Summary
Ashapuri Gold Ornament Limited - Q3 FY26 Earnings Call Summary Friday, February 13, 2026 4:00 PM
Event Participants
Executives 2 Jitendrakumar Soni (Joint Managing Director), Jenik Soni (Chief Executive Officer)
Analysts 7 Arvind Jhadav (Individual Investor), Dhanraj Tolani (Kuber Advisors), Ganeshwaran (Individual Investor), Kaustub Agarwal (Oaklane Capital Management LLP), Kishor Patel (Individual Investor), Pooja Mishra (JM Financial), Raj (Shah Ventures)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income (9M) | ₹154.55 crores | +5.64% YoY; Growth driven by demand for differentiated product portfolios despite gold price volatility. |
| EBITDA | Not Disclosed | +22.01% YoY; Growth supported by operational efficiency and disciplined execution. |
| EBITDA Margin | 8.78% | +233 bps YoY; Expansion attributed to better product mix and cost management. |
| Net Profit (PAT) | Not Disclosed | +7.76% YoY; Positive growth despite volume degrowth in the current quarter. |
| PAT Margin | 6.11% | +103 bps YoY; Efficiency gains in the B2B jewelry business model. |
| Volume Growth (Q3) | -29% (Quantity) | -29% QoQ; Sharp 40-50% rise in gold prices led consumers to defer purchases. |
| Capacity Utilization | 52% | Lower utilization due to price-led demand softness; setup is ready for 750 kgs/year. |
| Credit Cycle | 15–20 days | Varies by customer; remains relatively tight for the B2B segment. |
Geographic & Segment Commentary
- National Retail Chains: Management is shifting focus toward large-format retailers and national chains, which now contribute a higher weightage to total sales. A specialized sales team has been hired specifically to manage these corporate accounts and secure long-term empanelment.
- 18-Carat Antique Jewelry: Developed a new R&D-led range of 18-carat handmade jewelry to offer “pocket-friendly” bridal options following record-high gold prices. The company secured major orders from two national chains for this segment, leveraging first-mover advantage in 18k antique designs.
- Diamond & Polki (Aneya): Currently a small contributor but identified as a high-margin aggressive growth area. Management expects a consumer shift toward Polki as gold prices make pure 22k jewelry less accessible within fixed budgets.
Company-Specific & Strategic Commentary
- Product Innovation & R&D: Focused on reducing grammage of bridal sets (e.g., from 150g to 80g) using casting components to maintain look and feel while lowering absolute price points.
- Design IP & Patents: Planning to begin filing for design patents and IP for unique jewelry components and manufacturing techniques starting August 2026.
- NSE Main Board Listing: The company has officially applied for a migration to the NSE Main Board; documentation is currently under NSE scrutiny.
- Inventory Hedging: Maintains a strict hedging policy to mitigate commodity price risk, focusing on quantity-based stock management rather than price speculation.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Volume Growth | 15% – 20% for FY26 | Management aims to recover the Q3 shortfall in Q4 as gold prices stabilize. |
| Capacity Target | 750 kgs | Facility is fully ready to scale from 500 kgs to 750 kgs as demand recovers. |
| 18k/14k Segment | High Growth for FY27 | Anticipated shift in corporate orders toward lower caratage (18k for gold, 14k for Polki) to maintain affordability. |
Risks & Constraints
| Risk | Context |
|---|---|
| Gold Price Volatility | Unprecedented 40-50% price hikes caused a 29% volume drop in Q3 as retailers and consumers entered a “wait-and-watch” mode. |
| Capacity Underutilization | Current utilization of 52% reflects the gap between ready infrastructure and current market demand impacted by macro factors. |
| Consumer Budget Strains | High absolute prices for traditional 22k bridal jewelry may permanently shift some demand toward lighter weights or lower purity. |
Q&A Highlights
Demand & Recovery
- Question: Why was volume growth flat/negative in 9M despite a 20% target? (Arvind Jhadav)
- Answer: The 50% spike in gold prices caused “short-term pain” as consumers deferred purchases; however, demand has rebounded in the last 10-15 days following price stabilization (Jitendrakumar Soni).
New Product Strategy
- Question: How are you addressing the challenge of high gold prices for bridal consumers? (Raj)
- Answer: We successfully completed R&D to produce 22k-quality aesthetics in 18-carat handmade jewelry, securing orders from two national chains who want affordable “pocket-friendly” options (Jitendrakumar Soni).
Operational Model
- Question: Are you moving toward a job-work model to save on investment? (Arvind Jhadav)
- Answer: We already utilize a job-work model where national players provide advanced metal; this model saw good contribution this quarter and reduces our capital intensity (Jitendrakumar Soni).
Future Initiatives
- Question: Is there a plan for design IP or brand licensing? (Pooja Mishra)
- Answer: We will start filing patents for unique shapes and manufacturing techniques developed in-house starting August this year to protect our design IP (Jenik Soni).
Key Takeaway
Ashapuri Gold Ornament Limited reported a resilient Q3 FY26 with EBITDA growing 22.01% YoY and margins expanding 233 bps to 8.78%, despite a significant 29% volume degrowth caused by record-high gold prices. The company successfully mitigated the volume slowdown by pivoting to 18-carat antique jewelry and lighter-weight designs, securing empanelment and fresh orders from two major national retail chains. Strategically, the firm is transitioning from traditional B2B wholesaling to a design-led model, with plans to patent unique components by August 2026 and migrate to the NSE Main Board. While 9M volumes remained flat, management maintains a 15-20% growth target for the full year, banking on stabilized prices and a strong order book for Q4. The key watch remains the successful scaling of the 18k/14k segments and the recovery of capacity utilization from the current 52%.
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