Opening Hook

When gold prices refuse to calm down, most jewellers panic. D.P. Abhushan? They simply polished their balance sheet and smiled at investors. The company not only survived the gold storm but also flaunted 44% EBITDA growth, because apparently, high margins are their new diamond collection.

While wedding demand kept the cash registers ringing, new showrooms in Neemuch, Ajmer, and Ratlam-2 added bling to their expansion story. Management even dropped the bomb that they’ll raise ₹600 crore via QIP – because why not buy growth when you can?

Here’s what we decoded from the glitter-filled corporate therapy session they call a concall.

At a Glance

• Revenue up 7% YoY – CFO swears it’s not just wedding season magic.
• EBITDA grew 44% – thanks to premium mix and cost control (a rare gem).
• PAT jumped 45% – profits sparkling brighter than gold.
• Gold sales up 9% – no surprises here.
• Diamond sales doubled (102%) – clearly, bling pays.
• Silver sales down 32% – because who buys silver when gold shines?
• ₹600 crore QIP announced – investors call it ambitious, CFO calls it necessary.

The Story So Far

For over 85 years, D.P. Abhushan has sold dreams wrapped in gold. The fourth-generation Katarias now run the show, balancing tradition with Instagram-worthy designs.

FY25 was a year of aggressive expansion – Ajmer and Neemuch got swanky showrooms, while Ratlam got a second one, because one was just not enough. The company also bagged awards like “Most Trusted Jewellery Brand” and “India’s Coolest Store,” which they happily flaunted.

Q1FY26 came with high gold prices dampening volume, but premium products and operational wizardry saved margins. In short: fewer bangles sold, but each one made more money.

Management’s Key Commentary

• On Gold Prices:
  “High prices impacted demand.”
  – Translation: Customers cried, but still bought.
• On Diamonds:
  “Studded jewellery saw 102% growth.”
  – Investors: Diamonds are now truly management’s best friend.
• On Expansion:
  “We are raising ₹600 crore for growth.”
  – Translation: More stores, more sparkle, more debt (but shh).
• On Margins:
  “Operational efficiency improved EBITDA.”
  – Or maybe they just sold more expensive stuff.
• On New Stores:
  “Neemuch, Ajmer, and Ratlam 2 are performing well.”
  – Investors: Three new reasons to stay bullish.
• On Silver Sales Drop:
  “Shift towards gold and diamonds.”
  – Translation: Silver is so last season.

Numbers Decoded – What the Financials Whisper

Analyst Questions That Spilled the Tea

• Analyst: “How will QIP funds be used?”
  Management: “For expansion.”
  Translation: More stores, more bling, less cash in the bank.
• Analyst: “Why are Ratlam and Indore sales down?”
  Management: “Temporary slowdown.”
  Translation: Maybe customers are waiting for discounts.
• Analyst: “What’s the outlook on margins?”
  Management: “We’ll maintain discipline.”
  Translation: Pray gold prices stay calm.

Guidance & Outlook – Crystal Ball Section

Management is aiming high – new showrooms across MP, Rajasthan, Gujarat, and Chhattisgarh will drive growth. Diamond-studded jewellery is their golden goose, expected to grow revenue share from 6% to 15%.

Margins should stay strong if premium mix continues. However, volume growth depends on how gold prices behave (spoiler: they rarely behave). Expect steady expansion with a sprinkling of risks.

Risks & Red Flags

• High Gold Prices – could scare away price-sensitive buyers.
• Over-expansion – too many stores too fast could stress operations.
• Competition – other jewellers also want to be “most trusted.”
• QIP Dilution – shareholders may not love the extra equity.

Market Reaction & Investor Sentiment

The stock glittered briefly on the results, then cooled, as traders debated whether 7% revenue growth is enough to justify the high valuation. Long-term investors, however, kept their faith, betting on the Katarias’ ability to turn every showroom into a cash machine.

EduInvesting Take – Our No-BS Analysis

D.P. Abhushan is like that cousin who shows up at weddings dripping in gold – flashy but confident. The company’s margins are impressive, expansion is aggressive, and diamond growth is the real story here.

However, risks remain – from volatile gold prices to execution challenges in new geographies. Still, with a ₹600 crore war chest and a loyal Tier-2 customer base, DP looks set to keep shining – as long as they don’t trip over their own expansion plans.

Conclusion – The Final Roast

In short, D.P. Abhushan’s Q1FY26 call sparkled with growth, margin magic, and ambitious plans. Investors just need to keep polishing their patience, because this gold story could either dazzle or tarnish depending on execution.

Next quarter, expect more bling, more margins, and maybe another award for being Central India’s favourite jeweller.

Written by EduInvesting Team
Data sourced from: Company concall transcripts, investor presentations, and filings.

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