Ratlam-based jewellery retailer DP Abhushan aims to reach ₹15,000 crore in annual revenue by FY30 by expanding to 51 stores. The company is adopting a franchise and FOCO model to enter new regions like Maharashtra and Gujarat while focusing on reducing its current debt of ₹180 crore.
Ratlam-based jewellery retailer DP Abhushan has announced a major growth roadmap, aiming to expand its retail footprint to 51 stores by the end of the 2029-30 fiscal year. The company intends to scale its annual revenue to ₹15,000 crore, a significant target for the regional jewellery player.
To achieve this growth, the firm is pivoting away from its traditional reliance on exclusively company-owned stores. Promoter Vikas Kataria confirmed a shift toward franchise and franchisee-owned, company-operated (FOCO) models. This strategy is designed to speed up entry into new urban markets, including Nagpur, Nasik, and Vadodara. The expansion plans aim to spread the company's brand across states like Maharashtra, Chhattisgarh, and Gujarat, moving beyond its current presence in Madhya Pradesh and Rajasthan.
For this expansion, the company has pegged its capital expenditure at approximately ₹50 crore, which management plans to fund through internal earnings. This follows a period of financial activity, with the company reporting a standalone net profit of ₹64.45 crore for the first quarter of FY27. Despite the aggressive growth drive, the company is prioritizing its balance sheet health. With current total debt standing at about ₹180 crore, management has indicated a clear intent to focus on debt reduction even as it pursues the new store targets.
Investors may note that this transition to a franchise model carries inherent execution risks, such as the ability to maintain brand standards and operational consistency across many new locations. The jewellery retail sector also remains sensitive to gold price fluctuations and shifting consumer sentiment, which can directly affect inventory valuations and profit margins. Furthermore, the company faces stiff competition from both large-scale national jewellery chains and other growing regional players.
The key monitorable for shareholders will be the pace of these store rollouts and the company’s ability to execute its expansion while keeping its debt levels under control. The market will watch whether the shift to a franchise-led model helps the company improve its capital efficiency and maintain stable profit margins in the coming years.