D. P. Abhushan Limited — Q3 FY26 earnings call

Call held 24 Jan 2026

Management summary

D.P. Abhushan reported strong financial performance in Q3 FY26, with significant YoY growth in revenue, EBITDA, and PAT, driven by festive demand and margin expansion. However, gold volumes saw a notable decline for the nine-month period, attributed to high gold prices and a shift in consumer preferences towards lighter and lower-carat jewellery. The company is adapting its product mix and plans for continued store expansion, despite some delays.

Highlights

  • Revenue from operations for Q3 FY26 grew 13% YoY to ₹1,222.4 crore, driven by seasonal weddings and festive demand.

  • EBITDA for Q3 FY26 increased 89% YoY to ₹105.6 crore, with margins expanding to 8.64% due to operating leverage and better cost absorption.

  • PAT for Q3 FY26 grew 96% YoY to ₹73.35 crore, reflecting strong profitability.

  • 9M FY26 EBITDA margins expanded by 357 basis points to 8.67%, and PAT margins improved to 5.90%.

  • Silver emerged as a key growth driver, with 9M FY26 revenues rising sharply to ₹114 crore, up 118% YoY.

Concerns

  • Gold volume for 9M FY26 declined by roughly 29% (2,344 kg vs 3,297 kg in 9M FY25), impacted by elevated gold prices.

  • Elevated gold prices impacted gold jewellery purchase volumes and average ticket sizes, leading to a preference for lightweight and lower-carat jewellery.

  • Delay in new store openings, with only two locations finalized and one expected to open in the next 2-3 months, falling short of previous expansion pace.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹1,222.4 Cr
    YoY +13% QoQ +26%
  • EBITDA
    ₹105.6 Cr
    YoY +89% QoQ +39%
  • EBITDA Margin
    8.6%
  • PAT
    ₹73.35 Cr
    YoY +96% QoQ +43%
  • PAT Margin
    6%
  • Gold Volume
    924 kilograms

9M FY26

  • Revenue
    ₹2,731.4 Cr
    YoY +5%
  • EBITDA
    ₹236.7 Cr
    YoY +79%
  • EBITDA Margin
    8.7%
  • PAT
    ₹161.24 Cr
    YoY +84%
  • PAT Margin
    5.9%
  • Gold Volume
    2,344 kilograms
    YoY -28.9%
  • Silver Revenue
    ₹114 Cr
    YoY +118%
  • Diamond Revenue
    ₹115 Cr

What they filed

Q4 FY26: revenue up 86.2%, net profit up 104.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ1 FY25Q2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26
Revenue505 1,005 1,084 717 540 +7%968 −4%1,222 +13%1,335 +86%
EBITDA38 38 55 42 54 +42%76 +100%106 +93%69 +64%
Net profit25 25 37 25 36 +44%51 +104%73 +97%51 +104%
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.

Capital allocation

high confidence
  • Capex Capex disclosed
    • Store opening for 3,000 to 5,000 square feet ₹2.5 Cr
    • Store opening for 8,000 to 10,000 square feet ₹5 Cr
    So, in general, see depend on the store size, the capex remains between INR2.5 crores to INR3 crores for the decent size of 3,000 to 5,000 square feet and for the 8,000 to 10,000 square feet, it remains between the INR5 crores to INR7 crores.

Guidance & targets

Revenue

  • FY26 Revenue Growth Revenue · FY26 · High confidence 25-30%
    Yes, we expect strong growth this year and, in the years, ahead, driven by a combination of SSSG growth and new store additions. For the current year, we're looking at around 25% to 30% growth.

    — Vikas Kataria

  • FY27 Revenue Growth Revenue · FY27 · Medium confidence similar growth rate (25-30%)
    We believe we can sustain a similar growth rate next year as well.

    — Vikas Kataria

  • Q4 FY26 Sales Growth Revenue · Q4 FY26 · Medium confidence significantly higher, almost doubling
    This fourth quarter, however, has the highest number of weddings. Around 60% of our revenue comes from the wedding season. So, yes, sales growth in Q4 will be significantly higher almost doubling and based on that, we believe these numbers are achievable.

    — Vikas Kataria

Store Openings

  • New Stores from next year Store Openings · from next year · Medium confidence 4-5 stores
    However, going forward from next year, we plan to open around 4-5 new stores

    — Vikas Kataria

  • Additional Stores (2-3 years) Store Openings · next two to three years · High confidence 20 stores
    Yes. Over the next two to three years, we are planning to open around 20 additional stores.

    — Vikas Kataria

  • New Stores by FY29 Store Openings · by end of FY29 · High confidence 20 stores
    If we look at a three-year horizon, by the end of FY '29, we expect to add about 20 new stores across our surrounding geographies.

    — Vikas Kataria

SSSG

  • Consistent SSSG (Revenue Growth) SSSG · consistently · High confidence 10-15%
    We expect 10%-15% growth to continue consistently.

    — Vikas Kataria

Margin

  • EBITDA Margin Expansion Margin · ongoing · High confidence continue to expand
    Margins will continue to expand we're seeing that trend already.

    — Vikas Kataria

Operating Expenses

  • Employee Benefit & Other Operating Expenses Growth Operating Expenses · year-on-year basis · High confidence 10-12%
    Yes. Overall, you can assume a range of around 10% to 12% on a year-on-year basis. That is broadly the band.

    — Vikas Kataria

Gold Prices

  • Long-term Gold Price CAGR Gold Prices · long term · High confidence 9-10%
    One thing I can say with confidence is that, over the long term, gold prices tend to grow at around 9% to 10% CAGR. That kind of long-term growth is structural.

    — Vikas Kataria

What to watch in Q4 FY26

QIP status and details

Next quarter
Current Ongoing process, actively working on it
Target Announcement of QIP terms (amount, pricing, timeline)

Why it matters

QIP is expected to accelerate store expansion and overall growth, impacting future capital allocation.

Yes. The QIP process is ongoing. We are actively working on it and making efforts on that front. Hopefully, you should hear an update shortly.

Risks & concerns

  • Significant gold volume decline

    high

    Gold volume for 9M FY26 declined by roughly 29% YoY (2,344 kg vs 3,297 kg in 9M FY25), indicating a shift in consumer behavior.

    Analyst acknowledged

  • Elevated gold prices impacting purchase volumes

    medium

    Elevated gold prices impacted gold jewellery purchase volumes and average ticket sizes, leading consumers to operate within fixed budgets and prefer lightweight jewellery.

    Management acknowledged

  • Delays in new store openings

    medium

    Site selection process for new stores has caused delays, with only two locations finalized and one expected to open in 2-3 months.

    Analyst acknowledged

  • Gold price volatility and potential correction

    medium

    While long-term gold prices tend to grow, short-term prices may stabilize or even decline depending on global factors, which could impact revenue mix.

    Management acknowledged

Q&A highlights

7 direct
Festive demand and consumer buying mix Direct
We saw very healthy consumer demand during the festive season. From Navratri through Diwali, the momentum was strong, and customers were quite enthusiastic about buying gold jewellery, partly because of the continued rise in gold prices. We also saw a clear shift in demand patterns. There was higher interest in 18-karat, 14-karat and lightweight jewellery, and we were well-prepared for that trend.

Provides insights into current market demand, consumer preferences, and the company's adaptation to these trends.

Asked by Chetan

Sustainability of margin expansion and role of inventory gains Direct
If we look at the last two to three years, gold prices have been moving up consistently. In the jewellery business, our making charges and margins are typically charged as a percentage of the product value. So, when gold prices increase, the same percentage applied on a higher base naturally results in better margins. That has been one of the major contributors to the improvement you're seeing. Secondly, because gold prices have risen meaningfully, we have also benefited from inventory gains, which account for roughly 25% to 28% of the margin increase.

Clarifies the primary drivers of margin improvement, including the impact of rising gold prices and inventory gains, and confirms management's view on sustainability.

Asked by Kushal Kasliwal

Delay in new store openings Direct
Currently, we have finalized one location in Dhar, Madhya Pradesh. That store should open in the next two to three months. In addition, we have also finalized another location in Dahod, Gujarat. Sometimes, the site selection process takes a little longer, which is why there has been some delay.

Addresses concerns about the slow pace of store expansion and provides an update on upcoming store launches.

Asked by Lokesh

Gold volume decline in 9M FY26 Direct
For the nine-month period, the gold volume was 2,344 kilograms in gold. For the same period last year, it was 3,297 kilograms... Roughly around 29%.

Reveals a significant year-on-year decline in gold volume, indicating that revenue growth is primarily price-driven.

Asked by Sunil F.

Achievability of FY26 revenue growth target given Q4 requirements Direct
This fourth quarter, however, has the highest number of weddings. Around 60% of our revenue comes from the wedding season. So, yes, sales growth in Q4 will be significantly higher almost doubling and based on that, we believe these numbers are achievable.

Explains the ambitious Q4 growth expectation required to meet the full-year revenue guidance, emphasizing the wedding season's impact.

Asked by Sunil F.

Update on QIP process and its link to store expansion Partial
Yes. The QIP process is ongoing. We are actively working on it and making efforts on that front. Hopefully, you should hear an update shortly. If the QIP comes through, store expansion will definitely accelerate further, and the overall growth journey will gain speed. However, even without the QIP, we are planning store openings using internal accruals.

Provides status on the QIP, clarifies its potential impact on growth acceleration, and confirms continued expansion plans even without it.

Asked by Hari Sharma

Hedging of gold and silver purchases Direct
We have started some amount of hedging. We have initiated hedging, including through GML. So yes, hedging has begun.

Indicates a new risk management strategy being implemented by the company.

Asked by Lokesh

Discrepancy between same-store growth and total revenue growth Direct
Some of our stores are performing very well, while a few stores have lower growth. So, on average, overall revenue growth comes to around 13%. That's how the numbers reconcile.

Clarifies how the overall revenue growth is derived despite higher same-store growth in some locations, indicating variability in store performance.

Asked by Lokesh

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Detailed narrative

Q3 FY26 Financial Performance Overview

D.P. Abhushan Limited delivered a robust Q3 FY26, with revenue from operations reaching ₹1,222.4 crore, marking a 13% year-on-year and 26% quarter-on-quarter increase. EBITDA for the quarter stood at ₹105.6 crore, growing 89% YoY and 39% QoQ, with EBITDA margins expanding to 8.64%. Profit after tax (PAT) was ₹73.35 crore, up 96% YoY and 43% QoQ, achieving a PAT margin of 6.00%. For the nine-month period of FY26, revenue was ₹2,731.4 crore (up 5% YoY), EBITDA was ₹236.7 crore (up 79% YoY) with margins of 8.67%, and PAT was ₹161.24 crore (up 84% YoY) with margins of 5.90%.

Jewellery Industry Trends & Product Mix Shift

The quarter saw elevated gold prices impacting purchase volumes and average ticket sizes, leading consumers to prioritize lightweight jewellery. While 22-carat gold remained preferred, interest in lower-purity options like 18-carat and 14-carat increased due to price sensitivity. Wedding-related purchases remained steady, and investment demand for gold was firm. Silver emerged as a significant category, with revenues rising sharply to ₹114 crore (up 118% YoY) for 9M FY26, supported by festive gifting and affordability.

Operational Highlights & Customer Engagement

Customer walk-ins over the nine-month period totaled 175,351, with a healthy conversion ratio of 82%, indicating sustained purchase intent. The company observed strong traction in markets like Kota, Ujjain, Bhopal, and Udaipur, while flagship locations in Ratlam and Indore maintained strong footfalls. Strategic initiatives included the 'World of Diamonds' exhibition in Ajmer and the 'Diamond Polki Festival' in Banswara and Bhilwara to enhance brand visibility and customer engagement for studded jewellery, which offers higher margins.

Margin Expansion Drivers & Sustainability

Margin expansion was primarily driven by higher gold prices, as percentage-based making charges naturally yield better margins on a higher base. Inventory gains contributed significantly, accounting for 25-28% of the margin increase. The strong growth in silver sales and an increased contribution from diamond jewellery, which carry higher margins than plain gold, also supported the overall margin profile. Management confirmed that these margins are sustainable, supported by ongoing inventory gains and a favorable product mix shift.

Store Expansion & Growth Outlook

The company plans to open 4-5 new stores from next year, with two locations (Dhar, Madhya Pradesh, and Dahod, Gujarat) already finalized, and the Dhar store expected to open in the next 2-3 months. Over the next two to three years, D.P. Abhushan aims to open around 20 additional stores, focusing on Tier-2 and Tier-3 cities in Madhya Pradesh, Rajasthan, Chhattisgarh, Gujarat, and Maharashtra. The company expects 25-30% revenue growth for FY26 and a similar rate for FY27, with consistent same-store growth of 10-15%.

Capital Allocation & ESOPs

The capital expenditure for new stores ranges from ₹2.5-3 crore for 3,000-5,000 sq ft and ₹5-7 crore for 8,000-10,000 sq ft, with a payback period of approximately nine months. On November 4, 2025, the company granted 62,300 stock options under its Employees Stock Option Scheme, with 1,200 options forfeited by December 17, 2025. These ESOPs were allocated to key managerial personnel, senior personnel, and long-serving employees to foster engagement and alignment with long-term value creation.

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