Sunil Gold India Limited IPO

01At a glance

What the company does: designs 22-karat gold jewellery, temple, heritage, bridal and daily-wear pieces from a library of over 80,000 designs, procures bullion, has it made by contracted craftsmen (karigars) under supervision, and supplies retailers to order (DRHP p.28).

Who pays it: organised jewellery retail chains; the top ten customers were 93.71% of revenue in the six months to September 2025 and the largest 24.07% (DRHP p.42). Karnataka, Maharashtra, Tamil Nadu, Telangana, Andhra Pradesh and Kerala provided 98.88% (DRHP p.32).

Why it is raising money: ₹2,000.00 million for working capital, and the rest for general purposes (DRHP p.29).

How fast it has grown: revenue from ₹2,418 million in FY23 to ₹5,211 million in FY25, and ₹4,148 million in the six months to September 2025 alone (DRHP p.30).

The one thing to understand: a thin-margin gold business whose latest profit leaned on a derivative gain. Operating EBITDA was ₹437.80 million in the six months, but profit before tax was ₹626.94 million because other income of ₹243.21 million, almost all a fair-value gain on derivative instruments, was added (DRHP p.148, DRHP p.395, DRHP p.399).

02The business, in plain words

A B2B jewellery maker buys gold bullion, gives it with designs to karigars who craft the pieces, checks purity and finish, and delivers to retail chains, which stock and retail them in their own stores. The margin is a making charge over the gold content.

A jewellery chain in Karnataka orders a range of temple necklaces for the wedding season → Sunil Gold picks designs, issues gold to its karigars and supervises production → it hallmarks and delivers the pieces → the chain pays on credit.

The company had memorandums of understanding with 94 karigars at December 2025 (DRHP p.143). Gold bullion was 94.83% of raw-material purchases in the six months, and the top five suppliers up to 91.34% (DRHP p.32).

Earnings equation: Profit ≈ grams of gold processed × making margin per gram ± gold-price and hedging effects − interest. Operating EBITDA margin was 10.56% in the six months (DRHP p.148).

03Where the money comes from

Source: DRHP p.148. H1 FY26 is six months.

Source: DRHP p.42.

Two of the top ten customers were related parties. Ratnaakar Gold was 19.40% of six-month revenue and a related party until 19 August 2025, when the company acquired a 99% partnership interest in it; Sunil Jewellers, a related-party proprietorship, was 2.44% and stopped business after its proprietor died in September 2025 (DRHP p.42). In FY25 the two were 10.83% and 7.45% of revenue (DRHP p.43).

04The growth record

Source: DRHP p.30, DRHP p.148, DRHP p.399. H1 FY26 is six months.

Trade receivable days were 30 in FY23 and 33 in FY25 (DRHP p.54). Other income was ₹14.04 million in FY25 against profit before tax of ₹405.63 million, or 3.5% (our arithmetic, DRHP p.104).

05What the growth is made of

More gold processed and higher value per kilogram: gold processed rose 34% from FY23 to FY25 while revenue more than doubled (our arithmetic, DRHP p.148). The document attributes part of the industry's growth to high gold prices (DRHP p.28). Six-month revenue to September 2025 was 80% of FY25's (our arithmetic, DRHP p.30).

06Earnings quality

Two points. First, the six-month profit included a ₹242.60 million fair-value gain on derivative instruments, 39% of profit before tax (our arithmetic, DRHP p.395, DRHP p.399). Second, cash: operating cash flow was negative ₹642.13 million in FY25 as inventory and receivables grew, and receivables rose ₹704.29 million in the six months (DRHP p.399). There are no statutory-auditor qualifications that have not been given effect in the restated accounts (DRHP p.31).

07The balance sheet

Source: DRHP p.30, DRHP p.148.

Inventories were ₹1,153.35 million at March 2025 and ₹752.47 million at September 2025 (DRHP p.32).

08What the money is for

Source: DRHP p.29.

09Who is selling

Source: DRHP p.28, DRHP p.29. The split between the two and their acquisition cost were not read for this study.

The cover page gives the split: up to 3,250,000 shares by Anil Mohanlal Jain and up to 3,250,000 shares by Shrenik Mohanlal Jain, each a promoter selling shareholder (DRHP p.1).

10Promoters

The promoters are Prem Mohanlal Jain, 45, chairman and managing director; Shrenik Mohanlal Jain, 41, whole-time director; and Anil Mohanlal Jain (DRHP p.28, DRHP p.292). Before the IPO the company paid interest to several promoter-family directors and to Kriya Dhrishti Developers, a company owned by a director, key managerial person or promoter (DRHP p.33). Salary paid to the promoters Anil M Jain and Prem Jain together was ₹7.20 million in FY23 and ₹7.20 million in FY25 (our arithmetic, DRHP p.33).

11Who already owns it

Source: DRHP p.29. The promoters and promoter group hold all the shares (DRHP p.30).

12What changed just before the IPO

• Ratnaakar Gold: a related-party customer became a 99%-owned partnership in August 2025 (DRHP p.42).
• Sunil Jewellers: a related-party customer stopped business in September 2025 (DRHP p.42).
• Derivative gain: ₹243 million of other income in the six months (DRHP p.395).
• Borrowings: up from ₹506 million in March 2024 to ₹1,649 million (DRHP p.30).
• Bonus issue: 40 shares for every share held, allotted in December 2025 (DRHP p.118).
• Auditor: I. G. Jain & Co. ceased as statutory auditor in September 2025 and Motilal & Associates LLP was appointed in October 2025 (DRHP p.110, DRHP p.111).
• Public company: the company was converted into a public limited company, with a fresh certificate of incorporation in July 2025 (DRHP p.2).

13Capacity and expansion

Asset-light: production is by contracted karigars, with 94 under memorandums of understanding (DRHP p.143). The proceeds fund working capital, gold inventory and customer credit (DRHP p.29).

14Market size and industry structure

The CRISIL report cited in the offer document puts India's gold retail market at about ₹6,875 billion in FY25 and projects ₹12,000 to 12,400 billion by FY30; it says gold jewellery is 82 to 87% of the gems and jewellery market and that most jewellery manufacturing remains unorganised (DRHP p.28, DRHP p.143). Those projections are CRISIL's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

• A large design library of over 80,000 designs (DRHP p.28).
• Karigar relationships in a key manufacturing hub (DRHP p.143).
• Relationships with organised retail chains (DRHP p.28).

Against that: ten customers are almost all revenue, two of them related parties, and results depend on gold prices and hedging (DRHP p.32, DRHP p.42).

16Peers the company named

Source: DRHP p.146. Peer P/E uses prices on 30 January 2026.

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

17Risks, in plain words

• Customers. Ten customers were 94% of recent revenue (DRHP p.32).
• Karigars. Production depends on third-party craftsmen (DRHP p.32).
• Gold. Price swings and bullion supply from a few suppliers (DRHP p.32).
• Working capital. Inventory and customer credit (DRHP p.32, DRHP p.33).
• Region. Six southern and western states are 99% of revenue (DRHP p.32).
• Design. Duplication and changing tastes (DRHP p.33).

18Litigation and regulatory matters

Source: DRHP p.31. The company reports no contingent liabilities at September 2025 (DRHP p.33).

19Related-party transactions

Sales to Ratnaakar Gold and Sunil Jewellers were 18.28% of FY25 revenue and 21.84% of six-month revenue (our arithmetic, DRHP p.42, DRHP p.43). The company paid interest to promoter-family directors and a promoter-linked company (DRHP p.33).

20What the offer document does not say

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

• What derivatives produced the ₹243 million gain, and whether similar losses are possible, in the pages read.
• What was paid for the 99% interest in Ratnaakar Gold.
• The terms of sales to Ratnaakar Gold and Sunil Jewellers while they were related parties.
• What the criminal proceeding filed by the company concerns.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. What derivative positions produced the ₹243 million gain, and what is the policy on hedging gold?
2. What did the company pay for Ratnaakar Gold, and on what terms did it supply Ratnaakar Gold before?
3. How will revenue from Sunil Jewellers be replaced now that it has stopped business?
4. Why was operating cash flow negative ₹642 million in FY25?
5. Who is the largest customer, and what are its credit terms?

1Sources and cited facts

This study was read from 1 document the company filed. The 59 figures it cites are listed under the document each came from, with the page and the sentence as printed.