Royal Chain Limited IPO

01At a glance

What the company does: designs and manufactures gold chains and gold jewellery in 14, 18 and 22 karat at a single plant at Mahape, Navi Mumbai, and also trades bought-in jewellery and bullion; chains are its core manufactured product (DRHP p.193, DRHP p.194, DRHP p.207).

Who pays it: about 1,887 customers in FY26, of which 1,874 dealers and wholesalers brought 89.55% of revenue, nine institutional clients including organised retailers 6.83% and four export customers 3.79% (DRHP p.196). The retailers named include Titan Company Limited, Kalyan Jewellers India Limited, P N Gadgil Jewellers Limited, Senco Gold Limited, Kalamandir Jewellers Limited, Thangamayil Jewellery Limited and D.P. Abhushan Limited (DRHP p.199).

Why it is raising money: ₹650.0 crore of the fresh issue goes to repaying or prepaying borrowings in FY27, with the rest, capped at 25% of gross proceeds, for general corporate purposes (DRHP p.99). The ₹150.0 crore offer for sale goes to the four promoter sellers, not the company (DRHP p.65).

How fast it has grown: revenue from ₹2,350.6 crore in FY24 to ₹4,732.5 crore in FY26, about 41.9% a year, and profit after tax from ₹27.4 crore to ₹173.3 crore, about 151.7% a year (our arithmetic, DRHP p.69).

The one thing to understand: the growth in FY26 came with less gold sold, not more. Volume sold fell 19.25% to 4,473.67 kg while jewellery revenue rose 41.11%, which the company puts down mainly to higher gold prices (DRHP p.355). Operating cash flow was negative in all three years, an outflow of ₹216.5 crore in FY26 as inventory grew (DRHP p.70).

02The business, in plain words

What Royal Chain does

Royal Chain buys gold, melts it with other metals into the purity a customer wants, draws it into wire and turns that wire into chains on automated Italian machines; other pieces such as bangles, rings and pendants are cast, stamped or cut by CNC and laser machines (DRHP p.210, DRHP p.211). Everything is made at one leased plant at Mahape, Navi Mumbai, of 88,980.64 square feet, which replaced a smaller plant at Sewri in October 2024 (DRHP p.208, DRHP p.27).

A jewellery dealer, wholesaler or retail chain needs a range of chains and jewellery → the company refines and alloys gold, makes chains and other pieces in-house, and also buys finished jewellery from other makers → it ships hallmarked pieces from Mahape across 24 states and four union territories and to five countries → it is paid the value of the gold plus its making charges, or only making charges where the customer supplies the gold (DRHP p.207, DRHP p.211, DRHP p.196, DRHP p.205).

Gold reaches the plant three ways: bought outright from banks and bullion dealers, leased from banks and dealers against a lease charge (from FY26), or supplied by the customer for job work (DRHP p.207, DRHP p.37). In FY26, 46.89% of all gold the company took in came as finished jewellery bought from other makers rather than bullion (DRHP p.35). When it buys jewellery from such makers it also sells them bullion and the two are set off; these bullion sales were 16.05% of FY26 revenue (DRHP p.342).

The company calls itself an original design manufacturer and "a brand behind brands" for retailers (DRHP p.193). It had over 27,000 designs at June 30, 2026, a team of 30 designers, and in-house brands Rico, SAR and Anamitra (DRHP p.193, DRHP p.207). It acquired control of Aalishaan Jewels LLP, a plain gold jewellery business, from April 1, 2026 (DRHP p.194).

Earnings equation: Revenue = kilograms of gold jewellery and bullion sold × gold price per gram + making charges. The document gives kilograms sold (4,473.67 kg in FY26) but no price or making charge per gram, so the equation cannot be filled in from the filing (DRHP p.194).

03Where the money comes from

Source: DRHP p.37, DRHP p.196, DRHP p.34, converted from ₹ million. By customer type, dealers and wholesalers brought 84.81%, 89.69% and 89.55% of revenue in the three years, and institutional clients 5.57%, 5.52% and 6.83% (DRHP p.196). Exports fell from 9.61% of revenue in FY24 to 3.79% in FY26 (DRHP p.196). The company reports one operating segment (DRHP p.363).

Royal Chain customers: how concentrated the revenue is

Source: DRHP p.36, DRHP p.74. Revenue does not depend on a few customers: the top ten were 22.32% of FY26 revenue (DRHP p.36). The document names Aalishaan Jewels LLP as the largest FY26 customer, a related party it took control of from April 1, 2026; sales to it were ₹239.2 crore, 5.06% of FY26 revenue (DRHP p.36, DRHP p.74). The largest customer's share is not given for FY24 or FY25. On the supply side the dependence is higher: the top ten suppliers were 66.30% of FY26 cost of goods sold and the largest alone 28.51% (DRHP p.34, DRHP p.35). Repeat customers brought 71.33% of FY26 revenue (DRHP p.36).

04The growth record

Royal Chain financials: revenue, profit and margins

Source: DRHP p.69, DRHP p.70, DRHP p.68, DRHP p.26, DRHP p.115, converted from ₹ million. Revenue went from ₹2,350.6 crore in FY24 to ₹4,732.5 crore in FY26, and profit after tax from ₹27.4 crore to ₹173.3 crore (DRHP p.69).

Our arithmetic over FY24 to FY26: revenue grew about 41.9% a year (our arithmetic, DRHP p.69), EBITDA about 112.9% a year (our arithmetic, DRHP p.115) and profit after tax about 151.7% a year (our arithmetic, DRHP p.69). EBITDA margin moved from 2.71% to 6.09%, up 338 basis points, so from 2.7% to 6.1% rounded (DRHP p.115). The company's own revenue CAGR is 41.89% (DRHP p.196).

Year by year, revenue rose 53.9% in FY25 and 30.8% in FY26, and profit after tax rose 131.5% and 173.7% (our arithmetic, DRHP p.69). The year ends on March 31 throughout and FY24 and FY25 are special-purpose Ind AS statements audited for the offer (DRHP p.254).

Operating cash flow was an outflow in each year, −₹216.5 crore in FY26, because inventory rose ₹339.1 crore and receivables ₹106.6 crore in that year (DRHP p.70). Other income of ₹6.0 crore was 2.6% of FY26 profit before tax of ₹232.4 crore (our arithmetic, DRHP p.69). Debt to equity was 1.36 times in FY26, about 1.4× (DRHP p.26), and return on capital employed 24.6% (DRHP p.115).

Net debt, borrowings less cash and other bank balances, was about 2.1× FY26 EBITDA (our arithmetic, DRHP p.68). Contingent liabilities at March 31, 2026 were ₹20.0 crore, mostly a ₹18.3 crore bank guarantee (DRHP p.71). Working-capital days were 40, 39 and 56 (DRHP p.24). Borrowings had reached ₹848.7 crore by August 31, 2026, including non-fund facilities (DRHP p.26).

Bullion sales were 16.05% of FY26 revenue (DRHP p.37), and the plant ran at 33.37% of capacity in FY26 (DRHP p.27). Of the fresh issue, ₹650.0 crore is earmarked for repaying borrowings (DRHP p.99).

Customer concentration is low and supplier concentration high: the largest FY26 customer was 5.06% of revenue (DRHP p.74), the top five 14.32% and the top ten 22.32% (DRHP p.36), while the top ten suppliers were 66.30% of FY26 cost of goods sold (DRHP p.34).

05What the growth is made of

Revenue rose ₹2,381.9 crore from FY24 to FY26 (our arithmetic, DRHP p.69). Jewellery sales added ₹1,777.9 crore and bullion sales ₹604.0 crore (our arithmetic, DRHP p.37).

Volume tells two different stories in the two years. Total gold sold, chains, jewellery and bullion together, went from 4,397.22 kg in FY24 to 5,539.88 kg in FY25 and back to 4,473.67 kg in FY26 (DRHP p.194). The company says FY25 growth came from 25.99% more volume plus higher gold prices, and FY26 growth from higher gold prices and an acquired business, despite a 19.25% fall in volume (DRHP p.355, DRHP p.356). Revenue per kilogram sold went from about ₹0.53 crore in FY24 to about ₹1.06 crore in FY26 (our arithmetic, DRHP p.69, DRHP p.194). So almost all of the FY26 increase is the price of gold, not more product.

Within that, the mix moved toward bought-in goods and back. Purchases of finished stock rose from ₹466.8 crore in FY24 to ₹1,913.0 crore in FY25, then fell to ₹1,038.6 crore in FY26 (DRHP p.69). Manufactured volume was 4,490.81 kg, 3,676.50 kg and 4,004.81 kg (DRHP p.27). Gross margin went from 4.62% to 7.84% (DRHP p.115), which the company attributes to more lightweight, hollow and lower-karat products and in-house design and refining (DRHP p.198). The document does not give making charges or realisation per gram by product, so price and mix cannot be separated further. That is the finding.

06Earnings quality

The item that needs explaining is cash. Profit rose sharply while operating cash flow went the other way: inventory went from ₹264.1 crore at March 2024 to ₹695.9 crore at March 2026, and receivables from ₹71.4 crore to ₹231.3 crore (DRHP p.68). The company says inventory rose with gold prices under first-in-first-out valuation, with volumes and with the business bought from Royal Italian Jewellery Private Limited (DRHP p.358). The gap was funded by borrowings and, in FY26, ₹108.0 crore of new equity (DRHP p.359).

Of the March 2026 receivables, ₹35.3 crore was owed by Aalishaan Jewels LLP (DRHP p.320). Gold-price exposure is not hedged; a commodity hedging arrangement used in FY25 was discontinued in FY26 (DRHP p.54, DRHP p.356).

07The balance sheet

At March 31, 2026 total assets were ₹1,172.9 crore: inventories ₹695.9 crore, trade receivables ₹231.3 crore, property, plant and equipment ₹119.8 crore, right-of-use assets ₹24.2 crore, cash ₹37.6 crore and other bank balances ₹3.2 crore (DRHP p.68). Against that: current borrowings ₹508.5 crore, gold on lease ₹74.2 crore, non-current borrowings ₹51.8 crore, trade payables ₹9.8 crore and total equity ₹465.8 crore (DRHP p.68).

By August 31, 2026 borrowings were ₹848.7 crore: term loans ₹121.0 crore, vehicle loans ₹1.6 crore, cash credit and working capital ₹557.4 crore, unsecured facilities including gold on lease ₹140.5 crore, and bank guarantees ₹28.3 crore (DRHP p.365). Gold lease alone was ₹91.5 crore (DRHP p.26). Promoters have guaranteed ₹752.9 crore of borrowings without a fee (DRHP p.42), and unsecured loans from promoters and one promoter group member, repayable on demand, have a sanctioned limit of ₹160.6 crore (DRHP p.43). Interest coverage was 7.15 times in FY26 and the debt service coverage ratio 0.46 (DRHP p.26).

Source: DRHP p.365, DRHP p.99, our arithmetic. The after-issue figure assumes the full ₹650.0 crore is applied to the August 2026 balance and nothing else changes; the company says it may renew, refinance or draw further meanwhile (DRHP p.107). Net worth after the issue cannot be stated because the price and expenses are blank (DRHP p.364).

08What the money is for

Royal Chain IPO objects: what the money is for

Source: DRHP p.99, DRHP p.108; the percentage is our arithmetic on the ₹850.0 crore gross fresh issue. The repayment is scheduled entirely in FY27, from a list of 18 facilities from Tata Capital Limited, Axis Bank, Kotak Mahindra Bank, YES Bank, Bandhan Bank, Federal Bank, ICICI Bank and RBL Bank with ₹679.0 crore outstanding at August 31, 2026 (DRHP p.99, DRHP p.106). Most are working capital lines; some carry prepayment charges (DRHP p.102 to DRHP p.106). The objects have not been appraised by any bank or agency (DRHP p.109). No issue money goes to new capacity.

Into the business up to ₹850.0 crore, the fresh issue, before expenses (DRHP p.65). To selling shareholders up to ₹150.0 crore; the number of shares depends on the price, which is not set (DRHP p.65).

09Who is selling

Royal Chain IPO offer for sale: who is selling

Source: DRHP p.65 for the amounts, DRHP p.90 for holdings, DRHP p.1 and DRHP p.48 for the certified average cost. The offer for sale is up to ₹150.0 crore by four promoter selling shareholders, alongside a fresh issue of up to ₹850.0 crore (DRHP p.65). The share of each holding offered cannot be worked out until the price is set. The low average costs reflect shares received on the 2013 conversion of the partnership and the 5:1 bonus of September 2026 (DRHP p.83). Celestial Charms is represented by its partners Nilesh Futarmal Jain and Snneh Suresh Jain, and Foxy Feathers by Naman Manish Jain and Nilesh Futarmal Jain (DRHP p.88).

10Promoters

The document names eight promoters: Suresh Futarmal Jain, Manish Futarmal Jain, Nilesh Futarmal Jain, Snneh Suresh Jain, Naman Manish Jain, Royal Family Welfare Trust, Celestial Charms and Foxy Feathers (DRHP p.244). Together they hold 93.19% before the issue; Naman Manish Jain holds no shares directly (DRHP p.86). The document lists Suresh Futarmal Jain, Manish Futarmal Jain and Nilesh Futarmal Jain as brothers, Futarmal Dalichand Jain as their father, Snneh Suresh Jain as the son of Suresh Futarmal Jain and Naman Manish Jain as the son of Manish Futarmal Jain (DRHP p.249).

Suresh Futarmal Jain, aged 56, is Managing Director; Manish Futarmal Jain, aged 54, is Executive Director; each has about 22 years in gold jewellery manufacturing (DRHP p.244, DRHP p.230, DRHP p.231). Snneh Suresh Jain, aged 35, is Executive Director and Chief Executive Officer with about 13 years of experience (DRHP p.245, DRHP p.231). Nilesh Futarmal Jain, aged 50, was Chief Financial Officer until January 21, 2026, and Naman Manish Jain, aged 26, was Strategic Business Head until March 31, 2026 (DRHP p.244, DRHP p.245).

Royal Family Welfare Trust, the largest holder at 40.00%, was settled by Futarmal Dalichand Jain on October 19, 2025, with the three brothers as trustees and primary beneficiaries (DRHP p.245). Celestial Charms and Foxy Feathers are partnership firms formed on December 15, 2023, each described as a facility management services business (DRHP p.246, DRHP p.247).

Pay: director remuneration was ₹1.2 crore each for Suresh Futarmal Jain and Manish Futarmal Jain in FY24, and ₹3.0 crore and ₹2.5 crore in FY26 (DRHP p.72). Adding the FY26 director pay and salary of Snneh Suresh Jain, the salary of Nilesh Futarmal Jain and that of Naman Manish Jain, pay to individual promoters went from about ₹2.5 crore in FY24 to about ₹7.8 crore in FY26 (our arithmetic, DRHP p.72).

Present terms are ₹0.25 crore a month for Suresh Futarmal Jain, ₹0.11 crore a month within a ceiling of ₹6.5 crore a year for Snneh Suresh Jain, and up to ₹6.5 crore a year for Manish Futarmal Jain (DRHP p.232).

Pledges and guarantees: no promoter shares are pledged (DRHP p.88). Suresh Futarmal Jain and Manish Futarmal Jain have personally guaranteed bank and finance company facilities (DRHP p.225, DRHP p.226).

Cases: the summary counts one tax matter and one regulatory action against the promoters (DRHP p.44). The regulatory action is a Minimum Wages Act complaint against the company and Suresh Futarmal Jain (DRHP p.369). There has been no SEBI or stock exchange disciplinary action against the promoters in five years (DRHP p.370).

Group company and other interests: the group company is Royal Italian Jewellery Private Limited, in which Suresh Futarmal Jain and promoter group members hold shares; the company bought its gold jewellery business for ₹46.6 crore under an agreement of October 31, 2024 (DRHP p.376, DRHP p.248, DRHP p.358). Nilesh Futarmal Jain, Naman Manish Jain and Sheela Suresh Jain remain partners in Aalishaan Jewels LLP (DRHP p.225).

Promoter economics: the founders received 14,000,000 shares at ₹10 on the 2013 conversion of the partnership (DRHP p.83). On April 25, 2025 Celestial Charms and Foxy Feathers each bought 2,834,481 shares from Viren Jewellers LLC, UAE, at ₹67.81 (DRHP p.87). Between February and April 2026 shares moved by gift from Futarmal Dalichand Jain, Suresh Futarmal Jain and Manish Futarmal Jain to the trust and to Nilesh Futarmal Jain (DRHP p.86, DRHP p.87). A 5:1 bonus followed on September 8, 2026 (DRHP p.83).

11Who already owns it

Royal Chain promoter holding before and after the IPO

Source: DRHP p.90, DRHP p.93. Snneh Suresh Jain holds 0.24% and four promoter group members 0.24% each, so promoters hold 93.19% and promoters with the promoter group 94.15% of 125,344,092 shares (DRHP p.90, DRHP p.65). The holding after the issue is left blank until the price fixes the share count (DRHP p.94). There are 12 shareholders (DRHP p.93).

LMJF Capital Advisors LLP is the only holder outside the promoter group, at 5.85% before the issue, so 5.9% rounded (DRHP p.93). It came in on December 2, 2025 through a private placement of 1,221,720 shares at ₹884 each, ₹108.0 crore, then 6.21% of the share capital (DRHP p.83, DRHP p.118). The bonus took its holding to 7,330,320 shares (DRHP p.84, DRHP p.93). The document gives it no special rights (DRHP p.94).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹2,350.6 crore in FY24 to ₹4,732.5 crore in FY26 and profit after tax from ₹27.4 crore to ₹173.3 crore (DRHP p.69).
• Volume fell in FY26: gold sold went from 5,539.88 kg in FY25 to 4,473.67 kg (DRHP p.194).
• Receivable days moved from 12 in FY24 to 14 in FY26 (DRHP p.24).
• New plant: manufacturing moved from Sewri to Mahape in October 2024, with installed capacity from 7,000 kg to 12,000 kg a year (DRHP p.27).
• Business bought from a group company: the gold jewellery business of Royal Italian Jewellery Private Limited for ₹46.6 crore, effective October 31, 2024, paid in FY26 (DRHP p.358).
• A related-party customer became a subsidiary: Aalishaan Jewels LLP, the largest FY26 customer, from April 1, 2026, for a capital contribution of ₹99,000 giving 99% of profits; no valuation was obtained (DRHP p.224, DRHP p.225).
• Promoter pay rose from about ₹2.5 crore in FY24 to about ₹7.8 crore in FY26 (our arithmetic, DRHP p.72).
• A pre-IPO placement: 1,221,720 shares at ₹884 to LMJF Capital Advisors LLP on December 2, 2025 (DRHP p.83).
• Bonus issue: 5:1, allotted September 8, 2026, the last allotment before the IPO, with no price paid (DRHP p.83).
• Promoters reshaped: two firms bought out the foreign holder Viren Jewellers LLC in April 2025, a family trust was set up in October 2025 and received gifted shares in 2026, and the board named the eight promoters on September 27, 2026 (DRHP p.87, DRHP p.245, DRHP p.247).
• The company became public: renamed Royal Chain Private Limited in April 2025, then converted to a public company with a certificate dated January 23, 2026 (DRHP p.223).
• Auditor change: S. Mandanmal Mehta & Co. resigned on July 16, 2025 for want of peer review credentials, Jain V. & Co. was appointed on July 30, 2025, and KKC & Associates LLP joined as joint auditor on June 30, 2026 (DRHP p.77).
• Credit rating: Crisil rated the company A-/Stable on August 31, 2026, after BBB+/Stable in April 2026 (DRHP p.51).
• Gold duty: effective customs duty on gold rose from 6% to 15% from May 13, 2026 (DRHP p.28).
• New subsidiaries: Royal Care Foundation in January 2026 and Royal Chain N Jewells L.L.C in Dubai in March 2026 (DRHP p.227).

13Capacity and expansion

Source: DRHP p.27. Installed capacity is 40 kg a day, 28 kg of chain and 12 kg of other jewellery, over 300 working days on one ten-hour shift (DRHP p.27). Production was 4,490.81 kg in FY24, 3,676.50 kg in FY25 and 4,004.81 kg in FY26 (DRHP p.27). Utilisation fell because capacity grew faster than output, not because output collapsed (DRHP p.28). The figures rest on assumptions certified by an independent chartered engineer (DRHP p.53).

Capital expenditure was ₹10.6 crore, ₹89.1 crore and ₹28.2 crore in the three years, the FY25 figure mostly building the Mahape plant (DRHP p.361). None of the issue money goes to capacity (DRHP p.99). The company says it intends to raise utilisation rather than add capacity (DRHP p.203). The document does not say what utilisation the plant needs to cover its own costs.

14Market size and industry structure

Royal Chain industry: market size and growth

As claimed: the industry chapter rests on the "Industry Report on Jewellery Manufacturing and Retail Market in India" by The Knowledge Company LLP, dated September 27, 2026, which the company commissioned and paid for (DRHP p.22, DRHP p.47). The commissioned report puts India's gems and jewellery market at ₹1,219,840 crore in FY26, up from ₹344,270 crore in FY21, a 28.8% annual growth rate (DRHP p.144). Jewellery itself was ₹777,840 crore, 63.8% of that, with bars and coins 35.0% (DRHP p.145).

The part that is addressable: the company sells to the jewellery trade, so the closer figure is what the report calls the B2B jewellery manufacturing market, ₹581,850 crore in FY26, of which domestic ₹489,670 crore (DRHP p.167). Within it, the organised B2B manufacturing market, the segment the company belongs to, was ₹139,060 crore in FY26 (DRHP p.168).

What the company is today: FY26 revenue of ₹4,732.5 crore is 3.4% of the organised B2B segment, the share the report itself gives, up from about 2.3% in FY24 (DRHP p.168, DRHP p.197). Against the whole B2B manufacturing market it is about 0.8% (our arithmetic, DRHP p.167, DRHP p.69).

Size over time: the organised B2B segment grew from ₹38,500 crore in FY21 to ₹113,440 crore in FY25 and ₹139,060 crore in FY26, 29.3% a year over FY21 to FY26 (DRHP p.168). Its share of B2B manufacturing went from 17.5% in FY21 to 23.1% in FY25 and 23.9% in FY26 (DRHP p.168).

The commissioned report projects the organised B2B segment at ₹325,270 crore by FY31, 18.5% a year, with its share rising to 28.7%, and the whole B2B market at ₹1,133,360 crore, 14.3% a year (DRHP p.167, DRHP p.168). Those are the report's projections, not figures from the company's accounts.

In volume the picture is flatter: domestic gold demand was 774 tonnes in FY24 and 792 tonnes in FY25, and the report says it fell at 1.9% a year between FY23 and FY26 (DRHP p.141, DRHP p.142).

Segments: gold was 79.5% of the gems and jewellery market in FY26, and gold jewellery ₹586,490 crore (DRHP p.146). Plain gold was about 80% of gold jewellery (DRHP p.147). By purity, 22 karat was 60.0%, 18 karat 32.4% and 14 karat 5.4%, up from 2.1% in FY21 (DRHP p.147). The company makes plain gold chains and jewellery in 14, 18 and 22 karat, so it sits in the plain gold jewellery segment, with exposure to the lower-karat end (DRHP p.193).

What drives demand: the chapter names weddings and festivals, gold as a store of value, rising incomes, more women at work, and a shift to organised retail, which held about 40% of the market in FY26 against 60% for over 500,000 local goldsmiths and jewellers (DRHP p.156, DRHP p.148). For manufacturers specifically it names retailers' reliance on organised makers for range and working capital, mandatory BIS hallmarking from June 2021, new technology such as CAD, laser and automated chain machines, and access to gold metal loans (DRHP p.169, DRHP p.170, DRHP p.171). About 57% of demand in FY26 came from rural India (DRHP p.148).

Structure: organised B2B manufacturing is fragmented; in FY25 the top two held about 16.5% and about 65% was spread across medium and small players (DRHP p.168). The chapter names Swarn Shilp Chains and Jewellers Pvt. Limited at 9.8%, Emerald Jewel Industry India Limited at 6.7%, A.R.Gold Pvt. Limited at 3.3%, Royal Chain at 3.2%, Sky Gold and Diamonds Limited at 3.1%, Unique Chains and Jewels Limited at 2.6% and Classic Ornaments Pvt. Limited at 2.2% (DRHP p.169). About 75% to 80% of domestic production comes from about ten hubs, including Mumbai (DRHP p.171).

Inputs and trade: gold is the main input and is almost all imported, through 17 RBI-authorised banks and DGFT-nominated agencies (DRHP p.174). About 13% of FY25 demand was met from recycled gold (DRHP p.174). The effective import duty on gold was cut to 6% in July 2024 and raised to 15% from May 13, 2026 (DRHP p.162).

Rules: the business needs BIS hallmarking registration with a unique HUID on each piece, GST at 3% on jewellery, DGFT wastage norms for exports, factory and pollution consents, and RBI rules on gold loans (DRHP p.163, DRHP p.211, DRHP p.29, DRHP p.374).

What the chapter says can go wrong: gold price swings and import dependence, discretionary demand that falls when incomes are squeezed, fierce competition from family-run makers, duty and hallmarking changes, working capital intensity, scarce skilled artisans, security costs and gold loss in manufacture (DRHP p.179, DRHP p.180, DRHP p.157). The report says the May 2026 duty rise may reduce gold consumption (DRHP p.142). It does not size the gold chain segment on its own.

15Competitive position

Royal Chain competitors

Source: DRHP p.117, DRHP p.118, converted from ₹ million; the document gives peers' debt to equity, 0.70, 0.28 and 0.36, not borrowings (DRHP p.117, DRHP p.118). Unlisted competitors named, from the commissioned report, are Swarn Shilp Chains and Jewellers Private Limited, Emerald Jewel Industry India Limited, Unique Chains and Jewels Limited, Classic Ornaments Private Limited and A.R. Gold Private Limited (DRHP p.213).

What the company puts forward: installed capacity among the top five organised B2B makers, one integrated plant with its own refinery and gold recovery, 246 Italian machines, over 27,000 designs, a wide range of purities, and supply to national retail chains (DRHP p.197, DRHP p.202, DRHP p.193). Against that: the lowest PAT margin and RoCE of the four, one plant, a third of capacity in use, no long-term supplier contracts, no formal agreements with most customers, and the ROYAL CHAINS device mark registered to Manish Futarmal Jain and used without a licence (DRHP p.117, DRHP p.27, DRHP p.34, DRHP p.36, DRHP p.39).

16Peers the company named

Peers named in the offer document: Sky Gold & Diamonds Limited, Shringar House of Mangalsutra Limited and Shanti Gold International Limited (DRHP p.114).

The document picks them as listed B2B gold jewellery makers with manufacturing-led models (DRHP p.114). Sky Gold & Diamonds is larger, ₹6,294.9 crore of FY26 revenue against ₹4,732.5 crore, and grew faster in FY26, 77.42% against 30.83% (DRHP p.117). Shringar House of Mangalsutra and Shanti Gold International are each under half the company's size, at ₹2,245.8 crore and ₹2,018.7 crore (DRHP p.114).

All three have higher PAT margins and lower debt to equity (DRHP p.117, DRHP p.118). The document prints their P/E on September 25, 2026 closing prices as 43.96, 15.72 and 15.34, an average of 25.01 (DRHP p.113, DRHP p.114). The company's FY26 EPS is ₹14.39 after the bonus (DRHP p.112). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Royal Chain IPO risks

Gold price and cash: materials were 81.11% of FY26 total expenses (DRHP p.22) → the company does not hedge gold, and a fall in price lowers the value of ₹695.9 crore of inventory (DRHP p.54, DRHP p.23) → operating cash flow was −₹216.5 crore in FY26 (DRHP p.70).

Debt: borrowings of ₹848.7 crore at August 31, 2026 (DRHP p.26) → working capital loans were 72.72% of borrowings, mostly repayable on demand or renewed yearly (DRHP p.23) → the debt service coverage ratio was below 1.00 in all three years, 0.46 in FY26 (DRHP p.27).

One plant, one region: all manufacturing is at Mahape on a lease from MIDC, with no back-up plant or disaster recovery plan (DRHP p.25) → West India brought 51.19% of FY26 revenue (DRHP p.34) → any shutdown stops the whole business.

Low utilisation: the plant ran at 33.37% of 12,000 kg in FY26 (DRHP p.27) → depreciation rose from ₹6.3 crore in FY24 to ₹24.0 crore in FY26 (DRHP p.69) → fixed costs are spread over a third of capacity.

Suppliers: the top ten suppliers were 66.30% of FY26 cost of goods sold, with no long-term agreements (DRHP p.34) → 46.89% of gold came in as bought finished jewellery (DRHP p.35).

Related parties: the largest FY26 customer, Aalishaan Jewels LLP, was a promoter-linked firm, and the business bought for ₹46.6 crore came from a group company (DRHP p.74, DRHP p.358) → ₹35.3 crore of receivables were owed by Aalishaan Jewels LLP at March 2026 (DRHP p.320).

Regulation: customs duty on gold went from 6% to 15% in May 2026 (DRHP p.28) → the company has filed compounding and adjudication applications over past FEMA and Companies Act lapses, with fees still to be set (DRHP p.38, DRHP p.39).

Issue-specific: individual promoters' average cost is ₹1.67 a share and the firms' ₹11.30 (DRHP p.48) → a placement at ₹884 a share was made in December 2025, before a 5:1 bonus (DRHP p.83) → the general corporate purposes amount, expenses and price are blank (DRHP p.99).

18Litigation and regulatory matters

Cases against Royal Chain and its promoters

Criminal: none against the company, subsidiaries, promoters or directors (DRHP p.369, DRHP p.370). Against key managerial personnel: a 2023 FIR naming Girish Arun Surve, Head of Information Technology, over a protest incident, with a quashing petition pending, and a 2020 complaint naming Shivendra Bacaram Singh, Chief Financial Officer, from a past role at Gitanjali Jewellery Retail Limited (DRHP p.371). By the company: a cheque complaint against Vyavahar Gold over ₹0.69 crore, a theft FIR over ₹0.10 crore of gold dust, and a complaint against the directors of Abhis Gemglow Jewellers Private Limited over a ₹1.8 crore cheque (DRHP p.369).

Tax: the promoter matter refers to ₹0.53 crore of alleged unaccounted cash transactions, which the document says is not a quantified tax liability (DRHP p.372). The company's income tax demands of ₹0.47 crore and ₹0.59 crore are before the appeals commissioner (DRHP p.71). Regulatory: the company has filed two adjudication applications with the Registrar of Companies and one compounding application with RBI over a 2015 allotment to Viren Jewellers LLC and late filings (DRHP p.38, DRHP p.39). Civil: no material civil litigation (DRHP p.369). No outstanding litigation of the group company has a material impact (DRHP p.372).

19Related-party transactions

Source: DRHP p.72 to DRHP p.74; the Royal Italian Jewellery FY26 figure is our arithmetic on the ₹46.6 crore slump sale payment and the ₹34.3 crore loan taken (DRHP p.74). Repayments of promoter loans were larger than new loans in FY26: ₹20.7 crore by Suresh Futarmal Jain and ₹23.7 crore by Manish Futarmal Jain (DRHP p.72).

At March 2026 the company owed ₹33.0 crore to Royal Italian Jewellery Private Limited, ₹7.5 crore to Manish Futarmal Jain and ₹4.1 crore to Suresh Futarmal Jain, and was owed ₹35.3 crore by Aalishaan Jewels LLP (DRHP p.319, DRHP p.320). Royal Italian Jewellery Private Limited had given a ₹25.0 crore corporate guarantee at March 2024 (DRHP p.320).

What appeared or changed in the two years before filing: trading with Aalishaan Jewels LLP from FY25, and its conversion into a subsidiary in April 2026 (DRHP p.74, DRHP p.224); the slump purchase from Royal Italian Jewellery Private Limited in FY25, the ₹9.0 crore redemption of its preference shares and the new loan from it in FY26 (DRHP p.74); salaries to Nilesh Futarmal Jain, Snneh Suresh Jain and Naman Manish Jain and professional fees to Shagun Snneh Jain in FY26 (DRHP p.72, DRHP p.73). The company says all were at arm's length (DRHP p.74).

20What the offer document does not say

Making charges, realisation per gram and margins by product, purity or customer type are not given. The split of revenue between own gold, leased gold and job work is not given. The largest customer's share is not given for FY24 or FY25, and the top customers other than Aalishaan Jewels LLP are not named (DRHP p.36).

Aalishaan Jewels LLP's own financials are not given, nor how the ₹99,000 contribution for 99% of it was arrived at, beyond the statement that no valuation was obtained (DRHP p.225). There is no order book. The number of shares in the offer for sale, the general corporate purposes amount, offer expenses and the price band are blank (DRHP p.65, DRHP p.99). Background on LMJF Capital Advisors LLP is not given in the parts read.

Some inconsistencies are recorded as document matters, not business ones: the cover page on PDF page 4 names Motilal Oswal Investment Advisors Limited as a lead manager with e-mail addresses for another issue while PDF pages 2 and 76 name JM Financial Limited and 360 ONE WAM Limited (DRHP p.4, DRHP p.76); the table of contents page numbers do not match the printed pages (DRHP p.5);

employees at the end of FY26, FY25 and FY24 are 599, 475 and 320 in the attrition table and 680, 601 and 380 in the human resources table (DRHP p.40, DRHP p.214); 14 karat production is said to have begun in 2013 in one place and in 2022 in another and CNC and laser use in 2018 and 2016 (DRHP p.224, DRHP p.204, DRHP p.201);

AI design tools are dated August 2026 on one page and June 2026 on the next (DRHP p.202, DRHP p.204); the KPI section says there was no material acquisition in the period while the discussion of results cites an acquired business (DRHP p.115, DRHP p.355).

21Five questions for management

1. What were average realisation and making charges per gram in FY24, FY25 and FY26, and how much of FY26 revenue growth was the gold price?
2. What share of FY26 revenue and gross profit came from own-gold sales, leased gold, job work and bullion set-off arrangements?
3. What were Aalishaan Jewels LLP's revenue, profit and net worth when the company acquired 99% of it for ₹99,000, and on what terms did it trade with the company in FY26?
4. Which of the 18 listed facilities will the ₹650.0 crore repay, and what annual interest saving does the company calculate?
5. What utilisation of the 12,000 kg Mahape plant does the company need to cover its fixed costs, and how much of FY26 sales was manufactured in-house rather than bought in?

1Sources and cited facts

This study was read from 1 document the company filed. The 183 figures it cites are listed under the document each came from, with the page and the sentence as printed.