D.P. Abhushan Ltd Q2 FY26 – Gold Rush, Diamond Flush, and a Windmill That Still Spins!
1. At a Glance
Welcome to the sparkle circus called D.P. Abhushan Ltd, a ₹3,356 crore market cap jewellery player that’s been quietly stealing the show from your local goldsmith and maybe even Titan’s shadow. In Q2 FY26, the Ratlam-born jeweller flexed some serious financial gold muscles — Revenue ₹967.7 crore, EBITDA ₹75.8 crore (+99% YoY), and PAT ₹51.5 crore (+105% YoY). You read that right — profits more than doubled while half the market was busy counting Diwali discounts.
At ₹1,475 per share, the company trades at a P/E of 22.3x and P/BV of 8.3x, meaning investors are valuing its inventory racks almost like art galleries. Its ROE of 35% and ROCE of 33.6% scream operational efficiency. Debt? Manageable at ₹184 crore, or just a 0.46 debt-to-equity ratio.
Despite being listed barely a year ago (April 2024), the company already behaves like a veteran, opening stores faster than Indian weddings happen in November. Yet, after hitting ₹1,895 highs, the stock cooled 22% — maybe the market needed to catch its breath after such a glittery sprint.
So, what’s shining brighter — the jewellery or the earnings? Let’s find out.
2. Introduction
If there was ever a desi success story written in gold and sarcasm, it’s this one. Imagine starting as Ratlam’s beloved family jeweller and ending up on Dalal Street, competing with the likes of Titan, Kalyan Jewellers, and Thangamayil. D.P. Abhushan (let’s call them DPJ for drama) didn’t just sell jewellery; they sold trust — and apparently, a little bit of wind energy too.
Yes, the company also owns windmills. Because why not? When your customers buy gold at ₹7,500 per gram, you might as well offset that guilt with renewable energy.
The Indian jewellery market is an emotional battlefield — half tradition, half investment thesis. Everyone’s nani swears by gold, and every startup founder now proposes with a diamond from Surat. DPJ sits beautifully in the middle: 92% revenue from gold, 6% from diamonds, and 2% from silver, because someone had to keep the silver lining pun alive.
They’ve expanded from their Ratlam stronghold to Indore, Bhopal, Udaipur, Bhilwara, Ujjain, Banswara, and Kota — eight stores spanning 40,500 sq. ft. of shiny temptation. With a five-year plan to reach 20 stores, they’re clearly eyeing your Tier-2 savings and your Tier-3 emotions.
3. Business Model – WTF Do They Even Do?
Let’s cut the glitter. D.P. Abhushan is not a “luxury” jewellery brand like Tanishq with Sanskrit taglines. It’s a hardcore regional retail jeweller — high-volume, mid-margin, emotionally charged business.
Here’s how their empire works: They procure gold, silver, and diamonds from bullion dealers, DTC sight holders, and customers exchanging old jewellery. Then, instead of building massive factories, they outsource manufacturing to 300+ vendors. Think of it as “Uber for jewellery manufacturing,” minus the surge pricing.
Their stores are experiential — designs, variety, and emotional manipulation under one air-conditioned roof. They cater to weddings, anniversaries, or just panic-buying before Akshaya Tritiya.
They’ve also been testing digital waters via their erstwhile subsidiary D.P. Jewelline (formerly Gatha Trendz), which sold jewellery online. But the company exited the subsidiary — possibly because selling gold online in India still feels like swiping right on a dowry.
In short, DPJ makes and sells gold and diamond jewellery with outsourced precision, tight working capital, and sharp marketing in Tier-2 and Tier-3 cities. The strategy? Expand like a franchise, earn like a family business.
4. Financials Overview
Source table
Metric
Latest Qtr (Sep FY26)
YoY Qtr (Sep FY25)
Prev Qtr (Jun FY26)
YoY %
QoQ %
Revenue (₹ Cr)
968
472
540
+105%
+79%
EBITDA (₹ Cr)
75.8
38
54
+99%
+40%
PAT (₹ Cr)
51.5
25.1
36
+105%
+43%
EPS (₹)**
22.54
11.11
16.07
+103%
+40%
Annualised EPS = ₹22.54 × 4 = ₹90.16 At CMP ₹1,475, the P/E (annualised) = 16.4x
Not bad for a jeweller who started out selling bangles in Ratlam.
🟡 Commentary: If Titan is the “Apple” of Indian jewellery, D.P. Abhushan is the “OnePlus” — smaller, faster, and definitely cheaper. The company’s EBITDA margins improved to 7.8%, finally proving gold isn’t the only thing shining here.
5. Valuation Discussion – Fair Value Range Only
Let’s decode three valuation angles without turning this into a treasure hunt.
(a) P/E Based Annualised EPS: ₹90.16 Industry P/E (Jewellery): 30.7 Company P/E
