Deepa Jewellers reported a 27% year-on-year increase in net profit for the first quarter, driven by strong top-line performance.

The company posted a net profit of ₹268 million, up from ₹211 million in the corresponding period last year. Revenue from operations grew significantly to ₹4,311 million, compared to ₹3,101 million in the previous year's Q1. The investor presentation highlights that while revenue expanded by approximately 39%, net profit grew by roughly 27%, indicating margin pressures despite volume growth.

Financial Performance Overview

The following table summarizes the key financial metrics for the quarter:

What the Numbers Show

While revenue expanded by approximately 39%, net profit grew by roughly 27%. This divergence indicates that while the company successfully scaled its sales volume, margin expansion did not keep pace with top-line growth. The newly disclosed EBITDA figures confirm this trend: EBITDA rose 34% to ₹387 million, lagging behind the 39% revenue jump. Consequently, the EBITDA margin contracted by 34 basis points to 8.98% from 9.32% in the prior year.

The management attributes the margin contraction primarily to higher employee costs incurred towards hiring karigars (artisans) for the new manufacturing facility. Additionally, finance costs increased to ₹24 million from ₹6 million in Q1FY26, driven by increased working capital utilisation to support inventory requirements for the newly opened Vijayawada sales office and the Hyderabad manufacturing facility. Depreciation also rose to ₹4.52 million in Q1FY27 from ₹0.40 million in the previous year, reflecting investments in these new assets.

Segmental and Operational Highlights

Deepa Jewellers operates an asset-light processing model supported by external karigars, while expanding into dedicated in-house manufacturing. The segmental breakdown reveals that Processing & Manufacturing remains the dominant revenue driver, contributing ₹4,246 million in Q1FY27, while Job Work services contributed ₹63 million.

Key operational metrics include:

• Total Volume: Processed 518 kg of gold in Q1FY27, up from 473 kg in Q1FY26.
• Job Work Volume: Increased significantly to 226 kg from 140 kg YoY, reflecting a shift towards higher-margin, asset-light fee-based income.
• Customer Base: The company serves 373 customers, comprising 47 jewellery retail chains and 326 standalone stores across 13 states and one union territory.

Growth Strategy and Expansion

The company is executing a multi-pronged growth strategy focused on vertical integration and geographic expansion:

1. In-House Manufacturing: A 6,696 sq ft facility at Hyderabad has been established to reduce karigar dependency, ensure quality consistency, and capture manufacturing margin.
2. Geographic Expansion: A new sales office was opened in Vijayawada, Andhra Pradesh, in November 2025. Offices in Chennai, Bangalore, and Coimbatore are planned to deepen penetration in high-growth markets.
3. Product Diversification: The portfolio spans 110 SKUs and 24,000+ designs, with specialization in Vaddanam (waist belts) and CNC machine-cut bangles. The company is expanding into paper casting, Nakshi, and Kundan jewellery.
4. Technology & Brand: Leveraging digital platforms like WhatsApp Business catalogs and Instagram for trade outreach, alongside participation in B2B exhibitions.

IPO and Capital Structure Update

Subsequent to the quarter ended June 30, 2026, Deepa Jewellers completed its Initial Public Offer (IPO). The issue comprised a fresh issue of 14,124,293 equity shares at ₹177 per share, aggregating to ₹2,500 million, and an offer for sale of 11,848,340 shares aggregating to ₹2,097.16 million. The equity shares were listed on the NSE and BSE on September 8, 2026.

As of the date of approval of these financial results, the company has initiated the process of utilising the funds as per the object clause mentioned in the prospectus, with certain portions of net proceeds temporarily deposited with scheduled commercial banks.

Deepa Jewellers Limited has submitted its Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (UPSI) to BSE and NSE. The submission complies with Regulation 8(2) of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.

The company framed the code pursuant to Regulation 8(1) of the PIT Regulations. The policy aims to ensure timely and adequate disclosure of UPSI to the investor community. This enables stakeholders to take informed investment decisions regarding the company's securities. The document is based on the model code prescribed under Schedule A of the regulations.

Key provisions of the code

The code mandates that all UPSI be handled on a need-to-know basis. It prohibits selective disclosure and requires uniform dissemination of information. The Compliance Officer has been designated as the Chief Investor Relations Officer. This officer is responsible for managing disclosures and responding to market rumors.

The policy outlines specific procedures for interactions with analysts and institutional investors. Only public information may be shared with these groups. Meetings with analysts must be recorded, and presentations must be hosted on the company website. Unanticipated questions involving UPSI require a public announcement before a response is provided.

Structured digital database requirements

The company is required to maintain a structured digital database. This database records the names of persons or entities with whom UPSI is shared for legitimate purposes. It includes Permanent Account Numbers or other authorized identifiers. Adequate internal controls must secure this database against unauthorized access.

Governance and compliance structure

The code applies to all insiders, including connected persons and designated persons. Designated persons include directors, promoters, key managerial personnel, and employees in finance, accounts, audit, taxation, legal, and corporate communication functions. Immediate relatives of these individuals are also covered.

The Board of Directors retains the authority to amend or modify the code. Any regulatory changes requiring modifications will be reviewed with board approval. Regulatory requirements prevail over the policy if not explicitly incorporated. The code was approved in the board meeting held on November 28, 2025.