Ashapuri Gold — Q1 FY26 earnings call

Call held 4 Aug 2025

Management summary

Ashapuri Gold Ornament Limited reported a strong start to FY26, with significant growth in revenue, EBITDA, and PAT, driven by strategic product focus and successful market engagement. The company is confident in achieving its ambitious full-year growth targets, supported by its collection-based approach and capacity expansion plans, despite initial market adjustments to rising gold prices.

Highlights

  • Total income stood at INR 52.96 crores, marking a robust growth of 18.72% year-on-year.

  • EBITDA grew by over 34%, with margins improving by over 108 basis points to 9.48%.

  • Profit after tax (PAT) increased by 21%, and Earnings Per Share (EPS) jumped 25% to INR 0.10 per share.

  • Volume sales in Q1 FY26 were 72.03 kg, up 17.90% from 61.09 kg in Q1 FY25.

  • Growth was primarily driven by strong demand for premium antique jewellery, improved conversion cycles, and a better product mix strategy.

  • The company successfully participated in IIJS Premier 2025, expecting a significant portion of Q2 and Q3 order book from follow-ups.

  • Management reiterated its full-year guidance of 50% growth in both volume and revenue.

Key financials

3 periods

Headline

  • Total Income
    ₹52.96 Cr
    YoY +18.7%
  • EBITDA Growth
    0.34 decimal_fraction
  • EBITDA Margin
    9.5%
  • EBITDA Margin Improvement
    108 bps
  • PAT Growth
    0.21 decimal_fraction
  • EPS
    ₹0.1
    YoY +25%

Q1 FY25

  • Volume Sales
    61.09 kg

Q1 FY26

  • Volume Sales
    72.03 kg
    YoY +17.9%

What they filed

Q1 FY27: revenue up 22.4%, net profit up 64.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue87 101 84 53 102 +18%91 −10%71 −16%65 +22%
EBITDA5 6 1 5 11 +130%8 +31%1 +1%7 +46%
Net profit3 5 1 3 8 +145%6 +8%1 +69%5 +64%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Volume

  • Full year volume growth Volume · FY26 · High confidence 50%
    Majorly, this is a projection of the whole year. So, in our specified bridal jewellery, the main season line starts from Q2 and Q3. So, the company has a prediction of 50% growth for the whole year.

    — Jitendra Soni

Revenue

  • Full year revenue growth Revenue · FY26 · High confidence 50%
    Majorly, this is a projection of the whole year. So, in our specified bridal jewellery, the main season line starts from Q2 and Q3. So, the company has a prediction of 50% growth for the whole year.

    — Jitendra Soni

  • Revenue scale-up Revenue · Future · Medium confidence INR 500 crores
    Yes. It's the gradual and regular process of creating different capsule collections and supplying to the corporates and taking orders from them. And again, catering their collections before seasons like Diwali or Akshaya Tritiya and supplying them on a bulk scale. Through that, we can achieve the targeted figure which you are expecting.

    — Jenik Soni

Capacity

  • Manufacturing capacity Capacity · Q2 FY26 · High confidence 750 kgs
    So, as already mentioned in last concall that with 93%, we are already planning to increase to 750 kgs this quarter. And we can go up to One Tone also.

    — Jenik Soni

  • Manufacturing capacity Capacity · Future · Medium confidence One Tone

    — Jenik Soni

What to watch in Q2 FY26

Quantified order book from IIJS Premier 2025

next quarter
Current Not disclosed in call, referred to BSE filing
Target Specific order value in INR crores

Why it matters

This will provide concrete evidence of the success of the IIJS show and visibility for Q2/Q3 revenue.

So, the exact figure of order booking will become towards the management after two days. So, exact figure we have mentioned in our BSE exchange after today, what order we have received in IIJS show.

Risks & concerns

  • Rising gold rates impacting demand

    medium

    The rise in gold rates from 70,000 to 1 lakh initially caused a slowdown in demand, but management observed demand returning as rates stabilized.

    Management acknowledged

  • Gold price volatility impacting margin clarity

    medium

    Management stated that gold price fluctuations make it difficult to precisely bifurcate margin contributions, though a 100% hedging strategy is in place to manage raw material costs.

    Management acknowledged

  • Global challenges and geopolitical events (India-Pakistan war)

    low

    Management noted Q1 performance was strong despite global challenges and the India-Pakistan war in May, indicating resilience.

    Management acknowledged

Q&A highlights

3 direct, 2 evasive
Details of INR 11 crores order from Gem & Jewellery show Partial
No, I think the INR11 crores order has already been executed in Q1, sir. So, we don't disclose our client name or quantities against clients. It's confidential data. We are not recommending that. Data is a matter of privacy.

Management confirmed the order was executed in Q1 but declined to provide further details on client or quantity, citing confidentiality.

Asked by Vinod Jha

Quantification of order book from IIJS Premier 2025 Evasive
Yes, as I mentioned that in today's concall so is going today last day. So, the exact figure of order booking will become towards the management after two days. So, exact figure we have mentioned in our BSE exchange after today, what order we have received in IIJS show.

Management deferred providing the exact order book figure from IIJS, stating it would be available after two days and filed with the BSE exchange, making it unavailable during the call.

Asked by Meet

Share of revenue from exhibitions and corporate clients Evasive
Yes. We can try our best to bifurcate individual that what in corporate clients order and the big box client orders, national and regional chains. Specification, bifurcation, we will share in after today on Bombay Stock Exchange platform.

Management committed to providing a detailed bifurcation of revenue from different client types (corporate, big box, national/regional chains) later on the BSE platform, but did not provide it during the call.

Asked by Meet

Guidance on EBITDA margin improvement Partial
In this, EBITDA also includes gold price somehow. So, both its specifications, as well as the exact margin of the product and the margin of the gold price, both are covered in EBITDA margin. So, it is sometimes difficult to bifurcate so much. But as of now, if the gold price is sustainable this year, then I can bifurcate exactly how much margin is coming out of the EBITDA right from the product.

While management emphasized focus on high-margin products, they did not provide specific numerical guidance on future EBITDA margin expansion, citing complexity due to gold price fluctuations.

Asked by Meet

Diversification of product mix beyond gold ornaments Partial
So, yes, we are thinking on it, but not the different metal. Only focusing on gold, but we are focusing on different carats. As the gold rate is increased, we are looking on opportunities of 18 carat as of now, but it's still under process and we are identifying what are the challenges, what are the pros and cons if we are going to 18 carats, but yes, we are looking for 18 carat but it's under process.

Management indicated they are exploring 18-carat gold jewellery to adapt to rising gold prices but are not considering other metals, and this initiative is still under process.

Asked by Diya Patel

Strategy to capture market share from smaller manufacturers in an organizing industry Direct
So the main point in this is in-house design team and departmentalized structure, a strong ERP software for data analysis and a visionary management. These four things separate us from a smaller manufacturer and helps us to increase on an organized side to cater the organized demand from the jewelers.

Management outlined its strategy to gain market share by leveraging its in-house design capabilities, structured operations, strong ERP system, and visionary management to serve organized demand.

Asked by Chandresh Singh

Raw material cost management given gold price fluctuations Direct
So in managing raw material cost we are focusing on 100% gold hedging strategy. So, our 92% of the cost is under controlled and managed. And so by this hedging strategy only, we are focusing on our raw material costs.

Management confirmed a 100% gold hedging strategy is in place, which helps control 92% of raw material costs amidst price volatility.

Asked by Rakesh Sharma

Company's strategy for digital transformation and omnichannel engagement in B2B Direct
So, in B2B jewellery manufacturing space, digital involvement is still there. We have our own application to share our designs for existing clients. But mainly the real business works in direct face-to-face channel only. So, because this is a high-value product and touch and feel is required before placing orders and purchasing the jewellery. So, that's why omnichannel does not work to that extent. But, yes, there are digital transformation in other operational ways, in software ways, ERP systems, like that.

Management clarified that while they use digital tools for design sharing and internal operations (ERP), face-to-face interaction remains crucial for high-value B2B jewellery sales due to the 'touch and feel' aspect.

Asked by Parag Jain

2 min read 6 chapters

Detailed narrative

Q1 FY26 Performance Overview

Ashapuri Gold Ornament Limited reported a strong Q1 FY26, with total income reaching INR 52.96 crores, representing an 18.72% year-on-year growth. EBITDA saw an increase of over 34%, leading to an improved margin of 9.48%, up by more than 108 basis points. Profit after tax (PAT) grew by 21%, and Earnings Per Share (EPS) increased by 25% to INR 0.10 per share, reflecting effective operational strategies.

Growth Drivers and Product Strategy

The company's growth was primarily fueled by robust demand for its premium antique jewellery line, coupled with improved conversion cycles and a refined product mix strategy. Management emphasized its focus on higher-margin products, including new collections featuring Polki and Diamond jewellery, which contributed to the significant EBITDA growth. This strategic shift aims to enhance profitability across product offerings.

IIJS Premier 2025 Success and Order Book Visibility

Ashapuri Gold had a highly successful participation at the IIJS Premier 2025 show, generating significant interest from over 100 domestic genuine buyers. The company's 50-piece collection and ready-stock range received phenomenal responses, enabling instant bookings and faster order cycles. Management anticipates that a substantial portion of its Q2 and Q3 order book will originate from follow-ups and deliveries related to the IIJS event, providing strong revenue visibility.

Capacity Expansion and Raw Material Management

With current manufacturing capacity utilization at 93%, the company plans to increase its capacity to 750 kgs this quarter, with potential to further expand to one tonne. To mitigate risks from gold price fluctuations, Ashapuri Gold employs a 100% gold hedging strategy, which effectively controls 92% of its raw material costs. This proactive approach ensures stability in production costs and margins.

Market Strategy and Client Engagement

Ashapuri Gold is strategically positioning itself to capture the organized jewellery manufacturing market by focusing on corporate clients and institutional retailers. The company has onboarded major clients like Titan and aims to leverage its in-house design team, departmentalized structure, and strong ERP system to cater to the organized demand. They also maintain physical presences in Bangalore and Delhi to service existing clients across various regions.

Design Innovation and Product Mix Diversification

The company maintains a robust design innovation pipeline, launching 3-4 collections annually. A 50-piece collection was introduced for IIJS, with plans for a 25-design capsule collection in September and another show in January. Ashapuri Gold is also exploring opportunities in 18-carat gold jewellery to adapt to rising gold prices, though this initiative is currently under process and not yet finalized.

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