Editor’s Note
Ashapuri Gold Ornament’s strong quarterly results, driven by robust B2B performance and improved margins, highlight the underlying resilience in the jewellery manufacturing sector.
Ashapuri Gold Ornament reported a significant uplift in its December quarter financial performance, posting a 53% year-on-year surge in net profit to ₹17 crore. This bottom-line expansion was primarily fueled by a 6% increase in income to ₹247 crore and a substantial 60% jump in EBITDA to ₹24 crore. The company’s B2B jewellery segment saw gold sales volume at 90.18 kg, with manufacturing volume growing 10% to 144.36 kg.
Joint Managing Director Jitendra Kumar Soni said. The stock showed a minor uptick, trading around ₹5.16-₹5.46 on February 11, 2026, though this represents a stark contrast to its performance in early 2025 when prices hovered near ₹8.50.
The industry faces a dual challenge: while record gold prices amplify the value of sales, they simultaneously constrict physical volumes. India’s jewellery demand in Q4 2025 saw a 23% drop in volume, though its value rose 26%. This trend is mirrored by larger competitors like Titan, which reported strong revenue growth driven by price hikes, but acknowledged slowing customer acquisition due to elevated gold costs. In contrast, B2B peer Sky Gold and Diamonds reported significant growth, with Q3 FY26 revenue up 77% year-on-year to ₹1,768 crore and PAT up 120%, indicating operational efficiencies and scale are critical differentiators. Ashapuri Gold Ornament’s market capitalization hovers around ₹171-₹182 crore with a P/E ratio of approximately 10-10.75, suggesting a valuation that might not fully reflect the current industry headwinds, especially when compared to its historical valuation ranges which have seen higher P/E multiples. The company’s strategy to expand its domestic footprint with a regionally aligned sales force aims to deepen engagement with organised retailers, a move crucial for sustained volume growth.
Despite the headline profit growth, Ashapuri Gold Ornament’s stock has significantly underperformed the broader market, with a one-year return of approximately -36% compared to the Sensex’s positive gain. Technical indicators point to a bearish outlook, with the stock trading below its 200-day moving average and showing weak price momentum. A MarketsMojo report noted a downgrade from ‘Hold’ to ‘Sell’ in early 2025, reflecting concerns about its market position and technicals. Furthermore, Return on Equity (ROE) figures are modest, standing around 10.18% or even lower at 5.37% in some analyses, signalling potential inefficiency in generating shareholder returns compared to peers. The company’s valuation is considered attractive on a Price-to-Book basis, but this is juxtaposed with a weak price trend and a ‘Hold’ rating from some analysts that comes with caveats about underlying technical weakness.
The company has a board meeting scheduled for February 10, 2026, to approve its unaudited financial results for the quarter and nine months ended December 31, 2025. Ashapuri has also recently secured significant purchase orders, including ₹29 crore for gold jewellery and ₹102 crore at the IIJS Premier show 2025, indicating continued B2B client confidence and execution capability. Analysts remain cautiously optimistic, with some classifying it as a ‘Hold’ candidate, emphasizing the need for continued monitoring of its strategic execution and market response to elevated gold prices. The focus will be on whether Ashapuri can translate its B2B strengths and design expertise into consistent volume growth, thereby mitigating the impact of margin pressures inherent in a high-price commodity environment.