R.K. Fashion Accessories Limited IPO

01At a glance

R.K. Fashion Accessories IPO date, price band and lot size

What the company does: designs imitation jewellery, has it made by contract manufacturers in and around Kolkata, and sells it wholesale to distributors, dealers and retailers, through about 120 shop-in-shop counters and online; it also traded branded cosmetics until FY26 and earns rent from hotels it leases to a third party (RHP p.201, RHP p.218, RHP p.324).

Who pays it: boutique owners, local retailers and export merchants (RHP p.219). The customers are not named. The top ten were 15.15% of FY26 revenue (RHP p.45). West Bengal alone was 65.77% of FY26 revenue (RHP p.44).

Why it is raising money: ₹880.37 lakh for an in-house plating facility at Baruipur, ₹537.00 lakh for a B2B showroom on Ezra Street, Kolkata, ₹560.00 lakh of opening stock for new showrooms and ₹521.44 lakh of working capital (RHP p.133).

How fast it has grown: revenue went from ₹1,328.49 lakh in FY24 to ₹3,035.71 lakh in FY26 and profit after tax from ₹94.78 lakh to ₹628.69 lakh (RHP p.170). Our arithmetic: about 51.2% a year for revenue and 157.5% a year for profit (RHP p.170).

The one thing to understand: the profit has not yet turned into cash. Over FY24 to FY26 the company reported ₹923.19 lakh of profit after tax and a net operating cash outflow of ₹90.80 lakh, our arithmetic from the cash flow table (RHP p.48). Inventory rose from ₹108.61 lakh at March 2024 to ₹955.81 lakh at June 2026 (RHP p.49).

02The business, in plain words

What R.K. Fashion Accessories does

The company purchases jewellery mountings, the unplated copper or brass shapes, from contract manufacturers who source the base metal themselves, then has them plated, finished, checked and packed (RHP p.213). Plating was done inside the manufacturers' price until FY25; from FY26 the company paid separate platers, ₹255.62 lakh that year (RHP p.341). From FY27 it purchases gold for plating directly (RHP p.213). It has no plant of its own, so the prospectus says capacity utilisation does not apply (RHP p.225).

A retailer or dealer needs bangles, sets and earrings in current designs → picks them at the company's Bagree Market showroom, a shop-in-shop counter or online → the company has the pieces made and plated by outside workshops → it is paid on delivery by new clients and in 60 to 90 days by established ones (RHP p.222).

Mohammed Usman began as a fashion jewellery salesman in 2003 and opened a retail outlet in Kolkata selling the "City Girl" brand (RHP p.207). The company sells under two brands, City Girl for gold-plated wedding and daily wear and Manikya for cubic zirconia and American diamond pieces (RHP p.209). It had 50 permanent employees at June 2026 (RHP p.229).

The mix is shifting. Imitation jewellery was 67.42% of FY24 revenue and 81.88% of FY26; cosmetics were 25.27% and 16.15%; rent and commission were 7.31% and 1.97% (RHP p.204). In the June 2026 quarter there were no cosmetics sales and jewellery was 98.21% of revenue (RHP p.335).

Earnings equation: Revenue = pieces sold × price per piece, plus rent. The company gives average raw material cost per piece, ₹172.24 in FY24, ₹154.17 in FY25 and ₹134.16 in FY26 (RHP p.344, RHP p.349), and says it raised selling prices by about 12% to 15% from August 2025 (RHP p.343). It does not give the number of pieces sold.

03Where the money comes from

Source: (RHP p.204).

R.K. Fashion Accessories customers: how concentrated the revenue is

Source: (RHP p.45).

Revenue does not depend on a few customers: the ten largest bought 15.15% of FY26 revenue (RHP p.45). It depends on one region. The eastern states, West Bengal, Odisha, Bihar and Jharkhand, were 86.32% of FY26 revenue and 91.71% in the June 2026 quarter (RHP p.44). By channel, wholesale was 82.53% of FY26 revenue, shop-in-shop counters 10.66%, e-commerce 4.84% and rent and commission 1.97% (RHP p.221). New customers added in FY26 numbered 37 and brought ₹551.16 lakh of revenue (RHP p.339).

04The growth record

R.K. Fashion Accessories financials: revenue, profit and margins

Source: KPI table (RHP p.170), cash flow (RHP p.48), borrowings (RHP p.36). Operating EBITDA excludes other income (RHP p.170).

Our arithmetic from the KPI table: revenue grew about 51.2% a year from FY24 to FY26, operating EBITDA about 702.8% and profit after tax about 157.5%; the operating EBITDA margin rose 2,330 basis points and the PAT margin 1,358 basis points (RHP p.170). For the June 2026 quarter revenue was ₹749.28 lakh and profit ₹182.86 lakh (RHP p.36); the management discussion gives the quarter's profit as ₹188.86 lakh on one page (RHP p.337).

Other income matters to the profit line. It was ₹117.25 lakh in FY24, more than that year's profit before tax of ₹102.49 lakh (RHP p.347), and ₹118.46 lakh in FY26, of which ₹117.95 lakh was a gain on redeeming a portfolio management scheme investment that the company calls one-time (RHP p.339). FY26 other income was 14.3% of FY26 profit before tax of ₹829.66 lakh, our arithmetic (RHP p.341, RHP p.342).

05What the growth is made of

Revenue rose ₹1,258.52 lakh from FY25 to FY26, and imitation jewellery supplied ₹1,203.88 lakh of it (RHP p.205). The company names four sources: more shop-in-shop counters (105 to 120), a larger wholesale base after its Bagree Market showroom was expanded, higher order volumes from existing customers, and 37 new customers (RHP p.206). It also says selling prices rose about 12% to 15% from August 2025 as gold and silver prices pushed buyers toward imitation jewellery (RHP p.343).

The prospectus does not disclose the number of pieces sold, so the increase cannot be separated into volume and price. Product lines moved sharply: bangles went from ₹46.68 lakh in FY24 to ₹556.42 lakh in FY26, chains from ₹25.81 lakh to ₹403.26 lakh, and sets from ₹57.38 lakh to ₹513.85 lakh, while "combo" sales of ₹222.28 lakh in FY24 fell to nothing in FY26 (RHP p.210). The FY24 combo figure equals that year's e-commerce revenue of ₹222.28 lakh (RHP p.221); the prospectus does not say whether they are the same sales.

The mix also changed in the June 2026 quarter: wedding jewellery was 80.96% of jewellery revenue against 23.54% in FY26 (RHP p.337).

06Earnings quality

The item that needs explaining is inventory. Stock grew 7.2 times from March 2024 to March 2026, our arithmetic (RHP p.49), while revenue grew 2.3 times (RHP p.170). The company attributes part of it to stocking a new B2C showroom on Rash Behari Avenue before it opened in April 2026 and to more display stock for its expanded wholesale shop (RHP p.137). The finished goods holding period rose from 25 days in FY25 to 62 days in FY26 (RHP p.137).

A second point is returns. The returns table shows 7.84% of FY26 sales (RHP p.56), while a risk factor says that "in the past, approximately 30% of the products have been returned" (RHP p.72). The prospectus does not reconcile the two.

07The balance sheet

At June 2026 the only borrowing was ₹306.40 lakh of interest-free, unsecured loans from a related party (RHP p.357), which the prospectus attributes to promoter Mohammed Usman (RHP p.285). There are no bank loans (RHP p.357). Cash was ₹12.91 lakh at March 2026 and ₹12.04 lakh at June 2026 (RHP p.352). Contingent liabilities are an outstanding TDS demand of ₹800 (RHP p.38).

The company holds ₹585.63 lakh of non-current investments at March 2026, which it describes as payments towards commercial properties (RHP p.328). Owned properties include a warehouse, a residence, a business premises, a four-storey building on Rash Behari Avenue and a 12-cottah plot at Baruipur (RHP p.226).

Source: capitalisation statement (RHP p.356). The right-hand column is our arithmetic: ₹3,499.10 lakh of gross proceeds added, before issue expenses and before any of it is spent. The prospectus's own net asset value per share after the issue at the upper band is ₹34.14 (RHP p.168). None of the objects is debt repayment (RHP p.133).

08What the money is for

R.K. Fashion Accessories IPO objects: what the money is for

Source: (RHP p.133); the percentages are our arithmetic on gross proceeds of ₹3,499.10 lakh.

Plating facility: four PVD vacuum coating machines quoted by Max Impex at ₹254.38 lakh on April 25, 2026, quotation valid to October 25, 2026, with no order placed (RHP p.155), and ₹583.02 lakh of civil works on land at Baruipur (RHP p.150). The land, valued at ₹29.00 lakh by stamp duty, was received as a gift from a promoter (RHP p.150). The facility is expected to start in the second half of FY28 (RHP p.142).

Ezra Street showroom: ₹432.00 lakh to purchase about 2,200 square feet on the sixth floor of Giria Trade Centre under a memorandum of understanding with Debdeepta Kundu, plus interiors (RHP p.156); no sale agreement had been executed (RHP p.53). Rash Behari Avenue: the company has already spent ₹603.00 lakh on the building, whose ground floor opened in April 2026; the issue pays for interiors of the upper floors (RHP p.149).

The balance: at ₹82, ₹752.29 lakh is left for general corporate purposes and issue expenses, both left blank, our arithmetic (RHP p.133). General corporate purposes may not exceed 15% of the gross proceeds or ₹1,000 lakh, whichever is lower (RHP p.134).

Into the business: the whole issue, 42,67,200 new shares, ₹3,499.10 lakh at the upper band before expenses, our arithmetic (RHP p.106). To selling shareholders: nothing; there is no offer for sale (RHP p.1).

09Who is selling

R.K. Fashion Accessories IPO offer for sale: who is selling

No one. The whole issue is new shares issued by the company (RHP p.1).

10Promoters

The promoters are MD Qasim, Mohammed Usman, Mohammed Imran and MD Aurangzeb (RHP p.280). The prospectus states that MD Qasim is the father of the other three, who are brothers (RHP p.254). MD Qasim, 70, is chairman and managing director, redesignated on February 25, 2026 after joining the board in 2014 (RHP p.252). Mohammed Usman, 42, is chief executive officer and has been associated with the company since inception (RHP p.252). Mohammed Imran, 35, is whole-time director with nine months of field experience in this company (RHP p.252). MD Aurangzeb, 39, is a director (RHP p.253).

FY26 pay was ₹1.80 lakh to MD Qasim, ₹9.80 lakh to Mohammed Usman and ₹1.80 lakh to MD Aurangzeb (RHP p.260). Directors' remuneration was ₹16.20 lakh in FY24 and ₹5.40 lakh in FY25 (RHP p.348). New terms from February 2026: ₹3.00 lakh a year for MD Qasim (RHP p.255), ₹1.80 lakh for Mohammed Imran (RHP p.257), ₹9.60 lakh for Mohammed Usman (RHP p.257) and ₹1.80 lakh for MD Aurangzeb (RHP p.258).

The one promoter group company is Kzar Hotels & Restaurants Private Limited, incorporated September 2, 2025, in which MD Aurangzeb holds 20% (RHP p.283). No promoter shares are pledged (RHP p.286). There is no litigation against the promoters (RHP p.359). None of the directors has been a director of a listed company that was suspended or delisted (RHP p.253).

Promoter economics: the average cost of acquisition is ₹0.37 a share for Mohammed Usman and ₹0.65 for MD Qasim; the other two promoters' shares came by gift and bonus at no cost (RHP p.39). The share events:

• March 31, 2024: 5,27,516 shares allotted to the four promoters under the amalgamation of Valuable Vintrade Private Limited and Variety Fashion Accessories Private Limited, for no cash (RHP p.112).
• December 2024 and February 2025: shares gifted to Mohammed Usman by family members, including 1,08,528 from MD Aurangzeb and 1,07,200 from Mohammed Imran (RHP p.119).
• May 31, 2025: 2,223 shares at ₹272 to two public shareholders on converting loans (RHP p.112), ₹16.00 a share after the bonus, our arithmetic (RHP p.113).
• March 19, 2026: a sixteen-for-one bonus of 1,05,87,824 shares (RHP p.113).

11Who already owns it

R.K. Fashion Accessories promoter holding before and after the IPO

Source: (RHP p.35).

The company has nine shareholders (RHP p.241). The promoters hold 99.61% before the issue and 72.22% after (RHP p.35). The two public shareholders, Md. Shahid Bagsaria and Md. Farooque Bagsaria, hold 0.13% and 0.20% (RHP p.35). No fund, institution or outside investor holds shares. The company has no anchor investors (RHP p.98). Market maker Anant Securities takes 2,14,400 shares (RHP p.106).

12What changed just before the IPO

• November 21, 2023: NCLT order merging Valuable Vintrade Private Limited and Variety Fashion Accessories Private Limited into the company (RHP p.243); 1,94,000 shares they held were cancelled and 5,27,516 issued to the promoters (RHP p.112).
• FY25: the company stopped running hotels itself and began leasing them to a third party (RHP p.349).
• May 31, 2025: loan conversion into 2,223 shares at ₹272 (RHP p.112).
• June 2025: registration for provident fund and ESIC; the company was not registered for ESIC in FY24 and FY25 though the law applied (RHP p.73, RHP p.230).
• FY26: separate plating charges of ₹255.62 lakh (RHP p.341); employees rose from 16 to 44 (RHP p.230); prices raised about 12% to 15% from August 2025 (RHP p.343).
• September 2, 2025: Kzar Hotels & Restaurants Private Limited incorporated (RHP p.282).
• February 25, 2026: three independent directors appointed and the promoters redesignated (RHP p.253).
• March 16, 2026: conversion to a public company certified (RHP p.32).
• March 19, 2026: sixteen-for-one bonus issue (RHP p.113).
• April 2026: Rash Behari Avenue showroom ground floor opened (RHP p.145); cosmetics sales stopped in the June 2026 quarter (RHP p.204).
• Margins: operating EBITDA margin moved from 0.86% in FY24 to 24.16% in FY26 (RHP p.170).

13Capacity and expansion

Source: (RHP p.225, RHP p.149, RHP p.142).

The company makes nothing in-house today; jewellery is made by contract manufacturers and plated by outside platers (RHP p.225). The planned plant's capacity assumes four machines, one kilogram an hour, one eight-hour shift and 288 working days (RHP p.149). The prospectus does not say what volume of the company's jewellery passes through plating today, so the share of plating the new plant would bring in-house is not known, and no revenue is estimated here.

14Market size and industry structure

R.K. Fashion Accessories industry: market size and growth

As claimed: the industry chapter draws on publicly available sources and government publications, not a commissioned report (RHP p.29). It says the Indian jewellery market was USD 90 to 91 billion in 2025 (RHP p.32, RHP p.194) and the global artificial jewellery market USD 29.16 billion in 2026 (RHP p.192). Its first nine pages cover the world and Indian economies and size nothing in jewellery (RHP p.182 to RHP p.190).

The part that is addressable: imitation jewellery sold wholesale, mostly in eastern India. The closest figure is a TechSci Research estimate, cited in the chapter, that the India costume jewellery market was USD 2.07 billion in 2025 (RHP p.196). The prospectus does not size the eastern region or the wholesale channel.

What the company is today: FY26 jewellery revenue of ₹2,485.72 lakh (RHP p.204). The market figure is in USD and the revenue in ₹ lakh, so the units do not match and no share is computed here.

Size over time: the chapter gives one year for each market and its source's projection, not a run of past years. TechSci Research, as cited, projects the India costume jewellery market at USD 2.68 billion by 2031, a CAGR of 4.45% (RHP p.196). The source cited for Indian jewellery projects USD 150 billion by 2033 at a CAGR of 5.2 to 6.3% (RHP p.194).

Segments: in Indian jewellery, gold holds 80 to 85% and fine jewellery nearly 90% of the market (RHP p.194). For India costume jewellery the chapter names necklaces and chains as the largest product segment and offline shops as the largest channel, without percentages (RHP p.198). The company's main lines are bangles, chains and sets (RHP p.210), and wholesale was 82.53% of FY26 revenue (RHP p.221).

What drives demand: the chapter names fashion awareness through phones and social media, with over 750 million smartphone users in India in 2023 (RHP p.197); the price gap with gold and diamond jewellery, whose prices it says remain high (RHP p.197); a 12.6% rise in average monthly earnings of urban salaried women from 2022 to 2024 (RHP p.197); and fusion designs and influencer marketing (RHP p.199).

Structure: the company describes the industry as having many organised and unorganised players, with pricing a significant factor in purchasing decisions (RHP p.231), and low barriers to entry for smaller players (RHP p.60). For all Indian jewellery the chapter puts unorganised players at 62 to 65% of the market (RHP p.195). An NCAER survey it cites counted about 9.89 lakh artificial jewellery manufacturing units in 2019 (RHP p.193). The chapter names no competitor; the business chapter names one, Banaras Beads Limited (RHP p.231).

Inputs and trade: imitation jewellery is made from base metals such as brass and copper, alloys, synthetic stones, glass and plastic (RHP p.192). Gems and jewellery are about 15% of India's merchandise exports (RHP p.194). The chapter does not discuss imports or exports of imitation jewellery itself.

Rules: the chapter names hallmarking, GST and the automatic route for 100% FDI as reforms behind the shift to organised jewellery retail (RHP p.195). It does not say whether any applies to imitation jewellery and lists no licence the company needs. Elsewhere the prospectus says the company was not registered for ESIC in FY24 and FY25 though the law applied (RHP p.73).

What the chapter says can go wrong: fluctuating raw material availability, which it says affects about 28% of manufacturers (RHP p.192); counterfeits, a shortage of skilled artisans and labour costs up 15 to 20% in five years (RHP p.191); and, for the company's main channel, that wholesale "does not have the same growth rate as online retail" (RHP p.194).

15Competitive position

R.K. Fashion Accessories competitors

The prospectus names one competitor, Banaras Beads Limited (RHP p.231), whose figures appear only in the peer table (section 15). It gives no other competitor figures, so a comparison table cannot be filled.

Its stated strengths are hyperlocal designs from local artisans, B2B relationship managers and a client retention rate of over 90%, online sales through marketplaces and its own sites, and about 120 shop-in-shop counters in national retail chains (RHP p.215, RHP p.216, RHP p.218). It holds two trademarks registered in class 14 and one artistic work (RHP p.231), but it holds no intellectual property protection for its in-house designs (RHP p.73). Its contract manufacturers do not work exclusively for it and their agreements carry no non-compete clause (RHP p.45).

16Peers the company named

R.K. Fashion Accessories listed peers

Peers named in the offer document: Banaras Beads Limited (RHP p.168).

Banaras Beads had FY26 profit of ₹177.46 lakh, against the company's ₹628.69 lakh, and a return on net worth of 3.08% (RHP p.168). At ₹119.20 on September 28, 2026 it traded at 44.31 times earnings (RHP p.168). The prospectus says the peer is not strictly comparable in nature or turnover (RHP p.168). It also prints a P/E range for the gems, jewellery and watches industry: highest 219.11, lowest 9.50, average 19.00 (RHP p.167).

17Valuation at the issue price

R.K. Fashion Accessories IPO valuation and P/E

At the upper band of ₹82, with 42,67,200 new shares added to 1,12,49,563 existing shares (RHP p.34):

Source: our arithmetic on shares (RHP p.34), profit and net worth (RHP p.170) and EPS (RHP p.166).

At the lower band of ₹77 the market capitalisation is ₹11,947.91 lakh, our arithmetic (RHP p.34). Enterprise value takes the 1,12,49,563 existing shares at ₹82, ₹9,224.64 lakh, adds March 2026 borrowings of ₹170.32 lakh (RHP p.36) and deducts cash of ₹12.91 lakh (RHP p.351), ₹9,382.05 lakh in all. The prospectus's own P/E at the upper band is 14.67 times FY26 EPS and 12.58 times the June 2026 quarter annualised (RHP p.167). After the issue, net asset value per share at the upper band is ₹34.14 by the prospectus's figure (RHP p.168), and ₹82 is 2.4 times that.

The one named peer traded at 44.31 times earnings on September 28, 2026 (RHP p.168). At the upper band the issue is priced at 20.2 times FY26 profit on the enlarged share count, 54% below that peer, and 14.7 times on the prospectus's own EPS. FY26 profit includes the ₹117.95 lakh investment gain (RHP p.339).

18Risks, in plain words

R.K. Fashion Accessories IPO risks

Region: sales are concentrated in eastern India → a local slowdown reaches most of revenue at once → the eastern states were 86.32% of FY26 revenue and 91.71% of the June 2026 quarter (RHP p.44).

Working capital: the business holds large stocks of finished designs → growth uses cash before profit arrives → operating cash flow was negative in FY24, FY26 and the June 2026 quarter (RHP p.48), and the company projects working capital rising from ₹748.21 lakh in FY26 to ₹1,879.35 lakh in FY28 (RHP p.47).

Suppliers: all production is outsourced to workshops that are not exclusive → the company relies on their capacity and quality → the top ten contract manufacturers supplied 61.37% of June 2026 quarter purchases (RHP p.46).

Returns: product returns rose to 7.84% of FY26 sales and 8.66% in the June 2026 quarter (RHP p.56) → returns cost logistics and markdowns → a risk factor puts past returns at about 30% of products (RHP p.72).

Compliance: the company was not registered for ESIC in FY24 and FY25 though the law applied (RHP p.73) → penalties or demands could follow → the prospectus does not quantify them.

Premises: the registered office and two shops in Bagree Market are occupied without any rent agreement or receipt, because the records burned in a 2018 fire and the owner cannot be traced (RHP p.227) → the company could be asked to vacate → Bagree Market is where its wholesale business is run (RHP p.206).

Issue-specific: no orders have been placed for the plating machines (RHP p.155); the Ezra Street premises are under a memorandum of understanding only (RHP p.53); general corporate purposes and issue expenses are left blank (RHP p.133).

19Litigation and regulatory matters

Cases against R.K. Fashion Accessories and its promoters

The three income-tax demands total ₹34.19 lakh with interest (RHP p.36). There are no criminal proceedings, regulatory actions or material civil cases involving the company (RHP p.359), its promoters (RHP p.359) or its directors (RHP p.360). At June 2026 the company owed ₹417.45 lakh to 19 trade creditors, ₹55.24 lakh of it to seven micro, small and medium enterprises (RHP p.363).

20Related-party transactions

Source: (RHP p.38).

The counterparty-by-counterparty table sits in the restated financial statements (Note 31), which are filed as images that could not be read as text, so the composition of the FY24 figure of ₹882.10 lakh is not set out here.

What the text states: borrowings at June 2026 were ₹306.40 lakh of interest-free loans from a related party (RHP p.357), attributed to Mohammed Usman (RHP p.285); long-term borrowings rose in FY26 because of unsecured loans from related parties (RHP p.328); and the Baruipur land was received as a gift from a promoter (RHP p.150).

The promoter chapter states that the promoters have no interest in any property acquired by the company in the preceding three years (RHP p.284); the prospectus does not reconcile that with the gift.

21What the offer document does not say

The customers and contract manufacturers are not named, and the largest customer's share is not given. The number of pieces sold is not disclosed, so volume and price cannot be separated. Which hotels the company leases out, whether it owns them, and on what terms, is not stated; no hotel appears in the list of owned properties (RHP p.226). The related-party breakdown is not available as text.

Why Kolkata city shows no revenue in the June 2026 quarter, when the Rash Behari Avenue showroom opened in April 2026, is not explained (RHP p.202). The fire is dated 2017 on one page (RHP p.226) and September 17, 2018 on others (RHP p.55). The business history says Mohammed Usman acquired the company around 2015 (RHP p.207), while the corporate history records the first share transfer to Mohammed Usman on March 23, 2010 (RHP p.241).

General corporate purposes and issue expenses are left blank.

22Five questions for management

1. How many pieces were sold in FY25 and FY26, and how much of the 70.82% revenue increase in FY26 came from the 12% to 15% price rise?
2. What made up the ₹882.10 lakh of related-party transactions in FY24, 66.40% of that year's revenue?
3. Which hotels does the company lease out, who owns them, and what are the lease terms behind the ₹52.53 lakh of FY26 hotel income?
4. How much of the ₹955.81 lakh of inventory at June 2026 is older than six months, and what is the basis for the risk factor's 30% return figure?
5. What volume of jewellery was plated by outside platers in FY26, and what share of it would the 8,064 kg Baruipur plant handle?

1Sources and cited facts

This study was read from 1 document the company filed. The 186 figures it cites are listed under the document each came from, with the page and the sentence as printed.