Manoj Vaibhav Gems N Jewellers Ltd Management Discussions

1. Economic Review

1.1 Global Economy

Global economic growth moderated during CY 2025 amid geopolitical tensions, evolving trade policies, financial market volatility and cautious business sentiment. According to the International Monetary Fund (IMF), global GDP growth is projected to moderate from 3.4% in CY 2025 to 3.1% in CY 2026, before improving marginally to 3.2% in CY 2027. While advanced economies are expected to record modest growth, Emerging Market and Developing Economies (EMDEs) continue to drive global expansion, supported by resilient domestic demand, infrastructure investments and favourable demographics.

Inflationary pressures eased as supply chain disruptions moderated and food prices stabilised, although persistent services inflation, geopolitical conflicts and energy price volatility kept central banks cautious. Global trade remained measured, with the WTO projecting merchandise trade growth of 2.7% in 2025. Commodity markets also remained volatile, reflecting shifting demand and supply dynamics. The IMF expects energy prices to decline by around 7.9% in CY 2026, while non-fuel commodity prices remain broadly stable. Meanwhile, industrial metals recorded mixed trends and gold prices remained elevated, continuing to influence inflation, input costs and investment decisions across industries.

Source: IMF World Economic Outlook, April 2026

Outlook

The global economy is expected to remain resilient, supported by easing inflation, improving financial conditions and sustained investments in technology and infrastructure. While geopolitical risks, trade uncertainties and fiscal pressures may temper near-term growth, continued structural reforms, supply chain diversification and prudent macroeconomic policies are expected to support long-term economic stability.

1.2 Indian Economy

India remained one of the worlds fastest-growing major economies during FY 2025-26, demonstrating resilience amid global economic uncertainties. As per the Ministry of Statistics and Programme Implementation (MoSPI), GDP is estimated to have grown by 7.7%, driven by robust domestic demand, rising private consumption, sustained investments and broad-based growth across the manufacturing and services sectors. Private Final Consumption Expenditure (PFCE) also expanded by 7.7%, reinforcing domestic consumption as the key driver of economic growth. Although agricultural growth moderated due to weather-related disruptions during the kharif season, favourable rabi conditions and record foodgrain and horticulture production supported rural economic activity.

The macroeconomic environment remained conducive, with headline inflation moderating to 2.1%, creating room for monetary easing and improved liquidity. Fiscal consolidation continued steadily, while the banking sector remained well-capitalised, supported by healthy credit growth, improving asset quality and strong profitability. Continued investments in infrastructure, renewable energy and digital technologies, together with sustained expansion in manufacturing and services, further strengthened Indias long-term growth fundamentals.

Indian Economy GDP Growth Rate (in %)

Year	FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25	FY 2025-26
GDP Growth Rate	8.7	7.0	8.2	6.5	7.7

Source: https://www.pib.gov.in/PressReleasePage. aspx?PRID=2269286®=48&lang=1

Outlook

Indias growth outlook remains strong, supported by resilient domestic consumption, rising capital expenditure, infrastructure development and ongoing structural reforms. Government initiatives to strengthen manufacturing, digitalisation, agriculture and clean energy are expected to enhance productivity and competitiveness. While global trade and geopolitical uncertainties may pose near-term challenges, Indias robust macroeconomic fundamentals, stable financial system and favourable demographics position the economy for sustained, broad-based growth.

2. Industry Review

2.1 Global Gold Jewellery Market

The global gold jewellery market witnessed a sharp divergence in Q1, with volumes declining to their lowest levels since the COVID-19 period, while the value of demand reached an all-time high. Global gold jewellery demand fell marginally below 300 tonnes, marking the weakest quarter since Q220, as record gold prices weighed on consumer affordability and reduced fine-weight purchases. However, the value of jewellery demand surged 31% year-on-year to US$47 billion, making it the highest-ever first-quarter spend on gold jewellery.

The sustained rise in gold prices reshaped consumer behaviour globally, with buyers increasingly opting for lighter-weight, lower-carat jewellery or shifting towards investment-oriented gold products. As a result, jewellery fabrication continued to lose share to investment demand.

Regional Trends

Middle East & Turkey

Gold jewellery demand across Middle Eastern markets recorded broad-based double-digit volume declines in Q1, impacted by elevated gold prices and geopolitical uncertainty. Despite lower volumes, demand value increased 30% year-on-year to a record US$5 billion , supported partly by seasonal buying during Ramadan and Eid. In Turkey, jewellery volumes remained under pressure due to high gold prices, domestic inflation and subdued consumer sentiment, even as demand value reached record levels.

United States & Europe

In the US, record gold prices, coupled with tariff-related pressures, created significant affordability challenges for consumers. Jewellery purchases declined as buyers reduced purchase frequency and shifted towards lighter-weight products, leading to lower imports. Europe followed a similar trend, with declining volumes offset by higher spending value due to elevated gold prices.

ASEAN Markets

Across ASEAN countries, high gold prices accelerated the shift towards lower-carat jewellery and investment products. Jewellery volumes remained subdued across key markets, while demand values increased. Vietnam recorded a notable rise, with gold jewellery demand value reaching a record US$472 million, supported by strong investment-led buying amid supply constraints for gold bars.

Rest of Asia

Japan remained relatively resilient, with Q1 demand broadly stable compared with the previous year, supported by continued interest in quasi-investment gold chains and ornaments. In South Korea, improved wedding-related demand provided support; however, a continued preference for lower-carat jewellery moderated volume growth. Despite softer volumes, demand value reached a quarterly record of US$603 million.

Quarter	China (Tonnes)	India (Tonnes)	Rest of World (Tonnes)	Total Volume (Tonnes)	Total Value (US$ bn)
Q115	220	150	250	620	$28B
Q116	180	80	230	490	$22B
Q117	180	120	230	530	$23B
Q118	190	120	220	530	$24B
Q119	190	120	230	540	$25B
Q120	60	70	180	310	$18B
Q121	190	140	190	520	$31B
Q122	180	100	200	480	$32B
Q123	200	90	200	490	$32B
Q124	180	100	200	480	$37B
Q125	130	90	170	390	$41B
Q126	80	70	150	300	$52B

Outlook

The global gold jewellery market is expected to remain influenced by the interplay between elevated gold prices, consumer affordability and investment sentiment. While higher prices continue to support market value, they are reshaping purchasing patterns, driving demand towards lightweight jewellery, lower-carat products and investment-linked gold offerings.

Source: https://www.gold.org/goldhub/research/ gold-demand-trends/gold-demand-trends-q1-2026/ jewellery

2.2 Indian Gold Jewellery Market

Indias gem and jewellery export sector witnessed a strong recovery in June 2026, with exports rising 26.51% year-on-year to US$ 2.21 billion, reflecting renewed momentum amid improving global demand conditions. The recovery was led by robust growth in gold jewellery exports, supported by lower international gold prices, stronger consumer demand across key markets and fresh export orders generated through major jewellery exhibitions in Kuwait and Sharjah.

Despite the strong monthly performance, exports during April–June 2026 remained broadly stable at US$ 6.61 billion, highlighting the sectors resilience amid global economic uncertainty and elevated precious metal prices.

A decline of 10.28% month-on-month in international gold prices during June improved cost competitiveness for Indian exporters by easing raw material pressures. Continued demand from key markets including the UAE, USA, Saudi Arabia and the UK, along with market diversification initiatives and favourable trade developments, supported the sectors recovery. According to the Gem & Jewellery Export Promotion Council (GJEPC), recently concluded trade agreements, including the India–UK CETA, are expected to further strengthen Indias position in global jewellery markets by improving market access and creating new export opportunities.

Gold Jewellery Drives Export Growth

Gold jewellery emerged as the strongest growth driver during June, with combined exports of plain and studded gold jewellery increasing 54.50% year-on-year to US$ 1.09 billion.

• Plain Gold Jewellery exports grew 25.34%, supported by demand from the UAE, USA, Saudi Arabia, Singapore and the UK.

• Studded Gold Jewellery exports surged 85.35%, driven by strong demand from the UAE, Saudi Arabia and the UK.

The sharp rise reflects renewed consumer interest in gold jewellery across international markets, supported by improved affordability following the moderation in gold prices.

Diamond Exports Maintain Positive Momentum

Indias diamond exports continued their recovery trajectory, supported by steady international demand.

• Cut & Polished Diamond exports increased 8.71% to US$ 846.73 million, with key markets including the UAE, Hong Kong, Belgium, Canada and the USA contributing to growth.

• Polished Lab-Grown Diamond exports recorded strong growth of 52.25% to US$ 101.35 million, driven by rising acceptance across markets such as Hong Kong, the UAE, Thailand, Canada and the USA.

Mixed Performance Across Other Categories

While platinum jewellery exports recorded healthy growth of 34.77%, silver jewellery exports declined 23.98% during the month. Coloured gemstone exports also witnessed a decline, indicating that the recovery remained concentrated in select product segments.

Market Drivers

• Strengthening Global Demand for Gold Jewellery

Rising consumer interest across key international markets, particularly the UAE, USA, Saudi Arabia and the UK, supported a strong recovery in Indias gold jewellery exports. Seasonal buying trends, festive demand and improving consumer sentiment contributed to increased export orders.

• Improved Cost Competitiveness from Softer Gold Prices

A moderation in international gold prices during June 2026 eased raw material costs for exporters, improving pricing competitiveness and encouraging renewed buying activity across global markets.

• Growing Preference for Lightweight and Value-Driven Jewellery

Changing consumer preferences amid elevated gold prices have accelerated demand for lightweight, affordable and design-focused jewellery, creating opportunities for Indian manufacturers with diverse product capabilities.

• Expansion of Global Trade Opportunities

New trade agreements, including the India–UK CETA, are expected to enhance market access, reduce trade barriers and support long-term export growth by opening new avenues for Indian jewellery exporters.

• Strong Performance of Lab-Grown Diamonds

Rising global acceptance of sustainable and affordable alternatives has supported growth in lab-grown diamond exports, with increasing demand from markets such as Hong Kong, the UAE, Canada and the USA.

• Exhibitions Driving International Orders

Participation in major global jewellery exhibitions, including those in Kuwait and Sharjah, generated fresh business enquiries and export orders, supporting the sectors recovery momentum.

• Indias Manufacturing Strength and Global Positioning

Indias established jewellery manufacturing ecosystem, skilled craftsmanship, large-scale production capabilities and diversified product portfolio continue to strengthen its competitiveness in global markets.

• Market Diversification and Emerging Demand Centres

Exporters are increasingly expanding into new geographies while strengthening presence in established markets, reducing dependence on individual regions and creating more resilient growth opportunities.

Outlook

The June performance signals improving export sentiment for Indias gem and jewellery industry, supported by easing bullion prices, stronger international demand and expanding trade opportunities. Going forward, sustained growth will depend on stable global economic conditions, continued market diversification, regulatory support and resolution of industry challenges, including gold availability constraints linked to GST-related import regulations.

With its strong manufacturing capabilities, global market presence and expanding trade partnerships, India remains well-positioned to strengthen its role as a leading hub for gem and jewellery exports.

Source: https://jewelbharat.com/india-jewellery-exports-june-2026/

3. Company Overview

Manoj Vaibhav Gems N Jewellers Limited (MVGJL) is one of the leading regional jewellery retailers in South India, with a well-established presence across Andhra Pradesh and Telangana through its flagship brand, Vaibhav Jewellers. Headquartered in Visakhapatnam, the Company offers an extensive portfolio of gold, diamond, platinum and silver jewellery, serving customers through an integrated omnichannel network comprising retail showrooms, its proprietary e-commerce platform and leading online marketplaces.

Built on the philosophy VAIBHAV is Relationships, By Design, the Company has cultivated enduring customer relationships through trusted craftsmanship, transparent business practices and service excellence. MVGJL continues to strengthen its regional leadership while expanding its retail footprint, enhancing digital capabilities and delivering distinctive jewellery collections that cater to evolving consumer preferences.

SCOT Analysis

Strengths

• Established Brand with Strong Regional Leadership

With over two decades of retail presence, Vaibhav Jewellers has built a trusted brand franchise across Andhra Pradesh and Telangana. Its reputation for quality, purity and customer-centric service has translated into strong brand recall and repeat business.

• Differentiated Product Design

The Company combines traditional craftsmanship with contemporary aesthetics to offer exclusive jewellery collections. Its design-led approachenables faster response to changing consumer preferences while strengthening product differentiation.

• Deep Supply Chain Relationships

Long-standing partnerships with suppliers and artisans provide reliable sourcing, consistent quality and operational flexibility. More than 70% of gold jewellery suppliers have been associated with the Company for over a decade, reinforcing supply chain resilience.

• Trusted Brand and Quality Assurance

All jewellery is BIS Hallmarked and marketed under the established Vaibhav Jewellers brand, supported by proprietary collections such as Visesha , reinforcing customer confidence and brand equity.

• Growing Omnichannel Presence

MVGJL has successfully integrated physical retail with digital commerce through its website and online marketplaces. Features such as Live Video

Shopping, Virtual Try-On and pan-India delivery enhance customer convenience and expand market reach beyond its core geographies.

Challenges

• Softening Category Demand for Diamond Jewellery

Reduced global category-level promotion of diamonds has moderated consumer demand, requiring brands to invest in targeted marketing and customer education to stimulate premium jewellery sales.

• Availability of Skilled Craftsmanship

The jewellery business remains highly dependent on experienced artisans. Attracting, retaining and continuously upgrading skilled talent remains critical to maintaining product quality and execution capabilities.

• Intensifying Customer Expectations

As organised retail expands, customer expectations around design innovation, service quality and personalised experiences continue to rise, increasing the need for sustained customer engagement and retention initiatives.

• Dependence on Imported Gold

Indias reliance on imported gold exposes the industry to fluctuations in international bullion prices, exchange rates and regulatory changes, creating procurement and margin management challenges.

Opportunities

• Shift Towards Organised Jewellery Retail

Increasing consumer preference for certified, branded jewellery and mandatory BIS hallmarking are accelerating the transition from unorganised players to organised retailers, benefiting established brands such as Vaibhav Jewellers.

• Expanding Consumption in Emerging Markets

Rising disposable incomes, urbanisation and growing jewellery demand across Tier II and Tier III cities provide significant opportunities for retail expansion and deeper market penetration.

• Digital Commerce and Omnichannel Growth

The rapid adoption of online shopping is reshaping jewellery retail. MVGJLs investments in digital engagement, virtual shopping experiences and omnichannel capabilities position it well to capture the growing online consumer segment.

• Premiumisation and Product Innovation

Increasing demand for lightweight, contemporary and diamond-studded jewellery presents opportunities to expand higher-value product offerings and improve customer wallet share.

Threats

• Regulatory and Policy Changes

Changes in taxation, hallmarking regulations, import duties and gold procurement policies could impact industry dynamics, operating costs and supply chain efficiency.

• Economic and Demand Cycles

Jewellery demand is closely linked to consumer sentiment and discretionary spending. Economic slowdowns or prolonged uncertainty could affect purchasing behaviour and retail sales.

• Gold Price Volatility

Sharp fluctuations in international gold prices may influence consumer buying decisions, delay purchases and impact inventory management and profitability.

• Intensifying Industry Competition

Competition from national jewellery chains, regional organised retailers and digital-first brands continues to intensify, requiring sustained investments in brand building, customer experience and product innovation.

4. Financial Overview

(Rs. in Crores)

Particulars	FY 2025-26	FY 2024-25	Growth %
Revenue	2,744.03	2,384.02	15.10%
EBITDA (excl other income)	185.25	164.54	12.59%
Profit after tax (PAT)	114.98	100.43	14.49%

Product performance

(Rs. in Crores)

Particulars	FY 2025-26	FY 2024-25
(i) Gold	1,895.95	1,867.38
(ii) Gold exchange gold#	602.47	314.06
(iii) Silver articles	143.29	81.26
(iv) Platinum ornaments	1.33	1.10
(v) Diamonds	60.67	73.39
(vi) Stones	39.25	45.87
(vii) Others	0.73	0.64

# Customer exchange gold ornaments are sold to a refining entity, and gold bullion is purchased from them in return, under a sales-cum-purchase arrangement.

Particulars	March 31, 2026	March 31, 2025
a) Current Ratio: Current assets / Current liabilities	1.79	1.90
b) Debt Equity: Total debt (long-term and short-term interest bearing) / Shareholders equity	0.55	0.51
c) Debt Service Coverage Ratio: Earnings available for debt service / Debt service	3.96	3.36
d) Return on Equity: Profit for the year / Average shareholders\u2019 equity	14.82%	15.03%
e) Inventory Turnover Ratio: Total sales / Average inventory	1.87	1.99
f) Trade Receivables Turnover: Total sales / Average trade receivables	88.76	84.84

5. Risk Management

The Company follows an integrated risk management framework that enables early identification, assessment and mitigation of business risks. Risk management is embedded across strategic planning and operational decision-making, supported by strong internal controls, technology adoption, diversified sourcing, regulatory compliance and customer-centric business practices. This proactive approach strengthens organisational resilience while supporting sustainable long-term growth.

Risk Area	Potential Impact	Mitigation Measures
Macroeconomic Volatility	Inflation, slower economic growth and currency fluctuations can affect consumer spending on discretionary products and increase procurement costs.	Focus on diversified product offerings across price points, prudent inventory management and disciplined cost control to maintain profitability across market cycles.
Gold Price Volatility	Sharp movements in gold prices may influence purchasing decisions, impact inventory valuation and affect margins.	Dynamic pricing mechanisms, efficient inventory planning, optimal stock rotation and customer schemes help manage price volatility.
Supply Chain Disruptions	Disruptions in the availability of gold, diamonds or gemstones, along with logistics challenges, can affect product availability and delivery timelines.	Long-standing supplier relationships, diversified sourcing and strong vendor partnerships ensure supply continuity and operational resilience.
Changing Consumer Preferences	Evolving demand for lightweight, contemporary, certified and ethically sourced jewellery requires continuous product innovation.	Continuous investment in design development, customer insights, product innovation and customised collections aligned with emerging trends.
Digital and Technology Risks	Increasing digital adoption exposes the business to cybersecurity threats while requiring continuous technology upgrades to remain competitive.	Ongoing investments in cybersecurity, secure digital platforms, omnichannel capabilities and technology-enabled customer engagement.
Regulatory and Compliance Changes	Changes in taxation, hallmarking norms, import regulations, AML/KYC requirements and other industry regulations may impact operations and compliance costs.	Robust governance framework, proactive regulatory monitoring and strong internal compliance systems ensure timely adherence to evolving regulations.
Competitive Intensity	Intensifying competition from organised retailers, online platforms and emerging brands may impact market share and pricing power.	Strengthening brand equity, enhancing customer experience, expanding retail presence and offering differentiated jewellery collections.
Talent and Skilled Artisan Availability	Limited availability of skilled artisans and experienced retail professionals may affect product quality and execution capabilities.	Continuous skill development programmes, employee engagement initiatives and long-term partnerships with artisan networks.
ESG and Responsible Sourcing Expectations	Increasing stakeholder focus on responsible sourcing, transparency and sustainability may require enhanced supply chain oversight.	Adoption of ethical sourcing practices, BIS-certified products, transparent governance and continuous improvement in sustainability practices.
Geopolitical and Global Trade Risks	Trade disruptions, geopolitical tensions and supply constraints may affect raw material availability and export opportunities.	Geographic diversification of sourcing, strong supplier ecosystem and close monitoring of global market developments.
Business Continuity Risks	Unforeseen events such as pandemics, natural disasters or operational disruptions could impact retail operations and supply chains.	Business continuity planning, disaster recovery protocols and digital sales channels to ensure uninterrupted customer service.

6. Internal Control System and its adequacy

The Company has an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and also for the sale of goods. The Company also has internal control system for speedy compilation of accounts and Management Information Reports and to comply with applicable laws and regulations.

M/s. Sagar & Associates, Chartered Accountants, Hyderabad the Statutory Auditors of the Company, has audited the Financial Statements included in this Annual Report and has issued a report on the Internal Control over financial reporting (as defined in section 143 of the Companies Act, 2013). The Company has appointed M/s. P. A. Naidu & Associates, Chartered Accountants, Visakhapatnam to oversee and carry out Internal Audits and provide periodical internal reports to the management. The Company has also appointed M/s. P.S Rao & Associates, Practising Company Secretaries, Hyderabad as secretarial auditors of the Company for conducting secretarial audit.

7. Cautionary Statement

Certain statements in the Management Discussion and Analysis describing the Companys objectives, and predictions may be forward-looking statements within the meaning of applicable laws and regulations. Actual results may vary significantly from the forward-looking statements contained in this document due to various risks and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India, volatility in interest rates, new regulations and Government policies that may impact the Companys business as well as its ability to implement the strategy. The Company does not undertake to update these statements.