Strong seasonally-driven Q1; margin upgrade tempered by H2 compression.

Delivered result: ₹118.0 Cr. Transcript states same figure and 119.5% YoY.

Delivered: ₹27.2 Cr (22.0% NPM). Transcript reports ₹27.21 Cr, 265% YoY, 23.06% margin.

Cannot verify from delivered P&L; festival boost within Q1 aggregate. Plausible but one-time.

Q1 FY27 is 119.5%, claim implies Q4 FY26 also >100%. Cannot verify from current data.

Management confirmed 1.29x, which is within stated range. Operationally reasonable.

Aditya explicitly said 'guidance remains same' on revenue. Philosophy: under-promise, over-perform. Confirmed.

Prior: ~22% EBITDA margin (from pre-IPO guidance). Current: 25-27% full year. Upgrade of 300-500 bps reflects pricing power and scale.

Prior: 25-30% FY27 top-line growth. Current: no revision; 119.5% Q1 is ahead of guidance but Q1 only 15% of annual. Philosophy: under-promise, over-perform.

IPO prospectus guided 6-7 EBOs; now clarified as 9 in Y1, 7 in Y2 (15 total). BEP: 1 year Maharashtra, 15-18 months outside. Two stores already operational.

PAT margins will compress 200-300 bps from Q1 peak (23%) to full-year 22-23% due to 1-2% marketing spend ramp in Q2-Q4. Flagged as planned, not a surprise.

Economies of scale (turnover doubled), better price realization for diamond. Full year: EBITDA 25-27%, PAT 22-23% after marketing spend ramp. 1-2% PAT dent expected.

Growth is broad-based across 21 cities. SSSG up ~50% across every city, not just Pune. Shift from plain gold to diamond is universal.

Diamond volume >50% YoY. For hedging: gold portion of inventory is small; using natural hedge (buy/sell cycles) and gold loan facility now opted. MCX hedging deliberately avoided given small volumes.

All 50% SSSG is from SIS (shop-in-shop). COCO stores <1 year old, so no SSSG. No SSSG metric yet for COCO.

All IPO proceeds parked in bank yielding interest. Entirely treasury income.

Out of ₹27 million total, ₹26.53 Cr is pure finance cost, ₹0.95 Cr is lease liability interest.

Difference between opening and closing stock due to sales growth. Routine seasonal phenomenon.

No different guidance. Philosophy: under-promise and over-perform. More confident now on prior promises.

Diamond jewellery demand is utility-based, not investment. 40% gold, rest diamond + making charges. Plain gold took bigger hit. No material impact on Reva; customer preference remains optimistic.

EBOs expected: Maharashtra BEP 1 year, outside 15-18 months. By 2-3 years, EBO dependency to grow to 20-25% (from 95% SIS today). At inventory turns 1.1+, no PAT revision expected.

Minimal threat. 97% of business is star-melee/minus-two diamonds. Price differential only 10-15%. Indian market 95% star-melee. No heat felt from lab-grown.

Currently 1.29. Forecast difficult; will be 1.1-1.4 range. Q1 is only 15% of annual. EBO openings late year may drag mathematical calculation.

Volume growth >50% diamond caratage. 9 stores Y1, 7 stores Y2 per IPO plan. All COCO, no franchise.

Q1 contributes ~15% of annual. Q3-Q4 best for jewellery. H1 35%, H2 65% is rule of thumb. Q2 better than Q1 historically, Q3-Q4 peak.

Not directly tied to quantities. Payment cycle timing — raised at fag end of prior year, now paid. No material policy change.

EBOs will ramp 20-25% contribution in 2-3 years. At inventory turns 1.1+, no PAT dent. Strategy: Tier-1/2 cities in Maha and metro cities (North/South). Process is thorough; slow and steady wins race.

In active hunt. Negotiations ongoing but very difficult to promise without formalization. Efforts in background; will announce once signed.

Maharashtra EBOs: 1 year. 3 EBOs opened; 1 already >6 months, on track. Outside Maha: 15-18 months expected.

Primarily from marketing spend ramp-up in Q2-Q4 (PAT at 23-24% now, will compress). EBO fixed costs will add some dent, but most EBOs start in H2 (average 4-5 months, not annual).

WCDL for BTA settlement procurement. Partially repaid; now ₹120 Cr. Won't clear entirely; most new EBOs funded by IPO proceeds. Excess profit will pay down debt.

Primarily internal accruals. If good opportunity comes, phase-wise decision will be taken. For next couple of years, almost sorted.

Seasonality. Q2-Q3 will have larger AOV due to festive periods. Last quarter ₹112k, now ₹1 lakh (7-8% variance). Q3 AOV will be largest (Dussehra, Diwali, weddings).

Q1 119.5% is ahead, but Q1 only 15% of annual. H2 is 65%. Management under-promising philosophy, so 25-30% likely conservative.

200-300 bps compression from marketing spend ramp in Q2-Q4. Explicit 1-2% PAT impact flagged. Margin path: Q1 peak → H2 valley → FY average 25-27%.

Consistent with EBITDA guidance. Marketing and EBO fixed costs drive compression. No PAT dent expected from EBO ramp if inventory turns stay 1.1+.

2 already open. Plan: Tier-1/2 cities in Maha, metro cities North/South. Disciplined site selection; focus on profitability, not speed. Cost per store not disclosed.

Q1 historically 15% of annual revenue; H2 accounts for 65%. Akshaya Tritiya and festive season drive results. Q1 at 119.5% growth is inflated by one-time festival (₹12.7 Cr). Q2-Q4 delivery is uncertain.

Management guides 200-300 bps PAT margin compression (23% → 22-23%) from planned marketing spend ramp-up in Q2-Q4 when festive seasons peak. Risk of overshooting marketing budgets or missing ROI targets.

Only 2 of 15 COCO stores open; business model (1 year BEP in Maha, 15-18 months outside) is largely unproven at scale. Fixed cost ramp could pressure group-level margins if stores underperform.

Short-term WCDL debt ₹120 Cr (down from ₹166 Cr) used for BTA settlement procurement. Interest cost ₹26.53 Cr/quarter is material. Management unclear on full clearance timeline.

Lab-grown diamonds gaining traction in pointers market. Price differential only 10-15% for star-melee/minus-two (Reva's core). Risk of margin or volume erosion if lab-grown captures market share in smaller diamonds.