Deepa Jewellers Q2 FY27: PAT +36% YoY to ₹37.3 Cr, tax credit masks OPM dip to 7.2%

Deepa Jewellers' standalone revenue for Q2 FY27 (quarter ended September 30, 2026) came in at ₹625.62 Cr, up 24.6% year-on-year from ₹502.13 Cr in Q2 FY26, with standalone PAT at ₹37.25 Cr, up 36.0% YoY from ₹27.39 Cr. Sequentially, revenue jumped 45.1% and PAT 39.2% over Q1 FY27 (₹431.11 Cr revenue, ₹26.76 Cr PAT) — a gold jewellery B2B supplier's Jul-Sep quarter runs into the pre-Diwali/festive buying season, so the QoQ pop is largely seasonal rather than a step-change in run-rate, and the YoY comparison is the one that matters here. Basic EPS was ₹4.10 (not annualised) against ₹3.34 a year ago and ₹3.27 in Q1. The margin picture is softer than the profit growth suggests. Operating margin (OPM, EBITDA/revenue) came in at 7.24%, down from 7.71% a year ago and from 8.97% in Q1 FY27 — cost of materials consumed (₹595.77 Cr, ~95% of total expenses) grew faster than revenue. Net margin actually expanded YoY to 5.96% from 5.46%, but that's a tax effect, not an operating one: the effective tax rate fell to 13.6% (₹5.87 Cr tax on ₹43.12 Cr PBT) from ~25.5% a year ago and ~25.2% in Q1, on a ₹4.51 Cr deferred-tax credit. PBT itself grew a more modest 17.3% YoY (₹43.12 Cr vs ₹36.76 Cr); normalising for the prior periods' ~25% effective rate, adjusted PAT growth is closer to 17%, not the headline 36%. This was the company's first full quarter as a listed entity — it completed its IPO and listed on NSE and BSE on September 8, 2026, raising ₹250 Cr gross (₹227.15 Cr net). Of the net proceeds, ₹137.07 Cr had been deployed by September 30 (mostly against the ₹215 Cr working-capital allocation), leaving roughly ₹90 Cr unutilised. The raise visibly reshaped the balance sheet: current borrowings were cut to ₹13.10 Cr from ₹67.46 Cr at March 31, 2026, while inventory nearly doubled to ₹163.98 Cr (from ₹87.36 Cr) and trade receivables rose 23.4% to ₹311.35 Cr (from ₹252.36 Cr) — consistent with IPO proceeds funding the working-capital build behind the revenue growth. Separately, the company authorised KMPs for materiality disclosures (September 23) as a post-listing governance step, and issued a clarification on unusual stock price movement on October 15, unrelated to this result. There is no formal management guidance on record for this quarter and no prior concall commentary to check the print against — management has stated no outlook in our records. A web search for Street previews/consensus turned up none: Deepa Jewellers listed only seven weeks before this print, too recent for analyst coverage to have formed, so vsStreet is unknown rather than a miss. No management press release or earnings-call commentary was available for this filing beyond the board-meeting outcome letter and standard regulatory notes, so there is no company framing to reconcile against the numbers this quarter.