Deepa Jewellers Limited reported a strong performance for the second quarter of the financial year 2027 (Q2 FY27). Revenue from operations surged by 25% year-on-year to reach INR 626 crore. EBITDA saw a significant increase of 17%, amounting to INR 45 crore, with EBITDA margins at 7.24%. Profit after tax grew by 37% to INR 37 crore.
Deepa Jewellers Limited: Q2 FY27 Earnings Conference Call Highlights
Deepa Jewellers Limited has announced its financial results for the second quarter and the first half of the financial year 2027 (Q2 FY27). The company’s performance indicates robust growth and expansion.
Financial Performance – Q2 FY27
For the second quarter of FY27, Deepa Jewellers Limited reported a 25% year-on-year increase in revenue from operations, reaching INR 626 crore. The company’s EBITDA stood at INR 45 crore, marking a 17% YoY growth, with EBITDA margins reported at 7.24%. Profit after tax saw a substantial increase of 37% year-on-year, totaling INR 37 crore, translating to a Profit After Tax (PAT) margin of 5.96%.
Financial Performance – First Half FY27
In the first half of FY27, revenue from operations grew by 30% year-on-year to INR 1057 crore. EBITDA increased by 24% year-on-year to INR 84 crore, with EBITDA margins at 7.95%. Profit after tax for the first half reached INR 64 crore, a 32% YoY growth, with PAT margins at 6.07%.
Operational Highlights
The company highlighted the commencement of its in-house manufacturing facility in Hyderabad in September 2026, a significant step to strengthen internal capabilities. Additionally, plans are underway to open a second sales office in Chennai by the end of the 3rd Quarter (December). The promoters and executive directors, Ashish Agarwal and Dev Agarwal, have decided to forego salaries from October onwards to encourage business profitability and long-term growth.
Operational KPIs
In Q2 FY27, total operating volume stood at 809 kgs, a 13% YoY increase. Processing and manufacturing volumes were stable at 491 kgs, while job work volumes increased by 44% to 318 kgs. For the first half of FY27, total operating volumes increased to 1327 kgs (12% YoY growth). Processing and manufacturing volumes were 783 kgs (5% YoY decline), while job work volumes saw a significant increase of 51% to 544 kgs. Job work volumes are strategically positive due to higher margins and lower working capital requirements.
Growth Outlook
The company anticipates growth in the next 2-3 years from three key areas: geographic expansion (new sales offices in Chennai and Bangalore), SKU expansion (focusing on studded jewellery), and rapid expansion of their client base. They project a CAGR growth of 40%-45% for FY27, ’28, and ’29.
Hedging Strategy
As of September 30th, 94% of the company’s total gold holding is hedged. This is managed through three mechanisms: gold metal loan, short positions on MCX, and back-to-back price fixing with bullion suppliers. The company aims to expand hedging to 100% within the next two to three quarters.
Margin Drivers
The expansion in EBITDA margins is attributed to a shift in SKU mix towards studded jewellery and vaddanam, increased job work sales, a better client mix including standalone stores, and a change in trend favouring temple-type vaddanam over sheet-type. Operational leverage has also played a role, with a 50% increase in gold prices from FY25 to FY26 resulting in a 62 basis points margin expansion.
Source: BSE
