Revenue jumped 45.12% QoQ, but operating margin fell 1.73 points
Expenses grew faster than revenue, while the lower tax rate helped net profit rise 39.20% sequentially.
Filed 26 Oct 2026, 12:51 IST · Deepa Jewellers Ltd (DEEPA)
Key takeaways
- Revenue rose 45.12% QoQ, but expenses grew faster at 47.88%, pushing operating margin down 1.73 percentage points.
- Net profit increased 39.20% QoQ as the tax rate fell 11.75 percentage points to 13.61%.
- Operating margin of 7.24% was 5.26 percentage points below the 12.50% median for 51 reported Consumer Discretionary peers.
Price around the results
Growth accelerated, but costs outpaced revenue
Deepa Jewellers reported standalone revenue growth of 45.12% QoQ in Q2FY27, while operating profit rose 17.11%. The weaker conversion of sales into operating profit reflects expenses growing 47.88%, faster than revenue. Net profit still increased 39.20% QoQ, with EPS rising 25.77% to Rs 4.10.
Lower tax rate supported reported profit
Operating margin narrowed to 7.24%, down 1.73 percentage points from Q1FY27, as costs grew faster than revenue. The tax rate fell 11.75 percentage points to 13.61%, which helped net profit grow faster than operating profit. Other income accounted for only 1.09% of pre-tax profit, so it was not a significant driver of earnings.
Margin remains below the peer-sector median
Deepa Jewellers' 7.24% operating margin was 5.26 percentage points below the 12.50% median among 51 Consumer Discretionary peers that had reported. The company ranked 14 from the bottom on this measure. With only Q1FY27 available for comparison, the data shows a sequential margin decline rather than a longer multi-quarter trend.
Expansion plans span offices, products and marketing
Management said the company plans offices in Chennai, Bangalore and Coimbatore. The presentation said it plans to add two product categories and 22 additional SKUs by FY27, including paper casting, Nakshi and Kundan jewellery. Management also said it plans to expand the marketing team from 12 to 25 members.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹626 cr | ₹431 cr | +45.12% |
| Other income | ₹0 cr | ₹0 cr | +2250.00% |
| Expenses | ₹580 cr | ₹392 cr | +47.88% |
| Operating profit | ₹45 cr | ₹39 cr | +17.11% |
| Operating margin (%) | 7.24% | 8.97% | — |
| Interest | ₹2 cr | ₹2 cr | -13.33% |
| Depreciation | ₹1 cr | ₹0 cr | +26.67% |
| Profit before tax | ₹43 cr | ₹36 cr | +20.28% |
| Tax | ₹6 cr | ₹9 cr | -35.42% |
| Net profit | ₹37 cr | ₹27 cr | +39.20% |
| EPS (₹) | ₹4.10 | ₹3.26 | +25.77% |
Operating margin of 7.24% compares with a Consumer Discretionary sector median of 12.50% across 51 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company plans offices in Chennai, Bangalore and Coimbatore.
- The company plans to add two product categories and 22 additional SKUs by FY27.
New initiatives
- The company plans to introduce paper casting jewellery and Nakshi and Kundan jewellery.
- The company plans to expand its marketing team from 12 to 25 members.
Competition
- Small players dominate by volume, while large players leverage scale and distribution networks.
What to watch
- Whether operating margin recovers from 7.24% after the 1.73-percentage-point sequential decline.
- Whether expense growth moderates from 47.88% against revenue growth of 45.12%.
- Progress on the planned two product categories and 22 additional SKUs by FY27.