Deepa Jewellers Limited – Investor Presentation Summary

Key Operational Highlights

  • Revenue grew 24.6% YoY to INR 6,256 Mn in Q2 FY27 and 30.1% YoY to INR 10,567 Mn in H1 FY27.
  • Quarterly growth moderated by the shift in festive demand from H1 to H2.
  • The company typically follows a seasonality pattern with H1 contributing around 40% of annual revenue and a larger share accruing in H2.
  • Commenced operations at the in-house manufacturing facility in Hyderabad (6,696 sq ft) in September 2026 to strengthen internal manufacturing capabilities.
  • Gross margin remained resilient at 7.80% in Q2 FY27 and 8.50% in H1 FY27, with H1 margin declining marginally by 15 bps YoY.

Key drivers of operational performance: New in-house manufacturing facility, shift in festive demand timing, and fresh issue proceeds expected to support H2 growth.

Segment-wise Performance

Not Specified

Financial Highlights

Q2 FY27:

Revenue: Rs. 6,256 Mn

EBITDA: Rs. 453 Mn

PAT: Rs. 373 Mn

EPS: Rs. 4.10

EBITDA Margins: 7.24% (47 bps decline YoY)

PAT Margins: 5.96% (54 bps improvement YoY)

H1 FY27:

Revenue: Rs. 10,567 Mn

EBITDA: Rs. 840 Mn

PAT: Rs. 641 Mn

EPS: Rs. 7.42

EBITDA Margins: 7.95% (37 bps decline YoY)

PAT Margins: 6.07% (9 bps improvement YoY)

YoY comparison: Q2 revenue up 24.6%, PAT up 37.1%; H1 revenue up 30.1%, PAT up 31.9%

QoQ comparison: Q2 revenue up 45.1% from Q1 FY27, PAT up 39.2% from Q1 FY27

Drivers of financial performance: Higher other income, lower tax outgo, and revenue growth.

Key Risks: Lower gross margin, marginal increase in employee expenses, shift in festive demand patterns.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Strong presence in Southern India (Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala) with revenue concentrated in Southern India.

Customer network spans across 13 States and 1 Union Territory in India.

Balance Sheet Snapshot

H1-FY27 Standalone Balance Sheet:

Total Assets: INR 6,064 Mn

Non-Current Assets: INR 179 Mn

Current Assets: INR 5,885 Mn (including Inventories: INR 1,640 Mn, Trade Receivables: INR 3,114 Mn, Cash & Cash Equivalents: INR 131 Mn, Other Bank Balances: INR 929 Mn)

Total Equity: INR 5,325 Mn

Non-Current Liabilities: INR 495 Mn

Current Liabilities: INR 244 Mn

Financial Health Insights: Strong asset growth, increased cash reserves, reduced current liabilities.

Capex & Cash Flow Health

Capital Expenditure: New manufacturing facility in Hyderabad (6,696 sq ft) commenced operations in September 2026.

Investment Rationale: Focus on reducing karigar dependency, ensuring quality consistency, and capturing manufacturing margin.

Strategic & R&D Initiatives

Investments in Innovation: Plans to add 2 new product categories and 22 additional SKUs by FY27 (paper casting jewellery and Nakshi, Kundan jewellery). Increase design team from 15 to 20 employees. Introduction of gold recovery mechanism in manufacturing facility.

Expected impact on growth: Product diversification and expanded design capabilities to meet evolving customer requirements.

Strategic Rationale: Expanding into high-growth markets, reducing operational costs through in-house manufacturing, and strengthening brand presence.

Industry Trends & Business Environment

Macro/Industry Trends: Increasing demand from organized retailers, rise in disposable income, deferred purchases of bridal jewellery, growing exports, emergence of new markets, and rise in gold prices.

Impact on Company: Shift to organized retail chains benefits large-scale B2B suppliers like Deepa Jewellers. Southern India offers immense growth scope for organized B2B suppliers.

Management Commentary & Growth Outlook

Strategic Outlook: Targeting deeper penetration in Andhra Pradesh, Karnataka, and Tamil Nadu - high-growth jewellery markets. Plans to establish new sales offices in Chennai, Bangalore, and Coimbatore. Already established a new sales office in Vijayawada, AP.

Growth Strategy: Expand Southern India footprint, product portfolio diversification, technology and brand investment through mobile app, WhatsApp business catalog, social media, and B2B jewellery exhibitions.

Risks and Opportunities: Seasonal demand patterns, dependency on external karigars (being reduced through in-house manufacturing), and competitive regional markets.

Company Overview

Deepa Jewellers Ltd. is an organized B2B designer, processor and supplier of hallmarked gold jewellery, incorporated in 2016 by Mr. Ashish Agarwal and Mrs. Seema Agarwal. Specializes in traditional gold waist belts (Vaddanam), CNC Machine cut bangles and other jewellery across 16 product categories and 110 SKUs. Operates an asset-light processing model supported by external karigars, with in-house manufacturing expansion. Established customer network of 373 customers, including 47 jewellery retail chains and 326 standalone stores.

ESG Updates

Not Specified

Digital Transformation

Leveraging mobile app, WhatsApp business catalog, Instagram/Facebook for trade outreach. Planned expansion of marketing team from 12 to 25 members.