DEEPA JEWELLERS Q2 FY27 results: net profit ₹37.25 crore

How did DEEPA JEWELLERS perform in Q2 FY27?

Deepa Jewellers reported standalone revenue of ₹625.62 crore for Q2 FY27, the July–September 2026 quarter. Total expenses were ₹582.97 crore and other income was ₹0.47 crore. EBITDA was ₹45.30 crore, giving an EBITDA margin of 7.2%. Profit before tax was ₹43.12 crore, tax was ₹5.87 crore and net profit was ₹37.25 crore, with basic EPS of ₹4.10. There was no exceptional item.

Against Q1 FY27, revenue rose 45.1% from ₹431.11 crore and EBITDA rose 17.1% from ₹38.68 crore. The EBITDA margin fell 1.8 percentage points from 9.0% to 7.2%, while the PAT margin fell 0.2 percentage points from 6.2% to 6.0%. Profit after tax rose 39.2% from ₹26.76 crore and EPS rose from ₹3.26. Figures given for the year-ago quarter are in the investor presentation.

For H1 FY27, standalone revenue was ₹1,056.73 crore and total income was ₹1,057.22 crore. Profit before tax was ₹78.97 crore, profit after tax was ₹64.09 crore and EPS was ₹7.42. The presentation stated that Q2 FY27 revenue grew 24.6% year on year and H1 revenue grew 30.1%. The results and presentation are on a standalone basis.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹606.39 crore and total equity was ₹532.49 crore. Borrowings stood at ₹57.5 crore, cash at ₹13.15 crore, inventories at ₹163.98 crore, trade receivables at ₹311.35 crore and trade payables at ₹1.87 crore. A comparison with the previous balance sheet date was not given in the filings provided.

H1 FY27 operating cash flow was negative ₹59.47 crore and investing cash flow was negative ₹96.74 crore. Financing cash flow was ₹169.26 crore and capital expenditure was ₹2.25 crore. A year-earlier cash flow comparison was not provided.

What else did the company announce?

The Board of Directors met on 26 October 2026 and approved the unaudited standalone financial results for the quarter and half year ended 30 September 2026, along with the limited review report of the statutory auditor, M/s. NSVR & Associates LLP. The meeting began at 12:00 p.m. IST and concluded at 12:26 p.m. IST.

The same-day filings also included an investor presentation on the Q2 and H1 FY27 results, which the company said was hosted on its website. The board had earlier intimated on 19 October 2026 that it would consider the results on 26 October 2026 and that the trading window, closed from 28 September 2026, would remain closed until 48 hours from the results announcement. The filings provided did not announce a dividend, a fund raise or any appointment.

What did DEEPA JEWELLERS's management say?

Management guided to FY27 revenue growth of 40-45% compared with March 2026, and framed a 40-45% CAGR for FY27-FY29, with a later answer using 40-50% for the next two years assuming constant 24K gold at Rs. 50,000 per gram. The company expects EBITDA margin expansion of 80-120 basis points over the next 4-6 quarters, with a later answer describing it as 80-100 basis points.

Dev Agarwal, Whole-Time Director, said: “For FY27, we expect a growth between 40-45% when compared to March 26.” He also said Hyderabad's share of total volume is expected at about 40% in Q3 and around 50% in Q4. The company targets a long-term mix of 65% in-house manufacturing and 35% outsourced production, and a 75% studded-jewellery mix within 3-4 quarters.

Dev Agarwal said: “With the mix of these three, we are able to hedge 94% of our gold holdings as of 30th September and as the company's policy, we aim to expand it close to 100% in the next two to three quarters.” Management noted that job work volumes rose 44% year on year to 318 kgs in Q2 FY27, that total operating volume was 809 kgs, and that revenue is seasonally concentrated in the second half, with H1 normally contributing about 40% of annual revenue.

Management identified risks including lower gross and EBITDA margins as sales mix tilted toward lower-margin plain gold, higher inventory and receivable days after Vijayawada stocking, and depreciation and karigar employee costs from the Hyderabad plant ramp-up. It expects inventory and receivable days to normalise from Q3. Dev Agarwal said: “As of now, I as promoter of the company on a personal front have sufficient liquidity and as we are more inclined to the faster growth of the company, currently we have no plans of drawing any kind of salary at least for 10 quarters from now.”

How did DEEPA JEWELLERS shares react?

The stock moved in the market after the filing, with a price move of 1.7% five minutes after the results appeared, followed by moves of -0.3% after 15 minutes and -1.2% after 30 minutes. From the previous close of ₹228.37, the stock fell 8.9% on the reaction day and was down 10.7% by the next day's close. The five-day move was also -10.7% from the same pre-results close.