D.P. Abhushan Ltd

Key Decisions

• Santosh Kataria re-appointed as Chairman & Managing Director for 5 years, Oct 1, 2026, subject to members' approval.
• Anil Kataria re-appointed as Whole-time Director for 5 years from Oct 1, 2026, subject to members' approval.
• Alteration of Articles of Association to insert Article 165 on marking securities as non-transferable, subject to members' approval.
• Draft Directors' Report for FY 2025-26 to be included in the Annual Report 2025-26.
• NSDL appointed as Remote E-Voting Agency for resolutions at the 9th AGM.
• ALAP & Co. LLP appointed as Scrutinizer for remote e-voting and AGM voting.

New Jodhpur COCO showroom

• Announces opening of a COCO (Company-Owned and Company-Operated) showroom of D.P. Jewellers in Jodhpur, Rajasthan.
• Operations to be managed directly by the company, including staffing, inventory, customer service, and day-to-day operations.
• Showroom is under construction and expected to open shortly upon completion of ongoing works.
• Part of the group's retail expansion strategy to improve accessibility in Jodhpur and nearby areas.

Books-of-account maintenance address change

• New books-of-account maintenance address: 2nd Floor, 1, Dwarkapuri, Gopal Gaushala Colony, Ratlam, MP 457001; effective Aug 5, 2026.

Financial Performance

• Q1 FY27 revenue ₹853.63 cr, up 58% YoY from ₹541 cr.
• EBITDA ₹93.99 cr, up 70% YoY; margin 11.01%.
• PAT ₹64 cr, up 77% YoY; margin 7.55%.
• Gold revenue ₹781 cr, up 59% YoY; gold-led growth.
• Old gold exchange contributed ~25% of Q1 FY27 sales.
• Same-store sales growth 52% across stores.
• Silver revenue ₹40 cr; Diamond ₹29 cr; wedding purchases 62% of revenue.
• Footfall-to-conversion ratio 81%.
• Average ticket size ₹1,57,000.

Industry Trends & Digital Push

• Industry backdrop: gold price correction in June improved sentiment.
• Import duty rose to 15% in May 2026; near-term cost/demand sensitivity.
• Digital/e-commerce launched; omni-channel engagement expanding.
• Lightweight, daily-wear designs gaining traction.
• Rani Rupmati Collection launched; Kota exclusive showcase.

Store Expansion & Capex

• Target 51 COCO stores; 3–4 FOCO; multi-state expansion.
• Dahod (3,200 sq ft) COCO and Jabalpur (3,750 sq ft) FOCO-EO planned.
• Two to three additional FOCO stores planned by next years.
• Showroom formats: 3,000–5,000 sq ft and 8,000–10,000 sq ft.
• Break-even in 6–9 months; 8k–10k format targets ₹350–₹400 cr turnover in 3–4 years.

Inventory & Hedging

• Inventory heavy; 95–98% of assets are inventory.
• Inventory turnover 4.7x–5.0x; improving with scale.
• Gold inventory value ~₹1.20 lakh vs market ~₹1.51–1.52 lakh.
• Hedging via real-time replenishment, GML, and MCX; risk policies in place.

Q&A Highlights

• DP Swarn Plus launched Apr 2026; min ₹5,000; ~50 customers above ₹1 lakh/month.
• Jabalpur FOCO pilot; revenue-sharing; DP controls SOPs; plan 2–3 more franchisees later.
• Target 51 COCO stores; 3–4 FOCO; potential further FOCO over time.
• Gujarat entry via Dahod; Rajasthan/MP explored; Maharashtra discussions; no immediate metro plans.
• Volume growth target ~10% for FY27 and FY28; value growth depends on gold prices.

Outlook & Guidance

• Volume growth target around 10% for FY27 and FY28.
• Value growth tied to prevailing gold prices; higher prices raise value, stabilization lowers it.
• Expansion focused on Tier II/III markets; multi-state approach; no immediate metro plans.
• 51 COCO stores; ~3–4 FOCO; expansion trajectory may include more FOCO over time.

Risks & Watchpoints

• Gold price volatility can pause discretionary purchases; pent-up demand returns once prices stabilize.
• Import duty hikes create near-term cost/demand sensitivity; fundamentals remain intact.
• Execution risk in multi-state expansion; competition from larger players in Tier II/III markets.

Financial Highlights

• Total revenue for Q1FY27: ₹853.63 crore, up 58% YoY.
• EBITDA ₹93.99 crore; EBITDA margin 11.01% in Q1FY27.
• PAT ₹64.45 crore, up 77% YoY; PAT margin 7.55%.
• FY26 revenue ₹4,070.33 crore; EBITDA ₹309.67 crore; PAT ₹211.84 crore.
• FY26 EBITDA margin 7.61%; PAT margin 5.21%.

Operational Updates

• Showrooms finalized for Jabalpur and Dahod; agreements completed and approvals in place.
• Dahod showroom (~3,200 sq ft) marks Gujarat entry; owned/operated by DP Abhushan.
• Jabalpur showroom (~3,750 sq ft) to be FOCO; asset-light expansion.
• FOCO model to enable expansion into new markets.

Key Performance Metrics

• Same Store Sales Growth: 52% in Q1FY27.
• Footfall conversion: 81% in Q1FY27.
• Average ticket size: ₹1,57,000 in Q1FY27.
• Wedding purchases: 62% of total sales; festive 18%; others 20%.
• Gold procurement and hedging strategies support margin stability.

Outlook / Guidance

• Management remains confident in long-term growth and disciplined store rollout strategy.

Showroom expansion

• Approval for opening a 3,750 sq ft FOCO showroom in Jabalpur, MP.
• Operations commencement date is under finalisation; first FOCO expansion under asset-light strategy.

Dahod showroom opening

• Board approved opening a company-owned jewellery showroom in Dahod as part of retail expansion.
• Showroom area is approximately 3,200 square feet.
• First showroom in Gujarat, marking strategic entry into the state's retail market.
• Showroom will be owned and operated by the company.
• Location: Ambika Society, Dahod.
• Commencement date under finalisation and to be implemented in due course.

Financials

• Revenue from operations: ₹85,239.97 lakh; total income: ₹85,362.80 lakh for quarter ended June 30, 2026.
• Expenses totaled ₹76,741.56 lakh with profit before tax of ₹8,621.23 lakh.
• Tax expense ₹2,176.28 lakh; net profit ₹6,444.95 lakh; basic EPS ₹28.23, diluted ₹28.16.
• Total comprehensive income for the quarter: ₹1.09 lakh.
• Segment: Gems & Jewellery; standalone results only.

Expansion / Capex

• Board approved opening a company-owned showroom at Dahod, Gujarat.
• Board approved opening a Franchise Owned Company Operated showroom at Jabalpur, Madhya Pradesh.

Audit & Reporting

• Unaudited standalone results for quarter ended 30/06/2026.
• Limited review conducted by Jeevan Jagetiya & Co.

Notes on Segment

• Ind AS 108: Gems & Jewellery is the sole reportable segment.

Meeting Details

• Q1FY27 earnings call scheduled for Wednesday, July 22, 2026 at 16:00 IST (60 minutes).

Mode and Event

• Virtual group earnings conference call.

Event / Organiser

• Event: D. P. Abhushan Limited Q1FY27 Earnings Conference Call.

Participants

• Whole Time Director attendee.
• Managing Director attendee.
• Promoter representative attendee.
• Chief Financial Officer attendee.

Purpose

• Discuss Q1FY27 results with investors.

Additional Notes

• No explicit recording or transcript information provided.

Demat/remat status

• Regulation not applicable; all shares are in demat form; no rematerialisation requests received in quarter.