AJC Jewel (AJCJEWEL) Q2 FY27 Profit Rises 40% as Sales Jump, But Costs Climb Faster
The jewellery manufacturer's Q2 revenue soared 52% year-on-year, but higher employee and interest costs kept a lid on profitability.
AJC Jewel Manufacturers posted strong revenue growth of 51.7% in Q2 FY27, with profit up 39.7%. The quarter's story, however, is one of rising costs that outpaced sales, leading to a thinner net profit margin.
For a jewellery manufacturer like AJC Jewel, growth is measured in both design and metal. The September quarter delivered a 52% surge in revenue, a clear win on volume, but the cost of that expansion arrived just as fast, keeping profitability in check.
The numbers show a business scaling rapidly. Revenue hit ₹112.34 crore, up 51.7% from a year ago and 10.9% sequentially. Net profit followed, rising 39.7% year-on-year to ₹2.85 crore. Yet the net profit margin slipped 30 basis points from last year to 2.5%, as costs grew even faster.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ1 FY27 (Jun 2026) |
|---|---|---|
| Revenue (₹ Cr) | 112.34 | 101.31 |
| Profit (₹ Cr) | 2.85 | 2.38 |
| Net Profit Margin | 2.5% | 2.3% |
The cost of scaling up
Revenue growth was driven by significant volume expansion, as reported by outlets like scanx.trade. This growth required funding, and the balance sheet shows it. Borrowings rose to about ₹68 crore in September 2026 from ₹44 crore in March, according to an analysis from mcapital.in.
That debt fed two major cost lines. Employee benefit expense soared 148% year-on-year, likely tied to staffing for new retail showrooms and manufacturing scale. Finance costs more than doubled, up 105%, directly tracking the higher borrowings.
A margin path dependent on execution
The company is not standing still. It plans a 120% increase in total production capacity, with about 80% of that in India. Its subsidiary also opened a new silver jewellery showroom in Erode in November, part of a retail expansion.
Management has set an ambitious target of about ₹450 crore in standalone sales for FY27, as noted in an investor presentation. The half-year revenue of ₹213.6 crore puts it well on that path. However, the business operates with no formal order book, turning over designs in weeks for a broad base of retail clients.
Key Points
- Revenue growth of 51.7% year-on-year was powered by strong volume expansion in gold and silver jewellery manufacturing.
- Profit growth of 39.7% lagged the top line, with net margin contracting 30 basis points due to sharply higher employee and interest costs.
- The company's growth is being funded by debt, with borrowings rising an estimated 55% since March to support working capital needs.
- Management is targeting ~₹450 crore in FY27 standalone sales, supported by a major domestic capacity expansion plan.
Hexa Perspective
The quarter confirms AJC Jewel is in a high-growth phase, successfully capturing market share. The tension lies in its funding model. Profit is growing, but the cost of capital and operations is growing faster, compressing margins.
This squeeze is likely structural for the near term, as the planned capacity build and retail footprint will continue to demand capital. The investment case now hinges on whether operating leverage from this expansion can eventually outrun the rising cost of debt that is currently enabling it.
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