Ashapuri Gold - Ashapuri Gold

📊 BSE: 542579 🏢 Gems, Jewellery And Watches 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue crossed the milestone of INR 300 Cr in FY25, nearly doubling (approx. 100% growth) from the previous year. In Q2 FY26, total income grew 18% YoY to INR 102 Cr, driven by healthy demand from national retail chains and the premium 'Aneya' brand.

Geographic Revenue Split

The company operates a wide B2B network across 11 Indian states. It is strategically expanding into the Gulf region (specifically UAE) to leverage the India-UAE CEPA trade agreement, though specific % splits by region are not disclosed.

Profitability Margins

For FY25, the Operating Profit Margin was 5.43% (down from 7.06% in FY24) and Net Profit Margin was 3.79% (down from 4.65% in FY24). However, Q2 FY26 showed a significant recovery with a 428 bps expansion in net margins.

EBITDA Margin

EBITDA margin reached 11% in Q2 FY26, representing a 540 bps expansion. EBITDA for the quarter was INR 11.47 Cr, which doubled compared to the previous quarter due to better operating leverage and a scaled product mix.

Capital Expenditure

The company is investing in CAD/CAM capabilities to scale bespoke jewellery solutions and digital platforms. While specific INR Cr figures for future capex are not detailed, the focus is on high-tech manufacturing to support 93% capacity utilization.

Credit Rating & Borrowing

The Debt-Equity ratio decreased in FY25, contributing to a stronger balance sheet. Specific credit ratings and interest rate percentages are not disclosed in the provided documents.

⚙️ Operational Drivers

Raw Materials

Gold (primary raw material), Silver, and Platinum. Gold price volatility is a major factor, with prices rising 40-50% in the first half of FY26, impacting volume growth.

Import Sources

Primarily sourced within India (Gujarat hub) and through imports. The company utilizes tariff codes for ultra-pure grades (≥99.5% gold) to streamline imports under free trade agreements.

Key Suppliers

Not specifically named, but the company operates as a B2B manufacturing partner for national retailers like Tanishq, Malabar Gold & Diamonds, and Kalyan Jewellers.

Capacity Expansion

Current manufacturing utilizes a BIS-certified facility with 200+ artisans at 93% capacity utilization. Expansion is focused on strengthening regional sales forces and logistics to support B2B partner growth in Tier 2/3 cities.

Raw Material Costs

Raw material costs are highly sensitive to gold prices. The company manages this through disciplined inventory management and hedging via commodity derivatives to protect margins from price fluctuations.

Manufacturing Efficiency

Maintains high efficiency with 93% capacity utilization and a portfolio of 25,000+ designs, allowing for faster delivery and lower turnaround times for B2B clients.

Logistics & Distribution

The company is strengthening its logistics network to support the expansion of B2B partners into emerging high-growth Tier 2 and Tier 3 markets.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

The company plans to achieve growth by pivoting toward large national corporate clients and executing a 'Wallet Share Strategy.' It is expanding into Tier 2/3 cities, scaling its 'Aneya' diamond brand (currently <5% of revenue), and leveraging the India-UAE CEPA for exports. The target is to reach 45-50% revenue growth in the next 6-8 months as gold prices stabilize.

Products & Services

Gold ornaments, antique jewellery, wedding segments, studded jewellery (95% of concept), and premium diamond/polki jewellery.

Brand Portfolio

Ashapuri Gold Ornament, Aneya (Premium Diamond & Polki Jewellery).

New Products/Services

Launched a diamond jewellery collection ('Aneya') 6 months ago, currently contributing under 5% of revenue with high growth potential in the premium segment.

Market Expansion

Targeting Tier 2 and Tier 3 cities in India and expanding export presence in the Gulf region (UAE).

Market Share & Ranking

The company is a leading player in the organized manufacturing segment, which currently represents only 11% of the total market, providing a large consolidation opportunity.

Strategic Alliances

Long-term supply agreements with national retail chains to act as a critical manufacturing enabler for their aggressive expansion.

🌍 External Factors

Industry Trends

The industry is undergoing 'The Great Consolidation' where organized retail is expected to grow from 38% to 50% by FY30. Ashapuri is positioned to capture the gap in organized manufacturing (currently only 11%).

Competitive Landscape

Faces competition from national, regional, and digital-first brands. Competitors like Sky Gold and Shanti are noted for higher turnover in casting/chains, while Ashapuri focuses on higher-margin antique and wedding segments.

Competitive Moat

Durable advantages include 60+ years of promoter experience, a BIS-certified facility, and a massive 25,000+ design portfolio. These are sustainable because they create high barriers to entry for unorganized players in a regulated hallmarking environment.

Macro Economic Sensitivity

Highly sensitive to gold prices and CPI inflation (moderated to 5.4% in FY25). A 40% rise in gold prices led to a revision of revenue guidance from 45-50% down to 20-25%.

Consumer Behavior

Shift toward lower carat gold (to remain 'pocket friendly' amid high prices) and increasing demand for customized bridal and antique jewellery.

Geopolitical Risks

Trade agreements like the India-UAE CEPA are viewed as opportunities rather than risks, facilitating easier entry into the Gulf market.

⚖️ Regulatory & Governance

Industry Regulations

Mandatory BIS hallmarking is a key regulatory enabler that favors compliant manufacturers like Ashapuri. Compliance with GST and gold import norms is strictly maintained to ensure 'best practices' in corporate governance.

Taxation Policy Impact

The company benefits from the reduction in customs duty on jewellery (HS 7113) from 25% to 20% and platinum findings from 25% to 5% as per Budget 2025-26.

Legal Contingencies

The company confirmed that none of its directors have been debarred or disqualified by SEBI or the Ministry of Corporate Affairs as of July 2025.

⚠️ Risk Analysis

Key Uncertainties

Gold price volatility (primary risk), potential shifts in GST regulations, and changes in hallmarking standards. Gold price increases of 40% have already impacted growth projections.