D. P. Abhushan Limited (NSE: DPABHUSHAN) Q3 2026 Earnings Call dated Jan. 24, 2026
Corporate Participants:
Ajit Mishra — Associate at Ernst & Young
Anil Kataria — Founder, Promoter & Whole Time Director
Vikas Kataria — Promoter & Ex Managing Director
Manish Laddha — Chief Financial Officer
Analysts:
Chetan Sharma — Analyst
Kushal Kasliwal — Analyst
Unidentified Participant
Purab Agarwal — Individual Investor
Vijay Chauhan — Analyst
Risha Shah — Individual Investor
Hari Sharma — Individual Investor
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to D. P. Abhushan Limited Q3 FY ’26 Earnings Call. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Ajit Mishra from Ernst & Young. Thank you, and over to you, sir.
Ajit Mishra — Associate at Ernst & Young
Thank you. Good afternoon to all the participants on this call. I am Ajit Mishra from Ernst & 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 risks, 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 is expressed or implied by such forward-looking statements. Please note that we have mailed the press release results and the same are available on the exchange and company website. In case if you have not received the same, you can write to us, and we’ll be happy to send that back to you.
To take us through the results and answer your questions today, we have the top management of D. P. Abhushan Limited represented by Anil Kataria, Whole-Time Director; Vikas Kataria, Promoter; and Mr. Manish Laddha, Chief Financial Officer.
We will start the call with an opening remark on the company performance for the third quarter and nine months ended and then we’ll conduct a question-and-answer session.
With that said, I will now hand over the call to Anil, sir. Over to you, sir. Thank you.
Anil Kataria — Founder, Promoter & Whole Time Director
Good afternoon, everyone quarter three FY ’26 earnings call [Foreign Speech].
Vikas Kataria — Promoter & Ex Managing Director
Thank you. Good afternoon everyone. Gold continued to remain the dominant category with revenue of INR2,494 crores — INR2,494 crores in nine months financial year ’26, reflecting steady growth despite price lead, volume moderation, wedding demand, along with positive festival momentum during October and November support, overall revenue growth.
Silver emerged as a key growth driver with revenue rising sharply to INR114 crores, up by 118% year-on-year, supported by festive gifting demand and its relative affordability. Revenue from diamonds stood at INR115 crores. Customers with committed events, particularly wedding continue to purchase actively while investment oriented. Customers remain engaged through our saving and accumulation scheme.
From an operating standpoint, customer walk-ins over the nine-month period stood at 175,350 with a healthy overall conversion ratio of 82%, indicating sustained purchase intent despite elevated price.
We observed encouraging traction across multiple markets on a nine-month basis, particularly in Kota, Ujjain, Bhopal and Udaipur. Our flagship locations such as Ratlam and Indore continue to attract strong customer footfall and stable footfall conversion ratio.
With a strategic focus on strengthening our esthetic jewelry portfolio, which continued to offer relatively higher margins, the company undertook select brand building initiatives during the quarter to deepen customer engagement and enhance market presence. This includes the World of Diamond exhibition held in Ajmer from 13th to 26th November aimed at improving customer interaction and visibility of diamond jewelry as well as the Diamond Polki Festival organizing Banswara and Bhilwara to showcase curated diamond and Polki jewelry collection.
Overall, this initiative supported brand visibility and customer outreach across key markets. Looking ahead, we remain confident in the strength of our brand product portfolio and calibrated expansion plan to drive sustainable growth over the medium to long term.
With that said, I would now like to hand over to Mr. Manish Laddha for a detailed financial overview. Thank you.
Manish Laddha — Chief Financial Officer
Thank you, Vikas. Good afternoon. Now let me walk you all through the financial performance of quarter three financial ’26 and the nine months ended financial year ’26. During quarter three FY ’26, revenue from operations stood at INR122.4 crores, registering a sequential growth of 26% and a year-on-year increase by 13%, driven by seasonal wedding and festival demand in October and November, especially, while higher gold prices continue to weigh on volumes.
EBITDA for the quarter was INR105 crores, up 39%, continued to quarter-on-quarter and 89% year-on-year with the EBITDA margin expanding to 8.64%, reflecting the operating leverage and the better cost absorption. Profit after tax came INR73.35 crores, marking a 43% quarter-on-quarter and 96% year-on-year growth with the PAT margin improving to 6%.
On a nine-month basis, revenue from operations stood INR2,731 crores, reflecting a 5% year-on-year growth. EBITDA for nine months was INR236 crores, up 79% year-on-year with the margin expanding by 357 basis points to 8.67%. PAT for the period stood at INR161.24 crores, an increase of 84% year-on-year with the PAT margin improving to 5.90.
Overall, the performance reflects continued improvement in the profitability metrics, driven by margin expansion and the operating efficiencies. Separately, on 4th of November, the company granted 62,300 stock options under the ESOP scheme, of which 1,200 options were forfeited on 17th of December 2025.
The necessary accounting treatment has been carried out in accordance with Ind AS 102. The ESOPs have been allocated not only to the key managerial and senior personnel, but also a long-serving employees, who have contributed meaningfully to the company’s growth. This initiative reflects the company’s continued focus on the employee engagement program, ownership and alignment with the long-term value creation.
With that, now I would like to open the floor for question-and-answer session. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Chetan from Systematix Group. Please go ahead.
Chetan Sharma
Yeah, hello everyone. Thank you for the opportunity. Sir, can you please highlight how has the festive demand been compared to last year in our core markets? And any noticeable change in the consumer behavior or say, buying mix during the festive and weddings?
Vikas Kataria
Thank you, Chetan, for asking the question. The consumer demand during the festival, we see it’s a good, very good. So, [Foreign Speech] I think people are very excited to buy the gold jewelry and it is because the gold prices continue rising, [Foreign Speech]. We are trying to introduce a nine-carat as well [Foreign Speech].
Chetan Sharma
[Foreign Speech]
Vikas Kataria
[Foreign Speech] Yes sir. Got it. Okay sir. Thank you.
Operator
Thank you. The next question is from the line of Kushal Kasliwal from InVed Research. Please go ahead.
Kushal Kasliwal
Yeah hello sir. Thank you for taking my question. [Foreign Speech] Sir, three quarters, margins are increasing. And if I look at FY ’24 or some part of calendar year ’24, they are more than double, in some cases, almost double. So [Foreign Speech] what have we changed that we are now doing a very high — significantly higher margins. Margins are also due to gold prices because [Foreign Speech].
Vikas Kataria
Thank you for asking and very good question. [Foreign Speech]
Manish Laddha
[Foreign Speech]
Kushal Kasliwal
[Foreign Speech] 30% — around 25% to 30% price increases [Foreign Speech] inventory gains [Foreign Speech] 70% remaining [Foreign Speech] from a permanent like by 4% margin to 8%, 9%, 10% margin [Foreign Speech]. hat is the remaining 70% mix of this margin increase.
Anil Kataria
[Foreign Speech] this is the one thing plus [Foreign Speech].
Kushal Kasliwal
[Foreign Speech]
Anil Kataria
[Foreign Speech]
Kushal Kasliwal
And sir silver and diamond is how much percentage of our sales.
Anil Kataria
Silver and diamond, I think silver in quarter three [Foreign Speech] 10%, 12% silver and diamond percentage [Foreign Speech].
Kushal Kasliwal
Okay. And earlier, it was very low [Foreign Speech].
Anil Kataria
[indecipherable]
Kushal Kasliwal
Okay. Okay. [Foreign Speech]
Vikas Kataria
Yes, margin is sustainable.
Anil Kataria
The margin is sustainable, inventory maybe not [Foreign Speech]
Kushal Kasliwal
Thank you sir. Thank you so much.
Operator
Thank you. The next question is from the line of Lokesh from LK Investments. Please go ahead.
Unidentified Participant
Hello. Thanks for the opportunity sir [Foreign Speech] out of this INR73 crores [Foreign Speech].
Vikas Kataria
[Foreign Speech] INR20 crores is the inventory gain.
Unidentified Participant
INR20 crores [Foreign Speech] April 2025. So it’s been like nine months, and we haven’t opened any more stores, so [Foreign Speech].
Anil Kataria
[Foreign Speech] Coming next year, we have a plan to open another like four or five stores.
Unidentified Participant
Sir, current weighted average cost [Foreign Speech] gold.
Vikas Kataria
Current weighted average price is somewhere around like INR1,10,000.
Unidentified Participant
INR1,10,000. And sir. One more last question is [Foreign Speech]
Vikas Kataria
Yes. So [Foreign Speech]
Unidentified Participant
[Foreign Speech]
Vikas Kataria
Definitely, we’ll share with you [Foreign Speech] we’ll share with you.
Unidentified Participant
Thank you. Thank you sir.
Operator
Thank you. The next question is from the line of Purab Agarwal [Phonetic], an individual investor. Please go ahead.
Purab Agarwal
Hi sir. Congratulations on a good set of numbers. Just wanted to know what would be our SSSG for this quarter? And how do we see it going forward for the full year FY ’26 as well as for FY ’27 going forward?
Vikas Kataria
So our SSSG growth for this quarter is like around 20% to 25% overall.
Purab Agarwal
Okay, is that SSG or is that revenue growth, yes?
Vikas Kataria
Revenue growth.
Purab Agarwal
Okay. Okay. Okay. And how do we expect this going forward?
Vikas Kataria
So around like the 10% to 15%, we are like expecting 10% to 15% we are expecting continuously growing.
Purab Agarwal
Okay. Okay. Okay. Understood. And I think my question might have been repeated, but how do we see our margins going forward given the gold prices — if the gold prices stabilize, and we don’t see much increase in gold prices. So will we see a margin expansion from here? Or will we see a margin correction?
Vikas Kataria
No, no margin expansion, we are seeing the margin expansion. If the gold price is stable, gold price is down, because we are introducing the more category, and we are like the more focus on the lower heritage and new products where we can increase our margin. And silver, diamond, polki, where we can get more margin. So we are — continuously our focus is to increase our margin.
Purab Agarwal
Okay, understood. I’ll get back into for further questions. Thank you.
Operator
Thank you. The next question is from the line of Paras Kakkar from AB Capital. Please go ahead.
Unidentified Participant
Hi sir, good afternoon. Congratulations on a very good set of numbers. My question is what is your outlook on growth, let’s say, for the next one or two years? Because the revenue that we have seen is increasing, but it’s also in line around INR3,300 crores, INR3,400 crores like the last year. So do we expect growth this year and the next year on the revenue front? Thank you.
Vikas Kataria
Yes. So we expect growth, both the year and like in the further more year through the SSG growth and to open a new store. So maybe this year, we are growing by like 25% to 30%. And again next year, again, on the same pace we are growing. And continuously, this percentage of growth will be remain same minimum, and we are trying to open more stores. So maybe it will be increased more.
Unidentified Participant
Okay. And do we also expect the margins to sustain with increased revenue?
Vikas Kataria
Yes, yes, definitely. In the payment, it will be increased.
Operator
Thank you. The next question is from the line of Vijay Chauhan from RHPMS. Please go ahead.
Vijay Chauhan
Yes, thank you for the opportunity. And so my first question is basically the clarification of one of the participants has asked. So [Foreign Speech] if I look at the gross profit in the PPT, it’s up from INR85 crores to INR137 crores. It’s somewhere around 57%, 58%. But other expenses, it used to be somewhere around INR28 crores Q3 FY ’25 and currently, we’re at INR31 crores, INR32 crores. It’s a jump of 10% or 11%. So is it fair understanding like this is purely basically the operating leverage, which has led to the increase in the EBITDA margin. Is understanding correct?
Manish Laddha
Sorry, come again?
Vijay Chauhan
So [Foreign Speech] employee benefit expense or other expense, which is combining INR32 crores. okay? So last year, somewhere around INR28 crores, INR29 crores. So [Foreign Speech] other expenses 10%, 11%, but gross profit around 57%, 58%. So, [Foreign Speech] EBITDA margin expand basically from 5% to 8.7%. So my — so, is my understanding correct, that is the whole reason for the margin expansion because we are getting operating leverage.
Manish Laddha
So actually, you see what happened that last year, eventually, we opened three showroom. So that cost also added in that expense, number one. Number two, definitely, inventory gain is also playing a very important role because of the heavy gold prices. So these two components are actually adding to the gross margin as well as in the net margin of the EBITDA level.
Vijay Chauhan
Right. [Foreign Speech] so INR20 crores was the inventory gain. So even if I remove the inventory gain from INR137 crores, which is gross profit, and it comes to INR117 crores so it is still showing growth of 36%.
So if we see the similar price increase going ahead, and we are charging a percentage of the — basically the making charges as a percentage of gold, so the more our gross profit increase, maybe 30% even for the next year. So you continue to see the expansion of the EBITDA margin because our other expenses or the employee benefits are not going to grow at the speed of 30%. So is that understanding correct?
Manish Laddha
Yes. Yes. Obviously the moment the gold prices, the same pattern will follow 100% the inventory gain is going to come in the books, at least for the next couple of quarters, the same momentum we will see in the numbers also. And simultaneously, definitely, the new showrooms are coming. So the expense will also gradually increase. But nevertheless, compared to that, the profitability is going to increase drastically.
Vijay Chauhan
Right. [Foreign Speech] employee benefit, expense, other expenses typically [Foreign Speech] year-over-year, 10%, 15% band if you can suggest?
Vikas Kataria
Yes. So overall like 10% to 12% is the — this is the band, actually.
Vijay Chauhan
Okay. Okay. So 10%, 12%. So [Foreign Speech] 20%, 25%, we’ll continue to see the operating leverage.
Vikas Kataria
Yes.
Vijay Chauhan
Now my question is on the demand side. So how we have seen the transition in the — basically the H2, Q3 is strong as you highlighted, but how the Q4 is panning out because there are higher number of weddings. So what’s your general observation so that we get the idea of like what’s happening on the ground? Because now a little bit, again, high has been made because of various geopolitical issue on the gold side. So how are you seeing the demand and all?
Vikas Kataria
So the demand of the Q4 is very good. The wedding season started and a lot of wedding during this month of January, February. And I think that after 30th January, there are a lot of weddings. So [Foreign Speech] and gold prices is continuously rising. So, we can see a very good demand in particularly this quarter, especially the three months, January, February and March. I think, yeah, we are closing very good numbers this year.
Vijay Chauhan
Right. And [Foreign Speech] estimate, if you would like to share regarding the gold prices, general like question, like how do you see the gold price maybe in FY ’27? Do you have some internal estimate or something?
Vikas Kataria
FY ’27, maybe — the gold price is continuously rising [Foreign Speech] $5,000 gold price, [Foreign Speech] $6,000, $6,500, maybe it will touch and then [Foreign Speech] we are expecting huge volume growth in the business.
Vijay Chauhan
That’s fine. That’s fine. What’s our store expansion plan for maybe next two, three years?
Vikas Kataria
I can say one thing overall long term gold price will increase like — with the 9%, 10% of like CAGR, so [Foreign Speech]
Vijay Chauhan
Yes, yes, definitely. Even like a lot of countries central banks are also shifting towards from — moving from treasuries to gold…
Vikas Kataria
Currency. Yeah, yeah, by currency.
Vijay Chauhan
Yes, yes, definitely [Foreign Speech] store expansion guidance if you would like to give maybe for next two, three years?
Vikas Kataria
So yeah, next two, three years, we have plan to open another 20 stores, 20 more stores [Foreign Speech] by the end of the ’29 [Foreign Speech].
Vijay Chauhan
So that will be all from my side and thank you for all the clarification and good luck for the future. Thank you sir.
Operator
[Operator Instructions] The next question is from the line of Anjali Singh from Bansal Family Office. Please go ahead.
Unidentified Participant
Thanks for the opportunity. So, my first question is, what is the average capex and payback period per store currently?
Manish Laddha
So in general, it depends on the store size, the capex remains between INR2.5 crore to INR3 crore for the decent size of 3,000 to 5,000 square feet and for the 8,000 to 10,000 square feet, it remains between the INR5 crore to INR7 crore. It is the past trend, which we have observed, and the same is going to continue, except the inflation, which comes like 5% to 7% every year. And so far as payback period is concerned, I think what our past experience is saying that within a period of nine months, in general, we get all our capex recovered.
Unidentified Participant
Okay. Sir, also second question is Ratlam shows the highest conversion at 88%. So what best practices from flagship stores can be replicated across other regions.
Vikas Kataria
So Ratlam is our flagship store and it’s a legacy of more than 85 years and especially Ratlam store [Foreign Speech] footfall to conversion is higher as compared to…
Unidentified Participant
Thank you so much. Thank you. That’s all from my side. All the very best.
Operator
Thank you. The next question is from the line of Sunil F from Sunil Investments. Please go ahead.
Unidentified Participant
[Foreign Speech]
Vikas Kataria
So, volume this quarter three is 924 kilos in gold and what else you asked?
Unidentified Participant
[Foreign Speech] 924 kilograms [Foreign Speech]
Vikas Kataria
[Foreign Speech] in gold.
Unidentified Participant
[Foreign Speech]
Vikas Kataria
Same period [Foreign Speech] 1,317 kg and [indecipherable] 3,297 kg.
Unidentified Participant
3,297 [Foreign Speech]
Vikas Kataria
Yes. Around 2 [Foreign Speech]
Unidentified Participant
[Foreign Speech]
Vikas Kataria
[Foreign Speech] wedding season is there, so [Foreign Speech] we can achieve this.
Unidentified Participant
[Foreign Speech]
Vikas Kataria
[Foreign Speech] 60% is our wedding season. So [Foreign Speech] we can say number achievable.
Unidentified Participant
[Foreign Speech]
Vikas Kataria
Definitely.
Unidentified Participant
Okay. Thank you sir. Thank you.
Operator
[Operator Instructions] The next question is from the line of Risha Shah [Phonetic], an individual investor. Please go ahead.
Risha Shah
Hello sir. Thank you for the opportunity. So my first question is, how has elevated gold pricing alter customer behavior in terms of ticket size, purity preference and product selection?
Vikas Kataria
So how — gold price is like shifted the consumer preference. So, [Foreign Speech]
Risha Shah
Okay sir. So, my next question is there appears to be a growing industry interest in 18-carat and 14-carat jewelry. Is this trend visible across our key geographies?
Vikas Kataria
Yes, definitely. [Foreign Speech]
Risha Shah
Thank you. So that’s all from my side.
Operator
[Operator Instructions] The next question is from the line of Lokesh from LK Investments. Please go ahead.
Unidentified Participant
Hello. Thanks for the opportunity again. Sir, [Foreign Speech]
Vikas Kataria
QIP is in the process [Foreign Speech]
Unidentified Participant
[Foreign Speech]
Vikas Kataria
Definitely.
Unidentified Participant
Okay. And sir, one more thing [Foreign Speech]
Vikas Kataria
[Foreign Speech] so now we started [Foreign Speech]
Unidentified Participant
Okay. And sir, one more thing [Foreign Speech] if I’m right?
Vikas Kataria
Yes.
Unidentified Participant
[Foreign Speech] same store growth, 20%, 25%. [Foreign Speech]
Vikas Kataria
Okay. Okay. Thank you. Few stores has good growth, [Foreign Speech] overall growth is at 13%, definitely. [Foreign Speech]
Operator
Thank you. The next question is from the line of Hari Sharma [Phonetic], an individual investor. Please go ahead.
Hari Sharma
Good afternoon, sir. My question was also with respect to the QIP investment because in the last quarter, it was mentioned that we are on the final discussion and the outcome shall be communicated shortly, but it was not communicated, so I wanted to ask on that aspect. And secondly, whether the delay in store opening is linked to somewhere with the QIP offer?
Vikas Kataria
Not exactly [Foreign Speech] already, we have finalized two locations. So [Foreign Speech] store opening is [Foreign Speech] plus yes, definitely, [Foreign Speech] next, before Akshaya Tritiya, we are planning [Foreign Speech] and continuously in [Foreign Speech]
Hari Sharma
Okay, okay. Thank you.
Operator
Thank you. As there are no questions from the participants, I now hand the conference over to the management for closing comments. Thank you, and over to the management. Sir, we are unable to hear you.
Vikas Kataria
Thank you, everyone, for your thoughtful questions and active participation in today’s earnings call. As we conclude today’s call, we would like to reiterate our focus on strengthening our operation and continue to build the business in a disciplined manner. We remain committed to serving our customers with consistency and maintaining the trust of all our stakeholders.
We would like to thank our employees for their continued efforts and our investors and partners for their ongoing support. Thank you for joining us today. We look forward to engaging with you again in the coming quarters. Should you have any further queries, please feel free to reach out the EY Investor Relations team. Thank you.
Operator
[Operator Closing Remarks]