D. P. Abhushan Q2 profit falls 23% as revenue drops 21%

D. P. Abhushan Limited reported standalone profit of Rs 39.74 crore for the quarter ended September 30, 2026, down 23% year on year, as revenue from operations fell 21% to Rs 759.90 crore. D. P. Abhushan’s first-half profit nevertheless rose 19% to Rs 104.19 crore, supported by the June quarter.

Why did D. P. Abhushan’s Q2 profit fall?

D. P. Abhushan’s September-quarter profit fell as total income declined to Rs 761.27 crore from Rs 967.74 crore, while profit before tax decreased to Rs 53.08 crore from Rs 69.31 crore in the comparable 2025 quarter. Revenue from operations was Rs 759.90 crore, compared with Rs 967.65 crore a year earlier, a calculated decline of 21.5%.

Other income increased to Rs 1.37 crore from Rs 0.09 crore, but this was small relative to the Rs 207.75 crore reduction in revenue from operations. Total expenses fell 21.2% to Rs 708.19 crore from Rs 898.43 crore, while tax expense declined to Rs 13.34 crore from Rs 17.85 crore. Profit for the period consequently fell to Rs 39.74 crore from Rs 51.46 crore.

How did D. P. Abhushan perform against the previous quarter?

D. P. Abhushan’s profit for the September 2026 quarter was lower than the Rs 64.45 crore reported for the quarter ended June 30, 2026. The calculated sequential decline was 38.3%, while revenue from operations fell 10.9% from Rs 852.40 crore in the June quarter to Rs 759.90 crore in the September quarter.

Profit before tax declined from Rs 86.21 crore in the June quarter to Rs 53.08 crore in the September quarter. Basic earnings per share, not annualised for the quarter, fell to Rs 17.41 from Rs 28.23 in June 2026 and Rs 22.57 in September 2025. Diluted earnings per share was Rs 17.37, compared with Rs 28.16 and Rs 22.56, respectively.

The expense mix also changed from the June quarter. Purchases of stock-in-trade increased to Rs 756.43 crore from Rs 675.15 crore, while the change in inventories was negative Rs 163.03 crore, compared with negative Rs 105.36 crore. Cost of materials consumed fell to Rs 76.43 crore from Rs 161.41 crore, whereas finance costs rose to Rs 5.44 crore from Rs 5.28 crore.

What happened to D. P. Abhushan’s first-half earnings?

D. P. Abhushan’s profit for the half year ended September 30, 2026 rose to Rs 104.19 crore from Rs 87.88 crore in the corresponding 2025 half year. The calculated increase was 18.6%, despite the lower September-quarter result, because the June 2026 quarter generated profit of Rs 64.45 crore.

Revenue from operations for the six months increased 6.9% to Rs 1,612.30 crore from Rs 1,508.03 crore a year earlier. Total income increased to Rs 1,614.90 crore from Rs 1,509.06 crore, while total expenses rose to Rs 1,475.61 crore from Rs 1,391.16 crore. Profit before tax therefore increased to Rs 139.29 crore from Rs 117.90 crore.

Basic earnings per share for the six-month period was Rs 45.64, up from Rs 38.64 in the corresponding prior-year period. D. P. Abhushan reported total comprehensive income of Rs 104.20 crore for the half year, against Rs 87.86 crore a year earlier. The difference from period profit reflected other comprehensive income of Rs 0.0021 crore, or Rs 0.21 lakh.

What do D. P. Abhushan’s balance sheet and cash flow show?

D. P. Abhushan’s inventory increased to Rs 1,250.07 crore at September 30, 2026, from Rs 1,003.94 crore at March 31, 2026. Total assets increased to Rs 1,395.29 crore from Rs 1,142.62 crore over the same period, while cash and cash equivalents decreased to Rs 16.35 crore from Rs 25.75 crore.

Current borrowings were Rs 354.10 crore at September 30, 2026, compared with Rs 284.01 crore at March 31, 2026. Current liabilities increased to Rs 635.23 crore from Rs 490.79 crore, including payables to creditors other than micro and small enterprises of Rs 127.43 crore, up from Rs 60.17 crore. Equity attributable to shareholders rose to Rs 739.15 crore from Rs 632.61 crore.

D. P. Abhushan reported net cash used in operating activities of Rs 66.30 crore for the half year ended September 30, 2026. Operating profit before working-capital changes was Rs 156.03 crore, but an inventory increase of Rs 246.12 crore contributed to negative cash generated from operating activities of Rs 36.34 crore before direct taxes. Net cash used in investing activities was Rs 3.42 crore during the six months.

How are D. P. Abhushan’s results reported?

D. P. Abhushan reported unaudited standalone results prepared under Indian Accounting Standard 34, Interim Financial Reporting. The audit committee reviewed the results and the board approved them on November 6, 2026. The statutory auditors carried out a limited review of the September-quarter and half-year figures rather than an audit.

D. P. Abhushan has one reportable segment under Indian Accounting Standard 108: Gems & Jewellery, covering wholesale and retail trade and the manufacturing of jewellery and ornaments. The company said it presents standalone results because it had no subsidiary, associate or joint venture at September 30, 2026. Paid-up equity share capital was Rs 22.83 crore, with a face value of Rs 10 per share.

Conclusion

D. P. Abhushan’s September-quarter results marked a reversal from the June quarter and from the prior-year September quarter, with revenue falling 21.5% year on year and profit declining 22.8%. The first-half comparison remained positive, however, as revenue rose 6.9% and profit increased 18.6% to Rs 104.19 crore.

The next reported results will show whether the September-quarter slowdown persists. Disclosed items to watch include inventory of Rs 1,250.07 crore, current borrowings of Rs 354.10 crore and the half-year operating cash outflow of Rs 66.30 crore, all within D. P. Abhushan’s sole Gems & Jewellery segment.