Deepa Jewellers posts 8.97% margin, trails sector median by 2.48 points
Standalone Q1FY27 profit quality was tied mainly to operations, with only Rs 0.02 cr from other income against Rs 35.85 cr of pre-tax profit.
Filed 28 Sep 2026, 13:25 IST · Deepa Jewellers Ltd (DEEPA)
Key takeaways
- Deepa Jewellers' standalone operating margin was 8.97%, 2.48 percentage points below the Consumer Discretionary peer median.
- Other income contributed only Rs 0.02 cr against profit before tax of Rs 35.85 cr, leaving reported profit largely operational.
- The stock fell 4.96% on the results date and was down 11.37% by the next session.
Price around the results
Operating conversion is the central issue
Deepa Jewellers reported standalone operating profit of Rs 38.68 cr on revenue of Rs 431.11 cr, translating into an 8.97% operating margin. That margin was 2.48 percentage points below the 11.45% median for 384 Consumer Discretionary peers that had reported the same quarter. With no year-on-year or sequential comparison provided, the quarter does not establish whether this is an improvement or deterioration in momentum.
Reported profit was not lifted by other income
Other income was Rs 0.02 cr against profit before tax of Rs 35.85 cr, so it was not a meaningful contributor to earnings quality. Interest expense was Rs 2.40 cr and depreciation was Rs 0.45 cr, while the tax rate was 25.36%. Net profit therefore reflects the operating result rather than a large non-operating gain or an unusually low tax charge.
Market reaction was sharply negative
The stock fell 4.96% on 28 September, the results date, with the move extending to a 11.37% decline by the next session. Trading volume was 1.45 times the reference level on the results date. There is no supplied history of post-results moves against which to judge whether this reaction was typical for Deepa Jewellers.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹431 cr |
| Other income | ₹0 cr |
| Expenses | ₹392 cr |
| Operating profit | ₹39 cr |
| Operating margin (%) | 8.97% |
| Interest | ₹2 cr |
| Depreciation | ₹0 cr |
| Profit before tax | ₹36 cr |
| Tax | ₹9 cr |
| Net profit | ₹27 cr |
| EPS (₹) | ₹3.26 |
Operating margin of 8.97% compares with a Consumer Discretionary sector median of 11.45% across 384 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.96% | -3.41% |
| Next session | -11.37% | — |
Volume on the results session was 1.45× its 20-day average.
What to watch
- Whether operating margin moves from 8.97% toward or away from the 11.45% sector median.
- Whether other income remains near Rs 0.02 cr rather than becoming a larger part of profit before tax.
- Whether the tax rate remains around 25.36%.