Deepa Jewellers Q2 FY27: PAT +36% YoY to ₹37.3 Cr, tax credit masks OPM dip to 7.2%
PAT +36% YoY · revenue +24.6% · margins compressing
₹625.62 Cr
+24.6% YoY
₹37.25 Cr
+36% YoY
5.95%
₹4.1
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.
Q2 FY-2027 vs prior quarters
No year-ago quarter on record — YoY cells may be blank.
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%.
The stock went into the print at ₹212.96, up 8.4% over the past month of trading.
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.
W1
Tax-rate normalisation: Q2's 13.6% effective rate (vs ~25% in adjacent quarters) included a ₹4.51 Cr deferred-tax credit — watch whether FY27's full-year rate reverts toward 25%
W2
OPM trajectory: margin has now compressed two quarters running (8.97% in Q1 to 7.24% in Q2) — watch whether material-cost pass-through stabilises it
W3
Deployment of the ~₹90 Cr of unutilised net IPO proceeds (of ₹227.15 Cr total) still earmarked for working capital as of Sep 30, 2026
Figures converted from ₹ million (source) to ₹ Cr (÷10). Standalone only — no subsidiary/associate, so consolidated is not applicable (Note 10). A stray '20.00' adjacent to the revenue row in the extracted layout is extraneous (OCR bleed, unrelated to the P&L) and was excluded; arithmetic ties out exactly without it. PAT aided by a ₹4.51 Cr one-off deferred-tax credit (effective tax rate 13.6% vs ~25% in adjacent quarters).