Ashapuri Gold — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Ashapuri Gold reported strong profit and margin growth in Q3 FY26, driven by operational efficiency. However, gold price volatility significantly impacted volume growth, leading to a 29% QoQ degrowth and flat 9-month performance. The company is adapting with a strategic shift to 18-carat and lightweight jewelry and focusing on design IP, while also progressing with its NSE main board listing.

Highlights

  • PAT grew by 7.76% year-on-year in Q3 FY26.

  • EBITDA grew by 22.01% year-on-year in Q3 FY26.

  • EBITDA margin expanded by 233 basis points to 8.78% in Q3 FY26.

  • PAT margin improved by 103 basis points to 6.11% in Q3 FY26.

  • Total income increased by 5.64% year-on-year in 9 months FY26.

  • Volume degrowth of 29% quarter-on-quarter in Q3 FY26.

  • Company aims for 15-20% volume growth for FY26, with a focus on 20% in Q4.

  • Strategic shift towards 18-carat and lightweight jewelry in response to gold price hikes, with plans for design IP patent filings from August 2026.

Concerns

  • Gold price volatility and its impact on demand

  • Flat 9-month volume growth despite 20% target

Key financials

3 periods

Headline

  • PAT Growth
    —
    YoY +7.8%
  • EBITDA Growth
    —
    YoY +22%
  • EBITDA Margin
    8.8%
  • EBITDA Margin Expansion
    233 bps
  • PAT Margin
    6.1%
  • PAT Margin Improvement
    103 bps

Q3 FY26

  • Volume Growth
    —
    QoQ -29%

9M FY26

  • Total Income Growth
    —
    YoY +5.6%

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 Growth

  • Volume growth Volume Growth · FY26 · Medium confidence 15% to 20%
    No, we won't give it for FY '27 right now. We will focus on this year only. Our target is to bring 15% to 20% growth. We are still focused on how to convert that in this quarter.

    — Jitendrakumar Soni

  • Volume growth Volume Growth · Q4 FY26 · Medium confidence near about 20%
    Yes, sir. This quarter is where the price has stabilized, so the demand is coming. We are focused on recovering it so this year's target is achieved.

    — Jitendrakumar Soni

Product Development

  • Design IP patent filings Product Development · from August this year · High confidence start filing for patents
    Suppose from August this year, our plan is to start filing for patents for the unique components we have developed, unique shapes we have designed in-house, and the manufacturing technique or component design. We will start the planning to create design IP from August this year.

    — Jenik Soni

Product Strategy

  • Focus on Diamond Polki Product Strategy · Ongoing · High confidence go aggressively
    So, the management has also decided that we will go aggressively for Diamond Polki, which is a high-margin centric product.

    — Jitendrakumar Soni

Listing

  • NSE Main Board Listing Listing · Next month or this month · Medium confidence 2-3 months
    Usually, it takes 2-3 months for NSE main board listing.

    — Jitendrakumar Soni

What to watch in Q4 FY26

Volume growth

Next quarter (Q4 FY26) and Q1 FY27
Current Flat for 9 months FY26; 29% QoQ degrowth in Q3 FY26.
Target 15-20% for FY26, with 20% in Q4 FY26.

Why it matters

To assess if the company can recover from gold price impact and meet its annual volume growth target.

So, you mean in Quarter 4 and Quarter 1 of FY '27, there will be 20% growth? Absolutely, we are keeping that same positive approach.

Risks & concerns

  • Gold price volatility and its impact on demand

    high

    Significant gold price increases (40-50%) led to consumer hesitation and flat volume growth for 9 months FY26, impacting Q3.

    Both acknowledged

  • Flat 9-month volume growth despite 20% target

    high

    The company's 9-month volume growth is flat, significantly below the 20% target, attributed to gold price impact.

    Analyst acknowledged

  • Lower capacity utilization

    medium

    Utilization level is 52%, primarily due to the demand impact from gold price volatility, despite capacity being ready for 750 kgs.

    Analyst acknowledged

Q&A highlights

6 direct, 2 evasive
Discrepancy between 20% volume growth target and flat 9-month performance. Direct
Look, As I mentioned in the opening remarks, during this quarter the momentum in gold prices has impacted our projected 20% quantity growth in sales volume. The rise in gold prices affected the demand, and this impact is reflected in our performance for the quarter.

Addresses a key investor concern about missed guidance and explains the impact of external factors (gold price).

Asked by Arvind Jhadav

Promoter's plan to increase holdings in the company. Evasive
We haven't given any such statement about increasing promoter holding, sir.

Management denies a previous statement or expectation from the analyst, indicating a potential lack of commitment or miscommunication regarding promoter actions.

Asked by Arvind Jhadav

Strategic shift towards 18-carat and lightweight jewelry due to gold price hike. Direct
For this challenge, I mentioned the 18-carat introduction. The industry is thinking of new ideas and focusing on lightweight jewelry... We got success in that R&D and got orders from corporates. We are ahead of the market shift.

Reveals a proactive strategic adaptation to market changes (gold price volatility) and successful R&D in new product categories.

Asked by Raj

Competition among organized jewelry manufacturers and pricing pressures in the B2B segment. Evasive
No, as such, we are not at a stage where there is any competition. We can't call it competition because this is a designing field. Among organized designed manufacturers in antique jewelry, there is no such difficulty or challenge or competition. Everyone has their own focus on design.

Management downplays competitive pressures, suggesting a strong niche position, but this might be a point of contention for analysts.

Asked by Vidhi Purohit

Update on capacity expansion from 750 kgs to 1500 kgs. Direct
Regarding capacity utilization, last year, we had achieved 93% on one floor of 500 kgs. This year, we added another floor. On that floor, we have a plan for an additional 50%, 250 kgs. So, for the target of 500 kgs to 750 kgs utilization, our setup is all ready.

Provides an update on operational readiness for increased capacity, though utilization is currently impacted by market conditions.

Asked by Ganeshwaran

Status of NSE main board listing. Direct
Like you said, 5-6 months ago we mentioned our plan to list on NSE. We applied about before one or one and a half months ago. Currently, NSE's scrutiny of documentation is ongoing.

Confirms progress on a significant corporate action that could enhance liquidity and visibility.

Asked by Kishor Patel

Plans for design IP ownership or brand licensing. Direct
Currently, we are focusing on design IP, which is a very interesting subject currently going on... from August this year, our plan is to start filing for patents for the unique components we have developed, unique shapes we have designed in-house...

Highlights a strategic move towards intellectual property protection and value chain enhancement, indicating a long-term growth driver.

Asked by Pooja Mishra

Demand evolution for Aneya Diamond or Polki segment and its contribution. Direct
Its contribution is slow. Now that the gold price has increased, we will show a lot of aggression in that... So, the management has also decided that we will go aggressively for Diamond Polki, which is a high-margin centric product.

Indicates a strategic pivot to capitalize on changing consumer preferences and higher-margin products in response to gold price dynamics.

Asked by Dhanraj Tolani

2 min read 7 chapters

Detailed narrative

Q3 FY26 Performance Overview

Ashapuri Gold Ornament Ltd. reported a strong Q3 FY26 with PAT growing by 7.76% year-on-year and EBITDA by 22.01% year-on-year. This led to an EBITDA margin expansion of 233 basis points to 8.78% and a PAT margin improvement of 103 basis points to 6.11%. However, total income for the 9 months FY26 increased by a modest 5.64% year-on-year, and Q3 FY26 saw a 29% quarter-on-quarter volume degrowth.

Impact of Gold Price Volatility

The company acknowledged that significant gold price volatility, including a 40-50% increase, severely impacted demand and volume growth in Q3 FY26, leading to flat 9-month volume performance against an initial 20% target. This volatility caused consumers to hold purchases and retailers to delay new orders, resulting in a 52% capacity utilization rate despite readiness for 750 kgs. Management noted that demand has started to return with recent price stabilization.

Strategic Response: 18-Carat & Lightweight Jewelry

In response to the gold price hike and its impact on affordability, Ashapuri Gold has strategically focused on 18-carat and lightweight jewelry. Through R&D, they successfully developed 18-carat handmade jewelry, achieving the same look and feel as traditional 22-carat pieces but at lower weights (e.g., 60 grams instead of 80 grams). This initiative has already secured orders from national corporate chains, positioning the company ahead of market shifts.

Capacity Expansion and Utilization

The company has expanded its manufacturing capacity, with the setup now ready for 750 kgs, up from 500 kgs last year. While the current utilization stands at 52% due to demand slowdown, management expects utilization to improve in the next one or two quarters as market conditions normalize. No specific capital expenditure figures were provided for this expansion.

Market & Customer Engagement

Ashapuri Gold is deepening its engagement with organized jewelry retailers, particularly national chains, which are increasingly contributing to overall sales. The company has hired a dedicated sales team for corporate national chains and has successfully onboarded new chains, with agreements finalized and orders commencing. They also noted a strategic push towards the high-margin Diamond Polki segment.

Future Outlook & Design IP Focus

Looking ahead, the company plans to expand its presence in the domestic market and drive sustainable revenue growth. A key strategic initiative involves focusing on design IP, with plans to start filing patents for unique components, shapes, and manufacturing techniques from August 2026. Management expressed optimism for Q4 FY26, anticipating a return to normal order cycles and demand following gold price stabilization.

NSE Listing Update

The company confirmed that it applied for main board listing on the National Stock Exchange (NSE) approximately one to one and a half months prior to the call. The application is currently undergoing NSE's scrutiny, and the typical process for such a listing takes 2-3 months.

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