Ashapuri Gold — Q4 FY25 earnings call

Call held 29 May 2025

Management summary

Ashapuri Gold reported strong financial performance for FY25, with significant growth in revenue, EBITDA, and PAT, driven by increased gold jewellery volumes. The company outlined plans for capacity expansion and continued focus on high-margin products like polki and diamond jewellery. Management provided optimistic guidance for FY26, projecting substantial growth in both volume and profitability.

Highlights

  • FY25 Total Income was INR 317.41 crores, up 90.23% YoY.

  • FY25 EBITDA was INR 17.23 crores, up 47.81% YoY.

  • FY25 PAT reached INR 12.04 crores, up 56.77% YoY.

  • FY25 EPS increased to INR 0.38, an improvement of 26.67% YoY.

  • Q4 FY25 Revenue was INR 84.53 crores, up 63% YoY.

  • FY25 gold jewellery volume sold was 440 kgs, showing 61% YoY growth.

  • Guidance for FY26 includes 50-60% volume growth and 50-55% revenue and net profit growth.

  • Planned capacity expansion of 50% (from 500 kgs to 750 kgs) in the next 2-3 months.

Key financials

2 periods

Q4 FY25

  • Revenue
    ₹84.53 Cr
    YoY +63%
  • EBITDA
    ₹4.68 Cr
  • PAT
    ₹0.8 Cr

FY25

  • Total Income
    ₹317.41 Cr
    YoY +90.2%
  • EBITDA
    ₹17.23 Cr
    YoY +47.8%
  • PAT
    ₹12.04 Cr
    YoY +56.8%
  • EPS
    ₹0.38
    YoY +26.7%
  • Gold Volume
    440 kgs
    YoY +61%

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

medium confidence

Total value

₹20 Cr

as of 2025-05-29 range

The company maintains an ongoing order book ranging from INR 20-25 crores, reflecting continuous client engagement.

Source: Q&A

Guidance & targets

Volume

  • Gold Jewellery Volume Growth Volume · FY26 · High confidence 50-60%
    So, we majorly analyze our all the meetings, board meetings, or target achievement in terms of only in kg, not in figures. So, we are very much hopeful for this year that we closed approximately 50% to 60% growth from here.

    — Jitendra Soni

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 50-55%
    Next year's revenue guidance, as sir had already mentioned, we are expecting an increase of 50% to 55% in quantity. We are expecting an increase gain of 50% on the 440 kg that we closed this year.

    — Jenik Soni

Profitability

  • Net Profit Growth Profitability · FY26 · High confidence 50-55%
    Based on the revenue growing, the net profit will also grow in terms of 50% to 55%.

    — Jitendra Soni

Capacity

  • Production Capacity Increase Capacity · next 2-3 months · High confidence 50%
    So, for the capacity utilization around, we are on 500 kgs and we are looking to expand around 50% of 500 around 750 kgs in next two, three months.

    — Jenik Soni

What to watch in Q1 FY26

FY26 Gold Volume Growth

next quarter
Current 440 kgs (FY25)
Target 50-60% growth YoY

Why it matters

Volume growth is a primary driver for revenue and profitability in the jewellery business.

So, we majorly analyze our all the meetings, board meetings, or target achievement in terms of only in kg, not in figures. So, we are very much hopeful for this year that we closed approximately 50% to 60% growth from here.

Q&A highlights

7 direct
Management stake increase via buyback Partial
Just because last year we raised the fund, that's why somehow the shareholding pattern is the promoter shareholding reduced. But then the last year, we have just fundraising. So if any chance to shareholder plus increase, we can increase, sir.

An analyst questioned if management plans to increase their stake via buyback after a reduction due to fundraising, indicating interest in promoter commitment and capital allocation strategy.

Asked by Satyam

Diamond segment strategy (lab-grown vs natural) Direct
So currently we are doing a specific project-based collections for polki and diamond jewellery in which the major part of jewellery will be focusing on polki side. And for the diamond, we are not looking to foray into lab grown diamonds as of now. We will only be dealing in natural diamonds.

Management clarified their strategic focus on natural diamonds and polki jewellery, explicitly ruling out lab-grown diamonds, which is important for understanding their product positioning and market segment.

Asked by Nitin Verma

High inventory levels Direct
Sir, we work with the stock as well. We have two policies. The capital that we have invested, we work with the stock as well. So, the inventory is going to remain in the closing stock. We sell the ready stock as well. We take orders from the sampling and keep the inventory and sell it.

An analyst questioned the high inventory amount, prompting management to explain their strategy of maintaining ready stock, which is crucial for understanding their working capital management and supply chain.

Asked by Arvind Jadhav

Fluctuation in employee costs Direct
Sir, this is a quarter on quarter based on our artisan demand supply. Whenever we have demand for artisans in the quarter, we keep more artisans. And if the demand is less, we keep less artisans. Because of that, there will be variation in the quarter.

Management explained the variability in employee costs as a function of seasonal artisan demand, providing insight into their flexible operational cost structure.

Asked by Arvind Jadhav

North East expansion strategy Direct
Yes, for the North East, we have onboarded two regional chains as of now. And we are also currently seeing the product market fit and observing all the business model structure is fitting there or not. But we have onboarded two regional chains from North East.

Management confirmed initial steps into the North East market by onboarding two regional chains and indicated a cautious approach by observing market fit, highlighting their measured growth strategy.

Asked by Suruchi Parmar

Strategies for improving EBITDA margins Direct
To keep EBITDA margins positive and to improve it, for the last two years, we have more focus on high-margin products, focusing on premium products. This year, we have introduced polki and Diamond products in the design language, which are high-margin products. We have also received a very good response from the market.

Management attributed EBITDA margin improvement to a strategic shift towards high-margin products like polki and diamond jewellery, indicating a clear path for future profitability enhancement.

Asked by Abhishek Sharma

Production capacity expansion plans Direct
So, for the capacity utilization around, we are on 500 kgs and we are looking to expand around 50% of 500 around 750 kgs in next two, three months.

Management detailed plans to increase production capacity by 50% (from 500 kgs to 750 kgs) within 2-3 months, which is a key indicator of future growth potential and ability to meet demand.

Asked by Nitin Verma

Ethical sourcing and sustainability practices Direct
So, for the ethical gold jewellery source, we have our all the vendor partners very much informed and fundamental that from where do they source their gold? It should be built, it should be imported also. And we are the qualified jewelers by IIBX. So according to their criteria, when a jeweler is qualified in all terms of sustainability and ethical thing, then only they can become a qualified jeweler and directly import gold under CEPA agreement. So through that, we follow the ethical practices.

Management provided a detailed explanation of their ethical sourcing practices, including vendor qualification and adherence to IIBX and CEPA standards, addressing important ESG concerns for investors.

Asked by Priya Jain

2 min read 6 chapters

Detailed narrative

FY25 Financial Performance Overview

Ashapuri Gold reported a robust financial performance for FY25, with total income surging 90.23% year-on-year to INR 317.41 crores. EBITDA increased by 47.81% to INR 17.23 crores, and Profit After Tax (PAT) grew 56.77% to INR 12.04 crores. The company's EPS for FY25 stood at INR 0.38, marking a 26.67% improvement. For Q4 FY25, revenue was INR 84.53 crores, a 63% increase YoY, with PAT at INR 0.8 crores. The volume of gold jewellery sold in FY25 reached 440 kgs, representing a 61% year-on-year growth from 273 kgs in FY24.

Business Model and Offerings

Ashapuri Gold Ornament Limited operates as a B2B manufacturer specializing in antique gold jewellery, catering to large format retailers and regional stores across India. The company's offerings include four distinct collections—Arzish, Maayin, Kaavis, and Aneya—designed to meet diverse cultural preferences. Their operational cycle encompasses design, manufacturing, collection launches at major exhibitions like IIJS, order acquisition, production, and dispatch. The company emphasizes its role as a premier B2B jewellery hub, blending traditional and contemporary designs.

Manufacturing Capabilities and Capacity Expansion

The company currently possesses a manufacturing capacity of 500 kgs per year, achieving a high utilization rate of 93% in FY25. Ashapuri Gold plans a significant capacity expansion, aiming to increase production by 50% to 750 kgs within the next 2-3 months. This expansion is designed to meet growing demand, with the potential to further double capacity if market conditions warrant. The company leverages state-of-the-art manufacturing infrastructure, over 25,000 unique designs, and a team of more than 200 skilled artisans.

Strategic Growth Initiatives

Ashapuri Gold is strategically focusing on high-margin products, including new polki and natural diamond jewellery collections, which have garnered positive market response. This shift is expected to further enhance EBITDA margins in the coming 2-3 years. The company is also pursuing geographical expansion, having successfully onboarded two regional chains in the North East, and is actively observing the market fit to ensure sustainable growth in new territories. The goal is to deepen its market penetration across India's fast-growing jewellery sector.

Operational Efficiency and Ethical Practices

The company maintains operational efficiency through a clear inventory management strategy, utilizing both make-to-order and ready-to-dispatch stock systems, which has contributed to a reduced cash conversion cycle. To mitigate risks from gold price fluctuations, Ashapuri Gold employs hedging strategies for its fixed sales. Furthermore, the company upholds high ethical standards in its gold sourcing, ensuring all vendor partners are qualified jewelers by IIBX and adhere to ethical practices, including importing gold under CEPA agreements.

Outlook and Guidance for FY26

For the upcoming fiscal year (FY26), Ashapuri Gold has provided optimistic guidance, projecting a 50-60% growth in gold jewellery volume (kgs). Correspondingly, the company expects its revenue and net profit to increase by 50-55%. This positive outlook is underpinned by planned capacity expansions, a continued focus on high-margin product categories, and strategic market penetration initiatives, reflecting management's confidence in sustained growth.

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