even better than we had expected our ability to increase non U. S. Customers to deepen presence with U. S. Customers both are resulting in fruit that is visible to our shareholders. We believe, again, there is scope for further penetration and depth within our b to b business as well as product expansion and new customer addition.

29:29 So across the board, I think, you know, there is scope for Goldiam to drive jewelry sales on the b to b side upwards. We exited FY 'twenty six about at INR 1,000 crore revenue, which was a record year for us. Over the medium term of three to four years, we hope to strongly increase on that base and deliver you know, have a larger company and presence especially amongst our US key customers. And management is working on this trajectory primarily along with deepening a new presence with global global wholesalers and retailers also. On the b to c side, Origin is shaping up well with further depth available even with our existing stall, becoming a full stack jeweler, having a lot more presence on sales per stop a month, deepening that position that we have.

30:29 As previously mentioned by the prior participant, given the competition in the industry as it consolidates over the longer two to three year period, we believe we would be in a great position to reach close to that 100 store figure that we are aiming and targeting towards with a much stronger sales per month per store metric that that that, again, we have we have targeted internally. Overall, we believe the organization has significant runway for growth. Of course, faster growth in B two C, but also as shown in q one, very healthy and steady growth left to do in B 2 B as well. So we hope to continue on this path.

31:18 And over the next two to three years, driver business, which is truly amongst the largest jewelry exporters from the country. I think this is a good time to also open the floor to our chairman and request if any further comments, sir. Hello? Yes, sir. Yes. Just requesting our Chairman to add if any further comments on the longer term growth trajectory. Longer term growth trajectory, I believe that we are in a great position to improve our businesses both in B2C and B2B. And I think Anmol has clarified in-depth regarding both of them. So I think we can proceed.

32:12 Just a small follow-up. Like, will it be possible to share, like, what share of our B2B export business is to U. S. And what is Non U. S? Sure. Of course, as on FY '26, over 90, 90% to 95%, I'll be able to provide the exact number on email. But in that range, that was our U. S. Share versus Non U. S. Coming from the balance. Certainly, FY 'twenty seven will have some positive movement towards Non U. S. On a smaller scale, as mentioned by our Chairman. However, we we would be happy to share those detailed and exact numbers on e mail.

33:00 Thanks. I'll follow that up. Okay. That's all for me. Thank you. Thank you, sir. The next question is from the line of Bharat Gyanani from Money Control Research. Please proceed with your question. Yes, sir. Congratulations for a great set of numbers in quarter one. So two questions from my side. One is just wanted to check that we have been reading that the LGD segment has been getting a lot of traction in The U. S. Market. And hopefully, it catches traction in Indian market as well. But on the U. S. Side, just wanted to check what would be the share of LGD in the overall jewelry space? And what is the industry growth that the LGD is witnessing in The U.

33:48 S. Market? That is my first question. So thank you, Mr. Bharat. We don't have the industry reports, but from last speaking to consultants within the industry, especially on the major retailer side with whom we work at Goldiam, we believe LGD share is between the 40% to 60% range depending on type of retailer, retailer segment, etcetera, within the major tool, majors and the larger corporate customer space that we can address. Okay. And what is the growth rate that the LGD industry is seeing on a year on year business? I'm talking on the industry front, not our because we are increasing market share.

34:34 Yes. Yes. So in the finished jewelry segment, and lab grown diamond jewelry in The US is looking at healthy double digit growth. Of course, we believe that this growth will continue for the medium term ahead, medium to longer term ahead as most large corporate U. S. Retailers transition to a majority and predominant lab grown diamond showcase over the coming few years. So it's in healthy double digits on a finished jewelry standpoint. Okay. Okay. Okay. And second, what would be our market share in The U. S. Market as far as the overall LGD jewelry is concerned?

35:24 Yes, Mr. Bharat, still very, very small. Just to give an idea, our largest customer in The US does about $6,000,000,000 of retail sales. They would have about $2,000,000,000 to 2,500,000,000 of wholesale purchase value, which is our segment with them. And we currently form about 40... $3,035,000,000 to $40,000,000 of annual sales in them. So less than 2%. There is scope to certainly triple if not quadruple those numbers, and that is just our share with the largest retail customer that we currently have. There are major retailers whom we don't currently work with who we would love to add on to our customer profile over the coming years as well as, as mentioned, further deeper presence with existing customers as highlighted through this example of our largest current customer.

36:30 Okay. Okay. So just one clarification. This LGD 40% to 60% penetration you said, that would not be of the overall jewelry market. That would be some particular segment that you're talking of for The U. S. Market? Yes, Mr. Bharat. That's with the major retailers, corporate and major retailers. Effectively, those are retailers that address the same more or less addressable price point and segment that Goldiam sells to, which is upper middle and premium income jewelry, not luxury or super luxury. That is not being manufactured in India at the moment. Okay. Okay. Okay, sir. Great. Thanks and all the best to you. Thank you. Thank you, Mr. Bharat. Thank you, sir. The next question is from the line of Ankush Agarwal from Search Capital.

37:21 Please proceed with your question. Yeah. Hi. I'm audible? Yes, sir. Yeah. Can you share the profit or loss for Origin for the quarter? Hi, mister Agarwal. We'll be able to get back to you on that. We have the segregated details, but I'll have to separate out all items, particularly in terms of the P and L. There will be approx in the... Just to give a ballpark figure, it will be in the range between 5 to INR 6 crores of operating loss for the quarter. Okay. Secondly, I think one of the commentary that has been consistent over time has been the fact that our shares with some of the largest retailers in The US is low single digits.

38:13 And even for them, I think the fashion LGD segment has been doing that more than 30%, 40% kind of place. So just wanting to understand, given the time that we are growing so fast in NDD and our share with them is low single digit, and you clearly mentioned that there's easily room for us to triple or quadruple that number, then that will sort of mean that there's a fairly large and strong growth runway for the b two over the coming year. But, otherwise, the commentary for the b two b has been good, but it it isn't as strong as what the other... Some of the colleagues have commented that you sort of just state. So just trying to understand, is the other part of b two b, some part of b two business not growing, like, maybe the wholesaler part or smaller retailer part or what will it impact you?

39:01 So so, Ankush, so, yes, I think, you know, we are also a guided jewelry first manufacturer at Goldiam. So engagement rings, wedding bands form the significant majority of what we sell to The U. S. Again, this is structural and basis on choice in order to drive a higher ASP and subsequently a better margin profile than our competition. Fashion jewelry is most often at a... It is actually at a much lower average selling price and price point and also has a much shorter life cycle in terms of being in stores, selling, and reorders coming in in subsequent years. As a result, the, the management decision has always been to focus on bridal jewelry, particularly as you've rightly seen, platinum diamond jewelry is growing well in the fashion segment now that it is already a large part of bridal.

40:01 I think in fashion also, is significant movement in porting of the choice of diamond that retailers and subsequently US customers are buying from natural to lab tone. And as that happens, our decision is to play it through the through the category of tennis bracelets, tennis necklaces, and higher total weight or higher value fashion. This does two things for us at Goldiam. One, it, of course, utilizes our bench strength of higher quality and setters, polishers, filers, etcetera, which are generally catered towards bridal jewelry to refocus their energy, not refocus, but also add on categories which require higher quality finishing.

40:51 And secondly, it is to maintain, if not even further grow our ASP because high value tennis bracelets, tennis necklaces will only further help to maintain and grow our ASP thereby also protecting factory operating margins and manufacturing margins. So that's how we look at it. We will be investing. As I mentioned at the start of the call also, we've seen great pickup of this category from particular wholesalers. It's not yet we've done a couple of introductory meetings with our retail customers, but it's not really present there in larger value or numbers. We hope over q two, certainly over q three, that we will be able to introduce this category, test it, and do a testing cycle of that, you know, one year or so and further become a dominant presence in this category outside of jewelry as well. I think it will give us great legs to further grow and maintain the sort of b to b growth we have been seeing in the past.

41:58 Correct. So I think one of the comments few quarters back was that bridal is about 85% for us in The US and 15% is fashion. So as that number moves much in the fashion part from 15% and, like, over the medium term, can this number sort of increase significantly or it could be like a gradual scale up for Fashion in terms of revenues for us? It will always... So the modeling that we have within our industry, we have to do a testing cycle, invest in inventory, which is on consignment with US retailers. They test it, see see the percentage of returns that come in, see if there's a percentage of product breakage, and really have that longer testing cycle of about a year. That is always even the reason for our higher inventory and having investments in inventory at Goldiams, which is as we declare in every quarter, kept with end retail customers in The US.

42:54 It's always new product that is on test. So that cycle takes a year. As a result of which, there will always be a gradual increase of movement if we strategically choose to add on inventory in a certain segment like high value fashion. So I would like to add on here Mr. Ankush to whatever Anmol has explained to you that for the wholesalers already high value fashion has been introduced and that will grow very strongly in America. And retailers again it's an investment into their consignment dollars. That's one thing. And second thing I also want to make it a point, the growth of Goldiam, last year if you see this quarter, it was INR235 crores. That was the time Mr. Donald Trump, the President, introduced duties and tariffs at that time. So the company endeavored into, you know, taking all the sales that was supposed to happen in the next quarter and tried to ship it earlier to help save tariffs last year. So when you compare, right, that even on a... Something that we did last year to two thirty five and we still grew on that number by 50% is truly an achievement on the type of business that Goldiam did in terms with wholesalers as well as retailers in fashion as well as bridal.

44:12 We are not complaining about the growth. The growth has been very healthy. I think one of the commentary for the most part has been that b two b is like a 20, 25% sort of growth trajectory business. But given the execution that we have seen, the opportunity size that we have seen, and, you know, how the LGB part is doing, The thought was that why not the growth should be faster is what I was trying to understand, but I get your point. That was all. Thank you. Yeah. So we we don't want to put any forward looking numbers straight away, but we are positive for the growth of Goldiam into these segments very strongly. Got it. Got it. Thanks. Thank you, sir. The next question is from the line of Kumar Saurabh from Scientific Investing. Please proceed with your question. Hi. Thanks, Anmol, for a great set of results continuing and surprising us. My question is first on the B2B side.

45:06 The new segment which we are trying in the fashion jewelry side, Are we going to penetrate the same end clients with this new segment or we will have to find a new set of clients to scale this business? Hi, Mr. Saurabh. Yes. So we have already new wholesale clients that are, in fact, unique to this segment for us. On the retail side, which is by far a much larger opportunity, it will be the same existing set of clients. However, of course, they're fashion buyers or fashion departments, etcetera. So same brand or corporate, just a different set of buyers that are in charge of fashion as opposed to bridal jewelry. Got it. Other question I have is I think bulk of our export B2B side is coming from U. S.

45:58 But Europe, like UK, Germany, they also look like big market. So do we have any plans of expanding into those markets for B2B? Yes, mister Saurabh. So we do, you know, we do want to expand into Europe. It's a more medium term goal we have. But, again, strategically, you know, as management in the company, what is sort of sacrosancted to us is having a healthy margin profile, not necessarily as strong as it is in q one this year. Of course, that is very important for The US business. But other regions, it's very hard to pull out to this sort of margin profile. And just to explain why on a product level, most of Europe, other than the very high end or very luxury jewelers, which are the France jewelry houses, most of Europe doesn't have a middle and...

46:55 Upper middle and premium income, you know, segment and consumption class for fine jewelry. It then drops all the way to the very, very low end, which ends up being silver or, you know, very little amount of diamonds started in fine jewelry, dainty pieces of jewelry, low number of carats, low low number of diamonds, and low quantum and value of diamonds. As a result, while there is a certain amount of jewelry that is, of course, sold, it is hard to deliver a strong margin and growth coming from servicing these regions. And this is further compounded by the fact that there are no large retailers that work continent wise. There is, of course, a large national retailer in Germany, large national retailer in France.

47:46 All of them cap out at around the one fifty to 200 store range, making even, you know, the number of pieces that you can sell limited. So both in terms of distribution, distribution scale up and opportunity is limited and product profile is not very beneficial from the margin and production standpoint. So yes, while it does help because there is a faster turn of inventory, there is a lower investment cost in inventory and of course geographic distribution is something as management we should also keep in mind and consider. And with that in mind, over the medium term, would love to add certain revenue coming from these geographies.

48:32 The most profitable region in terms of sales distribution plan will and always will continue to be The US. And that's and also the deepest in terms of revenue potential, size of revenue, and large corporate retailers that have 400 to 800 stores per per brand. So, you know, that's the sort of give or take that we have to consider while looking at other regions. We are going to, in this fiscal year, further see and hopefully see provided meetings go well, deepening of presence in Australia, which has a similar consumption pattern to The US, Canada, which has again similar consumption pattern to The US, and of course, Israel and Middle East, where we have seen good penetration through working with some large wholesalers in these in that particular region. So that's the more immediate FY 2027 sort of visibility we have for geographic distribution without changing the inherent product that we do too much.

49:45 Great. Thanks for the detailed response. And two questions on Origin. So first question, Origin is in the market. Basically, there are three business models. One is pure physical model, and then some are going for pure digital. And some started with digital online model, and they have gone for a, you know, omnichannel kind of model where digital pushes the footfall. So from business model perspective, I know these are early days, but are we going to be only physical? And I'm not talking about just about having a best website because, you know, digital is a big investment, workforce, and all. So how is going to be our business model for Auryum? Do you see the digital side being very, very strong where we put some serious, you know, marketing budget, some serious talent, or are we going to be more physical? So, mister Saurabh, so I'll just add some context. I think it's a little early for us to take that decision, and I'll tell you why from our standpoint at Aurigam, everything that we sell is fine jewelry, which is lab stone diamond studded in gold. Now this is 14 and 18 ks largely, but also now we've introduced some nine kt gold.

50:52 What's happening as a result of the gold price increasing itself for, globally speaking, is that in origin, the average ASP, the average sales price has gone up. And after a certain level, it's very hard to convert customers online. Therefore, the focus of the company at the current stand will be physical largely. However, we do activate customers and do top of funnel marketing digitally, activate them digitally, walk customers through even investing in a WhatsApp AI bot, which hopefully will be launched soon, activate them via WhatsApp and Instagram, which are primary meta platform, and then get those leads converted in store, largely because our ASP is north of 70,000 at at current at current moment.

51:45 Again, that's why I'm sharing this context is to explain why it's largely physical even though we may activate and spend money digitally to generate hot leads for our stores. Over time, I do believe there is definitely a market that we can serve at Origin through introducing certain product categories in silver, through deepening presence of penetration and presence in product categories like nine k t. This... These these products itself inherently due to the costing and raw material price point allow for enough inventory below 20,000 rupees, which is where you really see online jewelry sale be a significant portion. So at current moment, it's it's it's not part of the agenda. However, I'm pretty certain over the over the coming fiscal year, as we introduce some of these lines in whether silver or nine k t, we will slowly increase our digital spend restoring the sales come out... Come through from that digital spend as well.

52:53 Got it. Got it. And my last question is on. Our goal is that sir, they will request that you return to the question queue for follow-up. Thank you. Thank you, sir. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference call, Please limit your question to one per participant. The next question is from the line of Vivek Gautam from GS Investment. Please proceed with your question. Yeah. Am I audible? Yeah. Yes, sir. Kudos on the great number, sir. One query we have is the outcome the margins have... Gross margins are lower at 30% this quarter, lowest in last ten quarters, sir.

53:43 And any new customer addition in US like Costco and Indian origin quarterly exit rate? Thank you. Thank you, mister Gautam. So I will have to review to the best of my knowledge, our gross margins are, in fact, higher, but we will just double check on those numbers and get back to you. We believe it's significantly higher than previous quarters, but let me again double check and get back on the console numbers. And then on your second question regarding new customer additions, it's been primarily happening in we've added new customers. As mentioned, a couple of wholesalers in The US that focus on fashion as well as new retailers and wholesalers in Middle East and Israel.

54:39 Also, I would like to add that Costco doesn't do legroom diamonds as on on date. Yes. So as our chairman has mentioned, you know, we are interacting with the buyers. And as soon as the corporate decision is taken there, we are certain to be a part of that development. However, currently, they don't have a plan to introduce lab 1,200. And the quarterly sales rate of the origin, sir? So in the quarter, we did about 8.1 crores, INR 8.2 crores in Q1 FY 'twenty seven. Thank you, sir. The next question is from the line of Dixit Doshi from Whitestone PMS.

55:28 Please proceed with your question. Yeah. Thanks for the opportunity again. So my question is regarding this Middle East, Israel and Australia model. So is it wholesaler and retailer both? And in case of retailer, is it similar to US model where we start on a consignment basis then one year trial phase and then it moves to the order book model? Sure. Thank you. So it's a mix of wholesaler and retailer. On the retailer side, again, these are smaller retailers, not to the same scale as US. So again, it's a it's a mix. Largely, it is, you know, similar to India where jewelry is just purchased outright.

56:16 There are, however, particularly in Australia, a few large... One one large retail group, which requires consignment testing and then, you know, has that evolution into being... Being purchased directly and outside posted being proven successful. So Australia, I would say, is more similar to to The US, especially with the largest retail group there. Middle East and Israel is more similar to India in that sense with wholesale and retail being... Purchasing product. Okay. Thank you. Thank you, sir. The next question is from the line of Bharat Gyanani from Money Control Research. Please proceed with your question.

57:04 Yes, sir. Thanks for the follow-up. Just wanted to check this, what is the mix between the wholesaler and retailer sales currently for The U. S. Market. And for retailers, we serve them and what and in the online sales, online sales will be primarily to wholesalers or retailers. That's what this one clarification you needed. So Mr. Bharat, so about it varies quarter on quarter, but between 85% to 90% of our U. S. Sales is close to 85% is straight to retail, balances to wholesalers in The U. S. And for our.com, which is part of this, a 100% of .com is through large retailers where we are embaneled and set up as end to end integrated operators for some of their websites.

57:56 Okay. So 85% to 90% of the sale is to the retailers directly, right? Yes. To The U. S. Sales. Yes. Okay. Okay. Okay. Fine. Fine. Okay. Thanks a lot, sir. Thank you, and all the best. Thank you. Thanks, Anishwat. Thank you, sir. The next question is from the line of Saurabh Kumar from Scientific Investing. Please proceed with your question. Yeah. I have one more pending question. I think one and a half years back, you had told that in a mature state, the stores can do maybe 10 CR, 11 CR kind of number. And I was looking at data of one of the recently listed player. They have taken a Lucknow Market, a group of six stores, that looks like in fourth or fifth year, it is reaching that number. My question is for us, if we take our oldest set of stores, which we started in the beginning, maybe four, five, six stores, what is the current monthly run rate and how do you see them shaping up?

58:51 Sure, mister Saurabh. So great question. We have... So I think most of our earlier stores that were started was was set up in Mumbai. There are, of course, challenges that we see in Mumbai both with rental and general demand in terms of porting of customers to the retail environment as opposed to somebody purchasing wholesale. It's mixed in terms that it's it's been about a year plus, a little bit over a year. And the earlier stores, we have some stores that are doing very well, which have crossed that 25 to 35 lakh in that ballpark sales per store per month and some that are not at that metric yet.

59:37 Again, in the long term, I think as we develop this strategy, become a full stack jeweler, add on things like, of course, old gold exchange, advanced purchase plan schemes, which which until either this quarter or next quarter are not active. You know, as we invest in these in in these initiatives, we will see further strengthening of mature stores coming in. So we know that one of our best stores has always processed forty, forty five lakhs per month. And the rest are all all all going to get there in time when new initiatives are introduced. Hopefully, a quarter or two, we'll see much better traction. Okay. Got it, sir. Got it. Wish you all the best. That's all I had. Thank you. Thank you. Thank you, sir. You, sir.

1:00:27 Ladies and gentlemen, in the interest of time, that was the last question for today. I would now like to hand the conference over to management for closing comments. I want to thank all the participants for joining us today. If you have any further queries, questions, or any other additional information, please feel free to contact the consulting and investor relation team. I would like to thank everyone for joining in today. Good evening to you all. Thank you. Thank you, sir. On behalf on behalf of Monarch Network Capital Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.