Ashapuri Gold

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.

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.

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.

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.

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.

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.