D. P. Abhushan Limited (NSE: DPABHUSHAN) Q1 2026 Earnings Call dated Jul. 30, 2025
Corporate Participants:
Unidentified Speaker
Ajit Mishra — Investor Relations
Santosh Kataria — Chairman and Chief Executive Officer
Anil Kataria — Founder, Promoter & Whole Time Director
Vikas Kataria — Promoter
Analysts:
Unidentified Participant
Viraj Jain — Analyst
Manav — Analyst
Sagar Shukla — Analyst
Akshay Chaudhary — Analyst
Anjali Singh — Analyst
Abhishek Jane — Analyst
Mayank — Analyst
Presentation:
operator
[Starts Abruplty] Over to Mr. Ajit Mishra. Thank you. And over to you sir.
Ajit Mishra — Investor Relations
Thank you. Good evening to all the participants on this call. I am Ajit Mishra from Ernst and Young Investor Relations. Before we proceed to the call, let me remind you that the discussion may contain forward looking statements that may involve known or unknown risk, uncertainties and other factors. It must be viewed in conjunction with our business risk that could cause future results, performance or achievement to differ significantly from what it expressed or implied by such forward looking statements. Please note that we have mailed the text release results and the same are available on the Exchange and company duck side.
In case if you have not received the same you can write to us and we will be happy to send that same over to you to take us through the results and answer your questions. Today we have the top management of DP Abhishek Limited Here presented by Santosh Kataria, Chairman and Managing Director Anil Kataria, whole time director and Mr. Vikash Kataria, promoter. We will start the call with an opening remark on company performance and quarter gone past and then we will conduct Q and A session. With that said I will now hand over the call to Anil Sir. Over to you sir.
Anil Kataria — Founder, Promoter & Whole Time Director
Good evening everyone.
Vikas Kataria — Promoter
Thank you. Good evening everyone. I am Vikas Kataria, Promoter of DP Abusion Limited. I do now like to take this opportunity to share our financial performance for the first quarter of FY26. Total revenue for Q1 FY26 it stood at 541 crore compared to 505 crore in Qify 25 registering a moderate growth 7% year on year growth. The elevated gold price did impact overall industry demand and volume growth leading to more cautious consumer spending. Our EBITDA stood at 55 crore with a margin of 10.21% up from 38 crore in the same quarter last year a 44% increase.
Profit after tax come in a 36 crore with a paid margin of 6.73 compared to 25 crore in Q1. FY25 showing a 45% year on year growth. Looking at our revenue mix, Gold remain our dominating category contributing 91% of total sale. Diamond contributing 6% and silver made up 3%. With that I do now like to hand over the call to Mr. Santosh Kataria who will take you through our key initiative and development during the last year over to you
Santosh Kataria — Chairman and Chief Executive Officer
[Foreign Speech] Thank you so much. Thank you so much.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Viraj Jain, an individual investor. Please proceed.
Viraj Jain
Hi, thanks for the opportunity. First of all sir, congratulations on a great quarter. So my first question is sir, since this is a generational business and the fourth generation is currently running the business, how are the roles divided between the family members and how is the succession planning done?
Vikas Kataria
Thank you so much for asking this question. So the business is a primarily on business. Currently the business is managed by the fourth generation. Mr. Anil Kataria, Santoshi Kataria and myself Vikas Kataria. So [Foreign Speech] And now the first generation is already joined [Foreign Speech] from sales to procurement to like everything.
Viraj Jain
Okay sir, so my second question is who do we think are our major competitors in the organized and unorganized market? And how do you see the market shifting from unorganized to organized players? Are the unorganized stores facing a lot of trouble and are they shutting down?
Vikas Kataria
So in the organized market we see large national and regional chain like Malabar. So [Foreign Speech] we have like a different kind of competitive environment. And for the unorganized to unorganized to organize shift especially in tier 2 tier 3 series. But now store may convert.
Viraj Jain
Okay sir, my last question is. You know we have done very well in our Ratlam and indoor stores which contribute nearly 50% of our total revenue.
How have we achieved such high revenues from individual store? And how are we going to replicate the same growth in other stores as well?
Vikas Kataria
So Ratlam and Indore are our flagship stores. We have like more than 85 years [Foreign Speech] and almost like the 15 year old students. Again a flagship is stored 50,000 square feet and we are like working hard or particular location.
Vikas Kataria
Thank you sir. That’s it from my side.
operator
Thank you. The next question is from the line of Manav, individual investor, please proceed.
Manav
Yeah. Hi. Thanks for the opportunity and congratulations on a good set of numbers. I just had a few questions. Firstly I wanted to understand as to what is Our revenue split and do we have any bullion sales in this split as well? Also if we have any bullion Sales, are these B2B or do we sell it through our stores?
Vikas Kataria
Yeah. So currently our revenue excluding bullion comprised of like the 60% of bridges will be 20% is the festival and then 20% is self purchase and gifting. So mostly [Foreign Speech] this is our mix product mix because such as silver platinum, revenue from Bullion is around 275 crore.
Broadly 10%. This revenue is basically go sold to vendor as form of a payment for the jewelry purchase. So basically. [Foreign Speech] So basically.
Manav
Okay, okay sir, my next question is around inventory turns. I wanted to understand how our inventory turns out for the old flagship mature stores and also I wanted to understand how will these inventory turns grow for the new stores that we are planning to open up.
Vikas Kataria
So our inventory turn of like the older store is somewhere around like the 8, 8 times [Foreign Speech] or on an average inventory turn 6 times inventory turn and [Foreign Speech] within 2, 3 years.
So accordingly replenishment every day, replenishment weekly time.
Manav
Yeah, this inventory turn is unheard of in the industry eight times. So just wanted to understand one more thing. Since we have such high inventory turn, how much would be a dead inventory that we have and like how do we rotate or you know, move forward with this inventory? Like do we rotate it within our stores or do we give it back to the, to our vendors?
Vikas Kataria
We have such a high, high inventory [Foreign Speech] almost this is not actually there. [Foreign Speech] So I think 45 to 60 days or technically so I think the inventory is almost close to zero.
Manav
That’s it from my side and thank you and all the best for your future.
operator
Thank you. The next question is from the line of Rahel Shah, an individual investor. Please proceed.
Unidentified Participant
Hello, good afternoon. Congratulations to the company on a great set of numbers. So my first question is what does the store level economics look like? How does how long it takes typically for the store to reach EBITDA breakeven and start generating profit and how much inventory and capex do we need for store?
Vikas Kataria
Thank you Ravi. Typically a new store reach EBITDA break even within six to nine months depending on the location. Most store started generating profit within 12 months. So we operate our store under two formats. A large format which is like the more than 8,000 square feet and the format is a mid size format where the store size is less than 5,000 square feet and [Foreign Speech] inventory is like 50 crore.
In the biggest store we need like 100 crore inventory. And the capex is for small stores 2.5 to 3 crore and the bigger store is 5 crore to 7 crore is a capex contribution.
Unidentified Participant
So what is our current student mix and how do we see this going forward in next 34 years? Given the market which we cater generally paper plain gold jewelry rather than diamond or studded studded jewelry how are we looking to increase this mix in the market?
Vikas Kataria
Yeah. So currently our studded jewelry contribution is around 6% of total sale. Over the next 34 years we are planning.
We are aiming to reach around the 15% for the student jewelry by FY30 we are ending. [Foreign Speech] But thanks to all [Foreign Speech] this so we build some property [Foreign Speech] built up Dynamo make Hamara properties again so [Foreign Speech] initiative [Foreign Speech].
Unidentified Participant
Understood Sir. Given our current margin. What are current margin and how do we expect them going forward? Given we are planning to increase our student mix in the upcoming years. What is the average making charges for gold jewelry versus student jewelry? And also how much making do we give to our suppliers?
Vikas Kataria
Okay. So our current margin is around like the 7 to 8%.
And we are expecting to improve gradually [Foreign Speech] through student mix jewelry high making charges. [Foreign Speech] Recently we launched a new brand [Foreign Speech] where we can charge like the extra margin. [Foreign Speech] Average making charge is like 5% to 10% is our like the average making charges. [Foreign Speech] And in in case of the diamond jewelry our margin is somewhere around 20%. Approximately 20% [Foreign Speech] depend upon the product. [Foreign Speech] Depends on the average. [Foreign Speech]
Unidentified Participant
So that’s it from my side. Congratulations once again.
Vikas Kataria
Thank you so much.
operator
Thank you. The next question is from the line of Sagar Shukla, an individual investor. Please proceed.
Sagar Shukla
Excellent set of numbers. Just had few questions. First one was wanted to understand our hedging policy and how much of our inventory would be currently held. Also given the rise in pull prices how we are hedged against any decline going forward. And what would be our cost of hedging.
Vikas Kataria
Yeah. Thank you Sagat for the asking question. So currently we do not have hedge our inventory. However we grow and expand into more market. We are actively looking at introducing a hedging policy to manage price risk. And we are we are planning to get a GML or GML cost will be somewhere around 3.5% to 4%.
Sagar Shukla
Understood. Understood. Thank you so much. The second one was considering that gold pricing are on the rise. Correct. So I believe there would be natural shift to lightweight jewelry. What are your thoughts thoughts on that? And also wanted to hear about how we are going for lab grown diamonds. And are we planning to add lab grown diamonds to our collections?
Vikas Kataria
Yes. With the rise of the gold price we are definitely seeing a shift in customer preference. A certain customer. [Foreign Speech] And after this [Foreign Speech] BIS or Amloka Joby purity certificate. [Foreign Speech] And we believe [Foreign Speech] Lakhtaiki tier 2 tier 3 cities.
Particularly tier 2 tier 3 cities especially diamond jewelry.
Sagar Shukla
Correct. Correct. Got it. Understood. The last one was given that we have taken board resolution of raising 600 crores. Wanted to understand what would be the timeline for the same and how we are looking to deploy this fund. Also when I see last five years we have opened six stores and going forward we are planning to open six stores every year. So how fast are we moving this?
Vikas Kataria
So we are planning to open six additional store in FY26 and seven store in FY27. As mentioned earlier we need a large format store 8,000 plus square feet and inventory of around 100kg required.
For like the large forming store and small we need 50kg inventory we required and capex is somewhere around the 5 crore and 2.5 crore. And as for the pace of expansion we have opened six store over the last five years. But we believe the brand is now ready to scale. This is the right time. Now we are set with the expansion plan [Foreign Speech] or we can handle
Sagar Shukla
super clear. Amazing move. Thank you.
Vikas Kataria
Thank you. Thank you.
operator
Thank you. The next question is from the line of Akshay Chaudhary, an individual investor. Please proceed.
Akshay Chaudhary
Yes. I thank you so much for the opportunity and congratulations on a great quarter. So my first question would be that what are our expansion plans going forward for the next four to five years. As you can see in the investor presentation that you are planning to expand to new geographies such as Gujarat, Chhattisgarh. So what would be the rationale behind that?
Vikas Kataria
So we currently have 11 stores on June 25th and we are looking to open seven to nine store every year. Going forward we have target to reach 50 stores in total by FY30. This year we are testing water in two more market of Gujarat and Chhattisgarh.
Because we feel there is a huge potential in this market. This market are still under penetrated. In addition to our internal database we will get we have lot of customer coming from bordering cities of the Gujarat and Chattisgarh. So that’s why we are planning to open the new state.
Akshay Chaudhary
Understood sir. But don’t you think that before we go for these new markets you can expand further in the cities of Rajasthan and Madhya Pradesh Also how do we test the market before actually planning to open a store? How do we look to compete in these new geographies where already well established years are present?
Vikas Kataria
Yes, you are absolutely right.
We will continue open more stores in NP and Rajasthan. Because NP Rajasthan potential. [Foreign Speech] But at the same time [Foreign Speech] already we have a good customer base from the Gujarat and reason. [Foreign Speech] So we are thinking [Foreign Speech].
Akshay Chaudhary
Understood. Thank you. Thank you. Now just one last question. What is our customer conversion ratios and how do we track them? And how are we achieved these ratios and what is a mix of existing and new customers and how it has moved over the years.
Vikas Kataria
So our customer conversion ratio is from walking to conversion. It’s somewhere around 85%. And our like the old customer.
Like our new customer. Old customer is our store. [Foreign Speech] The 70% is the old customer and 30% new customer. And the new stores [Foreign Speech]recently open [Foreign Speech]. New customer ratio is high. [Foreign Speech]60% customer is new and 40% [Foreign Speech].
Akshay Chaudhary
Got you. So that’s it for my friend. Thank you.
operator
Thank you. The next question is from the line of Anjali Singh from Bansal family office. Please proceed.
Anjali Singh
Hello. Thanks for the opportunity. So my first question is you recently had a 600 crore QIP. Means that use of proceeds for the 600 crore UIP. So can you tell me primarily used for store expansion or product diversification. What is the expected time period?
Vikas Kataria
No, no. It is. It is purely the expansion only. Only for the growth plan. [Foreign Speech]This is the only like the focus area.
Anjali Singh
Okay. Okay. Also. Can you give me an update on your current debt levels and whether any part of the QIP will go to a debate reduction.
Vikas Kataria
No, PIP is not going to the date reduction. And currently our like the date is somewhere around 150 total. The limit is the 210 crore and use limit is 150 crore somewhere.
Anjali Singh
Okay. 210 crores. And the reuse one is 150 crores. Okay. Okay.
Vikas Kataria
Yeah.
Anjali Singh
Thank you so much. Thank you.
operator
Thank you. The next question is from the line of Abishek Jane from Jane Securities. Please proceed.
Abhishek Jane
Good evening. Congratulations on a very good set of number. My first question is regarding your marginal guidance and the C guidance for FY26. Hello. Sorry. Yeah. I’m audible sir.
Vikas Kataria
Yeah.
Abhishek Jane
Yeah. My first question is regarding the same guidance for FY26 and margin guidance for FY26.
Vikas Kataria
So margin for FY26 is somewhere around like the 8%.
Abhishek Jane
8% sir.
Vikas Kataria
Yeah. 7 to 8%.
Abhishek Jane
Sir. Last year you also guided margin should be around 6 to 8. 7 8%. But it and short actually to 6%. So this year you can achieve 8%.
Vikas Kataria
Yeah, yeah. 7 to 8%.
Abhishek Jane
Yeah. Okay.
Unidentified Speaker
Sorry.
Currently our GP is around a 14% which is in last year is around a 10% GP. Yeah. Because telling about the overall overall financials basis.
Abhishek Jane
Okay sir. And what is the
Unidentified Speaker
Sales growth is around 7% increase quarter via Y basis.
Abhishek Jane
But. But can you achieve in FY26 as a whole?
Unidentified Speaker
As a whole we are predicting that around 10 to 15% growth we will achieve by the end of financial year 26.
Abhishek Jane
Okay, sir. And by then which time? Actually the YP will be done in how many months?
Vikas Kataria
Yeah. We are planning to close in this month.
Only in August.
Vikas Kataria
Okay. Thank you sir. That’s all for my slide.
operator
Thank you. The next question is from the line of Vikrant Kashya from Asian Market Securities. Please proceed.
Unidentified Participant
Hi, good evening. Just wanted to seek your clarity on growth during the quarter. So you have reported 9% growth in gold jewelry sales. Whereas the prices of the quarter has been shot up by 28 to 32% on a YOY basis. So first, is there any significant drop in gold volume that you have seen during the quarter? Please provide some clarity on that. And second on you have been guiding for your focus on increasing sales of studded jewelry. But this quarter again has been lower compared to last year. 10/4. I need your clarification on these two issues.
Is this your is phenomena for you or every company in and around area that you operate? Thank you. Hello. Hello. Yes
Unidentified Speaker
sir. [Foreign Speech]
Unidentified Participant
May I be audible?
Unidentified Speaker
[Foreign Speech] Yeah. Yeah.
Unidentified Participant
Yeah. Sales. [Foreign Speech] The price price. Gold price 28 to 32% [Foreign Speech] total improvement [Foreign Speech] last year same quarter [Foreign Speech] .
Unidentified Speaker
10 to 12% is a volume decrease [Foreign Speech] . But this is not for the DP abortion. It is for the entire industry. Due to the price at very peak point
Vikas Kataria
[Foreign Speech] Kamjora. Otherwise golden purchase diversity [Foreign Speech] holders shoot up. I think may digest this price is okay. Whatever it is. Customer price tk [Foreign Speech] . So I think [Foreign Speech] .
Unidentified Participant
Okay. One more thing. Last year wedding season [Foreign Speech]. So how is the calendar setting up for this year?
Vikas Kataria
[Foreign Speech] Fourth quarter may be okay.
Unidentified Participant
Thank you sir. And wish you best of luck.
Vikas Kataria
Thank you sir. Thank you.
operator
Thank you. The next question is from the line of Ashish Khurana from ANK Capital. Please proceed.
Unidentified Participant
[Foreign Speech]. Thank you for the opportunity. [Foreign Speech] Gross margin may around 500 to 600bps [Foreign Speech]. Gold price increase [Foreign Speech].
Vikas Kataria
Yes, definitely [Foreign Speech] different. Different.
Unidentified Participant
[Foreign Speech] I think last year.
Vikas Kataria
Yes, [Foreign Speech]
Unidentified Participant
I think last year [Foreign Speech] expected on a
Vikas Kataria
[Foreign Speech] stores. Say. We are expecting somewhere around like the 1400-1500
Unidentified Participant
[Foreign Speech] housekeeping questions. Probably. I can take offline through IRZ if that is okay.
Vikas Kataria
Yeah. Okay.
Unidentified Participant
Thank you sir. Wish you very best. All the best.
Vikas Kataria
Thank you. Thank you.
operator
Thank you. The next question is from the line of Pranav Malhotra from Starship India. Please proceed.
Unidentified Participant
Hello. Am I audible?
Vikas Kataria
Yeah.
Unidentified Participant
Yes. Yeah. It was really refreshing to see a 6% net margin in this quarter. Congratulations to you guys on the good set of numbers. So yeah my question was just like if you can guide on this number like the net profit margin for this year. Do we see it sustaining up? [Foreign Speech]
Unidentified Speaker
Yes. [Foreign Speech]
Unidentified Participant
Right. [Foreign Speech] So and conversion ratio presentation may we see that it’s above 80% consistently. So like how confident is management in sustaining that? Above 85. Negative 85%. You know considering the prices like these high prices.
Vikas Kataria
So [Foreign Speech] and I think we are trying to better products. [Foreign Speech]
Unidentified Participant
And sir, is it possible to share like the average selling price like you know per customer.
Vikas Kataria
So now Existing price is 1.25.
Unidentified Participant
Okay. Okay. Yes. And you know like the management indicates that diamond may like you’re aiming to increase like from 6% to 15%. So. Yes. Gradually. But like do you like how does the margin stack up like in diamond versus gold. Because the gold market is in general for gold ubi. It’s higher. Right. So why is the management endeavoring to you know increase diamond? So you know like with force. Like they’re aiming to increase diamond contribution.
Vikas Kataria
Yeah. We are aiming to increase diamond contribution. Because in the diamond student usually the margin is little high. It’s comparatively gold. So it’s higher. [Foreign Speech]
Vikas Kataria
20. I’m sure. And as you mentioned before like lab grown like in tier 2, tier 3. You don’t view that as any problem, right? Like in demand.
Unidentified Participant
Yeah. Yeah. Yeah. Great. Great. Thank you.
Vikas Kataria
So in tier 2, tier 3 the customer needs like the more. More value for money things [Foreign Speech]
Unidentified Participant
with diamond when we see prices falling. Right. Like
Vikas Kataria
no, not diamonds. [Foreign Speech] All the bigger size. 50.5 plus normally the jewelry candle. Yeah.
Unidentified Participant
Okay. So thank you so much. All the best for the future.
operator
Thank you. The next question is from the line of Raj from Arjun partners. Please proceed.
Unidentified Participant
Hello. [Foreign Speech]
Vikas Kataria
So it’s May dono mix. [Foreign Speech]
Unidentified Participant
Okay. [Foreign Speech]
Vikas Kataria
No problem. [Foreign Speech]
Unidentified Participant
8200 [Foreign Speech] average is like. Okay. Existing stores.
Vikas Kataria
Expected. Existing stores. 15 to 20% is like the average. We are aiming 4500 crore including the new showroom. Okay. And for FY27. FY27. 6000. 6000. Yeah. 6. 6%. 6 and 6 and a half percent. I mean [Foreign Speech]
Unidentified Participant
thank you so much.
operator
Thank you. The next question is from the line of Mayank. An individual investor. Please proceed.
Mayank
Hello. Thank you for the opportunity. Am I audible? Sir.
Vikas Kataria
Yes.
Mayank
Sir. I have a repeat question to [Foreign Speech]
Vikas Kataria
[Foreign Speech]
Mayank
some participant. And then 4, 500 crore FY26 which is like I. I think 30 sort of growth. 30. 35% [Foreign Speech] revenue guidance and margin. [Foreign Speech]
Vikas Kataria
[Foreign Speech] So we will share with you. [Foreign Speech]
Mayank
Sure sir. Sure. Second question is Target [Foreign Speech]. So is our store expansion dependent on qip?
Vikas Kataria
[Foreign Speech] Otherwise we are already in the process to expansion [Foreign Speech].
Mayank
Got it sir. And sir, [Foreign Speech] long term store guidance. We are going to add like we’ll reach 50 stores till in the next five years I think. [Foreign Speech] Will it be similar to the average.
Vikas Kataria
Yes, similar to the [Foreign Speech].
Mayank
Got it [Foreign Speech]. Last follow up question which is. [Foreign Speech] Yeah. Around Bara stores. So further expansion will be made. We are planning for 40 more stores. Right. So for further expansion would we need another range? Will it be done by an internal equivalent?
Vikas Kataria
No. So this is. This is the plan for another. Like the 40 modes. Like the half of total number of the 50 stores. [Foreign Speech] 600 we are raising fast [Foreign Speech].
Mayank
Got it sir. Makes sense [Foreign Speech] for phase for us
Vikas Kataria
[Foreign Speech] already the slow but I think the festival time started rising. We have a good expectation.
Mayank
Right sir, wishing the best for you. And sir, margin and [Foreign Speech] revenue questions. Should I mail it to you guys?
Vikas Kataria
Yeah, yeah.
Mayank
Thank you so much sir. All the best.
Vikas Kataria
Thank you.
operator
Thank you. The next question is from the line of Atisha Jane, an individual investor. Please proceed.
Unidentified Participant
Am I audible? [Foreign Speech]
Vikas Kataria
I think continuously learning [Foreign Speech]
Unidentified Participant
[Foreign Speech] since I was very young.
Unidentified Speaker
[Foreign Speech] [Foreign Speech] Do they plan to keep it to the level where it is now around approximately 75%.
Vikas Kataria
Yes, yes, [Foreign Speech] 75%. But yeah, way forward. Yeah.
Unidentified Participant
Okay. Thank you very much. Congratulations to you.
Vikas Kataria
Thank you.
operator
Thank you. As there are no further questions from the participants, I would now like to hand the conference over to Mr. Anil Kataria. Sir. Thank you. And over to you, sir. I would request Mr. Anil so to unmute himself and give their closing comments.
Anil Kataria
Good evening everyone again or [Foreign Speech] shareholder. Thank you. Have a nice day.
operator
On behalf of DP Abusion limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.