Ashapuri Gold — Q2 FY26 earnings call

Call held 18 Nov 2025

Management summary

Ashapuri Gold reported a strong Q2 FY26, driven by robust volume growth and significant margin expansion. The company's focus on premium product lines and design-led offerings contributed to a substantial increase in profitability. A healthy order book from recent exhibitions and ongoing discussions with national chains provide positive visibility for future quarters, despite adjustments to revenue growth targets due to rising gold prices.

Highlights

  • Total income grew by 18% YoY to INR102 crores in Q2 FY26.

  • Sales quantity expanded by 20% YoY in Q2 FY26.

  • EBITDA margin doubled to INR11.47 crores, representing a 540 bps expansion to 11%.

  • Profit after tax (PAT) increased 145% YoY to INR8.47 crores, with a 428 basis points margin increase.

  • Secured INR102 crores of fresh domestic orders at IIJS 2025.

  • Additionally, secured INR5.41 crores orders for the premium Aneya diamond and polki jewellery collection.

  • FY26 volume growth target set at 20%, aiming for 528 kgs from last year's 440 kgs.

Key financials

  1. Total Income ₹102 Cr +18%YoY
  2. EBITDA ₹11.47 Cr
  3. EBITDA Margin 11%
  4. PAT ₹8.47 Cr +145%YoY
  5. Sales Volume Growth 20%

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.

Order book

high confidence

Inflow this quarter

₹107.41 Cr

Pipeline

other

In talks with two national chains for orders and preparing for January IIJS signature new exhibition.

The company has a healthy order book from recent exhibitions and expects further growth in Q3 and Q4 from ongoing discussions and upcoming exhibitions.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed
    • Added a new floor to meet new targets and expand manufacturing capacity.
    We opened a new floor this year. We added new workers. The manufacturing has also increased. ... This year, we added a new floor to meet the new target. We added a new floor. One floor is still open. Overall, our capacity is 1.5 ton. We run it floor-wise.

Guidance & targets

Volume

  • FY26 Volume Growth Volume · FY26 · High confidence 20%
    Compared to last whole year, we are now expecting 20% growth for the whole year. ... So, in terms of quantity, as I told you, we are 100% sure that we can achieve growth of 20%

    — Jitendrakumar Soni

  • FY26 Volume Target Volume · FY26 · High confidence 528 kgs

    Previously 440 kgs → 528 kgs

    Sir, last year's data, I think it was 440 kgs. We are expecting 20% growth from that. ... That means 528 kgs.

    — Jitendrakumar Soni

  • FY27 Volume Growth Volume · FY27 · Medium confidence 30% or 35%
    No, no. We plan differently for FY '27. If this year it is 20%, then next year it will be 30% or 35%. We target like this.

    — Jitendrakumar Soni

Revenue

  • FY26 Revenue Growth Revenue · FY26 · Medium confidence 20%-25%

    Previously 45%-50% → 20%-25%

    We are expecting to grow to 20%-25% this year. Our target is to achieve 45%-50% in the next 6-8 months. ... No. The gold price has increased by 40%. Even after that, in terms of quantity, our growth has increased by 20%. So, overall, our starting vision was to grow by 45%-50%. But the gold price has risen by 40% in a short time frame. So, we are calculating the discounting.

    — Jenik Soni

Margin

  • Margin Trajectory Margin · H2 FY26 and FY27 · Low confidence stable margin with gradual upward bias
    our focus is also on improving product mix, scaling branded segments, which will structurally support margin. And again, we aim to maintain stable margin with gradual upward bias supported by manufacturing efficiency and volume of orders from the national chains.

    — Jenik Soni

Capacity

  • Manufacturing Capacity Capacity · Ongoing · High confidence 1.5 ton per year
    Our manufacturing capacity is 1.5 ton a year. We have three floors. One floor is 500 kg. We were running it for 2-3 years. We achieved 93% of that last year. This year, we added a new floor to meet the new target. We added a new floor. One floor is still open. Overall, our capacity is 1.5 ton. We run it floor-wise.

    — Jitendrakumar Soni

  • Expandable Capacity Capacity · As needed · High confidence up to 1 ton
    current capacity we have increased 250 kgs from 500, 750 kgs is the current capacity. And we are sufficient to fulfill the orders for the current time. In case if we receive more order we can increase up to 1 ton.

    — Jenik Soni

What to watch in Q3 FY26

Order book confirmation from national chains

next quarter
Current In talks with two national chains
Target Confirmed orders and visibility for Q3/Q4

Why it matters

Confirmation of these orders will provide significant revenue visibility and validate the company's strategy with large retail partners.

100% we are currently in talks with two national chains for the orders to confirm and in January IIJS signature new exhibition is also coming. We are preparing for that in a huge segment. So, we will expect order book to rise and can confirm in quarter 3 and quarter 4 as well you can see the numbers.

Risks & concerns

  • Impact of rising gold prices on revenue growth targets

    medium

    Gold prices rose 40-50% in 6 months, leading to a revision of the initial 45-50% revenue growth target to 20-25% for FY26, despite maintaining 20% volume growth.

    Management acknowledged

  • Competition from other gold jewellery companies

    low

    Management acknowledges peers like Sky Gold and Shanti are achieving high volumes but differentiates Ashapuri Gold's focus on premium, antique, and design-led products with higher margins and longer production cycles.

    Analyst downplayed

Q&A highlights

8 direct
EBITDA margin improvement drivers Direct
So, the margin improvement is largely driven by two to three factors. First is higher volumes. So, as we booked orders from our IIJS exhibition, we have increased our volume this year. Second is we are focused on better product and premium jewelry collection, which is diamond and polki collection. So, through that also, our margin has increased. And third is we have very much focused on the designing led innovation in our designs, through which we can have an edge for the margin. ... One more factor is this quarter. Gold price is also one of the factors.

Clarifies the multi-faceted reasons behind the significant margin expansion, including volume, product mix, design innovation, and gold prices.

Asked by Subanu

Gold hedging strategy Direct
So, we are hedging almost 100% hedge. Whatever sales booked by a company in every transaction on fixed sales, fixed rate cut, type of rate cut, we are hedging 100% against the fixed rate cut.

Highlights the company's risk management strategy against gold price volatility, which is crucial for a jewellery business.

Asked by Subanu

FY26 revenue vs. volume growth guidance Direct
For the FY '26 guidance, at the starting of the year, we were bullish on the revenue of 45%-50% of their revenue growth. But in quarter 1 and quarter 2, as we have seen, the gold price has risen to over 40%-50% in just last 6 months. Through that gold price also, we have sustained a revenue margin of 20%. We are expecting to grow to 20%-25% this year. Our target is to achieve 45%-50% in the next 6-8 months. ... No. The gold price has increased by 40%. Even after that, in terms of quantity, our growth has increased by 20%. So, overall, our starting vision was to grow by 45%-50%. But the gold price has risen by 40% in a short time frame. So, we are calculating the discounting. ... So, revenue target, sir, we are just analyzing our data in terms of volume only, kgs. Because the revenue is purely, the impact of the price is counted. So, we analyze it in terms of quantity only. And quantity is better. So, in terms of quantity, as I told you, we are 100% sure that we can achieve growth of 20%

Clarifies the company's revised revenue growth expectations for FY26, distinguishing between volume growth (20%) and revenue growth (20-25%) due to gold price inflation.

Asked by Subanu

Reasons for lower volume growth compared to peers Direct
There is a product difference, sir. The making cycle of our product is more now. Rather than the difference in product, small product, casting product, they are producing casting and chain product. So, there is more turnover in them compared to our antique product. This is our whole designing and wedding segment. So, the production cycle is a little big in that. And if we do a comparison in that, the margin of the chain and casting product, we are dealing in the premium segment. So, our margin is more.

Explains the company's strategic focus on antique, design-intensive, and premium segments (wedding, diamond, polki) which have longer production cycles but higher margins, differentiating it from volume-focused peers.

Asked by Arvind Jadhav

Current capacity utilization and expansion plans Direct
So, as I mentioned before also that we have factory unit where we have over 1.5 ton production capacity to expand space. We have acquired the land. So, when we have order flow, we need 40 to 60 days to expand our production capacity. So, through that we can meet the demand. ... current capacity we have increased 250 kgs from 500, 750 kgs is the current capacity. And we are sufficient to fulfill the orders for the current time. In case if we receive more order we can increase up to 1 ton.

Provides insight into the company's current production capacity (750 kgs, expandable to 1 ton) and its ability to scale quickly to meet increased demand, supported by land acquisition.

Asked by Vinod Shah

Margin difference between 18 carat and 22 carat plain gold jewelry Direct
Plain gold jewelry compared to 22 carat or 18 carat may be higher in terms of plain gold jewelry. But if we go to studded margin will increase compared to 22 carat in 18 carat. ... Studded jewelry has higher margin than plain. ... Yes I understand that. Is 18 carat has higher margin than plain gold jewellery? ... Yes, 100%.

Clarifies the margin dynamics across different caratages and product types (plain vs. studded), indicating a strategic shift towards higher-margin studded and 18-carat jewelry.

Asked by Subanu

Jewelry mix, specifically studded/diamond contribution Direct
So, we are doing 95% of the studded jewelry concept right now. We are into the studded category only. ... Okay. Diamond and post collection is around 5%. Under 5% of the revenue. We just launched 6 months back the diamond jewelry collection.

Reveals the company's strong focus on studded jewelry (95% of concept) and the nascent but growing contribution of diamond jewelry (under 5% revenue), indicating a premiumization strategy.

Asked by Subanu

Working capital cycles for premium collections Direct
For the collections we are launching, the working capital cycle should be focused to increase and betterment. The collections we launch, we focus on the order cycle. Our capital is not blocked in inventory. The capital cycle will obviously increase. We target to focus on 45 days of working cycle in terms of collections.

Indicates the company's strategy to manage working capital efficiently for new collections by focusing on order-based production and aiming for a 45-day working cycle.

Asked by Sidhharth Jain

2 min read 6 chapters

Detailed narrative

Q2 FY26 Performance Overview

Ashapuri Gold reported a strong Q2 FY26 with total income growing 18% year-on-year to INR102 crores. Sales quantity increased by 20% year-on-year, driven by healthy demand across key retail chains. Profitability saw significant improvement, with EBITDA doubling to INR11.47 crores, leading to a 540 basis points margin expansion to 11%. Profit after tax (PAT) surged 145% year-on-year to INR8.47 crores, reflecting a 428 basis points increase in PAT margin.

Volume Growth and Product Strategy

The company achieved a 20% year-on-year volume growth in Q2 FY26, and maintains a 20% volume growth target for FY26, aiming for 528 kgs from 440 kgs last year. Management clarified that while peers might show higher volume growth, Ashapuri Gold focuses on premium, antique, and design-led products, including diamond and polki collections, which have longer production cycles but yield higher margins. This strategic differentiation allows for better profitability despite potentially lower volume compared to mass-market players.

Margin Expansion Drivers

The substantial improvement in EBITDA margin to 11% was attributed to several factors. These include higher volumes, a strategic shift towards better product mix with premium jewelry collections (diamond and polki), and design-led innovation. Additionally, favorable gold prices during the quarter contributed to the margin expansion. The company aims to maintain stable margins with a gradual upward bias, supported by manufacturing efficiency and increased orders from national chains.

Order Book and Capacity

Ashapuri Gold booked INR102 crores of fresh domestic orders at IIJS 2025 and secured an additional INR5.41 crores for its premium Aneya collection. The company is currently in talks with two national chains for further orders and is preparing for the January IIJS signature new exhibition, expecting order book growth in Q3 and Q4. Current manufacturing capacity stands at 750 kgs per year, which can be expanded to 1 ton within 40-60 days if needed, supported by recently acquired land and a new floor added this year.

Market Trends and Design Focus

The company observes trends towards lighter weight and lower caratage (18 carat, 14 carat) jewelry due to rising gold prices. Ashapuri Gold is focusing on capsule collections in these segments and emphasizes design-led innovation. The Aneya collection, a new launch, is showing good response, particularly from national chains. The company is also exploring region-specific collections across India, with strong demand from North and South, and growing interest from the West, indicating a culturally diverse design strategy.

Guidance and Outlook

For FY26, the company targets a 20% volume growth, translating to 528 kgs. The initial revenue growth guidance of 45-50% was revised to 20-25% due to a 40-50% rise in gold prices over the last six months. For FY27, the company anticipates volume growth of 30-35%. Management is focused on maintaining stable margins with an upward bias through product mix, branded segments, and manufacturing efficiency. The company also highlighted its 100% hedging strategy against gold price volatility.

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