Nityas Gems And Jewellery Limited IPO

01At a glance

What the company does — designs and makes gold jewellery studded with lab-grown diamonds — rings, earrings, pendants, bracelets, mangalsutras and more — and since July 2025 also sells directly to consumers through its subsidiary Ayaani Diamonds and Jewellery (AP p.2).

Who pays it — organised jewellery retailers and brands, standalone retailers and wholesalers; business-to-business sales were 98.43% of revenue in the six months to September 2025 (AP p.2). The top ten customers were 61.08% of revenue in that period (DRHP p.34).

Why it is raising money — up to ₹700.00 million for working capital, and the rest for general purposes (AP p.4).

How fast it has grown — revenue from ₹116.68 million in FY23 to ₹968.45 million in FY25, and ₹885.45 million in the six months to September 2025 alone (AP p.6).

The one thing to understand — fast growth that has consumed cash. From FY23 to September 2025 the company booked ₹226 million of profit and used ₹282 million in operations; net working capital days rose from 39 to 124 (our arithmetic, AP p.6).

02The business, in plain words

A jewellery manufacturer buys gold and loose lab-grown diamonds, sets them into light, lower-priced pieces, and supplies retail chains and shops, which put them on display.

A jewellery retailer in Karnataka orders a range of lab-grown diamond rings and earrings → Nityas makes them in Surat from bought gold and diamonds → it delivers and invoices the retailer → it is paid on credit terms.

Five states — Gujarat, Karnataka, Telangana, Tamil Nadu and Maharashtra — were 82.27% of revenue in the six months to September 2025 (AP p.7). Overseas sales were 3.13% (DRHP p.206).

Earnings equation: Profit ≈ kilograms of jewellery sold × (price per gram − gold, diamond and making cost) − interest on working capital. EBITDA margin was 12.94% in the six months to September 2025 (AP p.6).

03Where the money comes from

Source: AP p.2, AP p.6. H1 FY26 is six months.

Source: DRHP p.34.

The largest customer in FY25 was Ayaani Diamonds and Jewellery, which became a subsidiary on 22 July 2025 (DRHP p.34).

04The growth record

Source: AP p.6. H1 FY26 is six months.

05What the growth is made of

Volume: jewellery sold rose from 16.51 kg in FY23 to 100.59 kg in FY25, and was 84.32 kg in the six months to September 2025 (AP p.6). Revenue in those six months was 91% of all of FY25's (our arithmetic, AP p.6). The customer base widened, with the top five falling from 89.35% of revenue in FY23 to 44.06% (DRHP p.34).

06Earnings quality

Profit has not become cash. Operating cash flow was negative in all four periods, totalling negative ₹281.57 million (our arithmetic, AP p.6). Working capital rose from ₹12.42 million in FY23 to ₹461.77 million at September 2025 (AP p.7). Inventory days were 77 and debtor days 35 in the six months (AP p.6). The statutory auditors expressed no qualification, reservation, adverse remark, emphasis of matter or other observation (AP p.9).

07The balance sheet

Source: AP p.6.

Net worth rose ₹277.01 million in the six months to September 2025, of which ₹85.32 million was profit, while share capital rose from ₹12.40 million to ₹19.61 million (our arithmetic, AP p.6). In March 2025 the company allotted 960,784 shares of ₹10 at ₹260 each to MG 369 Finventure, represented by Aditya Vinod Kanodia (DRHP p.120) — ₹249.80 million in all (our arithmetic).

08What the money is for

Source: AP p.4.

09Who is selling

Nobody. The offer is a fresh issue only, of up to 14,456,000 shares of ₹5 face value (AP p.1).

The promoters' weighted average cost of shares acquired in the last year was ₹18.42, in a range from nil to ₹40.91, after a split of each ₹10 share into two ₹5 shares and a 10-for-1 bonus issue in March 2026 (AP p.8).

10Promoters

The promoters are Rajnikant Lallubhai Chanchad, Sonalben Rajnikant Chanchad and Savaliya Dhruv Janakbhai (AP p.4). Rajnikant Chanchad, chairman and managing director, has no formal education and over 20 years in gems and jewellery; Sonalben Chanchad has no formal education and over 5 years in the sector; Savaliya Dhruv Janakbhai holds a civil engineering degree from Gujarat Technological University and has about 4 years in the sector (AP p.4, AP p.8).

Ayaani. In July 2025 the company subscribed for new shares giving it 50.04% of Ayaani Diamonds and Jewellery, at ₹171 a share, for ₹241.11 million (DRHP p.248). At the date of the DRHP, Rajnikant Chanchad held 18.93% of Ayaani, Dhruv Janakbhai Savaliya 13.35% and Sonalben Chanchad 3.21% — 35.49% together — and MG 369 Finventure 1.32% (our arithmetic, DRHP p.251). Ayaani runs an online store and nine shops in seven cities, three of them franchised (DRHP p.205).

11Who already owns it

Source: AP p.5.

Savaliya Dhruv Janakbhai, a promoter, holds no shares; Janakbhai N Savaliya of the promoter group holds 2.10% (AP p.5). Astha Aditya Kanodia holds 3.83% and Aditya Kanodia 2.04% (AP p.5).

12What changed just before the IPO

• Ayaani — control of the FY25 largest customer, a promoter-linked brand, from July 2025 (DRHP p.34, DRHP p.251).
• New investor money — 960,784 shares allotted at ₹260 in March 2025 (DRHP p.120).
• Share split and bonus — March 2026, taking the share count to 43,137,248 (DRHP p.120).
• Borrowings — nearly tripled in the six months to September 2025 (AP p.6).

13Capacity and expansion

The risk factors describe a single manufacturing facility in Surat, Gujarat (AP p.7). The abridged prospectus's facilities paragraph instead describes two manufacturing facilities in Roorkee, Uttarakhand, offices in Delhi and Noida and a branch office in Nepal (AP p.3); the DRHP does not mention Roorkee. No capacity figure was read for this study, and the proceeds fund working capital, not plant (AP p.4).

14Market size and industry structure

The CareEdge report cited in the offer document says gems and jewellery are about 7% of India's GDP and about 15% of merchandise exports, and describes lab-grown diamonds as physically, chemically and optically the same as mined diamonds but typically priced much lower (AP p.4). newboard has not tested the report's statements.

15Competitive position

What the document claims, and what it rests on:

• An integrated model of in-house manufacturing plus direct retail through Ayaani (AP p.3).
• A wider customer base, with top-five concentration falling since FY23 (DRHP p.34).

Against that: a young company with one plant, heavy dependence on a few suppliers and states, and cash absorbed by working capital (AP p.3, AP p.7).

16Peers the company named

Source: DRHP p.151. Peer P/E uses prices on 20 March 2026.

No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Working capital. It has grown far faster than profit (AP p.7).
• Suppliers. The largest supplier was 58.18% of purchases in the six months, the top ten 90.66% (AP p.3).
• Materials. Lab-grown diamonds and gold were 88.82% of raw-material purchases (AP p.7).
• Region. Five states were 82% of revenue (AP p.7).
• One plant. All manufacturing in Surat (AP p.7).
• Related parties. The promoters hold shares in the subsidiary that was the largest customer (DRHP p.251).
• Seasonality. Sales depend on peak periods (AP p.8).

18Litigation and regulatory matters

Source: AP p.9.

19Related-party transactions

Sales to Ayaani before it became a subsidiary are the main related-party item identified; Ayaani was 19.48% of FY25 revenue (DRHP p.34). Other related-party transactions were not read for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• Who owned Ayaani before July 2025, or the promoters' stake then, in the pages read.
• The terms of sales to Ayaani while the promoters held shares in it.
• Why the facilities paragraph names Roorkee, Delhi, Noida and Nepal.
• What the criminal proceeding against the subsidiary concerns.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. What were the prices and credit terms on sales to Ayaani before it became a subsidiary?
2. Why did the company invest ₹241 million in a brand its promoters also own, and who valued it?
3. Why has operating cash flow been negative in every period while profit rose?
4. Where exactly does the company manufacture, given the facilities paragraph mentions Roorkee?
5. How dependent is the company on its largest supplier, and on what terms?

2Sources and cited facts

This study was read from 2 documents the company filed. The 39 figures it cites are listed under the document each came from, with the page and the sentence as printed.