Utssav CZ Gold FY26 Results: Profit Up 136%, Strong FY27 Guidance

Utssav Gold guides for 60% revenue growth in FY26 with stable margins after delivering a strong results in FY26. Available at attractive FY27 forward valuations

Jun 07, 2026

1. Designs & Manufactures Gold Jewellery

Utssav was established in 2007 and manufactures/designs/wholesales gold and diamond jewellery. Its core is 18K, 20K and 22K CZ / rose gold jewellery, but it has now diversified into plain casting jewellery, natural diamond jewellery and lab-grown diamond jewellery. The model is 100% B2B, supplying retailers across India and now trying to scale exports.

2. FY23–26: PAT CAGR of 102% & Revenue CAGR of 69%

3. H2-26: PAT up 95% & Revenue up 88% YoY

PAT up 1% & Revenue up 43% HoH

H2 FY26 margins softened because the product mix moved toward lower-margin / higher-gold-value categories, especially plain gold and 22K jewellery.

4. FY26: PAT up 136% & Revenue up 79% YoY

Quality of performance is mixed because operating cash flow remained negative despite strong profits.
- So the FY26 story is: — Great growth. Better margins. Weak cash conversion. Rising working capital.
- Strong operating growth, helped by festive/wedding demand, repeat business, deeper market penetration and new client additions
  - 112 new clients in FY26, while continuing to expand across India and abroad.
Product mix shifted sharply toward 22K jewellery — 22K jewellery became the largest category, rising from 36.6% of revenue in FY25 to 59.5% in FY26.
Inventory and receivables rose sharply. That is why profits did not convert into operating cash.
- Growth is being funded through working capital and debt, not internal cash generation yet.

5. Business metrics: Strong & Improving Return Ratios

Utssav is generating strong accounting returns, but operating cash flow was negative in FY26.
Can Utssav keep ROE/ROCE high while funding growth without debt and working capital running ahead of profits
For FY27, watch whether ROCE stays above 20–25% after more borrowing and inventory build.
- That will confirm if Utssav is compounding capital or only scaling revenue.

6. Outlook: FY27 Growth of 60%; ₹5K Cr by FY30

6.1 Guidance

FY27
We are looking out for growth around 60% from last year.
Around 30% to 40%, I'm looking for a volume growth this year. And around 60% as business growth.
4% to 4.5% PAT margin and EBITDA around 7% to 8%
Maintaining previous guidance
FY 2030, we look around INR4,000 to INR5,000 crores
With same margins. Or maybe a better margin if, because we recently started Real Diamonds. As their sales will increase and percentage starts growing in our company, so margins might improve
Annual capacity: Approximately around 6 to 7 tons.

FY27 growth guidance
- 60% revenue growth in FY27
- Volume growth of 35–40% — remaining growth dependent on gold price movement and value mix.
Margin guidance
- EBITDA margin of 7–8% and PAT margin of 4–4.5%.
- Guiding for a lower normalized margin due to the addition of plain gold jewellery, which is lower-margin than some other categories.
Capacity expansion
- Capacity ~2,500 kg, with utilization around 65%, rising up to 90% in season, and expected FY27 utilization of 70–75%.
- Acquiring more space/buildings and eventually moving capacity toward 6–7 tonnes per year.
- ~₹50 Cr capex / additional funds for the year, to be funded through bank borrowing, not equity — debt/equity should remain below 1x.
Diamond jewellery opportunity
- Diamond jewellery is currently small, about 2% of revenue
- To reach more than ₹200 Cr annual sales in the next two years.
- It broadens the product mix, but management also said blended margins will still likely remain around 7–8% EBITDA and 4%+ PAT
Export / UAE subsidiary
- Exports are currently tiny — very bullish on the UAE subsidiary.
- Once the UAE subsidiary starts, export sales could jump to 10–20% immediately.
- Looking at GCC, Singapore, Malaysia and Australia through distributor partnerships and exhibitions.
- Key upside lever — but it is still unproven.
- FY26 exports were only ₹9.47 Cr
Long-term FY30 target
- Maintained its earlier target of ₹4,000–5,000 Cr business by FY30 — very aggressive growth from FY26 revenue of about ₹1,155 Cr.

6.2 FY26 Performance vs FY26 Guidance

We are confident of closing the year in the range of INR1,100 crores to INR1,200 crores
9% to 10% should be EBITDA sustainable.

Strong P&L delivery. Weak Cash-flow delivery

Revenue: As per guidance
EBITDA Margin: Lower than the 9-10% guidance range given in H1-26
PAT Margin: Stronger than 4.5–5% range given in H1-26
Cash flow: Weak — Negative operating cash-flow despite solid growth

7. Valuation Analysis — Utssav CZ Gold

7.1 Valuation Snapshot

Current Market Price= ₹307.50; Market Cap = ₹742.55 Cr

Attractively priced on a FY26 basis
Opportunity to re-rate to ~15-20× P/E based on FY27 EPS
Cheaper than Sky Gold on FY26 valuations
- Utssav is much smaller than Sky Gold
Longer-term story of FY30 if delivered — opportunity for significant upside ~5×

Utssav CZ Gold Jewels appears undervalued on FY26 metrics — with re-rating potential as it delivers on FY27 guidance

7.2 Opportunity at Current Valuation

Attractive Valuations: At FY26 P/E of ~13×, EV/EBIDTA of ~10× the valuations don’t seem to be discounting FY26 performance. Potential for re-rating of multiples based on FY26 execution
- Utssav is much smaller not as established than Sky Gold — reason for significant discount compared to Sky Gold
Forward Valuations are not demanding: With a At FY27 P/E of ~9×, EV/EBIDTA of ~6× there is a strong margin of safety in the stock even if guidance is not fully met
Large Headroom for Growth:
- Transition toward organized jewellery retail is a structural tailwind
- New Capacity coming in to support near-term growth
- Vision of ₹4,000-5,000 Cr revenue by FY30 provides a longer term story in Utssav
Global Optionality:
- Expanding exports to UAE etc will improve margins

7.3 Risk at Current Valuation

Lowered Guidance: Guidance of 60-70% growth for FY27 in H1 FY26 earnings call reduced to 60% for FY27 during H2 FY25 earnings call
- Typical risks with any small-cap with limited track-record of management as public company persist
Quality of Earnings — Negative cash flow as typically seen in a high growth company
- Risk is profits do not convert to cash