Ashapuri Gold Ornament Limited Shines Bright with Stellar Q2 FY26 Performance

Ashapuri Gold Ornament Limited, a prominent B2B jewellery manufacturer, has reported an exceptionally strong performance for the second quarter and first half of Fiscal Year 2026. The company's unaudited financial results highlight significant growth across key metrics, underscoring its disciplined execution and robust business model in the Indian jewellery sector. For Q2 FY26, Ashapuri Gold Ornament Limited recorded a total income of ₹102.41 crore, marking a substantial 17.81% increase year-on-year. This growth was accompanied by a remarkable surge in profitability, with Profit After Tax (PAT) soaring by 144.62% to ₹8.47 crore. The company's EBITDA also more than doubled, reaching ₹11.47 crore, an impressive 128.66% increase from the previous year.

The robust financial performance was largely driven by a strong volume-led growth, with sales quantity increasing by over 20% year-on-year to 145.07 kg. This growth reflects sustained demand for Ashapuri's differentiated product portfolio and the increasing acceptance of its design-led offerings among leading retail chains across India. The company's EBITDA margin expanded significantly by 543 basis points to 11.20%, while the PAT margin improved by 429 basis points to 8.27%. This substantial margin expansion is a testament to Ashapuri's focus on a scaled product mix, better operating leverage, and strategic emphasis on premium jewellery collections, including diamond and polki designs.

Strategic Initiatives and Market Traction

Ashapuri Gold Ornament Limited's strategic focus on design excellence and expanding market reach is clearly yielding results. The company successfully secured new orders worth ₹102 crore at the Gem & Jewellery Show 2025, further validating the market acceptance of its design capabilities and product quality. Additionally, fresh orders totaling ₹5.41 crore were received for its premium Aneya collection (Polki & Diamond) from renowned national jewellery retail chains. These orders, with execution timelines of 90 days for domestic orders and 45 days for Aneya collection, highlight the company's operational agility and efficient delivery capabilities.

Management emphasized its commitment to scaling premium branded product lines and deepening relationships with national and regional chains. The company's extensive design ecosystem, boasting over 18,000 intricate designs crafted by more than 300 skilled artisans, provides a significant competitive advantage. Ashapuri Gold Ornament Limited maintains full in-house design capabilities, which ensures superior finishing, consistency, and innovation, while eliminating the need for outsourcing.

Outlook and Growth Drivers

Looking ahead, Ashapuri Gold Ornament Limited is bullish on its growth trajectory. For FY26, the company projects a 20% growth in volume and an 18% increase in revenue. Management also anticipates a 30-35% volume growth for FY27, signaling confidence in sustained market demand and its strategic initiatives. The company's manufacturing capacity has been expanded to 1.5 tons per year with the addition of a new floor, ensuring readiness to meet increasing order volumes. Despite the inherent gold price volatility, Ashapuri employs a 100% hedging strategy, effectively mitigating this risk.

The Indian gems and jewellery industry itself presents a significant opportunity, with the market size projected to grow at a CAGR of 8.6% to ₹10,645 crore by CY29. The organized jewellery manufacturing sector, currently holding only an 11% market share, offers immense potential for players like Ashapuri to capture an additional 49% market share as the industry formalizes. Ashapuri Gold Ornament Limited's strategic directions include expanding into high-potential urban and Tier 2 markets, digital transformation for an omnichannel experience, continuous design innovation, strengthening its sales force, and forging long-term supply agreements with branded companies. These initiatives are poised to further fuel its growth and solidify its position as a preferred B2B jewellery partner.

Concluding Thoughts

Ashapuri Gold Ornament Limited's Q2 FY26 performance demonstrates strategic clarity and disciplined execution. The company's ability to deliver strong financial results, secure significant orders, and expand its operational capabilities, even amidst market dynamics like gold price fluctuations, reinforces investor confidence. With a clear roadmap for profitable growth, an expanding design portfolio, and strengthened relationships with leading retail partners, Ashapuri Gold Ornament Limited is well-positioned to capitalize on the robust growth of the Indian jewellery market.