D.P. Abhushan Shines Bright: Q2 FY26 Performance and Strategic Vision

D.P. Abhushan Limited, a venerable name in the Indian jewellery sector with an 85-year legacy, has unveiled its Q2 and H1 FY26 financial results, demonstrating remarkable resilience and strategic foresight amidst a dynamic market. Despite a challenging environment marked by significant gold price volatility, the company delivered a robust operational performance, underpinned by strong festive demand and enhanced profitability. For Q2 FY26, the company reported revenue from operations of ₹967.65 crore, a substantial 79% increase quarter-on-quarter. While year-on-year revenue saw a modest 4% dip due to gold price fluctuations, EBITDA surged by an impressive 99% year-on-year to ₹75.80 crore, with margins expanding to 7.83%. Profit After Tax (PAT) more than doubled, growing 105% year-on-year to ₹51.46 crore, reflecting a strong focus on efficiency and higher-margin offerings.

The first half of FY26 saw D.P. Abhushan achieve total sales of ₹1,507.99 crore, broadly flat year-on-year. However, the underlying profitability metrics painted a brighter picture. H1 FY26 EBITDA stood at ₹131.05 crore, a 72% increase year-on-year, with margins improving to 8.68%. PAT for H1 reached ₹87.88 crore, up 75% year-on-year. This strong bottom-line growth, despite muted top-line expansion, highlights the company's effective cost management and strategic product mix adjustments. Gold jewellery remained the primary revenue driver, contributing 91% of H1 sales. Notably, silver sales witnessed an exceptional 103% year-on-year growth, while diamond-studded jewellery, though experiencing a slight 3% decline, remains a key focus for future diversification and profitability enhancement.

Strategic Expansion and Product Diversification

D.P. Abhushan is actively pursuing an aggressive expansion strategy, particularly in Tier 2 and Tier 3 cities across Central India. The company successfully inaugurated new showrooms in Ajmer and Neemuch in FY25, which have already contributed significantly to sales, validating their expansion model. A second showroom in Ratlam was also opened in April 2025. The management plans to open 8 to 10 new stores over the next 2-3 years, with an annual target of 2 to 4 stores, all operating under the Company-Owned Company-Operated (COCO) model to maintain stringent control over operations, inventory, and customer experience. This strategic footprint expansion aims to capitalize on the growing purchasing power in regions like Gujarat, Chhattisgarh, Madhya Pradesh, and Rajasthan.

Beyond geographical expansion, D.P. Abhushan is strategically diversifying its product portfolio. While gold remains core, there is an increasing focus on diamond-studded jewellery, with a target to grow its revenue share from the current 6% to 15%. This shift is supported by design-led diamond collections and strategic initiatives like dedicated exhibitions. The company also recognizes the growing preference among younger consumers for lightweight and daily wear gold jewellery, positioning itself to cater to these evolving fashion statements rather than solely investment-driven purchases.

Digital Transformation and Future Outlook

In a significant move towards digital transformation, D.P. Abhushan is set to launch its e-commerce platform before the end of the current financial year. This omnichannel approach is crucial for expanding reach and catering to a wider audience, including those who prefer online shopping. The company's management highlighted that this initiative is part of a broader Pan-India growth strategy, ensuring connectivity with both traditional and digitally-savvy customers. Furthermore, to support its ambitious expansion and diversification plans, the company is in the process of raising up to ₹600 crore through a Qualified Institutional Placement (QIP).

Despite the short-term volatility in gold prices, D.P. Abhushan's management remains highly optimistic about the long-term outlook. They anticipate strong performance in the upcoming quarters, driven by the peak wedding season and encouraging consumer sentiment. The company projects an overall revenue growth of 20-25% for FY26 and aims for an EBITDA margin between 7% and 8%. With a continued focus on customer-centricity, product innovation, and operational excellence, D.P. Abhushan is well-positioned to drive sustainable growth and profitability, reinforcing its status as a most trusted jewellery brand.