Deepa Jewellers shares gain 13% despite broader market slump

Deepa Jewellers' net profit rose 27.01% year-on-year to ₹ 26.76 crore in the quarter ended June 2026, compared with ₹ 21.07 crore in the corresponding quarter a year ago. Revenue from operations increased 39.04% to ₹ 431.11 crore from ₹ 310.06 crore in Q1 FY26.

EBITDA rose 34.02% YoY to ₹ 38.68 crore, compared with ₹ 28.86 crore a year earlier. However, EBITDA margin moderated to 8.97% from 9.31%, a contraction of 34 basis points, due to higher operating expenses.

The company operates in the organised B2B designer, processor and supplier segment of India's gems and jewellery industry. Deepa Jewellers made a strong debut on the exchanges on 8 September. On the BSE, the stock opened at ₹ 221.05, a 24.88% premium to its IPO price of ₹ 177, before ending the session at ₹ 194.30, up 9.77%. On the NSE, the stock listed at ₹ 221, gaining 24.85% over the issue price, and closed at ₹ 194.37, up 9.81%.

The company's ₹ 460-crore IPO was subscribed nearly 43 times on the final day of bidding. The issue had a price band of ₹ 168–177 per share and comprised a fresh issue of shares worth up to ₹ 250 crore and an offer for sale of more than 1.18 crore shares. The company plans to use proceeds from the fresh issue to fund long-term working capital requirements, including procurement, maintenance and scaling up of inventory, besides general corporate purposes.

Incorporated in 2016, Deepa Jewellers is an organised B2B designer, processor and supplier of hallmarked gold jewellery, with operations primarily across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala. It designs, processes and sells a wide range of jewellery through an outsourced manufacturing model supported by a network of karigars.