How did revenue and profit diverge so sharply?

Revenue grew 37% to ₹43.45 crores, but net profit fell 74% to ₹5.47 lakhs. The divergence points to ballooning operating costs that consumed the entire revenue increase.

What did the rights issue achieve?

The ₹20.39 crore raise was used to fully retire ₹12.45 crore in long-term debt. This simplifies the capital structure but dilutes shareholders in a business that produced only ₹5.47 lakhs in profit.

What is the core profitability problem?

The company posted a 1% net margin. For a ₹43.45 crore revenue base to yield just ₹5.47 lakhs in profit, costs must be rising far faster than sales.

Earnings · Diamond & Jewellery · Micro cap

UH Zaveri's revenue grew 37%. Its net profit almost vanished.

A ₹20.39 crore rights issue cleared the debt, but a 74% profit slump leaves the core business barely breaking even.

— 1 earlier story on UH Zaveri Ltd. →

UHZAVERI By Tipsheet Editorial 29 May 2026 · 10:06 PM IST Verify on BSE · NSE

Mkt cap₹43.12 cr

ROE1.07%

Debt / eq.0.64

₹5.47 lakhs FY26 standalone net profit after a 74% collapse.

What's new

FY26 standalone revenue grew 37% year-over-year to ₹43.45 crores.
Standalone net profit cratered 74% to just ₹5.47 lakhs.
The company raised ₹20.39 crore in a rights issue and used ₹12.45 crores to fully repay long-term debt.

Why this matters

The jeweller is scaling its top line but not its bottom line. A profit of ₹5.47 lakhs on revenue of ₹43.45 crore means cost growth is eating all the upside. The balance sheet is cleaner, but the business model is not.

What we're watching

Whether lower interest costs flow through to the P&L in FY27.
If the remaining rights-issue proceeds beyond debt repayment are deployed.
How the company plans to fix a 1% net margin.

The full read

UH Zaveri's FY26 results are a tale of a clean balance sheet and a broken income statement. Revenue climbed 37% to ₹43.45 crores. Net profit collapsed 74% to ₹5.47 lakhs. The jeweller used a ₹20.39 crore rights issue to wipe out ₹12.45 crore in long-term borrowings. The debt is gone. The profit is, too. A business doing ₹43 crores in sales that posts a profit of ₹5.47 lakhs is running on fumes. The rights issue fixed one problem but highlighted another. The open question is whether cost discipline can catch up to sales growth in the coming year. For now, the numbers speak for themselves.

Questions answered

How did revenue and profit diverge so sharply?: Revenue grew 37% to ₹43.45 crores, but net profit fell 74% to ₹5.47 lakhs. The divergence points to ballooning operating costs that consumed the entire revenue increase.
What did the rights issue achieve?: The ₹20.39 crore raise was used to fully retire ₹12.45 crore in long-term debt. This simplifies the capital structure but dilutes shareholders in a business that produced only ₹5.47 lakhs in profit.
What is the core profitability problem?: The company posted a 1% net margin. For a ₹43.45 crore revenue base to yield just ₹5.47 lakhs in profit, costs must be rising far faster than sales.

Mentioned: ₹20.39 cr rights issue · ₹12.45 cr long-term debt · FY26

Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Story so far

All notes on UHZAVERI →

29 May 2026 · 10:06 PM IST UH Zaveri's revenue grew 37%. Its net profit almost vanished.
1d ago UH Zaveri's sales grow 37% but profit almost vanishes