1. Opening Hook
Gold crossed new highs, geopolitics kept markets jittery, and yet Indian weddings refused to cancel. Somewhere between a muhurat calendar and a bullion chart, DP Abhushan quietly posted its best quarter ever. Elevated gold prices scared volumes, not revenues. Consumers downsized grams, not emotions. Lightweight jewellery became the new heavy hitter, while inventory gains did most of the sweating.
Management sounded confident, analysts sounded suspicious, and everyone agreed on one thing—Q4 is where the real drama lies. Store count didn’t move, volumes fell, yet profits nearly doubled. Magic? Not quite. It’s a cocktail of weddings, mix shift, and a gold rally doing overtime.
Stick around—because once inventory gains, QIP delays, and 100% Q4 growth expectations enter the chat, things get spicy.
2. At a Glance
- Revenue ₹1,222 Cr (+13% YoY): Weddings showed up; volumes took the backseat.
- EBITDA ₹105.6 Cr (+89% YoY): Gold prices did the deadlift, costs watched quietly.
- EBITDA Margin 8.64%: From jeweller to margin machine—almost.
- PAT ₹73.35 Cr (+96% YoY): Inventory gains walked in like a silent partner.
- Gold volumes down ~29% (9M): Fewer grams, fatter margins.
- Inventory gain ~₹20 Cr: The real MVP, no press release needed.
3. Management’s Key Commentary
“Consumers operated within fixed budgets and preferred lightweight jewellery.”
(Translation: Gold got expensive, so customers
got smart 😏)
“Silver revenues grew 118% YoY to ₹114 crore.”
(Gold’s affordable cousin finally got invited to the wedding 💍)
“EBITDA margins expanded due to operating leverage and inventory gains.”
(Gold prices rallied, expenses stayed on diet.)
“Around 25–30% of margin improvement came from inventory gains.”
(The rest? Mix shift doing quiet, honest work.)
“Lightweight jewellery carries slightly better margins.”
(Less gold, more profit—finance students, take notes.)
“Margins will continue to expand even if gold prices stabilize.”
(Bold claim, especially when gold stops cooperating.)
“We plan to add ~20 stores by FY29.”
(Ambition unlocked, execution still loading ⏳)
4. Numbers Decoded
| Metric | Q3 FY26 | YoY Read |
|---|---|---|
| Revenue | ₹1,222 Cr | +13% |
| EBITDA | ₹105.6 Cr | +89% |
| EBITDA Margin | 8.64% | +360 bps |
| PAT | ₹73.35 Cr | +96% |
| Inventory Gain | ~₹20 Cr | Quietly bullish |
| Gold Volume (Q3) | 924 kg | Down YoY |
Read-through:
Margins expanded faster than revenues because costs behaved and gold didn’t. Remove inventory gains and the quarter still looks solid—just
