D.P. Abhushan Reports 105% Surge in Q2 Profit Despite Revenue Dip; Expects Strong H2 Performance

D P Abhushan , a prominent jewellery retailer in Central India, has reported a mixed financial performance for the second quarter, with significant profit growth despite a slight decline in revenue.

Financial Highlights

The company's Q2 results show:

Metric	Q2	YoY Change
Revenue	₹967.65 crore	-4%
EBITDA	₹75.80 crore	+99%
EBITDA Margin	7.83%	+404 bps
PAT	₹51.46 crore	+105%
PAT Margin	5.32%	+282 bps

Despite a 4% year-on-year decline in revenue, D.P. Abhushan achieved a remarkable 105% increase in profit after tax (PAT), reaching ₹51.46 crore. The company's EBITDA also saw a significant boost, nearly doubling to ₹75.80 crore, with margins expanding to 7.83% from 3.79% in the previous year.

Business Performance and Market Dynamics

The company faced challenges in the first half, with a 20% volume decline attributed to elevated gold prices impacting consumer demand. However, management reported a strong recovery in October, with sales growing by approximately 40% year-on-year.

Gold continued to be the primary revenue driver, contributing 91% of total sales. Notably, the silver segment showed robust growth, with sales increasing by 103% compared to the previous year.

Expansion and Future Outlook

D.P. Abhushan maintains a positive outlook for the remainder of the year:

The company projects 20-25% revenue growth for the full year.
Plans are in place to open 2-3 new stores during the current financial year.
An e-commerce platform is expected to launch before the end of the fiscal year, enhancing the company's omnichannel presence.

Management Commentary

Vikas Kataria, a company representative, stated, "We're currently in a strong phase, with year-over-year growth tracking in the range of 20% to 25%. On the profitability front, we're targeting an EBITDA margin between 7% and 8% for the full year."

The management also highlighted the upcoming wedding season as a key driver for demand, with approximately 47 lakh weddings expected between now and February-March.

Strategic Initiatives

To drive growth and profitability, D.P. Abhushan is focusing on:

Expanding its high-margin product categories, including studded diamond jewellery and silver.
Strengthening its presence in Tier 2 and Tier 3 cities across Central India.
Exploring the franchise model to complement its company-owned store expansion strategy.
Implementing an employee stock option plan (ESOP) to motivate and retain key talent.

While the company faces increasing competition in key markets like Indore, management remains confident in D.P. Abhushan's strong brand positioning and customer loyalty.

As D.P. Abhushan navigates the evolving market dynamics and consumer preferences in the jewellery sector, its focus on strategic expansion, product diversification, and omnichannel presence positions it well for continued growth in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.31%	+0.14%	+4.49%	+2.54%	+1.34%	+1,733.31%

D.P. Abhushan Limited , a prominent jewellery retailer in Central India, has demonstrated resilience in its Q2FY26 performance despite challenging market conditions. The company reported a significant 99% year-on-year increase in EBITDA to ₹75.80 crore, while Profit After Tax (PAT) surged by 105% to ₹51.46 crore.

Financial Highlights

Metric	Q2FY26	Q2FY25	YoY Change
Total Income	967.74	1,004.81	-4%
EBITDA	75.80	38.07	+99%
PAT	51.46	25.13	+105%
PAT Margin	5.32%	2.50%	+282 bps

All financial figures in ₹ crore, except for PAT Margin

The company's performance is particularly noteworthy given the challenging environment, with gold prices surging nearly 45% year-on-year and 8% quarter-on-quarter, surpassing ₹100,000 per 10 grams in retail markets.

Festive Season Performance

D.P. Abhushan capitalized on the festive season, achieving record sales of ₹237 crore during Navratri and Dussehra 2025. This represents an 85% year-on-year growth across gold, silver, diamond, and other jewellery categories.

Expansion Strategy

The company continues to expand its retail footprint, having opened new showrooms in strategic locations:

Ajmer, Rajasthan
Neemuch, Madhya Pradesh
A second store in Ratlam, Madhya Pradesh

These additions bring D.P. Abhushan's total store count to 11 across Madhya Pradesh and Rajasthan.

Future Outlook

D.P. Abhushan plans to raise up to ₹600 crores through the Qualified Institutional Placement (QIP) route. This capital is earmarked for further expansion into Gujarat, Chhattisgarh, and other regions, signaling the company's ambitious growth plans.

Mr. Santosh Kataria, Chairman and Managing Director, commented on the results: "We are pleased to report a resilient performance in Q2FY26, despite the challenging industry environment. Our focus on design-led diamond collections, supported by a strong gold jewellery base across our stores, positions us well for sustainable growth in the coming quarters."

As D.P. Abhushan navigates the evolving jewellery market landscape, its strategic expansion and robust financial performance indicate a promising trajectory for the company in the competitive Central Indian jewellery sector.