Deepa Jewellers shares surged over 13% on Wednesday, defying a broader market downturn triggered by the Reserve Bank of India's 25 basis points rate hike. The stock has gained around 37% since its IPO earlier this month, reflecting investor confidence following the company's robust Q1 FY27 financial performance, according to livemint.com.
The company reported a 27.01% year-on-year increase in net profit to ₹26.76 crore for the quarter ended June 2026, up from ₹21.07 crore in the same period last year. Revenue from operations rose 39.04% to ₹431.11 crore, while EBITDA grew 34.02% to ₹38.68 crore. Despite a slight contraction in EBITDA margin to 8.97% from 9.31%, Deepa Jewellers maintained strong growth momentum in its B2B jewellery processing and supply business, livemint.com stated.
The share price rally comes amid a challenging macroeconomic environment marked by inflationary pressures linked to the Middle East conflict and global central banks reassessing monetary policies. While rate-sensitive sectors faced declines, Deepa Jewellers' performance stands out, highlighting the resilience of the organised B2B jewellery segment in India. The company's growth contrasts with broader market trends, underscoring its strong operational execution post-IPO, per livemint.com.
Deepa Jewellers' next financial update will be closely watched by investors, with the company having demonstrated significant gains since its market debut and continued double-digit growth in key financial metrics for Q1 FY27, livemint.com reported.