Deepa Jewellers FY26 margin rose to 7.6%, ROE hit 56.5%

Deepa Jewellers Ltd. raised its operating EBITDA margin to 7.60% in FY26 from 4.01% in FY25, while return on equity, or ROE, reached 56.45% from 3.95%. Deepa Jewellers recorded the highest FY26 ROE in the selected B2B gems and jewellery comparison, supported by Rs 1,926.676 crore of revenue from operations and a 53-day net operating cycle.

How did Deepa Jewellers’ FY26 margin and returns change?

Deepa Jewellers increased revenue from operations by 37.91% to Rs 1,926.676 crore in FY26 from Rs 1,397.010 crore in FY25, while operating EBITDA rose 161.29% to Rs 146.337 crore from Rs 56.006 crore. The peer assessment defines operating EBITDA as profit before tax plus finance cost and depreciation and amortisation, less other income. Because operating EBITDA grew faster than revenue, the operating EBITDA margin increased by 3.59 percentage points to 7.60%.

Deepa Jewellers’ profit after tax, or PAT, rose to Rs 104.788 crore in FY26 from Rs 40.580 crore in FY25, and PAT margin increased to 5.44% from 2.90%. The assessment calculates ROE as PAT divided by average total equity at the beginning and end of the period. On that basis, ROE rose 52.50 percentage points to 56.45%, while return on capital employed, or ROCE, increased to 52.08% from 30.60%.

The FY26 increase followed revenue growth over three reported financial years. Revenue from operations rose from Rs 1,024.568 crore in FY24 to Rs 1,397.010 crore in FY25 and Rs 1,926.676 crore in FY26. Operating EBITDA margin moved from 3.49% in FY24 to 4.01% in FY25, before the larger FY26 increase to 7.60%.

How did Deepa Jewellers’ FY26 margin compare with B2B peers?

Deepa Jewellers’ 7.60% FY26 operating EBITDA margin was higher than the 6.90% listed for Sky Gold & Diamonds, 6.11% for Khazanchi Jewellers and 7.07% for Shringar House Of Mangalsutra. It was below the 14.43% reported for RBZ Jewellers and 9.86% for Shanti Gold International. Operating EBITDA margin is calculated as operating EBITDA divided by revenue from operations in the comparison.

Deepa Jewellers’ FY26 ROE of 56.45% exceeded every listed peer result, including 37.34% for Shanti Gold International, 32.46% for Khazanchi Jewellers, 29.83% for Sky Gold & Diamonds, 26.29% for Shringar House Of Mangalsutra and 20.11% for RBZ Jewellers. Its ROCE of 52.08% also exceeded the highest listed peer figure of 34.79%, reported by Khazanchi Jewellers. These measures use reported profit and average balance-sheet values, rather than a forecast of future shareholder returns.

What does Deepa Jewellers’ 53-day operating cycle show?

Deepa Jewellers’ FY26 net operating cycle was 53 days, made up of 18 inventory days and 36 debtor days, less one creditor day. The stated formula measures the time represented by inventory and trade receivables after deducting trade-payable credit. The 53-day cycle was shorter than the 63 to 251 days reported by the other selected peers in FY26.

The FY26 cycle was four days longer than Deepa Jewellers’ 49-day cycle in FY25, although inventory days fell to 18 from 21. Debtor days increased to 36 from 29, while creditor days remained at one in both FY25 and FY26. The change therefore came from a seven-day rise in the receivables period, not from inventory holding.

Deepa Jewellers’ one creditor day means inventory and customer receivables are funded with limited trade-payable credit. This structure will continue to depend on inventory turning within 18 days and customers paying within the reported 36-day debtor period if creditor days remain at one. The industry assessment identifies working-capital management, timely access to credit and imported raw-material availability as challenges for jewellery manufacturers and wholesalers.

What product mix and client base does Deepa Jewellers report?

Deepa Jewellers reported 110 stock-keeping units, or SKUs, and 346 B2B clients in FY26. Vaddanam accounted for 41.85% of FY26 revenue, bangles accounted for 30.87%, and other products represented 27.28%. Vaddanam and bangles therefore together made up 72.72% of FY26 revenue, concentrating reported sales in two product categories.

The product mix changed from FY25, when bangles represented 41.82% of revenue and vaddanam represented 34.58%. By FY26, vaddanam had increased by 7.27 percentage points, bangles had declined by 10.95 percentage points, and other products had risen by 3.68 percentage points from 23.60%. The supplied comparison does not attribute the FY26 operating EBITDA margin increase to this product-mix shift.

The domestic B2B gems and jewellery market was estimated at Rs 73,010 crore in FY26E, compared with Rs 47,690 crore in FY25, with the sharp FY26E increase largely attributed to higher gold prices. The industry assessment projects a 2% to 3% compound annual growth rate from FY26 to FY30, supported by potential gold-price stabilisation, organised retailers, exports and new markets. Gold-price volatility, regulatory changes and dependence on imported raw materials remain factors affecting procurement costs, inventory planning and demand.

Conclusion

Deepa Jewellers’ FY26 results combined a 3.59-percentage-point operating EBITDA margin expansion with ROE of 56.45%, the highest reported figure among the selected B2B peers. Revenue reached Rs 1,926.676 crore, PAT reached Rs 104.788 crore and ROCE reached 52.08%, while the 53-day operating cycle remained below every other selected peer’s reported FY26 cycle.

The disclosed FY26 to FY30 B2B market outlook calls for moderated annual growth of 2% to 3%, making debtor collections, inventory turnover and the company’s one-day creditor period relevant to future working-capital needs. Changes in gold prices, imported-material availability and gold-import duties can also affect procurement costs, inventory planning and sector demand.