Aditya Creative Ornaments Limited IPO

01At a glance

What the company does: designs and manufactures lightweight gold jewellery (rings, earrings, pendants, necklaces, bracelets) in 14, 18, 20 and 22 carat, and sells it business to business, from one leased factory in Rajkot and through a wholly owned subsidiary selling under the brand "Elenor" (AP p.3, DRHP p.149, DRHP p.156).

Who pays it: jewellery wholesalers, retailers and showrooms, none of them named; business-to-business sales were 99.96% of FY26 revenue (DRHP p.159). The largest customer was 25.17% of FY26 revenue and the top ten 75.55% (DRHP p.158).

Why it is raising money: ₹2,625.00 lakh for working capital, ₹422.24 lakh for machinery, ₹210.25 lakh for five new branches and upgrades to two branches and a design studio, and ₹61.59 lakh for design software, plus general corporate purposes capped at 15% of gross proceeds or ₹10 crore, whichever is lower (DRHP p.100, DRHP p.101).

How fast it has grown: revenue from ₹5,799.57 lakh in FY24 to ₹15,651.19 lakh in FY26, about 64.3% a year, and profit after tax from ₹252.61 lakh to ₹1,266.40 lakh, about 123.9% a year (our arithmetic, DRHP p.66). FY24 is the partnership firm alone; the subsidiary is included only from October 22, 2024 (AP p.8).

The one thing to understand: the reported growth mixes three things: a subsidiary folded in from October 2024, gold prices that lifted revenue per gram from about ₹5,210 in FY24 to ₹11,061.56 in FY26, and a switch from partnership to company tax rates (DRHP p.283, DRHP p.284, DRHP p.285). On the document's own pro forma basis, with the subsidiary included in every year, revenue grew about 32.3% a year (our arithmetic, DRHP p.267, DRHP p.269).

02The business, in plain words

A jewellery shop in Hyderabad or Rajkot does not make most of what it sells. It orders designs in bulk from manufacturers who purchase gold bullion, cast and finish the pieces, and deliver them. This company is one of those manufacturers, working in the lightweight segment: pieces of a few grams made for daily wear as well as festive and bridal collections.

A wholesaler or retailer orders designs from the catalogue or the company's order app → the company buys 24 carat gold bullion, mostly from dealers against immediate payment → it casts, assembles, sets stones and polishes the pieces in Rajkot → it is paid for the gold content plus labour and making charges, usually on 45 to 90 days' credit (DRHP p.105, DRHP p.149, DRHP p.169).

The business began as a proprietorship of the late Mukeshbhai Kanaiyalal Patadiya, became the partnership M/s Aditya Ornaments in April 2013, was converted into a private company on October 11, 2024 and into a public company in June 2025 (DRHP p.73).

Eleven days after incorporation, on October 22, 2024, it acquired 100% of Aditya Aabhushanam Private Limited, a jewellery company the promoters' family had influenced until then, for ₹397.50 lakh (DRHP p.30, DRHP p.70, DRHP p.196). Melting and casting were outsourced to job workers until July 2025 and are now done in-house (DRHP p.162).

The factory of about 10,174 square feet is on a five-year lease from January 1, 2026, with an installed capacity of 152.50 kilograms of jewellery a year (DRHP p.34, DRHP p.168). The group had 51 employees at July 31, 2026, 23 of them in production and 15 designers, plus one contractual designer (DRHP p.149, DRHP p.174).

Earnings equation: Revenue = grams sold × revenue per gram, where revenue per gram mostly follows the gold price and the rest is making charges. In FY26 the company sold 1,41,491.75 grams at about ₹11,061.56 a gram (DRHP p.156, DRHP p.283). Cost of materials was ₹13,418.63 lakh, 85.74% of revenue, which leaves a thin margin over the gold itself (our arithmetic, DRHP p.66).

03Where the money comes from

Source: DRHP p.156. By purity, 22 carat was ₹10,927.93 lakh and 18 carat ₹4,356.22 lakh of FY26 revenue (AP p.4). By state, Gujarat was 50.30% of FY26 revenue, followed by Andhra Pradesh at ₹3,325.89 lakh, Karnataka ₹2,879.75 lakh and Telangana ₹1,573.99 lakh (DRHP p.28). Sales are seasonal: the fourth quarter carried 43.54% of FY26 revenue (DRHP p.29).

Source: DRHP p.158. Revenue does depend on a few customers: three quarters of FY26 revenue came from ten buyers and one of them took a quarter; the second largest took 13.48% (DRHP p.158). No customer is named, and there are no long-term contracts (DRHP p.25, DRHP p.159). Purchases were even more concentrated in earlier years: the largest supplier was 79.47% of FY24 purchases and 70.36% of FY25, falling to 21.26% in FY26 (DRHP p.27).

04The growth record

Source: DRHP p.65, DRHP p.66, DRHP p.118, DRHP p.30, AP p.8. Return on net worth was 46.67%, 45.54% and 41.89%, return on capital employed 52.90%, 37.07% and 28.81%, and debt to equity 0.60, 0.74 and 1.07 times (DRHP p.118). ROCE for FY26 was 28.81% (DRHP p.118).

Our arithmetic over FY24 to FY26: revenue grew about 64.3% a year and profit after tax about 123.9% a year (our arithmetic, DRHP p.66). EBITDA grew about 97.5% a year, and the EBITDA margin moved from 8.1% to 11.7% (DRHP p.118), about 359 basis points; the PAT margin rose about 373 basis points (our arithmetic, DRHP p.66). Revenue ₹58.0 crore in FY24 and ₹156.5 crore in FY26, profit ₹2.5 crore and ₹12.7 crore (DRHP p.66).

Where the year changed shape: FY24 is the partnership firm alone, and the subsidiary is consolidated only from October 22, 2024, so FY25 carries about five months of it and FY26 a full year (AP p.8, DRHP p.283). The document's unaudited pro forma statements, which add the subsidiary to every year, show revenue of ₹8,946.82 lakh in FY24 (DRHP p.269), ₹12,017.12 lakh in FY25 (DRHP p.268) and ₹15,651.19 lakh in FY26 (DRHP p.267), with profit of ₹523.52 lakh, ₹955.52 lakh and ₹1,266.40 lakh. On that basis revenue grew about 32.3% a year and profit about 55.5% a year (our arithmetic, DRHP p.269).

Four more figures that matter below. Operating cash flow was negative ₹1,762.78 lakh in FY26, mainly because trade receivables rose by ₹3,342.21 lakh (DRHP p.30). Receivable days, trade receivables against revenue, went from 20 in FY24 to 81 in FY25 and 114 in FY26 (our arithmetic, DRHP p.65). Other income was ₹9.50 lakh, 0.6% of FY26 profit before tax (our arithmetic, DRHP p.66).

Net debt, borrowings of ₹3,229.50 lakh less cash of ₹30.39 lakh, was 1.8 times FY26 EBITDA (our arithmetic, DRHP p.65); a further ₹410.95 lakh sits in bank deposits of over twelve months, held as a non-current asset (DRHP p.249). Contingent liabilities were ₹257.49 lakh, all disputed tax (DRHP p.69).

05What the growth is made of

The document gives grams sold and revenue per gram, so the split can be made, at least for the reported figures.

FY24 to FY25: grams sold fell 7.5%, from 1,11,330.71 to 1,02,949.72, while revenue per gram rose 31.6%, from about ₹5,210 to ₹6,854, which the company attributes to higher gold prices; revenue rose 21.68% (DRHP p.284). FY25 to FY26: grams sold rose 37.44% to about 1,41,491 and revenue per gram rose 61.37% to ₹11,061.56, again attributed mainly to gold prices, while the volume rise is attributed mainly to a full year of the subsidiary against five months in FY25 (DRHP p.283).

Read from the filing: across the two years grams sold rose about 27.1% while revenue per gram roughly doubled, from about ₹5,210 to ₹11,061.56, so most of the rupee growth is price, and price here is mostly the gold content (our arithmetic, DRHP p.156, DRHP p.284). At FY24 revenue per gram, FY26 volume would have been worth about ₹7,371 lakh, against the ₹15,651.19 lakh reported (our arithmetic, DRHP p.156).

The profit line has a fourth driver: tax. In FY24 the partnership paid an effective rate of 35.08%; the company paid 24.30% in FY25 and 22.74% in FY26, with the subsidiary taxed at 17.16% under a concessional section (DRHP p.284, DRHP p.285). Profit before tax grew from ₹389.13 lakh to ₹1,639.25 lakh (DRHP p.66).

By product, necklaces rose from ₹1,291.90 lakh to ₹4,606.37 lakh and bracelets from ₹743.88 lakh to ₹2,588.72 lakh between FY25 and FY26 (DRHP p.283). By state, Karnataka went from ₹90.87 lakh in FY24 to ₹2,879.75 lakh in FY26, while Tamil Nadu went from ₹376.26 lakh to nil (DRHP p.28). The document does not split revenue between the parent and the subsidiary by product or customer, so how much of each line is the acquired business cannot be separated; the pro forma statement puts the subsidiary at ₹5,805.62 lakh of FY26 revenue, 37.1% (our arithmetic, DRHP p.267).

06Earnings quality

The one that needs explaining is cash. Trade receivables went from ₹325.17 lakh at March 2024 to ₹4,909.10 lakh at March 2026 (DRHP p.65). The company's explanation is that FY26 sales were heavy in the fourth quarter, which carried 43.54% of the year's revenue, coinciding with the wedding and festive season (DRHP p.29, DRHP p.105).

The result is that profit has not turned into cash in either of the last two years, and the gap was financed with borrowings, which rose from ₹327.43 lakh to ₹3,229.50 lakh (AP p.8). The document does not give an ageing of the receivables on the pages read, and it says there have been no material bad debts (DRHP p.51).

A second point: related-party transactions were 86.90% of FY24 revenue and 70.49% of FY25, mostly purchases of pre-casted jewellery from Shraddha Gems and Jewellers, a promoter group firm, of ₹4,488.54 lakh and ₹4,319.88 lakh; they fell to ₹91.30 lakh in FY26 as manufacturing moved in-house (DRHP p.40, DRHP p.72). This is a judgement, not a disclosure: those amounts are close to the largest supplier's purchases of ₹4,357.81 lakh and ₹4,232.17 lakh in the same years, but the document does not name its suppliers (DRHP p.171). Interest on late payment of statutory dues was ₹13.41 lakh in FY26 (DRHP p.254).

07The balance sheet

At March 31, 2026 total assets were ₹6,787.45 lakh: trade receivables ₹4,909.10 lakh, inventories ₹959.61 lakh, other non-current assets ₹421.99 lakh (mostly the ₹410.95 lakh deposit), property plant and equipment ₹388.55 lakh, and cash only ₹30.39 lakh (DRHP p.65, DRHP p.249). Against that, borrowings were ₹3,229.50 lakh, trade payables ₹19.26 lakh, other current liabilities ₹248.81 lakh and provisions ₹265.25 lakh, leaving net worth of ₹3,023.21 lakh (DRHP p.65).

Borrowings by type at March 2026: a cash credit line from ICICI Bank of ₹1,306.66 lakh at 8.00%, an ICICI working capital term loan of ₹412.50 lakh, interest-free unsecured loans from directors of ₹664.28 lakh, unsecured business loans from banks of ₹302.98 lakh at 14.00% to 15.00%, and unsecured business loans from finance companies of ₹553.50 lakh at 15.00% to 18.60% (DRHP p.274, DRHP p.275, DRHP p.276, DRHP p.277).

By July 31, 2026 total borrowings had risen to ₹3,681.18 lakh, including a new ₹319.14 lakh ICICI working capital term loan under ECLGS 5.0 (DRHP p.274). The bank facilities carry the directors' personal guarantees and are secured partly on buildings owned by Jugalkumar Mukeshbhai Patadiya and Jaswantiben Mukeshbhai Patadia (DRHP p.275).

Contingent liabilities are ₹257.49 lakh, all disputed tax, of which ₹205.17 lakh relates to the erstwhile partnership firm (DRHP p.69). Capital commitments are not disclosed on the pages read.

After the issue: up to 51,96,000 new shares against 1,27,80,000 in issue would take the count to 1,79,76,000 (our arithmetic, DRHP p.84). The price is not set, so the money raised and the post-issue balance sheet cannot be stated. Of the objects, ₹2,625.00 lakh would go into working capital and none into repaying debt (DRHP p.100).

08What the money is for

Source: DRHP p.100, DRHP p.101. The four named objects add to ₹3,319.08 lakh, of which working capital is 79.1% (our arithmetic, DRHP p.101).

Working capital: the company projects core working capital days of 115 in FY27 and 113 in FY28, against 41, 100 and 139 in FY24 to FY26, with receivable days of 76 and 71 (DRHP p.104). Machinery: a CNC threading machine with a beads unit, a gold electroforming plant, polishing and electropolishing machines, burnout and induction furnaces, all on vendor quotations;

no order has been placed and no second-hand machinery is included (DRHP p.107, DRHP p.108). Branches: ₹160.25 lakh for five new branches in Surat, Vijaywada, Chennai, Ratlam and Mumbai at ₹32.05 lakh each and ₹50.00 lakh for the Hyderabad and Bangalore branches and the Kolkata design studio; no premises have been identified (DRHP p.109, DRHP p.50). Software: 13 perpetual licences priced in US dollars (DRHP p.111).

None of the objects has been appraised by any bank, financial institution or agency (DRHP p.114).

Into the business the whole issue: up to 51,96,000 new shares, not priced at draft stage (DRHP p.84). 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 51,96,000 equity shares of ₹10 each, with no offer for sale (DRHP p.1, DRHP p.84). The fresh issue of up to 51,96,000 shares is not priced at draft stage (DRHP p.84). It is made under Regulations 229(2) and 253(1) of Chapter IX of the SEBI regulations (AP p.1). The promoters and promoter group will not take part in the issue (DRHP p.99). The book running lead manager is SVK Finvalue Advisors Private Limited and the registrar Integrated Registry Management Services Private Limited (DRHP p.1).

10Promoters

The promoters are Jugalkumar Mukeshbhai Patadiya, Jaswantiben Mukeshbhai Patadia and Deepa Jugalbhai Patadiya (DRHP p.215). The document states that Jugalkumar Mukeshbhai Patadiya is the spouse of Deepa Jugalbhai Patadiya and the son of Jaswantiben Mukeshbhai Patadia (DRHP p.213).

Jugalkumar Mukeshbhai Patadiya, aged 43, is Chairman and Managing Director from June 1, 2026, completed Class X in 1999, and has over 25 years in the jewellery industry: in the proprietorship of the late Mukeshbhai Kanaiyalal Patadiya from January 2001 to March 2013, then the partnership from 2013, overseeing marketing, procurement and operations (DRHP p.202).

Jaswantiben Mukeshbhai Patadia, aged 66, Executive Director, completed Class IX in Dubai in 1975, joined the partnership in 2020 and oversees administration (DRHP p.202). Deepa Jugalbhai Patadiya, aged 43, Executive Director since May 12, 2025, completed higher secondary education in 2000 and has over four years in the industry, in administrative support (DRHP p.203). The educational records of Jaswantiben Mukeshbhai Patadia could not be traced and rest on affidavits (DRHP p.46).

None of the directors has served on the board of a listed company (DRHP p.54).

Pay: remuneration to the three promoters was ₹5.70 lakh in FY24, as partners' remuneration, and ₹30.00 lakh in FY26, as directors' remuneration from the company and the subsidiary (our arithmetic, DRHP p.71). Promoter pay went from ₹0.1 crore to ₹0.3 crore (our arithmetic, DRHP p.71). From June 1, 2026 the terms are ₹3.00 lakh a month for Jugalkumar Mukeshbhai Patadiya (DRHP p.204), and ₹0.50 lakh and ₹1.00 lakh a month for Jaswantiben Mukeshbhai Patadia and Deepa Jugalbhai Patadiya (DRHP p.204, DRHP p.205). The company also paid rent of ₹12.00 lakh to Jugalkumar Mukeshbhai Patadiya and ₹6.00 lakh to Jaswantiben Mukeshbhai Patadia in FY26 (DRHP p.71).

Other interests: Shri Swaminarayan Developers LLP, two family HUFs and the partnership Shraddha Gems & Jewellers are in the promoter group; the three promoters ceased to be partners of Shraddha Gems & Jewellers on January 29 and 31, 2025 (DRHP p.217, DRHP p.218, DRHP p.219). Jugalkumar Mukeshbhai Patadiya had lent the group ₹653.13 lakh interest-free at March 2026 and Deepa Jugalbhai Patadiya ₹11.15 lakh (DRHP p.71, DRHP p.40). No shares are pledged (DRHP p.98). The litigation chapter records no criminal, civil, regulatory or tax proceeding against the promoters or directors (DRHP p.292, DRHP p.293).

Promoter economics: the two founding shareholders subscribed 60,00,000 shares at ₹10 on incorporation in October 2024, when the partnership was converted; on December 6, 2024 Jugalkumar Mukeshbhai Patadiya was allotted 9,00,000 shares at ₹10 in exchange for a property the company bought for ₹90.00 lakh; in February 2025 Jaswantiben Mukeshbhai Patadia gifted 1,69,000 shares to family members; and a 4 for 5 bonus issue was allotted on January 9, 2026 (DRHP p.85, DRHP p.87, DRHP p.94, DRHP p.217).

The bonus was 4:5, January 2026 (DRHP p.85). The only issue for cash to outsiders was 2,00,000 shares at ₹150 to 33 individuals on March 29, 2025 (DRHP p.85). The average cost of acquisition is ₹5.55 a share for each promoter, and none acquired shares in the last year (AP p.11, DRHP p.94). No share has been split; the pages read show a ₹10 face value throughout.

11Who already owns it

Source: DRHP p.90, DRHP p.95. The promoters hold 95.81% and the promoter group 1.60%, of which Anup Jugal Patadiya holds 1.36% (DRHP p.95). The public holders are the individuals who took the ₹150 placement in March 2025, the largest being Atmakuri Venkata Jagadesh Chandra Kumar with 0.42% (DRHP p.93). There is no private equity, venture capital, institution or employee stock option scheme, and no convertible instrument (DRHP p.98). The company has 38 shareholders (DRHP p.98).

On full allotment of 51,96,000 shares the count rises to 1,79,76,000 and the promoters' holding goes from 95.8% to about 68.1% (our arithmetic, DRHP p.95). The pre-issue shares of persons other than the promoters, 5,34,600, are locked in for one year from allotment (DRHP p.97).

12What changed just before the IPO

• The partnership became a company on October 11, 2024, and a public company in June 2025, with the certificate dated June 24, 2025 (DRHP p.73).
• A related company was bought in. Aditya Aabhushanam Private Limited, earlier an entity influenced by the promoters' family and a customer of the partnership, became a wholly owned subsidiary on October 22, 2024 for ₹397.50 lakh (DRHP p.30, DRHP p.70, DRHP p.72).
• Purchases from a family firm stopped. Purchases from Shraddha Gems and Jewellers went from ₹4,488.54 lakh in FY24 to ₹91.30 lakh in FY26, and the promoters left that firm in January 2025 (DRHP p.72, DRHP p.217). Related-party transactions fell to ₹384.88 lakh in FY26, 2.46% of revenue (DRHP p.40).
• A placement and a bonus. 2,00,000 shares were placed at ₹150 on March 29, 2025, and a 4:5 bonus of 56,80,000 shares was allotted on January 9, 2026 (DRHP p.85). The pre-IPO placement was at ₹150 a share in March 2025 (DRHP p.85).
• The statutory auditor changed. FY24 was audited by M. C. Gaglani & Co.; FY25 and FY26 by B. V. Zalawadia & Co. (DRHP p.222), whose appointment at the September 30, 2025 annual general meeting is the change the document lists (DRHP p.81).
• Receivables ballooned. Receivable days went from 20 in FY24 to 114 in FY26 (our arithmetic, DRHP p.65).
• Borrowing rose tenfold, from ₹327.43 lakh at March 2024 to ₹3,229.50 lakh at March 2026, and ₹3,681.18 lakh at July 2026 (AP p.8, DRHP p.274).
• Casting came in-house in July 2025, and a new factory was commissioned at Sardar Industrial Estate in 2026, where the registered office moved on April 1, 2026 (DRHP p.162, DRHP p.195, DRHP p.194).
• Utilisation fell from 79% in FY24 to 65% in FY25 and 59% in FY26, as installed capacity rose to 152.50 kilograms (DRHP p.168).
• Concentration shifted. The largest customer was 22.86% of FY24 revenue and 25.17% of FY26 (DRHP p.158); the top ten went from 90.36% to 75.55% (DRHP p.158). The top five suppliers went from 99.25% of FY24 purchases to 56.65% in FY26 (DRHP p.27).
• Pay and governance were set. Promoter pay went from ₹5.70 lakh in FY24 to ₹30.00 lakh in FY26 (our arithmetic, DRHP p.71); three independent directors joined in July and August 2025, and a chief financial officer and company secretary on May 12, 2026 (DRHP p.70, DRHP p.213).
• Filings ran late. Five company law forms were filed 99 to 354 days late in 2025 and 2026, with late fees but no penalty (DRHP p.38).

13Capacity and expansion

Source: DRHP p.168, certified by a chartered engineer and stated for the parent company alone. The business chapter separately gives an annual production capacity of 265 kilograms for the Rajkot unit (DRHP p.149); the document does not reconcile the two figures.

Read from the filing: the parent produced 90.20 kilograms in FY26 while the group sold about 141.49 kilograms (DRHP p.156, DRHP p.168). The document does not say where the subsidiary's jewellery is made or how much the parent sells to it, so utilisation cannot be tied to sales.

The issue-funded machinery adds processes rather than a stated quantity: in-house bead components, threading and electroformed hollow jewellery, which the company says will reduce reliance on outside job workers (DRHP p.107, DRHP p.153). No added capacity in kilograms is stated, and the chain from these machines to volume and revenue is not drawn in the document.

14Market size and industry structure

As claimed: India's gems and jewellery market stood at ₹7,31,255 crore in January 2026 and is projected at ₹11,18,390 crore by 2030, citing IBEF (DRHP p.138). The company did not commission an industry report; the chapter is built from public sources such as IBEF, the World Gold Council and the Gem and Jewellery Export Promotion Council, which the company has not verified (DRHP p.53). South India accounts for 40% of the country's jewellery demand, and the World Gold Council material cited notes demand for lightweight daily-wear jewellery among younger buyers (DRHP p.140, DRHP p.141).

The part that is addressable: lightweight gold jewellery made to order for wholesalers and retailers in Gujarat and the southern states. The document does not size that part.

What the company is today: ₹15,651.19 lakh of FY26 revenue, about 0.02% of the ₹7,31,255 crore figure quoted for the whole gems and jewellery market (our arithmetic, DRHP p.66, DRHP p.138).

On structure, the company names the barriers as working capital for gold, supplier relationships and skilled artisans (DRHP p.173). The industry chapter also records a sharp rise in the gold import duty from 6% to 15%, and a World Gold Council estimate that 2026 jewellery and bar and coin demand could fall by 50 to 60 tonnes as a result (DRHP p.141, DRHP p.142). Hallmarking is generally done by the customers, and by the company only when an order requires it (DRHP p.165).

15Competitive position

Source: DRHP p.119, revenue converted from ₹ lakh (our arithmetic). The company's reasons customers use it, in its own words, are lightweight and ultra-lightweight designs, an in-house design team, a broad catalogue and long customer relationships (DRHP p.115). What supports them in the document: 15 in-house designers, a design studio in Kolkata, an order app for selected customers, and a business built since 2013 (DRHP p.149, DRHP p.194, DRHP p.195). Against that: trademarks are pending registration, designs are not registered under the Designs Act, three sales staff cover the customer base, and employee attrition was 52% in FY26 (DRHP p.36, DRHP p.52, DRHP p.172, DRHP p.175).

16Peers the company named

Peers named in the offer document: Shanti Gold International Limited, RBZ Jewellers Limited, Sky Gold & Diamond Limited, Utssav CZ Gold Jewels Limited, Khazanchi Jewellers Limited and Advit Jewels Limited (DRHP p.116, DRHP p.117).

Five of the six are several times the company's size: Sky Gold & Diamond reported ₹6,29,488.68 lakh of FY26 revenue, about 40 times the company's, and Khazanchi, Shanti Gold and Utssav CZ are 7 to 13 times (our arithmetic, DRHP p.116, DRHP p.117).

Advit Jewels, at ₹16,701.56 lakh, is the only one close in size, and its margins are well above the rest of the set, with an EBITDA margin of 29.53% (DRHP p.117, DRHP p.119). The document prints the peers' price to earnings ratios at August 20, 2026 closing prices, ranging from 9.89 to 43.11 with an average of 20.52 (DRHP p.116); with no price band, no ratio can be computed for this issue.

The document does not say which segments each peer shares with the company.

17Risks, in plain words

Customers: the top ten customers were 75.55% of FY26 revenue and the largest 25.17% (DRHP p.158) → none is under a long-term contract (DRHP p.25) → losing the largest would remove about a quarter of revenue.

Cash tied up in customers: receivables were ₹4,909.10 lakh at March 2026, about 114 days of revenue (our arithmetic, DRHP p.65) → operating cash flow was negative ₹1,762.78 lakh in FY26 and negative ₹391.50 lakh in FY25 (DRHP p.30) → ₹2,625.00 lakh of the issue is for working capital (DRHP p.100).

Gold price: revenue per gram rose 61.37% in FY26, which the company attributes mainly to gold prices (DRHP p.283) → cost of materials is 85.74% of revenue (our arithmetic, DRHP p.66) → a fall in the gold price lowers both revenue and the value of stock, and the document notes the import duty rise from 6% to 15% (DRHP p.32, DRHP p.141).

Debt: borrowings were ₹3,229.50 lakh at March 2026 and ₹3,681.18 lakh at July 2026, part of it unsecured business loans at up to 18.60% (DRHP p.274, DRHP p.277) → finance costs rose from ₹78.74 lakh to ₹171.07 lakh in a year (DRHP p.66) → ₹664.28 lakh of promoter loans are repayable on demand (DRHP p.40).

One region, one plant: Gujarat was 50.30% of FY26 revenue (DRHP p.28) → production is at one leased factory in Rajkot on a five-year lease from January 2026 (DRHP p.34) → the fire safety certificate and the consent to operate the refinery are still pending (DRHP p.43).

People: attrition was 52% in FY26 on an average of 52 employees (DRHP p.41) → the business rests on 23 production staff and 15 designers (DRHP p.174).

Compliance record: five company law forms were filed up to 354 days late, and GST, EPF, ESIC, TDS and TCS returns and dues were delayed on several occasions (DRHP p.38) → ₹13.41 lakh of interest on late statutory dues was paid in FY26 (DRHP p.254).

Issue-specific: none of the objects is appraised, no machinery order is placed, no branch premises are identified, and the general corporate purposes amount is blank (DRHP p.46, DRHP p.50, DRHP p.114).

18Litigation and regulatory matters

There is no criminal proceeding against the company, and no action by a regulator or disciplinary action by SEBI or an exchange against the company or the promoters (DRHP p.292, DRHP p.293). The contingent liability statement shows ₹205.17 lakh of disputed income tax that relates to the erstwhile partnership firm, ₹50.46 lakh for the subsidiary and ₹1.86 lakh of GST, ₹257.49 lakh in all, 8.52% of net worth (DRHP p.69, DRHP p.42). There is one material creditor, owed ₹18.61 lakh (DRHP p.294).

19Related-party transactions

Source: DRHP p.40, DRHP p.70, DRHP p.71, DRHP p.72; the pay and rent rows are our arithmetic on the recipients listed.

The pattern is a family trading group reorganised into one listed candidate. What appeared or disappeared in the two years before filing: purchases from Shraddha Gems and Jewellers almost stopped in FY26 and the promoters left that firm in January 2025; sales to Aditya Aabhushanam ended when it became a subsidiary in October 2024; the property at Survey No.

693, Kevdavadi, was bought from Jugalkumar Mukeshbhai Patadiya on December 6, 2024 for ₹90.00 lakh, paid in shares; a nine-year lease of the admin and marketing office from Jugalkumar Mukeshbhai Patadiya began in March 2025 at ₹1.00 lakh a month; and interest-free promoter loans rose to ₹664.28 lakh (DRHP p.40, DRHP p.72, DRHP p.87, DRHP p.217).

Falguni Amit Mehta, a relative of a director and a director of the subsidiary, was paid ₹3.00 lakh in each of FY25 and FY26 (DRHP p.70, DRHP p.71).

20What the offer document does not say

No customer or supplier is named, so whether the largest supplier in FY24 and FY25 was the promoter group firm cannot be confirmed from the document. There is no ageing of the ₹4,909.10 lakh of receivables. The split of revenue between the parent and the subsidiary by customer, product or state is not given, and the document does not say where the subsidiary's jewellery is made.

Capacity is stated only for the parent, as 152.50 kilograms in one place and 265 kilograms in another. Making charges and gold cost are not separated, so the margin earned over the gold price cannot be seen. The expected capacity or revenue from the new machinery and branches is not stated. Capital commitments are not disclosed on the pages read.

Several figures differ between pages, which is a document matter rather than a business one. FY26 EBITDA is ₹1,825.92 lakh in the performance indicators and ₹1,835.42 lakh in the abridged summary (DRHP p.118, AP p.8). The FY26 operating cash flow is printed without brackets on the cash flow statement, while its components and every other page show an outflow of ₹1,762.78 lakh (DRHP p.67, DRHP p.30).

FY25 inventory days are 63 on one page and 53 on another (DRHP p.47, DRHP p.104). The subsidiary's FY25 profit is ₹536.72 lakh in its own summary and ₹512.19 lakh in the pro forma statement (DRHP p.199, DRHP p.268). The issue price, the general corporate purposes amount and the issue expenses are all left blank.

21Five questions for management

1. How much of the ₹4,909.10 lakh of receivables at March 2026 had been collected by July 2026, and how much was over 90 days old?
2. Who was the supplier that accounted for 79.47% of FY24 purchases and 70.36% of FY25, and on what terms?
3. Of FY26 revenue, how much was gold value passed through and how much was making charges, per gram?
4. How many kilograms of jewellery did the subsidiary dispatch in FY26, and where were they manufactured?
5. What volume in kilograms does the ₹422.24 lakh of new machinery add, and at what utilisation?

2Sources and cited facts

This study was read from 2 documents the company filed. The 113 figures it cites are listed under the document each came from, with the page and the sentence as printed.