Deepa Jewellers Q2 Revenue Surges 25% to ₹626 Cr; Promoters Waive Salary for Growth

Key numbers

Revenue Q2 FY27	₹625.62 Cr25% YoY Growth
Net Profit Q2	₹37.25 Cr39% QoQ Increase
Market Cap	₹1,985.35 CrGems & Jewellery
ROE Annual	44.01%Sector 22.51%

Key highlights

• Q2 FY27 revenue reached ₹625.62 crore, marking a 45.1% sequential increase from Q1 FY27
• Net profit for the quarter rose 37% YoY to ₹37.25 crore, supported by higher other income
• Job-work volumes surged 51% YoY in H1 FY27, providing high-margin stability without gold price risk
• Promoters and Executive Directors voluntarily waived salaries for 10 quarters starting October 2026
• Commercial operations at the new 6,696 sq. ft. Hyderabad manufacturing facility commenced in September 2026

Volume Growth Amidst Gold Price Volatility

Deepa Jewellers demonstrated strong topline resilience in Q2 FY27, with revenue growing 25% YoY despite headwinds from gold price fluctuations. The quarter's performance was volume-led, with total operating volumes standing at 809 kg. While EBITDA margins at 7.24% were slightly impacted by a product mix favoring plain gold over studded items, the company benefited from significant operating leverage.

Management highlighted that festive and wedding demand typically shifts 60% of annual revenue into the second half of the fiscal year, suggesting a stronger H2. The company also utilized approximately ₹215 crore from its recent IPO proceeds to upscale inventory and support working capital requirements at its Vijayawada sales office.

Strategic Shift Toward High-Margin Job-Work

• Job-work segment volumes grew by 44% YoY in Q2, contributing significantly to stable earnings.
• The segment offers higher margins and requires lower working capital as gold is provided by the customer.
• Total H1 job-work volumes reached 544 kg, a 51% increase compared to the previous year.
• Job-work provides a natural hedge against gold price volatility, as the company has no metal price exposure.
• The shift toward high-margin job-work is expected to improve overall EBITDA margins by 80-120 basis points over the next 4-6 quarters.

Promoter Salary Waiver for Long-Term Value

From 1st October onwards, both the promoters and both the executive directors, which is Ashish Agarwal and Dev Agarwal, plan to not draw any salaries from the business. This is in respect of encouraging the business profitability and long-term growth for at least 10 quarters from now.

Expanding Footprint Across South India

The company is aggressively expanding its geographic reach beyond its current strongholds. Following the success of the Vijayawada sales office, Deepa Jewellers plans to open a second sales office in Chennai by December 2026, followed by a Bangalore office in April-May 2027. This expansion aims to tap into tier-2 and tier-3 towns to onboard regional retail chains.

Supporting this growth is the newly commissioned 6,696 sq. ft. manufacturing facility in Hyderabad, which processed 167 kg in its first quarter of operations.

Management targets a 40-45% revenue CAGR through FY29, driven by an expanding SKU portfolio that now includes 16 product categories and over 24,000 designs.

What to watch next

• Opening of the second sales office in Chennai scheduled for December 2026
• Proposed Bangalore sales office launch expected in April or May 2027
• Expansion of the studded jewellery segment to reach a targeted 75% product mix
• Implementation of 100% gold hedging strategy over the next 2-3 quarters

“Our priorities will remain centered on sustainable revenue growth, operational efficiency, and prudent management of working capital while building a stronger platform for the next phase of our journey.”

“The moderation in growth during the second quarter was primarily attributable to the shift in festive demand. The shift in festive demand into the second half, along with fresh issue proceeds, is expected to support our growth trajectory.”

Deepa Jewellers · financial snapshot

Share price	₹206.54
Market capitalisation	₹1,985.35 Cr
Revenue (annual)	₹1,926.68 Cr
Net profit (annual)	₹104.79 Cr
Revenue (latest quarter)	₹625.62 Cr+45.12% vs previous quarter
Net profit (latest quarter)	₹37.25 Cr+39.23% vs previous quarter
Promoter holding	72.98%
FII holding	2.64%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.