Tribhovandas Bhimji Zaveri Ltd Management Discussions

The Management Discussion and Analysis includes statements regarding the Companys objectives, projections, estimates and expectations. These may be considered forward-looking statements under applicable securities laws and regulations. Such statements involve risks and uncertainties that could cause actual results to differ materially. The Company assumes no obligation to update these forward-looking statements unless required by law. Readers should review this discussion alongside the Companys financial statements and accompanying notes in the Annual Report. This analysis is based on the Companys consolidated financial results.

GLOBAL ECONOMIC OVERVIEW

Global growth remained steady, yet underwhelming in FY 2024. The global economy proved resilient despite significant challenges, inflation declined and fell within targets set by the central bank and risks to outlook became more balanced, although growth remained below its longer-run average. Global growth was influenced by a mix of factors, geopolitical tensions, continued strong growth in emerging economies and the impact of monetary policy tightening in the developed countries.

The global economic activity sustained modest momentum with world GDP projected to have grown by 3.2% in 2024, according to the International Monetary Fund (IMF). The world witnessed its fair share of uncertainty given the rising geopolitical tensions and rate cuts. However, the world seems to be slowly finding the right balance between spiralling inflation and return to growth.

In the emerging market and developing economies, disruptions to production and shipping of commodities –especially oil – confiicts, civil unrest and extreme weather events resulted in downward revisions to the outlook for Middle East, Central Asia and sub-Saharan Africa. However, the forecast for emerging Asia was positive. Surging demand for semiconductors and electronics, driven by significant investments in artificial intelligence propelled growth and this trend was supported by substantial public investment in China and India. Meanwhile, Emerging Market and Developing Economies (EMDEs) have undergone a remarkable transformation, as they accounting for approximately 45% of the global GDP, as compared with 25% at the turn of the century.

Source: https://www.imf.org/en/Publications/WEO/Issues/ 2025/01/17/world-economic-outlook-update-january-2025

OUTLOOK

The forecast for FY 2025 is broadly unchanged from that in FY 2024, primarily due to the upward revision in the United States offsetting downward revisions in other major economies. As inflation moves closer to target levels and monetary easing supports economic activity, global growth is expected to stabilise. The global economy is expected to grow by 3.3% in 2025 and 2026, below the historical average of 3.7% in 2000-19. This is seen to be supported byfi improved household consumption, which is expected to be driven by income tax cuts, anticipated interest rate reductions and a return to positive real wage growth. However, risks and challenges may continue, such as the elevated interest rates.

Although global headline inflation is anticipated to decline to 4.2% in FY 2025 and to 3.5% in FY 2026, amidst risks from geopolitical tensions, wage and services costs and trade protectionism. Driven by firmer trade and investment, a broad-based and moderate expansion of 2.7% per year in inflation is forecasted for FY 2025 and FY 2026. Persistent services and wage inflation in several regions might lead to diverging monetary policy responses.

Source: https://www.worldbank .org/en/publication/ global-economic-prospects

INDIAN ECONOMIC OVERVIEW

India is poised to lead the global economic landscape, maintaining its position as the fastest-growing major economy. The economy is projected to grow by 6.4% in FY 2024-25, compared to 8.2% growth in FY 2023-24. At a time when global growth is expected to hover at 2.7% in 2025 and 2026, Indias remarkable performance highlights its resilience and growing significance in shaping the worlds economic trajectory. Indias continued resilience highlights its growing significance in the global economy, establishing its role as a key driver of economic stability and expansion.

Indias sustained momentum continues to be driven by a thriving services sector and a revitalised manufacturing base and is well supported by transformative initiatives and key reform-based policies by the government. Infrastructure modernisation, tax simplification and policy reforms are not only fuelling domestic growth, but are also reinforcing Indias role as a key pillar in maintaining global economic stability. As Chinas economic growth slows to 4%, Indias growth is a testament to ambition, innovation and immense potential in the economy.

Moving ahead, GDP growth is projected to remain steady at 6.7% in the next two fiscal years of FY 2025-26 and FY 2026-27, significantly outpacing global and regional peers. This underscores Indias solid economic fundamentals and its capacity to sustain momentum, despite global uncertainties.

Indias services sector is poised for robust growth, while manufacturing activity is also strengthening as a result of government initiatives to enhance logistics infrastructure and simplify tax systems. Supported by a stronger labour market, improved access to credit and lowering inflation, private consumption in India is expected to accelerate. With a steady growth outlook, India remains a crucial player in shaping the worlds economic future. Supported by rising private investments, healthier corporate balance sheets and favourable financing conditions, investment growth is likely to remain steady in India. Investment growth in India is likely to remain steady, bolstered by rising private investments, healthier corporate balance sheets and favourable financing conditions.

Source: https://static.pib.gov.in

INDUSTRY REVIEW

Indian Gems & Jewellery Industry

The Indian gems and jewellery market has been a prominent global player. It is a vital contributor to the Indian economy, accounting for 6-7% of the countrys GDP. It employs approximately 2.5 million workers and is one of the fastest-growing, highly export-oriented and labour-intensive sectors. India is recognised as a global hub for the jewellery market due to its cost-effective production and highly skilled workforce. As the 8^th largest exporter, which contributes to 3.2% of exports, Indias gems and jewellery market is integral to the growth of the economy.fi The industry, estimated to be sized at USD 100 billion in FY 2024, is fiourishing at an impressive compound annual growth rate (CAGR) of 8.93%, catalysed by an increase in disposable income among consumers and a deep-seated cultural significance that elevates the role of jewellery in social and economic spheres. Growth is anticipated to be driven by strong domestic and global demand, strategic initiatives and factors like rising disposable incomes, urbanisation, increasing demand for gold, diamonds and precious stones, cultural significance, evolving consumer preferences and festive season and the fast-growing wedding market in India.

Factors driving growth

Some of the key growth drivers of the jewellery industry are as below:

Indias gems and jewellery market thrives on the countrys rich cultural heritage, where jewellery is more than just an accessory - it holds deep social, religious and investment significance. This cultural afinity, combined with seasonal demand, continues to reinforce Indias position as a global jewellery powerhouse.

Gold is intrinsic to the Indian culture, closely tied to religious beliefs, traditions and festivals. Festivals such as Diwali and Akshaya Tritiya further boost jewellery sales, as gold purchases are widely associated with prosperity and auspicious beginnings.

A major driver of demand is the wedding sector, which accounts for nearly 50% of total market consumption, driven by traditional investments in bridal sets and gold ornaments. India is estimated to have around 11-13 million weddings per year and the demand for bridal jewellery looks set to remain strong over the long term. Bridal jewellery dominates the gold jewellery landscape, enjoying 50-55% of market share; weddings, together with festivals, constitute the two major gold purchase occasions in India.

The Indian jewellery market is witnessing a notable shift as consumer preferences evolve toward lightweight and daily-wear jewellery, particularly among younger buyers and the expanding base of working professionals. This growing demand for practical yet stylish designs has fuelled the popularity of 14K and 18K gold pieces, reflecting an industry that seamlessly blends aesthetic appeal with functionality while adapting to global trends.

Indias gems and jewellery market is driven by well- established players with strong brand identities and a significant influence over industry dynamics. These key stakeholders play a crucial role in shaping the markets future, in driving growth and in adapting to evolving consumer preferences.

Gold remains the most popular form of investment for the agricultural communities. Gold demand in the agricultural segment is seasonal and closely linked to the harvesting season.

Future Outlook

Driven by factors like increased rural demand, a high volume of weddings and potential reductions in gold import duties, the gems & jewellery market demonstrates a strong growth trajectory. The size of the gems & jewellery industry is estimated to touch USD 168.62 billion by 2030. With a positive outlook, the industry continues to integrate global fashion trends, respond to demographic shifts and navigate economic signals. This adaptability reinforces Indias position as a dominant force in the global gems and jewellery sector, ensuring sustained growth and competitiveness on the world stage.

At IIJS Signature 2025 that opened to a global stage in January 2025, Gem & Jewellery Export Promotion Council (GJEPC) celebrated Indias rich heritage by incorporating the ancient Brahmi script into the overarching show theme of ‘Brilliant Bharat. The IIJS theme showcased Indias exceptional jewellery craftsmanship on the global stage. Adding a unique touch and cultural dimension to the event, the participants were encouraged to make jewellery based on the Brahmi theme, highlighting the timeless beauty of Indian craftsmanship.

Key Challenges

Despite the strong growth of the gems and jewellery industry, the industry faces several challenges in the aftermath of a tough macro-economic, geopolitical uncertainties, rising interest rates, demand slump in major consumer markets and issues related to rough diamond sourcing. The outbreak of geo-political tensions earlier between Russia & Ukraine and then between Israel & Hamas deeply impacted jewellery exports as the demand has been volatile in the overseas markets. Additionally, with 60+ countries undergoing elections this year, this can further hamper trade in these countries.

Some of the key challenges are:

Gold price volatility

Rising costs of raw materials such as diamonds and platinum

Heavy reliance on imports, making the sector highly sensitive to global economic fluctuations and geopolitical developments, infiuencing consumer purchasing behaviour

Government regulations and increasing import duties, impacting the competitiveness and profitability of industry players

To counter competition from China, India needs world-class and robust infrastructure, education, empowerment and on-ground execution to elevate the industry further and to achieve the goal of Viksit Bharat. It is also in need of investments in advanced technology for gemstone processing and to implement skill development programmes to elevate craftsmanship and productivity. Government initiatives and support can position India as a global trading hub for gold and diamonds and strengthen Indias global leadership, while creating substantial employment opportunities.

According to GJEPC, the sector needs the following initiatives:

Support for co-funding global diamond promotion campaigns;

Inclusion of jewellery parks in the harmonised infrastructure list;

An Infrastructure Support Fund to develop a gem bourse;

Advancing a platinum jewellery ecosystem and expanding trading centres.

India: A Global Hub for Gems & Jewellery

India stands as a global leader in the gems and jewellery industry, ranking among the largest consumers and exporters worldwide. The country boasts exceptional expertise in gold refining, diamond cutting and the creation of intricately handcrafted jewellery, solidifying its reputation as a premier hub for fine craftsmanship. Based on its potential growth and value addition, the industry has been declared as a key focus area for export promotion by the Government.

India is a global jewellery manufacturing hub and also the worlds largest diamond cutting and polishing centre. India majorly exports cut and polished diamonds, lab-grown synthetic diamonds, coloured gemstones, synthetic stone, plain and studded gold jewellery, silver and platinum jewellery, imitation jewellery and articles of gold, silver and others. Its dominance in diamond cutting and jewellery manufacturing cements Indias position as a global leader in the industry. In collaboration with industry stakeholders, the Government remains committed to aggressively promote jewellery exports.

Gems & Jewellery Exports

According to the GJEPC, India exports 75% of the worlds polished diamonds. The sector plays a crucial role in boosting the countrys foreign exchange earnings (FEEs). To encourage further growth, the Indian government permits 100% Foreign Direct Investment (FDI) in the sector. As per data released by GJEPC, the overall gross exports in FY 2025 (un USD til February 2025) stood at USD 2,422.9 million, reafirming its strong international presence and competitive edge in the global market.

India exports gems and jewellery to key markets, including the USA, Hong Kong, UAE, Belgium, Singapore, Israel, Thailand, the UK, Switzerland and the Netherlands. Until June 2024, the USA remained the largest importer, with jewellery imports valued at USD 2.4 billion, compared to USD 2.69 billion in FY 2023-24. Hong Kong and the UAE also ranked among Indias top export destinations, with shipments worth USD 1.1 billion and USD 1.5 billion, respectively, contributing 15.21% and 21.18% of total exports until June 2024, reafirming Indias strong global footprint in the gems and jewellery trade.

Some of the key export destinations like Belgium, Singapore, Switzerland and the Netherlands have shown steep growth in gems and jewellery imports from India since the pre-pandemic year. Additionally, the opening of the India Jewellery Exposition (IJEX) centre in Dubai and the signing of agreements with key export destinations such as UAE, Australia, Israel, the UK and Canada, among others continue to drive exports in the post-pandemic era too.

USD 945.24 billion	3.2%	8th
World Exports in 2024	Indias share in World Exports	Indias rank in World Jewellery Exports

https://gjepc.org/statistics.php

India holds the top rank in cut and polished diamonds, commanding 25% of global exports. Indias gems and jewellery exports accounted for 3.2% of global exports in 2024, positioning the country as the 8^th largest exporter in the world.

During the period April-March 2025, net exports amounted to USD 23,473.64 million, a 12.6% growth YoY, while total imports during the year stood at USD 19,706.79 million, as per data from Gems & Jewellery Export Promotion Council (GJEPC). In April-May 2025, gross exports of Gems & Jewellery declined to USD 4,639.81 million vs USD 4,129.57 million during these two months of the previous financial year.

Source: https://gjepc.org/statistics.php

Exports of Gems & Jewellery (April 2024-March 2025)

Rough Diamonds

USD 416.51 million

Total Gold Jewellery

USD 11,367.77 million

Cut & Polished Diamonds

USD 13,292.43 million

Coloured Gemstones

USD 440.44 million

Source: https://gjepc.org/statistics.php

Gems & Jewellery Imports

India imports gold to meet the high demand from its jewellery industry and as a store of value, with imports rising during the festive and wedding seasons. However, imports of gold fell sharply, reaching their lowest levels in recent years due to weak demand amid high prices.

In the same period of April-March 2025, India imported USD 19,706.79 million, a decline of 17.6% YoY. In the two months of April-May 2025 of the current financial year of FY 2025-26, India made net imports of USD 3,748.62 million vis-?-vis USD 3,845.69 million in the same period of the previous fiscal year, as per data from GJEPC. Due to the economic uncertainties, buyers are shown leaning more towards the yellow metal as a haven for investments rather than splurging on lifestyle.

Source: https://gjepc.org/statistics.php

The lower import figures indicate increased domestic demand being met by local jewellery manufacturers, reducing reliance on international players for finished jewellery products

USD 19,706.79 million

Total Imports in FY 2024-25

https://gjepc.org/statistics.php

Imports of Gems & Jewellery (April 2024-March 2025)

Rough Diamonds

USD 10,804.54 million

Gold Bar

USD 4,237.10 million

Cut & Polished Diamonds

USD 1,211.66 million

In a move to strengthen Indias global competitiveness in the diamond sector, the Ministry of Commerce & Industry introduced the Diamond Imprest Authorisation (DIA) Scheme, effective 1^st April, 2025. This initiative allows duty-free imports of natural cut and polished diamonds under ? carat (25 cents), including semi-processed, broken and half-cut diamonds. The scheme aligns with beneficiation policies adopted by diamond-producing nations such as Botswana, Namibia and Angola, which mandate a minimum level of local value addition in diamond processing.

Gold Jewellery

India, the worlds second-largest consumer of gold, saw its demand rise of 5% at 802.8 tonnes in FY 2024, driven by strong jewellery and investment demand, reduction in import duty and purchases related to weddings and festivals. This growth positioned India ahead of China in gold jewellery consumption. With gold reserves of approximately 876 tonnes, Indias consumption surpasses that of many developed nations, influenced by cultural traditions and demographic factors.

According to the World Gold Council, the consumption of the yellow metal is projected to be lower at 700-800 tonnes in FY 2025, moderating from the last nine years peak. Increasing prices of gold is dampening jewellery demand, even as investment demand rises, particularly in gold Exchange Traded Funds (ETF). Domestic gold prices have reached a record high of 84,399 rupees per 10 grams. Jewellery demand makes up 70% of Indias total gold demand.

A record 4,974 metric tonnes of gold was reportedly bought in FY 2024, pushing the total market value to USD 382 billion. Gold investments increased 25% during the same period, with ETFs experiencing their first positive inflows since 2020. China and India led these inflows, as investors sought gold bars and coins amid concerns over economic growth, persistent geopolitical tensions and falling interest rates.

Key Drivers of Indias Gold Afinity

Cultural Significance: Gold plays a vital role in Indian culture and religion, symbolising prosperity and being integral to weddings, festivals and auspicious occasions.

Wealth Preservation & Investment: Gold is seen as a safe-haven asset and serves as a hedge against economic uncertainty and inflation.

Jewellery Demand: A major portion of Indias gold consumption comes from jewellery, valued both as adornment and a traditional form of investment.

Investment Surge: Gold investment demand grew notably in FY 2024, with retail investors increasing their exposure amid rising prices.

Rising Prices: Gold prices surged 28% in 2024 and have already gained more than 25% in the first half of CY 2025, fuelling continued interest from investors anticipating further appreciation.

Changing demographics

Indias gold market is undergoing a huge shift due to the evolving demographics. With a younger, more financially savvy population and increased financial inclusion, potentially impacting traditional gold investment patterns, while still retaining cultural significance, Indias gold market stands at a pivotal juncture.

Wedding demand

Although record-high gold prices have dampened demand, particularly for jewellery, with purchases now largely limited to essential needs, primarily weddings. With weddings serving as a key driver of demand, gold jewellery has become an integral part of a brides attire and a cherished gift from family and guests. Gold remains integral to Indian weddings, valued not only for its cultural and sentimental significance, but also as a symbol of prosperity and adornment, ensuring steady jewellery demand.

Gold – A safe haven asset

Golds appeal stems from several key factors. It is widely regarded as a safe-haven asset, maintaining its value even during economic downturns. Unlike paper currency, gold cannot be devalued through excessive printing, making it a strong hedge against inflation. Its price is generally more stable than stocks and other securities, offering investors a reliable store of value. In India, gold has historically been one of the most sought-after assets, playing a crucial role in wealth preservation and inheritance, alongside land ownership.

Investment demand for gold is expected to rise amid global geopolitical and macroeconomic uncertainties, as well as the asset classs relative outperformance. All these factors collectively contribute to the sectors positive growth outlook. Looking ahead, seasonal factors and wedding-related purchases are expected to lend support to gold demand in the near future. (Source: World Gold Council) Source: https://www.gold.org/goldhub/gold-focus/2025/03/ india-gold-market-update -investment-appetite -upheld#:~:text=Indian%20gold%20ETF%20inflows%20 in,37.5bn%2FUS%24435mn.

Organised Jewellery Industry – India

The organised jewellery industry in India is a significant contributor to the economy, accounting for 7% of the countrys GDP and employing over 5 million people. In recent years, the sector - comprising chain stores and larger retailers - has gained substantial market share, driven by increasing formalisation, evolving consumer preferences and a demand for enhanced shopping experiences. Indias jewellery sector is undergoing a significant transformation, with formalisation gaining momentum. Organised players now command 36-38% of the market, a notable increase from 22% in FY 2019, reflecting a shift towards transparency, efficiency and consumer trust.

This shift has been fuelled by increasing consumer trust in branded retailers, rising disposable incomes, mandatory hallmarking regulations and a growing preference for lightweight, versatile jewellery that suits modern lifestyles. Indias organised jewellery sector is poised for strong growth, with projected revenue expansion of 17% in FY 2025-26, driven by robust wedding season demand and rising investment interest.

One of the key reasons behind the shift towards "the organised segment" is the assurance of quality and transparency. Organised jewellers offer hallmark-certified products, competitive pricing and clear buyback and exchange policies, making them a preferred choice for consumers. Additionally, buyers with legitimate financial transactions prefer associating with established brands that adhere to regulatory standards.

Compared to local jewellers and small shops, organised players provide a wider variety of contemporary designs, superior craftsmanship and a seamless shopping experience. Their ability to leverage advanced technology, customer service and branding further enhances trust and convenience for buyers. With a focus on quality, transparency and customer-centric services, organised jewellers are well-positioned to outperform their unorganised counterparts, shaping the future of Indias jewellery industry.

Industry leaders are capitalising on these trends by expanding aggressively through franchise models and catering to evolving preferences for daily wear and studded jewellery. This transformation marks a new era for Indias deep-rooted a finity for gold, blending tradition with contemporary style and convenience.

Source: https://w w w.cciindia.org/gems.html#:~:tex t=the%20 automatic%20route.-,The%20Gems%20and%20Jewellery%20sector%20plays%20a%20significant%20role%20in,employ%20 8.23%20million%20by%202022

https://economictimes.indiatimes.com/industry/cons-products/fashion-/-cosmetics-/-jewellery/organised-jewellery-industry-to-likely-see-17-revenue-growth-in-fy26-india-ratings/ articleshow/117267994.cms?from=mdr

GROWTH DRIVERS & OPPORTUNTIES

Rising Disposable Income and Favourable Demographics Driving Jewellery Demand: The growing young middle-class population, the rise of dual-income households and increasing disposable income have significantly boosted spending on luxury items, particularly high-quality branded jewellery. Gold, deeply embedded in Indian culture as a symbol of wealth and prosperity, continues to drive sustained demand, especially during ceremonies and celebrations.

Additionally, millennials, Gen Z and tech-savvy consumers, who are highly brand-conscious, are further propelling the demand for premium, branded jewellery. Emerging market consumers are increasingly drawn to established brands that evoke trust and offer an aspirational lifestyle, fuelling growth in the branded jewellery segment.

Rapid Growth of E-Commerce and Digital Platforms: The widespread adoption of smartphones and digital technology has revolutionised jewellery shopping, driving a surge in online sales and expanding market accessibility. Consumers now have access to a diverse range of jewellery designs and products at their fingertips. Additionally, the influence of social media has heightened awareness of fashion trends, jewellery styles and premium brands, shaping purchasing decisions. This shift in consumer behaviour presents immense growth opportunities for the gems and jewellery industry, enabling brands to reach a broader audience and enhance their market presence.

Rising Demand for Lightweight Fashion Jewellery: The growing preference for lightweight fashion jewellery, especially among younger consumers, is driving significant expansion in this segment. With a focus on afiordability, style and versatility, millennials and Gen Z shoppers are increasingly opting for contemporary designs suited for everyday wear and special occasions. This evolving trend presents a lucrative opportunity for the Indian gems and jewellery industry, encouraging brands to innovate and cater to the demand for modern, budget-friendly jewellery options.

Uncorporatised Jewellery Sector: With half of the gems and jewellery sector remaining uncorporatised, it offers significant opportunities for greater organisation and formalisation within the domestic retail segment. This shift is expected to drive efficiency, transparency and long-term growth in the industry.

An Emerging Global Hub for Gems and Jewellery: Amid shifting global economic dynamics and rising geopolitical tensions, India is gaining prominence as a preferred destination for the gems and jewellery industry. As one of the worlds fastest-growing economies, the country is well-positioned to benefit from the ‘China Plus One strategy, with international corporations actively diversifying their sourcing away from China.

THREATS AND CONCERNS

Inflation and surge in gold prices: The surge in gold prices has significantly impacted gold consumption, particularly in jewellery, which accounts for nearly three-quarters of Indias total demand. However, rising inflation and economic slowdowns in key markets could dampen consumer interest in gold, gems and jewellery. Weak demand in both domestic and international markets may also result in a decline in exports.

Rising Geopolitical Tensions and G7 Sanctions on Russian Diamonds: Rising geopolitical tensions, including the Russia-Ukraine war and confiicts in the Middle East, present challenges for Indias gems and jewellery industry. The G7s sanctions on Russian diamonds - banning direct imports from 1^st January, 2024 and restricting diamonds processed in third countries from 1^st March, 2024 - have intensified concerns. With India heavily reliant on Russian rough diamonds, these restrictions could disrupt supply chains, impact the production of polished diamonds and weaken Indias export market.

Reliance on Imports: Indias gems and jewellery industry heavily depends on imports, sourcing nearly 90% of its raw materials, including rough diamonds and gold bars. This reliance makes the sector vulnerable to regulatory changes and supply chain disruptions, which could impact the availability of essential materials for diamond and gold jewellery production.

Industry Fragmentation: The Indian gems and jewellery industry remains highly fragmented and largely unorganised, dominated by small, family-run jewellery shops with long-standing customer trust. Many consumers prefer these local businesses over organised retailers due to price advantages, making it challenging for the organised sector to expand its market share.

INDUSTRY OUTLOOK

Indias gems and jewellery industry is entering FY 2026 with optimism, having successfully navigated challenging market dynamics in FY 2025. The growth of the sector in the coming years will be driven largely by the expansion of large retailers and established brands. These brands are shaping the organised market, creating new opportunities for growth. The increasing presence of organised players is enhancing product variety and design innovation.

Additionally, the relaxation of gold import restrictions is expected to further boost the industry.

With strong demand and positive industry developments, Indias gems and jewellery sector is poised for significant growth, projected to reach USD 168.62 billion by FY 2030. The strong growth trajectory of the domestic jewellery sector underscores its crucial role in driving Indias economic progress and enhancing its global stature, reinforcing the countrys position as a powerhouse in the industry.

The industry is poised for a transformative decade, driven by innovation, global expansion and unprecedented growth, solidifying its position as a global leader. Improved availability of gold, the reintroduction of low-cost gold metal loans and the stabilisation of gold prices at lower levels are likely to drive volume growth in the short to medium term. India, home to 450 organised jewellery manufacturers, importers and exporters, continues to be a global hub for jewellery production and these businesses will continue to be greatly benefited from the governments progressive policies.

The domestic jewellery sector is experiencing significant growth, with projections suggesting the addition of over 5,000 new gems & jewellery stores being added in the next five years. This expansion will be driven by strong and sustained demand for gold and diamond jewellery, reflecting Indias deep-rooted afinity for precious metals. With a robust outlook for the coming years, India continues to stand out as a shining star in the global jewellery market.

COMPANY OVERVIEW

Tribhovandas Bhimji Zaveri Limited (hereafter referred to as "TBZ - The Original" or "The Company") is a name synonymous with trust, innovation and exquisite craftsmanship. It has established a strong legacy of over 160+ years built on trust. Having started its journey in 1864 in the bustling lanes of Zaveri Bazaar, Mumbai, the brand has grown to become a beacon of trust in the jewellery industry in the past decades.

Reputed for its distinctive designs and superior quality, TBZ - The Original has become the preferred jewellery brand for weddings, celebrations, festive occasions and every day wear for modern Indias aspirational and eclectic tastes.

The Companys pan-India store network includes 35 stores as on 31^st March, 2025. These stores, specialising in gold and diamond-studded jewellery, are across a total retail space of 1,00,000 + sq. ft. spread across 27 cities in 13 states. With its growing presence,

TBZ - The Original continues to set new benchmarks in quality and craftsmanship.

35 Stores

27 Cities

13 States

1,00,000 + sq. ft. Retail Space

Rooted in a rich 160+ years legacy of trust and excellence, TBZ - The Original has carved a niche for itself by blending tradition with contemporary aesthetics and for its beautiful amalgamation of culture and heritage. The Company is recognised for its exquisite collection of jewellery that has carved a unique niche among jewellery enthusiasts. Each meticulously crafted piece of its wide product portfolio embodies femininity, elegance and grace and is a tribute to Indias time-honoured traditions.

TBZ - The Original boasts substantial brand value and a long-standing reputation for quality and craftsmanship. The brand is recognised and trusted by multigenerational customers across India, providing a significant competitive advantage and positioning the Company for continued growth.

The brand has been continuously setting new benchmarks in jewellery design, offering both classic and modern collections. Committed to transparency, ethical business practices and corporate excellence, the brand maintains high professional standards, reinforcing its leadership in the jewellery industry. The brand continues to offer unmatched quality and timeless designs.

A pioneer in the industry, TBZ - The Original was the first in India to introduce 100% BIS-hallmarked 22-karat gold jewellery, certified solitaire diamonds and a lifetime buyback scheme for gold and diamond jewellery. It also pioneered the concept of lightweight precious jewellery in India.

Known for its quality and exemplary craftsmanship, TBZ - The Original operates its showrooms under the Tribhovandas Bhimji Zaveri brand. Additionally, it also owns two designer boutiques under the Krsala brand, offering exclusive jadau and diamond-studded jewellery. The fiagship showroom at Zaveri Bazaar, Mumbai, spanning five fioors, is reputed to be Indias largest jewellery showroom.

Other Mumbai locations include Opera House, Churchgate, Borivali and Santacruz. The Company has state-of-the-art and cutting-edge manufacturing facility in Kandivali, Mumbai, which ensures the highest quality and unique designs.

TBZ - The Original has a presence in key cities across India, including Mumbai, Jaipur, Hyderabad, Kolkata, Vijayawada, Ahmedabad, Surat, Kochi, Thane, Raipur, Jamshedpur, Bhubaneshwar, Rourkela, etc.

Product Portfolio

TBZ - The Original maintains a diversified product portfolio featuring gold, diamond and other precious gemstone jewellery. The Company consistently enhances its portfolio by introducing new products annually. Its jewellery collection, which include both delicate, understated pieces and bold, extravagant designs, are crafted to make a lasting impression and are inspired by Indias rich cultural legacy.

The product portfolio is curated in-house by a team of skilled designers and artisans who create a variety of new jewellery lines each year, adapting to evolving customer preferences and market trends. Through its exquisite jewellery collection and exceptional brand experience, the Company has forged a profound emotional bond with its customers.

By offering various price points catering to the aspirations and expectations of a diverse clientele spanning different ages and backgrounds, the Company mitigates market fluctuations impact, generating a stable revenue stream.

A wide jewellery collection appealing to a diverse consumer demographic

Product category

Gold, Diamond, Jadau and Platinum Jewellery

Product range

Rings, Earrings, Necklaces, Mangalsutra, Pendants, Bangles, Bracelets and Coins

Product style

Plain gold, diamond-studded, precious and semiprecious stone studded, lightweight, contemporary, Temple, Jadau, Plain and Diamond-studded Platinum jewellery, jewellery with coloured stones in Gold and Diamond, loose diamond solitaires, loose precious and semi-precious stones

Key Strengths

Rich Legacy: TBZ - The Original has a rich 160+ years legacy of excellence in jewellery. A pioneer in the industry, it introduced the buyback guarantee in 1938 and popularised lightweight precious jewellery in India. Now led by the fifth generation, TBZ remains a trusted name, celebrated for its innovation, timeless designs and impeccable craftsmanship.

Strong Brand Equity: With a rich heritage, TBZ - The Original continues to lead the industry with growth, innovation and unmatched quality. Its competitive edge stems from strong sales productivity, a loyal multi-generational customer base and high conversion rates.

Dominance in Wedding & Occasion Jewellery: TBZ - The Original dominates the Indian jewellery industry, especially in wedding and occasion jewellery, which accounts for 65% of its sales. With a strong legacy in Indian wedding traditions, the brand continually enhances its dynamic collection with new designs each season.

Design Exclusivity: TBZ - The Original launches 8-10 new jewellery lines annually, driven by innovation and customer satisfaction. Its in-house diamond manufacturing, skilled artisans, expert designers and advanced facilities ensure diverse, high-quality collections. Investments in R&D and modern technology further enhance its offerings, reinforcing customer loyalty and premium pricing power.

Higher Scalability and Reach: As on date of this report, TBZ - The Original is expanding nationwide with 37 stores across 27 cities in 13 states. Smaller stores are strategically placed within cities, while larger ones dominate prime high-street locations. Designed for elegance, these stores offer varied collections and pricing to attract a diverse consumer base.

Multi-Generational Clientele: TBZ - The Original enjoys a loyal, multi-generational customer base, with families passing down the tradition of purchasing from the brand. This strong loyalty ensures a steady flow of repeat business.

Enhanced Brand Visibility: TBZ - The Originals success is strengthened by its multigenerational client base, where positive experiences passed down through families drive word-of-mouth referrals and enhance brand visibility.

Long-Term Customer Relationships: TBZ - The Original fosters lasting customer relationships through its multigenerational clientele, emphasising a delightful shopping experience. Its well-trained retail stafi provides personalised service, helping customers find jewellery that suits their preferences. By leveraging the emotional significance of jewellery in families, TBZ strengthens customer bonds, enhancing satisfaction and loyalty.

Broad Spectrum of Revenue: TBZ - The Original diversifies its revenue by catering to customers across various preferences and budgets, ensuring stability despite market fluctuations.

Insightful Product Development: With a diverse customer base, TBZ - The Original gathers valuable insights into evolving trends and preferences. It actively refines feedback mechanisms to enhance customer experience, product development and marketing strategies.

Operational Highlights

Customer engagement:

Duringtheyear2024-25,the Company gained approximately 45%-50% new customers and retained around 45% of the active base. Around 10% of the customers were walk-ins, demonstrating strong brand engagement. On the other hand, 10%-15% of the lapsed customers returned through multi-channel engagement across WhatsApp & SMS, press ads, exhibitions, BTL activities and special schemes.

Enhancing brand equity and visibility:

The Companys upcoming initiatives include continuous expansion in regional and digital engagement initiatives helped drive customer acquisition and brand recall. Further, it is working on plans to capitalise on localised campaigns and personalised offers to maximise festive season sales.

For its key campaigns "Tyohaar Matlab TBZ", the Company launched IRIS, a pastel-hued diamond collection celebrating Navratri. The campaign on Shaadi Matlab TBZ highlighted premium bridal jewellery, reinforcing TBZs leadership in the wedding jewellery segment. The campaign on "Gift of Love" focussed on diamond jewellery as timeless gifts for the holiday season, while the festive promotions offered discounts on making charges for diamond jewellery. Diamond No Making, Festival of Diamonds and Brides of TBZ were some other campaigns during FY 2024-25 that reinforced the Companys leadership in the jewellery segment.

Digital and social media presence:

Leveraging the power of digital and social media, the Company collaborated with Instagram influencers to increase its social media engagement to organically reach 1.45 million with 1.5 million impressions, 23.3K engagements and a growing base of around 497K+ followers. The Companys digital and social media performance delivered 79.9 million impressions and reached 16 million users across digital campaigns.

Expanding footprint:

During the year, the Company opened three new franchise stores – one each in Jaipur, Bhubaneswar and Rourkela, further establishing its commitment to expansion and catering to diverse customer segments.

The Companys Rourkela store was the second store it has opened in the state of Odisha. The Rourkela store is a haven for jewellery lovers, featuring an extensive range of innovative and attractive designs. From contemporary pieces to traditional jewellery, every creation is a testament to TBZ - The Originals dedication to excellence.

TBZ stores continue to redefine the jewellery shopping experience across the nation, captivating their customers with their revolutionary approach and unique ways to showcase their most stunning collection. This reflects the brands commitment to innovation and its desire to provide its customers with an unmatched jewellery shopping experience and is a true testament to the Companys forward-thinking approach and a constant pursuit to excellence.

Further, the Company has renewed its contract with Sara Ali Khan as its brand ambassador, whose youthful charm, elegance and vibrant personality resonate with the brands ethos of timeless beauty and contemporary style.

Awards received in FY25:

TBZ - The Original won an award at Retail Jeweller

India Forum - MD & CEO Awards 2025 in below category: "Exemplary Value creation for Shareholders 2025".

Financial Overview

TBZ is on track to deliver steadily improving financial performance, with consistent revenue growth and profitability. Its solid balance sheet, lowering debt levels and strong cash position sets the Company up for continued growth and expansion in Indias exciting growth story.

Particulars	FY 2024-25	FY 2023-24
	(Rs. Lakhs)	(Rs. Lakhs)
Net Sales	2,61,986.39	2,29,878.86
Revenue from Operations	2,62,048.42	2,29,894.35
Gross Profit	35,784.76	29,996.83
EBIDTA	17,609.49	13,816.62
Depreciation	2,515.69	2,342.88
Finance Costs	5,613.28	4,984.40
PBT	9,971.10	7,117.76
Tax	2,736.11	1,715.88
PAT	7,235.00	5,401.88
Gross Margin	13.66%	13.05%
EBIDTA Margin	6.72%	6.01%
Basic Earnings Per Share (EPS) (Rs.)	10.84	8.10
Dividend Per Share (Rs.)	1.75	1.75
Net Worth	66,767.04	60,800.38
Short-Term Borrowings (including working capital loans)	69,815.44	53,243.95
Inventory	1,46,297.42	1,19,745.84
Debtors	349.81	1,615.85
Net Block	16,255.01	14,844.91
Cash and Bank Balance	9,771.68	4,867.61

Key Financial Highlights, FY 2024-25 Revenue From Operations

The Companys revenue from operations has increased by 13.99% YoY in FY25, reaching Rs. 26,204.84 million from Rs. 22,989.44 million in the previous year of FY24.

EBITDA

The Company reported 27.44% YoY increase in EBITDA, reaching fi 1,760.95 million in FY25 from Rs. 1,381.66 million in FY24.

EBITDA Margin

The positive impact of the Companys ongoing cost management efforts is evident in the EBITDA margin, which improved by 71 basis points in FY25, standing at 6.72% from 6.01% in the earlier year.

Gross Profit

The Companys Gross Profit stood at Rs. 3,578.48 million in FY25, increasing by 19.3% during the year from Rs. 2,999.68 million in FY24. Gross margins improved 61 basis points during the year, standing at 13.66% from 13.05% in the earlier year.

Profit After Tax

The Company achieved a notable 33.93% YoY increase in Profit After Tax (PAT), reaching fi 723.50 million in FY25 from Rs. 540.19 million in the previous year.

PAT Margin

The PAT margin also improved by 41 basis points in FY25, reaching 2.76% in FY25 from 2.35% in FY24.

Management Outlook

Committed to excellence, the Companys key goal is to expand TBZ - The Original across the country. It aims to continue offering its exquisite collection and a fantastic and personalised shopping experience to its customers, with its transparent and customer-friendly approach. With each piece symbolising purity and quality and with each store equipped with a wide range of innovative and attractive designs, TBZ - The Original continues to attract individuals.

With a 160+ year strong legacy built on trust, TBZ - The Original is positioned to capitalise on the thriving Indian gems and jewellery sector. It taps into Indias booming jewellery market, driven by a rising middle class with growing disposable income and aspirations for luxury. It is focussed on innovation and customer convenience and offers seamless shop-from-home and video call services, aligning with evolving consumer trends for sustained growth.

TBZ - The Original continues to strengthen its customer engagement through digital innovation, aiming for a larger and profitable market share. With strategic retail footprint expansion across key locations in India, the Company enhances its brand value and attracts new customers, thereby fostering organic growth. Backed by a strong balance sheet and reduced debt levels, the Company is well positioned for sustained expansion in Indias dynamic market. On track for steady financial growth, it focusses on consistent revenue growth and profitability. It remains committed to delivering exceptional craftsmanship and unique value propositions to customers while prioritising profitability in its retail expansion strategy.

Risk Management

The Company has an eficient risk management framework for the timely identification, assessment and mitigation of key business and operational risks. The Companys key risks and their corresponding mitigation measures are depicted below:

Macroeconomic risk

Impact: Geopolitical tensions, global economic slowdown, supply chain disruptions, high inflation and record-high gold prices could potentially affect consumer spending and the demand environment in both domestic and international markets and adversely influence the Companys exports, profitability and growth trajectory.

Mitigation: The Company is committed to expanding its geographical presence, enhancing its e-commerce capabilities and innovating its product offerings to strengthen its market position. Additionally, it maintains a strong focus on the domestic market, thereby mitigating the impacts of international economic challenges. Furthermore, its geographic diversification minimises reliance on any single economy in the event of adverse global circumstances.

Margin risk

Impact: Fluctuations in commodity prices and exchange rates could affect the Companys profit margins and overall profitability.

Mitigation: The Company adopts a strategic approach to minimise the risks associated with margin pressures and operational ineficiencies. This includes implementing cost optimisation measures, expanding its network through an asset-light franchise model, procuring inventory through increased participation in gold loan schemes and cultivating enduring supplier relationships. These initiatives empower the Company to effectively navigate volatile market conditions.

Competition risk

Impact: The gems and jewellery industry encounters fierce competition from the expanding influence of unorganised sector. The inability to deliver high-quality and aesthetically appealing products could impact the market share and expansion prospects of organised players.

Mitigation: With its superior brand recognition, unique product offerings and stellar performance, the Company has solidified its position as a leading and preferred jewellery brand in India. Furthermore, continuous investments in research, product innovation and robust branding and marketing efforts enhance its brand positioning and customer relationships.

Raw material risk

Impact: The Companys inability to timely procure raw materials at competitive prices may adversely impact its operations and profitability.

Mitigation: With a highly skilled and dedicated team, along with a well-defined central procurement policy, the Company maintains effective inventory management practices. It capitalises on the gold loan scheme and strong partnerships with reputable suppliers of polished diamonds to secure raw materials promptly and cost- effectively.

Human Resources

TBZ - The Original regards its human resources as its most valuable asset and acknowledges their pivotal role in the Companys growth journey. Its well-crafted HR policies cultivate a culture of competitiveness, work-life balance and teamwork among employees, ensuring the organisation is future-ready. It strives to create a safe, transparent and inclusive work environment to enhance employee morale and productivity. The Company advocates for equal opportunities and encourages competitiveness to unlock the full potential of its workforce.

The Company places a strong emphasis on training and skill development initiatives to enhance employee capabilities and consistently engage its workforce. It regularly conducts skill development and training programmes across all levels to augment employee competencies. The Company is focussed on nurturing high levels of employee engagement, ensuring consistent performance and fostering an innovative mindset to mitigate attrition. It organises periodic interactive sessions between management and employees to nurture a growth-oriented culture. As on 31^st March, 2025, the Companys total employee strength stood at 1,071 employees.

Internal Controls

The Company has established well-framed internal control systems tailored to the nature, size and complexity of its business. These internal controls encompass various aspects of governance, compliance, audit, control and reporting. They ensure eficient use and safeguarding of the Companys assets, detect and prevent errors and fraud, address evolving risks in the business, prepare reliable and accurate financial reports in a timely manner, maintain accurate and comprehensive accounting records and ensure stringent compliance with laws and regulations.

The Company periodically monitors adherence to internal controls, ensuring proper documentation and regular evaluation and updation by both internal and statutory auditors. Audit firms appointed by the Company closely oversee and review the efficiency of these internal controls, promptly reporting any discrepancies to the management and Audit Committee for necessary action.

Cautionary Statement

The Management Discussion and Analysis may contain some statements describing expected future events, the Companys objectives, projections, estimates and financial and operating results which may be ‘forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those either expressed or implied in the forward-looking statements depending on various risks and uncertainties. Readers are advised to exercise caution and refrain from placing undue reliance on forward-looking statements. Therefore, this document is subject to the disclaimer and is qualified in its entirety by the assumptions, qualifications and risk factors outlined in the managements discussion and analysis of TBZ Limiteds Annual Report 2024-25. The Company undertakes no responsibility to publicly amend, modify or revise any forward-looking statements, whether as a result of any subsequent developments, new information, future events, or otherwise.