Rathod Jewellery Manufacturing Limited IPO

01At a glance

What the company does: designs and manufactures handcrafted gold jewellery studded with uncut diamonds (chakri), polki, kundan and diamonds at two leased facilities in Kolhapur, Maharashtra and Jaipur, Rajasthan, and sells it business to business; uncut diamond (chakri) jewellery was 80.81% of FY26 revenue (DRHP p.289, DRHP p.32, AP p.3).

Who pays it: organised jewellery retail chains, which took 99.00% of FY26 revenue (DRHP p.29). The document names Titan Company Limited, Joyalukkas India Limited, Malabar Gold And Diamonds Limited, Kalyan Jewellers India Limited and Regal Jewellers Private Limited in India, and Damas Jewellery LLC, Joyalukkas Jewellery LLC, Kalyan Jewellers LLC, Malabar Gold & Diamonds FZCO and Sparkle Imports LLC abroad, as customers it calls marquee; it does not name the top ten or say which is the largest (DRHP p.294, DRHP p.29).

Why it is raising money: ₹11,500.00 lakh for working capital and ₹9,000.00 lakh to repay borrowings, plus general corporate purposes capped at 25% of the gross proceeds (DRHP p.117). There is no offer for sale, so the whole issue goes to the company (DRHP p.1).

How fast it has grown: revenue from ₹345.4 crore in FY24 to ₹667.3 crore in FY26, about 39.0% a year, and profit after tax from continuing operations from ₹16.8 crore to ₹50.5 crore, about 73.4% a year (our arithmetic, DRHP p.80).

The one thing to understand: five customers took 92.76% of FY26 revenue and the largest alone 40.36%, with no long-term supply contracts (DRHP p.29). Over the same years the company handed its plain gold jewellery division to Avichandra Enterprises Private Limited, which the document says is owned and operated by Rameshkumar H Rathod and family, under a demerger with an appointed date of April 1, 2024 (DRHP p.49, DRHP p.331).

02The business, in plain words

A jewellery chain that sells bridal and festive sets in its stores often does not make the heavier handcrafted pieces itself. This company makes them for the chain: necklaces, earrings, rings, bangles and other pieces in 14, 18 and 22 karat gold, set with uncut diamonds (chakri), polki, kundan work, coloured stones and pearls (DRHP p.296, DRHP p.303).

A jewellery retail chain places a purchase order or picks designs from the company's collections → the company buys gold bullion and stones → its designers draw the piece in CAD, it is cast at the Kolhapur or Jaipur facility and finished and stone-set by Karigars (artisans) on job work → the chain pays an agreed price after a credit period.

The company had 49 designers and 151 permanent employees at August 31, 2026, and engaged 195 Karigars on a job-work basis; the Karigars are not its employees, and formal agreements exist with only a few (DRHP p.291, DRHP p.316, DRHP p.35). It pays for gold upfront, while customers get credit of about 39 to 77 days (DRHP p.34). It does not hedge gold prices; at times it fixes the gold price with its bullion supplier when it fixes the price with the customer (DRHP p.45). It accepts returns of some unsold jewellery against credit notes and remelts the gold (DRHP p.45).

Until FY24 the company also made plain gold jewellery. That division was demerged into Avichandra Enterprises Private Limited, with an appointed date of April 1, 2024 and an NCLT order of January 6, 2026, and FY24 shows it as a discontinued operation (DRHP p.331, DRHP p.22). The family business behind the company dates to 1980 and was earlier run as the proprietorship M/s Rameshkumar Hanjarimal Rathod (DRHP p.291).

Earnings equation: Revenue ≈ grams of gold processed × realisation per gram (gold value plus stones plus making). The company processed 499 kg of gold in FY24, 647 kg in FY25 and 597 kg in FY26 (DRHP p.134). It sold 33,461 pieces in FY24 and 37,776 in FY26 (DRHP p.297). It does not give realisation per gram or making charges.

03Where the money comes from

Source: DRHP p.32, DRHP p.291. By geography, Maharashtra was 48.85% of FY26 revenue and the UAE 32.09%; the next largest were Telangana 6.32% and Tamil Nadu 5.78% (DRHP p.31). Exports went to three countries, almost all to the UAE: the USA was 0.15% and Qatar 0.22% of FY26 revenue (DRHP p.31). Export share fell from 42.06% in FY24 to 32.46% in FY26 (DRHP p.134).

Source: DRHP p.29, AP p.3. Revenue depends on a few customers: in FY26 ten customers took 98.14% of it and five took 92.76%. The company sold to 43 customers in FY26, against 60 in FY25 and 52 in FY24 (DRHP p.134).

Of the top five in FY26, three are domestic chains and two are UAE chains; the largest, at 40.36%, has dealt with the company for more than 10 years, and the third largest, at 15.72%, for 0 to 2 years (DRHP p.301). Sales are made against purchase orders with no long-term supply contracts, though agreements with some chains set volumes and terms (DRHP p.29). Repeat customers were 96.42% of FY26 revenue (DRHP p.40).

On the supply side, gold bullion was 84.74% of FY26 raw material purchases, the largest supplier 41.85% of purchases and the top ten 89.91% (DRHP p.314, DRHP p.33). In FY26 no gold came from RBI-registered bullion banks; 79.48% came from independent bullion dealers (DRHP p.33).

04The growth record

Source: DRHP p.80, DRHP p.82, DRHP p.78, DRHP p.134, AP p.6, AP p.7; crore figures are the document's lakh figures divided by 100.

Our arithmetic over FY24 to FY26: revenue grew about 39.0% a year (our arithmetic, DRHP p.80), EBITDA about 75.4% a year (our arithmetic, DRHP p.134) and profit after tax from continuing operations about 73.4% a year (our arithmetic, DRHP p.80). EBITDA margin moved from 6.8% to 10.8%, up 400 basis points, and PAT margin from 4.86% to 7.56%, up 270 basis points (DRHP p.134). In rupees, revenue went from ₹345.4 crore to ₹667.3 crore and profit after tax from ₹16.8 crore to ₹50.5 crore (DRHP p.80). The company states its own revenue CAGR as 39.00% (DRHP p.291).

FY24 profit for the year, including the demerged plain gold division, was ₹3,628.19 lakh, of which ₹1,949.58 lakh came from the discontinued operation; on that basis profit fell 6.36% in FY25 (DRHP p.80, DRHP p.456). Net worth fell in FY25 because ₹6,604.87 lakh of net assets went out with the demerger (DRHP p.460, DRHP p.419).

Operating cash flow was ₹24.0 crore in FY26, after an outflow of ₹75.24 lakh in FY25 (DRHP p.82). Other income of ₹545.43 lakh was 8.0% of FY26 profit before tax of ₹6,786.03 lakh (our arithmetic, DRHP p.80). Of that other income, ₹441.61 lakh was a foreign exchange gain (DRHP p.452).

Net debt to EBITDA was about 1.2× at March 2026, taking borrowings of ₹9,791.72 lakh less cash of ₹1,114.56 lakh and other bank balances of ₹340.65 lakh (our arithmetic, DRHP p.78, DRHP p.134). Debt to equity was 0.62 times, about 0.6× (DRHP p.134). Return on capital employed was 29.3% in FY26 (DRHP p.134). The tax charge was 25.6% of profit before tax in FY26 and 17.3% in FY24 (our arithmetic, DRHP p.80).

The year end is March 31 throughout. The document warns that the March 2024 balance sheet is not comparable with the later two because of the demerger (DRHP p.56).

05What the growth is made of

Revenue rose ₹32,195.26 lakh from FY24 to FY26 (our arithmetic, DRHP p.80). Domestic sales added ₹25,057.63 lakh and exports ₹7,137.63 lakh (our arithmetic, DRHP p.291). Maharashtra alone added ₹18,484.43 lakh (our arithmetic, DRHP p.31). By product, chakri jewellery added ₹25,765.08 lakh and polki ₹6,687.78 lakh (our arithmetic, DRHP p.32).

The volume figures the document gives grew far less than revenue. Gold processed rose 19.6% from 499 kg in FY24 to 597 kg in FY26, and fell 7.7% from 647 kg in FY25 (our arithmetic, DRHP p.134). Pieces sold rose 12.9%, from 33,461 to 37,776 (our arithmetic, DRHP p.297). Revenue per kg of gold processed rose about 61.5% (our arithmetic, DRHP p.80, DRHP p.134).

The commissioned report puts the average 24K gold price at ₹60,624 per 10 grams in FY24 and ₹1,18,421 in FY26, up about 95.3% (DRHP p.45, our arithmetic). The company itself says that when gold prices rise, revenue may increase mainly through higher realisation rather than volume (DRHP p.440).

Read from the filing: most of the FY24 to FY26 revenue growth tracks the gold price rather than more gold processed. The document does not give realisation per gram, making charges or stone value by year, so the increase cannot be split exactly into volume, gold price and mix. That is the finding.

Materials cost (raw materials consumed plus the change in inventories) was 90.6% of revenue in FY24 and 86.7% in FY26, so the margin left after materials rose from about 9.4% to 13.3% (our arithmetic, DRHP p.80).

06Earnings quality

The item that needs explaining is the cash in FY26. Profit was ₹5,046.77 lakh, but inventories rose ₹6,596.16 lakh, which a fall of ₹2,883.37 lakh in receivables only partly offset (DRHP p.82). Inventories reached ₹17,890.02 lakh, 69.02% of current assets (DRHP p.38). The FY25 operating cash flow also carries demerger adjustments of ₹6,604.87 lakh and ₹6,352.44 lakh (DRHP p.82).

The auditor's remarks: for FY24 and FY25, AS 15 on employee benefits was not followed and the effect could not be quantified; for FY25, the accounts were drawn up without the effect of the pending demerger; for FY24, the accounting software had no working audit trail and no internal auditor was appointed; for FY26, unspent CSR money was not moved to a specific bank account (DRHP p.50, DRHP p.51). The restated figures adjust for the employee benefits and the demerger (DRHP p.50). FY26 receivables more than six months past due were ₹228.20 lakh, and the expected credit loss allowance was ₹15.06 lakh (our arithmetic, DRHP p.400).

07The balance sheet

At March 31, 2026 total assets were ₹29,940.99 lakh: inventories ₹17,890.02 lakh, trade receivables ₹5,844.04 lakh, property, plant and equipment ₹3,918.28 lakh, cash ₹1,114.56 lakh and other bank balances ₹340.65 lakh (DRHP p.78). Against that: current borrowings ₹9,391.94 lakh, non-current borrowings ₹399.78 lakh, trade payables ₹3,449.10 lakh and net worth ₹15,801.44 lakh (DRHP p.78, DRHP p.79). There are no lease liabilities on the balance sheet, although both factories are leased (DRHP p.79, DRHP p.39).

By August 31, 2026 borrowings were ₹12,346.50 lakh: cash credit ₹7,890.11 lakh, an Emergency Credit Line Guaranteed loan ₹1,772.00 lakh, term loans ₹479.74 lakh, an unsecured working capital facility ₹2,000.00 lakh and loans from related parties ₹169.43 lakh (DRHP p.435). Working capital lines of ₹11,697.33 lakh were drawn against ₹12,172.50 lakh sanctioned (DRHP p.35). All four promoters guarantee the loans, ₹10,141.85 lakh at August 31, 2026 (DRHP p.59). Contingent liabilities were ₹3.28 lakh, an income tax demand under appeal (DRHP p.84). Insurance cover was ₹20,200.00 lakh against net assets of ₹21,853.50 lakh (DRHP p.59).

After the issue, as far as the arithmetic goes: up to ₹9,000.00 lakh of the proceeds is to repay HDFC Bank cash credit and the Emergency Credit Line loan in FY27 (DRHP p.118, DRHP p.124). Against the August 2026 borrowings that would leave about ₹3,346.50 lakh, before any new drawings (our arithmetic, DRHP p.435). Net worth would rise by the fresh issue less its share of expenses, but the issue amount, price and expenses are blank at this stage, so the post-issue figure cannot be stated (DRHP p.117, DRHP p.126).

08What the money is for

Source: DRHP p.117, DRHP p.118. The working capital money is planned on the company's own estimate that its working capital gap rises from ₹20,171.41 lakh in FY26 to ₹28,185.40 lakh in FY27 and ₹48,217.14 lakh in FY28 (DRHP p.121). The plan assumes receivable days of 50 in FY27 and 55 in FY28, against 39 in FY26, which the company calls a strategic decision to offer customers longer credit, inventory days of 90 and 110, and payable days cut to 15 and 10 (DRHP p.121, DRHP p.122).

The debt to be repaid is HDFC Bank cash credit, ₹7,890.11 lakh outstanding at 8.25%, and an Emergency Credit Line Guaranteed loan, ₹1,772.00 lakh at 8.80% (DRHP p.124). No part of the proceeds will go to promoters, directors or group companies (DRHP p.130). None of the objects has been appraised by a bank, and a monitoring agency will be appointed (DRHP p.117, DRHP p.129).

Into the business the whole fresh issue of up to 1,03,60,000 shares, amount not yet set (DRHP p.1). To selling shareholders nothing: there is no offer for sale (DRHP p.1).

09Who is selling

No one. The issue is a fresh issue of up to 1,03,60,000 equity shares of ₹10 each, and the offer for sale is marked "Not Applicable" (DRHP p.1, AP p.1). The document says the promoters are not offering shares through an offer for sale (DRHP p.333). The amount of the fresh issue is left blank until the price is set (DRHP p.75). The issue was approved by the board on September 28, 2026 and by shareholders on September 29, 2026 (DRHP p.75).

10Promoters

The promoters are Chandrakant Hanjarimal Rathod, aged 54, Chairman and Managing Director; Rupali Chandrakant Rathod, aged 51, Whole-time Director; Reeva Chandrakant Rathod, aged 29, Whole-time Director; and Hridhay Chandrakant Rathod, aged 26, Whole-time Director (DRHP p.356, DRHP p.357). The document states that Rupali Chandrakant Rathod is the spouse of Chandrakant Hanjarimal Rathod and that Reeva Chandrakant Rathod and Hridhay Chandrakant Rathod are their daughter and son (DRHP p.338, DRHP p.360). Together the four hold 99.99% of the company (DRHP p.102).

Chandrakant Hanjarimal Rathod and Rupali Chandrakant Rathod have been with the company since incorporation in 2012; Hridhay Chandrakant Rathod joined on April 1, 2020 and Reeva Chandrakant Rathod on November 1, 2022 (AP p.5). The chairman has passed higher secondary education and has over 34 years in gems and jewellery, according to the document (AP p.5, DRHP p.57). Chandrakant Hanjarimal Rathod and Hridhay Chandrakant Rathod are designated partners in C H Rathod Urban LLP, and Rupali Chandrakant Rathod and Hridhay Chandrakant Rathod in Ativa Jewellery LLP, both promoter group entities (AP p.5, DRHP p.360).

Pay: the four promoters received ₹222 lakh in FY24 and ₹564 lakh in FY26, about ₹2.2 crore and ₹5.6 crore: in FY26, ₹300 lakh to Chandrakant Hanjarimal Rathod, ₹144 lakh to Rupali Chandrakant Rathod and ₹60 lakh each to Reeva Chandrakant Rathod and Hridhay Chandrakant Rathod (our arithmetic, DRHP p.85). From September 2026 the terms allow up to ₹30.00 lakh a month for the chairman, ₹17.50 lakh each for Rupali Chandrakant Rathod and Hridhay Chandrakant Rathod and ₹15.00 lakh for Reeva Chandrakant Rathod, up to ₹960 lakh a year together (our arithmetic, DRHP p.338, DRHP p.339, DRHP p.340, DRHP p.341).

Dealings with the company: Chandrakant Hanjarimal Rathod lent ₹850 lakh in FY25, was repaid ₹700 lakh in FY26, and was owed ₹150 lakh at March 2026 (DRHP p.85, DRHP p.87). The promoters personally guarantee ₹10,141.85 lakh of borrowings (DRHP p.59). From October 1, 2026 the company licenses a cabin and store room at its Kolhapur premises to Ativa Jewellery LLP for ₹11,000 a month (DRHP p.359).

Chandrakant Hanjarimal Rathod resigned from Avichandra Enterprises Private Limited on May 11, 2026, and both elder promoters gave up their shareholdings there under the demerger (DRHP p.358). Rathod Jewellers Private Limited, where the chairman was a director, was struck off on the company's own application (DRHP p.344).

Pledges and cases: no promoter share is pledged (DRHP p.106). Chandrakant Hanjarimal Rathod faces two criminal matters: a 2010 complaint over a Kolhapur land sale alleging forgery and cheating, in which the Sessions Court on August 12, 2026 upheld the order to frame charges, and a 2018 Copyright Act case over unlicensed "Matrix" design software at the company's premises, in which a chargesheet has been filed (DRHP p.470, DRHP p.471).

There is also one civil suit against the chairman, a 1992 partition suit over Kolhapur land, and six civil matters filed by the chairman, all over land (DRHP p.471, DRHP p.472, AP p.12). There is no SEBI or stock exchange action against the promoters (DRHP p.471, DRHP p.359).

Promoter economics: Chandrakant Hanjarimal Rathod and Rupali Chandrakant Rathod each subscribed 250 shares of ₹100 at par in 2012 and 3,750 at ₹500 in January 2014 (DRHP p.98). In May 2026 the shares of Rameshkumar H. Rathod, Pravina Rameshkumar Rathod and Sohan Rameshkumar Rathod passed to the promoters under a family settlement deed dated May 15, 2026, at no price (DRHP p.331, DRHP p.102, DRHP p.104).

A bonus of 21 shares for every 4 followed on May 25, 2026, a split from ₹100 to ₹10 in August 2026, and a bonus of 30 for every 1 on September 9, 2026 (DRHP p.98, DRHP p.99). Reeva Chandrakant Rathod received 10,000 shares as a gift from Hridhay Chandrakant Rathod on July 20, 2026 (DRHP p.104).

Average cost is ₹0.18 a share for the two elder promoters and nil for the two younger (DRHP p.111).

11Who already owns it

Source: DRHP p.102, DRHP p.115. The company has 7 shareholders and no employee stock options (DRHP p.113, DRHP p.101). No fund, institution or company outside the promoter group holds shares (DRHP p.112). One year before the filing the holders were Chandrakant Hanjarimal Rathod, Rameshkumar H Rathod and Rupali Chandrakant Rathod at 25% each, Pravina Rameshkumar Rathod at 15% and Sohan Rameshkumar Rathod at 10% (DRHP p.114).

When they came in: on July 20, 2026 Hridhay Chandrakant Rathod transferred one ₹100 share each, at ₹20,000 a share, to Ativa Jewellery LLP, C H Rathod Urban LLP and Santosh Khushalchand Malani (DRHP p.105). After the 1:10 split and the 30:1 bonus that is about ₹64.5 for each present ₹10 share (our arithmetic, DRHP p.99, DRHP p.105). The weighted average cost of all shares acquired in the last one, one and a half and three years is nil (DRHP p.110).

If all 1,03,60,000 fresh shares are issued, the share count rises from 3,10,00,000 to 4,13,60,000 and the promoter and promoter group holding falls from 100.00% to about 75.0% (our arithmetic, DRHP p.102).

12What changed just before the IPO

• The plain gold division left. Under the demerger scheme approved by the board on September 15, 2024 and by the NCLT on January 6, 2026, the plain gold jewellery division went to Avichandra Enterprises Private Limited with an appointed date of April 1, 2024; net assets of ₹6,604.87 lakh were transferred out, mostly ₹6,284.41 lakh of inventory, with no consideration to the company (DRHP p.331, DRHP p.419).
• The shareholders changed. Under a family settlement deed dated May 15, 2026, Rameshkumar H. Rathod, Pravina Rameshkumar Rathod and Sohan Rameshkumar Rathod transferred their shares to the present promoters, and resigned as directors on May 22, 2026 (DRHP p.331, DRHP p.344).
• Revenue and profit: revenue went from ₹345.4 crore in FY24 to ₹667.3 crore in FY26 and profit after tax from continuing operations from ₹16.8 crore to ₹50.5 crore (DRHP p.80).
• Customer concentration rose. The largest customer went from 32.78% of FY24 revenue to 40.36% of FY26, the top five from 80.05% to 92.76% and the top ten from 94.25% to 98.14% (DRHP p.29). The number of customers fell from 60 in FY25 to 43 in FY26 (DRHP p.134).
• Exports fell as a share, from 42.06% of revenue in FY24 to 32.46% in FY26 (DRHP p.134).
• Receivables shortened from 77 days in FY24 to 39 days in FY26 (DRHP p.121).
• Promoter pay rose from about ₹2.2 crore in FY24 to about ₹5.6 crore in FY26 (our arithmetic, DRHP p.85).
• Related-party transactions were ₹5,151.21 lakh in FY26, about ₹51.5 crore, 7.72% of revenue, after ₹12,762.96 lakh in FY25 (DRHP p.56). The FY25 total included the ₹6,604.87 lakh demerger (DRHP p.86). In FY26 Rameshkumar H. Rathod lent the company ₹1,900 lakh and was repaid the same amount (DRHP p.86).
• Capacity grew and utilisation fell. Combined installed capacity rose from 900 kg a year in FY25 to 1,370 kg in FY26 while production fell from 647 kg to 597 kg, so utilisation went from 71.89% to 43.6% (DRHP p.312). Installed capacity is 3,100 kg at the filing date, after the Jaipur unit moved to a new leased facility (DRHP p.313).
• A bonus of 21:4 was allotted on May 25, 2026 (DRHP p.98).
• A split of each ₹100 share into ten of ₹10 was approved on August 16, 2026 (DRHP p.99).
• A bonus of 30:1 was allotted on September 9, 2026 (DRHP p.99).
• The last allotment before the IPO was that 30:1 bonus, at no price; no shares have been allotted for cash since ₹500 a ₹100 share in January 2014 (DRHP p.99, DRHP p.98).
• The company became public: converted with a fresh certificate of incorporation dated August 7, 2026 (DRHP p.3).
• The auditor changed twice. Gadve & Associates resigned on June 21, 2024; M/s. Swapnil S Vhanbatte & Company was appointed on July 11, 2024 and resigned on June 6, 2026, citing administrative reasons and the lack of a peer review certificate; M/s. Sanjay Vhanbatte & Co. was appointed on June 25, 2026 (DRHP p.93, DRHP p.94).
• A new board: four independent directors joined in August and September 2026, and the board committees were formed in September 2026 (DRHP p.344, DRHP p.345).
• Compliance filings: on September 30, 2026 the company filed adjudication or compounding applications over CSR shortfalls for FY2020 to FY2023, the lack of an internal auditor in four years, and the FY24 audit trail lapse (DRHP p.47, DRHP p.48).
• Ind AS was adopted with April 1, 2024 as the transition date (DRHP p.441).

13Capacity and expansion

Source: DRHP p.312, DRHP p.313, DRHP p.318. Capacity is measured in kg of gold studded jewellery a year on one eight-hour shift, 25 days a month, and was certified by an independent chartered engineer (DRHP p.55, DRHP p.313). Kolhapur's FY26 figure is a part-year average: 720 kg for seven months and 1,850 kg for five (DRHP p.312).

The issue does not fund capacity; the objects are working capital and debt (DRHP p.117). Capital expenditure in FY26 was ₹3,836.82 lakh, mostly a building capitalised from work in progress (DRHP p.464, DRHP p.458). The chain from capacity to revenue is not drawn in the document: with 597 kg produced in FY26 against 3,100 kg installed now, production would need to rise about five times to fill the new capacity (our arithmetic, DRHP p.312, DRHP p.313). The company says it intends to use the Jaipur capacity to expand into polished diamond and lightweight jewellery (DRHP p.119).

14Market size and industry structure

As claimed: the industry report is by ICRA Analytics Limited, "Indian Gems & Jewellery Market", dated September 28, 2026, commissioned and paid for by the company for the issue (DRHP p.24). It puts the B2B jewellery manufacturing market in India at INR 5,349 billion in FY2026 and the uncut diamond (chakri) jewellery segment at INR 147 billion in FY2026 (DRHP p.237, DRHP p.295). The company-commissioned report credits the company with about 3.7% of the Indian chakri jewellery market and 13.3% of the West India chakri market in FY2026 (DRHP p.289).

The part that is addressable: handcrafted studded gold jewellery, mainly chakri, made for organised retail chains in Maharashtra and the UAE. The chakri segment figure above is the closest the document comes to sizing it.

What the company is today: FY26 chakri revenue of ₹53,929.92 lakh is about 3.7% of the INR 147 billion segment, matching the report, and total revenue is about 1.2% of the B2B manufacturing market (our arithmetic, DRHP p.32, DRHP p.295, DRHP p.237).

On structure, the commissioned report says the organised segment was 39.5% of the Indian gems and jewellery retail market in 2026 and the unorganised 60.5% (DRHP p.192). It says most organised retailers combine their own manufacturing with outsourcing, relying on specialised B2B makers for categories such as chakri, polki and kundan (DRHP p.55). Demand depends on weddings, festivals and discretionary spending, and revenue is seasonal: the January to March quarter was 14.05% of FY26 revenue against 34.29% for July to September (DRHP p.37, DRHP p.38). Imports were 0.47% of FY26 purchases (DRHP p.33).

15Competitive position

Source: DRHP p.136. Peers are consolidated where available and the company standalone (DRHP p.133).

What the company puts forward: a relationship of more than six years on average with its top ten customers, repeat customers at 96.42% of revenue, 4,456 active SKUs at March 2026, 49 designers using CAD and 3D printing, and recognition from Titan Company in 2024 and Joyalukkas India Limited in 2026 (DRHP p.29, DRHP p.40, DRHP p.291, DRHP p.294). Against that: five customers at 92.76% of revenue, two leased factories, no registered designs, nine trademark applications of which four are objected, and no non-compete with promoter group companies in the same business (DRHP p.29, DRHP p.39, DRHP p.42, DRHP p.317, DRHP p.49).

16Peers the company named

Peers named in the offer document: Sky Gold and Diamonds Limited and Priority Jewels Limited (DRHP p.133).

The document names them as listed industry peers and as competitors, without describing how their products compare with chakri jewellery (DRHP p.316, DRHP p.133). Sky Gold and Diamonds' FY26 revenue is about 9.4 times the company's, and Priority Jewels' about 0.8 times (our arithmetic, DRHP p.133). The document prints peer P/E ratios on September 22, 2026 prices of 57.49 for Sky Gold and Diamonds and 15.93 for Priority Jewels, an average of 36.71 (DRHP p.132). The company's FY26 basic EPS is ₹16.28 on the ₹10 share after the bonuses (DRHP p.131). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Customers: five customers took 92.76% of FY26 revenue with no long-term supply contracts (DRHP p.29) → the loss or cut of one chain moves the year → the largest alone was 40.36% (DRHP p.29).

Two markets: Maharashtra was 48.85% and the UAE 32.09% of FY26 revenue (DRHP p.31) → regional demand, trade rules or unrest in either place reach a large part of sales; the document's own risk factor names hostilities involving the UAE (DRHP p.64) → two UAE chains were 30.66% of FY26 revenue (our arithmetic, DRHP p.301).

Gold price: gold was 84.74% of FY26 raw material purchases and the company does not hedge (DRHP p.314, DRHP p.45) → a fall in gold while stock is held cuts inventory value → inventory was ₹17,890.02 lakh at March 2026 (DRHP p.38).

Working capital: the plan to raise receivable days from 39 to 55 and inventory days from 80 to 110 by FY28 is the company's own (DRHP p.121) → more money is tied up in stock and credit → the company estimates a working capital gap of ₹48,217.14 lakh in FY28 (DRHP p.121).

Karigars and theft: gold is handed to 195 Karigars on job work (DRHP p.35) → in FY24 about 1,635.33 g, 959.61 g and 1,161.83 g of gold were not returned, and the company has four police complaints pending (DRHP p.36, DRHP p.469) → one complaint involves about 3.8 kg (DRHP p.469).

Promoter group in the same line: Avichandra Enterprises Private Limited, which took the plain gold division, and other group entities can make jewellery, and there is no non-compete (DRHP p.49) → business could move between them → related-party transactions were 25.13% of FY25 revenue (DRHP p.56).

Compliance record: CSR shortfalls, no internal auditor in four years, and an FY24 audit trail lapse are under adjudication or compounding (DRHP p.47, DRHP p.48) → late GST and TDS payments were ₹34.29 lakh and ₹36.51 lakh in FY25 (DRHP p.58) → staff attrition was 47.73% in FY26 (DRHP p.44).

Issue-specific: the promoters' average cost is ₹0.18 or nil a share (DRHP p.111); the issue amount, general corporate purposes and expenses are blank; and the working capital object rests on the company's own projections (DRHP p.117, DRHP p.121).

18Litigation and regulatory matters

Criminal: there are no criminal matters against the company; the two above are against the chairman (DRHP p.469, DRHP p.470). Tax: one matter by and one against the company; none for promoters or directors (DRHP p.474). Civil: six land matters filed by the chairman are pending (AP p.12, DRHP p.472). Regulatory: no action by regulators against the company, promoters or directors (DRHP p.469, DRHP p.473). The summary table puts the amount in matters by the company at ₹154.61 lakh and against it at ₹3.28 lakh (AP p.11).

19Related-party transactions

Source: DRHP p.85, DRHP p.86; the promoter pay row is our arithmetic. Hanjarimal Khangarji Rathod, classed as a relative of key management personnel, was paid ₹529.77 lakh of interest in FY24 and was owed ₹4,411.22 lakh at March 2024 (DRHP p.85, DRHP p.87). Avichandra Enterprises Private Limited owed the company ₹101.27 lakh at March 2026 (DRHP p.88). Former directors Rameshkumar H. Rathod, Sohan Rameshkumar Rathod and Pravina Rameshkumar Rathod were paid ₹195.00 lakh in FY24 and ₹77.59 lakh in FY25 (our arithmetic, DRHP p.86).

What appeared or changed in the two years before filing: the demerger to Avichandra Enterprises Private Limited; the ₹1,900 lakh loan from Rameshkumar H. Rathod taken and repaid in FY26; the repayment of ₹4,399.17 lakh to Hanjarimal Khangarji Rathod in FY25; the exit of the three Rameshkumar family directors in May 2026; the licence to Ativa Jewellery LLP from October 2026; and new pay terms for all four promoters from September 2026 (DRHP p.86, DRHP p.85, DRHP p.344, DRHP p.359, DRHP p.338).

20What the offer document does not say

The top ten customers are not named, and the document does not say which chain is the largest. Realisation per gram, making charges and the value of stones in a piece are not given, so growth cannot be split into volume and price. Margins by product are not given. Avichandra Enterprises Private Limited's revenue, profit and assets are not in the document; they are placed on the company's website instead (DRHP p.478). The amount of the fresh issue, general corporate purposes, issue expenses and price band are blank.

Some inconsistencies are recorded as document matters, not business ones: gold is 84.64% of FY26 raw material purchases in one place and 84.74% in another (DRHP p.32, DRHP p.314); total FY26 purchases are ₹63,580.61 lakh and ₹63,506.70 lakh (DRHP p.33, DRHP p.314); the FY26 working capital requirement is ₹20,171.41 lakh and ₹20,188.40 lakh (DRHP p.34, DRHP p.440);

Maharashtra and the UAE are 81.10% of FY26 revenue in one place while the state table adds to 80.94% (DRHP p.440, DRHP p.31); the FY24 theft insurance claims were "accepted and discharged" in one place and "partially accepted" in another (DRHP p.36, DRHP p.59); the March 2024 balance sheet is said both to include the plain gold division and to reflect only continuing operations (DRHP p.22, DRHP p.56);

and Jaipur's FY24 capacity is 900 kg in the objects chapter and 180 kg in the capacity table (DRHP p.119, DRHP p.312).

21Five questions for management

1. Which chain is the 40.36% customer, and what share of its purchases does the agreement with it fix for FY27?
2. How much of the FY24 to FY26 revenue growth came from the gold price, and how much from more grams sold and from stone and making value?
3. What were Avichandra Enterprises Private Limited's sales in FY26, and how many of the company's customers also place orders with it?
4. With 597 kg produced in FY26 against 3,100 kg installed now, what production does the new Jaipur unit need to cover its own rent and depreciation?
5. Why does the plan raise receivable days from 39 to 55 and cut payable days from 19 to 10, and which customers asked for longer credit?

2Sources and cited facts

This study was read from 2 documents the company filed. The 131 figures it cites are listed under the document each came from, with the page and the sentence as printed.