D.P. Abhushan cuts margin guidance, labels FY26 gains as inventory windfalls
The jeweler grew profits 88% last year, but management now warns that gold price swings inflated margins beyond sustainable levels.
— 4 earlier stories on D.P. Abhushan Ltd. →What's new
- Management pegs FY27 revenue target at ₹4,800 crore.
- Gold revaluation gains drove FY26 margins to 7.61%, which management considers non-recurring.
- Store count expansion to 51 locations by 2030.
Why this matters
Management is front-running a margin contraction by clarifying that last year’s 7.61% performance was a product of volatile gold prices rather than operational efficiency. Investors pricing the stock based on the FY26 peak will need to adjust expectations toward the 6% range.
What we're watching
- Whether the company hits its ₹4,800 crore revenue target for FY27.
- The impact of government efforts to curb gold spending on footfalls.
- E-commerce contribution to total sales.
The full read
D.P. Abhushan delivered strong headline numbers for FY26, with revenue up 23% to ₹4,070 crore and net profit climbing 88% to ₹212 crore. The company is now signaling that these gains aren't a new baseline. Management admits that FY26 EBITDA margins of 7.61% were inflated by inventory revaluation as gold prices rose, and it is guiding for a normalized 6-6.5% range in the current year. Despite a cooling effect from government warnings on gold expenditure, the company remains bullish on its trajectory. It aims for 25-30% annual revenue growth, targeting ₹4,800 crore in FY27. Support for that growth hinges on its gold accumulation and exchange schemes, which currently drive 35-40% of sales. With plans to reach 51 stores by 2030, the strategy depends on maintaining this conversion rate through the wedding off-season. The core challenge for the year ahead is sustaining volume growth while margins contract back toward historical norms.
D.P. Abhushan Ltd.
Latest quarter · Mar 2022
Strength & growth
Story so far
All notes on DPABHUSHAN →- 22 May 2026 · 5:14 PM IST D.P. Abhushan cuts margin guidance, labels FY26 gains as inventory windfalls
- 46d ago D.P. Abhushan targets ₹4,800 crore revenue for FY27
- 51d ago D.P. Abhushan's FY26 PAT jumps 88% to ₹212 cr
- 51d ago D.P. Abhushan's PAT surges 88% in FY26; revenue hits ₹406.5 cr
- 51d ago D.P. Abhushan's FY26 PAT jumps 88% as margins expand