Asian Star Company Limited , a prominent player in the diamond and jewelry industry, has announced its financial results for the first quarter, revealing a mixed performance with growth in net profit despite a decline in revenue.

Financial Highlights

The company reported a consolidated net profit of ₹193.00 crore for Q1, marking a 10.3% increase from ₹175.00 crore in the same period last year. However, the quarterly revenue saw a decline, dropping to ₹7,165.44 crore from ₹7,591.96 crore year-over-year, representing a 5.6% decrease.

Operational Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased to ₹217.00 crore from ₹273.00 crore in the corresponding quarter of the previous year. Consequently, the EBITDA margin compressed to 3.03% from 3.60%, indicating pressure on operational efficiency.

Segment-wise Performance

Asian Star Co recognizes two reportable business segments: diamonds and jewelry. The segment-wise revenue breakdown for Q1 FY2026 is as follows:

• Diamonds: ₹5,468.97 crore
• Jewelry: ₹2,013.43 crore
• Others: ₹113.84 crore

The 'Others' segment primarily comprises wind energy generation.

Board Meeting Outcomes

In a significant development, the Board of Directors approved the following:

1. The un-audited financial results (standalone and consolidated) for the quarter ended June 30, 2025.
2. Re-appointment of key management personnel:
   • Mr. Vipul Shah (DIN: 00004746) as CEO & Managing Director
   • Mr. Arvind Shah (DIN: 00004720) as Wholetime Director & CFO
   • Mr. Rahil Shah (DIN: 06811700) as Wholetime Director

All re-appointments are for a term of five years, from January 1, 2026, to December 31, 2030, subject to shareholders' approval.

Looking Ahead

As Asian Star Company Limited navigates through a challenging market environment, the company's ability to maintain profitability despite revenue pressures will be crucial. The re-appointment of key executives signals continuity in leadership, which may provide stability as the company works to improve its operational performance in the coming quarters.

Asian Star Co. , a prominent player in the diamond industry, has recently announced its financial results for the fourth quarter, along with a dividend declaration. The company faces headwinds as it reports a decline in key financial metrics.

Dividend Declaration

In a move that may offer some consolation to shareholders, Asian Star Co. has declared a dividend of ₹1.50 per share. This decision comes despite the challenging financial landscape the company currently navigates.

Q4 Financial Performance

The fourth quarter results paint a picture of financial strain for Asian Star Co.:

Revenue Decline

Asian Star Co. reported a revenue of ₹8.50 billion for the fourth quarter, marking a significant decrease from ₹9.90 billion in the same period last year. This 14.14% year-over-year decline in revenue indicates challenging market conditions for the company.

EBITDA and Margin Compression

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a sharp decline, falling to ₹46.00 million from ₹284.00 million in the previous year's corresponding quarter. This represents a substantial 83.80% decrease.

The EBITDA margin also contracted significantly, dropping to 0.54% from 2.88% year-over-year. This compression in margin suggests increased cost pressures or reduced operational efficiency during the quarter.

Shift to Net Loss

Perhaps the most concerning aspect of the results is Asian Star Co.'s shift from profitability to loss. The company reported a consolidated net loss of ₹45.00 million for Q4, a stark contrast to the ₹186.00 million profit recorded in the same quarter of the previous year. This represents a 124.19% decline in bottom-line performance.

It's worth noting that this loss also marks a reversal from the ₹120.00 million profit reported in the previous quarter, indicating a significant deterioration in the company's financial performance over a short period.

Conclusion

Asian Star Co.'s fourth-quarter results reflect a challenging period for the company, with declines across key financial metrics. The declared dividend of ₹1.50 per share comes as the company grapples with reduced revenue, compressed margins, and a shift to net loss. Stakeholders will likely be watching closely to see how Asian Star Co. plans to address these challenges and return to profitability in the coming quarters.