D.P. Abhushan Q1FY27 PAT rises 77% on strong wedding demand
D.P. Abhushan posted a 77% YoY increase in Q1FY27 net profit to ₹64.45 crore, supported by a 58% surge in revenue to ₹853.63 crore. Strong wedding demand and efficient operations drove EBITDA margin expansion to 11.01%. The company plans to expand to 51 stores by FY30.
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D.P. Abhushan Limited reported a robust financial performance for the quarter ended June 30, 2026, with net profit rising 77% year-on-year to ₹64.45 crore from ₹36.42 crore in the same period last year. Revenue from operations surged 58% to ₹853.63 crore compared to ₹541.32 crore in Q1 FY26, driven by strong momentum across its retail jewellery network. The company’s EBITDA increased by 70% to ₹93.99 crore, with margins expanding by 80 basis points to 11.01%, reflecting better operating leverage and disciplined cost management.
Q1 FY27 Financial Highlights
The unaudited standalone financial results reflect broad-based growth during the summer wedding season and festive-led purchases. Earnings per share (EPS) for the quarter stood at ₹28.23, up from ₹16.07 in the corresponding period of the previous year. Profit after tax margin expanded to 7.55%, up 82 basis points year-on-year.
| Metric | Q1 FY27 | Q1 FY26 | Change |
|---|---|---|---|
| Total Revenue | ₹853.63 crore | ₹541.32 crore | 58% |
| EBITDA | ₹93.99 crore | ₹55.25 crore | 70% |
| Net Profit | ₹64.45 crore | ₹36.42 crore | 77% |
| EPS (Basic) | ₹28.23 | ₹16.07 | Higher |
Operational Efficiency and Retail Expansion
Profit before tax for the quarter stood at ₹86.21 million, a significant increase from the prior year. The company's operational efficiency is underscored by its single reportable segment, Gems & Jewellery, which encompasses wholesale, retail trade, and manufacturing. Same Store Sales Growth stood at 52% during Q1FY27, while the footfall conversion ratio remained at 81%. The average ticket size stood at ₹1,57,000 during the quarter, with wedding-related purchases accounting for 62% of total sales.
To support continued growth, the board approved the opening of its first company-owned retail showroom in Dahod, Gujarat, spanning approximately 3,200 square feet. This showroom will mark the company's strategic entry into the Gujarat retail market. Additionally, the board approved a Franchisee Owned Company Operated (FOCO) showroom in Jabalpur, Madhya Pradesh, covering an approximate retail area of 3,750 square feet. This marks the company's first expansion through the FOCO model, representing a significant milestone in its retail growth strategy by facilitating an asset-light approach to new markets.
| Expansion Detail | Particulars |
|---|---|
| Store Type 1 | Company-Owned Retail Showroom |
| Location 1 | Dahod, Gujarat |
| Store Area 1 | ~3,200 square feet |
| Store Type 2 | Franchisee Owned Company Operated (FOCO) |
| Location 2 | Jabalpur, Madhya Pradesh |
| Store Area 2 | ~3,750 square feet |
Strategic Outlook and Product Mix
Management highlighted that gold continued to be the largest revenue contributor, growing 59% YoY to ₹781 crore, while silver revenue surged 150% YoY to ₹40 crore. Diamond revenue remained stable at ₹29 crore. The company aims to increase its studded jewellery mix from the current 6-7% to 12-15% by March 2028. Old gold exchange contributed approximately 25% of total sales, aiding affordability amid elevated gold prices.
Vikas Kataria, Promoter, reaffirmed the company’s target of reaching 51 stores by FY30, primarily through the Company-Owned Company-Operated (COCO) model, with five to seven stores expected under the FOCO model. The company also launched its e-commerce website and mobile application to strengthen omnichannel capabilities. Anil Kataria, Whole Time Director, noted that while volume growth was modest at 1-2% due to high gold prices, the company is targeting 10% volume growth annually in FY27 and FY28 as prices stabilize.
Management and Governance
The results were considered and approved by the Board of Directors in a meeting held on July 20, 2026. The limited review of the financial results was conducted by Jeevan Jagetiya & Co, Chartered Accountants. D.P. Abhushan Limited operates under the brand "D.P. Jewellers" and manages a retail chain across various geographies in India. The company continues to leverage Gold Metal Loans (GMLs) and hedging mechanisms to mitigate gold price volatility while supporting margin stability.
Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company submitted the audio recording of the Analysts/Investors Call on the unaudited financial results for the quarter ended June 30, 2026. The call was held on Wednesday, July 22, 2026. The audio recording is available on the company’s website.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE266Y01019/7019bfe1-d4cc-4fb8-852c-b4f6e999cf24.pdf
Historical Stock Returns for D P Abhushan
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.14% | +11.86% | +53.80% | +13.56% | -10.68% | +550.04% |
How will the shift towards the asset-light FOCO model impact D.P. Abhushan's long-term EBITDA margins compared to its traditional COCO expansion strategy?
What specific strategies is the company deploying to achieve its target of increasing the studded jewellery mix to 12-15% by March 2028 amidst high gold prices?
To what extent will the newly launched e-commerce platform contribute to overall revenue growth and customer acquisition in FY27 and FY28?
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