💰 Financial Performance

Revenue Growth by Segment

The company operates primarily in the B2B segment of the jewellery industry. Total revenue reached INR 85.64 Cr in FY25, reflecting continued business growth from INR 40.02 Cr in FY21, representing a 3-year CAGR of approximately 35%.

Geographic Revenue Split

Approximately 90% of revenue is derived from the domestic Indian market, while 10% comes from exports to transnational locations, primarily the UAE and the USA.

Profitability Margins

Net Profit Margin (NPM) was 5.72% in FY25, down slightly from 6.03% in FY24 (-4.92% YoY). Operating Profit Margin (OPM) stood at 10.96% for FY25, showing a significant improvement in Q1FY26 to 18.97%.

EBITDA Margin

EBITDA margin was 6.63% in FY23, down from 9% in FY22. The company maintains higher margins than larger peers like Asian Star and PC Jewellers due to superior operating cost management.

Capital Expenditure

The Gross Block of Fixed Assets as of March 31, 2025, was INR 4.28 Cr. The company invested in a new 10,000 sq. foot facility in Hyderabad to expand production capacity.

Credit Rating & Borrowing

CRISIL BB+/Stable (Migrated to 'Issuer Not Cooperating' as of August 30, 2025). The company utilizes a GML line from Kotak Mahindra Bank at an interest rate of 4% p.a. for gold procurement.

⚙️ Operational Drivers

Raw Materials

Gold, Diamonds, and Colored Precious Stones. Gold is the primary cost driver, though specific percentage of total cost is not disclosed.

Import Sources

Gold is imported via nominated banks and agencies. Precious stones are sourced globally to meet design requirements.

Key Suppliers

Nominated banks and agencies, including Trading Houses, are the primary suppliers for gold. Specific diamond suppliers are not named.

Capacity Expansion

Current installed capacity is approximately 40 kg. Operations shifted to a new 10,000 sq. foot facility in Hyderabad in late 2023 to increase production scale.

Raw Material Costs

Raw material costs are managed through a GML line allowing gold procurement for up to 180 days at 4% interest, mitigating price volatility risks.

Manufacturing Efficiency

Manufacturing efficiency is driven by state-of-the-art machinery and a pool of 97 skilled employees, maintaining higher margins than vertically integrated peers.

📈 Strategic Growth

Expected Growth Rate

5.7%

Growth Strategy

Growth will be achieved by operationalizing the new 10,000 sq. foot facility to increase production volume, expanding the B2B client base among leading Indian brands, and increasing export momentum in the UAE and USA markets.

Products & Services

Flat diamond studded and colored precious stone studded gold jewellery including rings, necklace sets, earrings, pendant sets, bangles, bracelets, and maangtika.

Brand Portfolio

Narbada Gems and Jewellery, part of the Hanumanth Rai Sanghi Group (HRS Group).

New Products/Services

Expansion into fashion jewellery, high-tech wearable tech, and collectibles to capture a broader customer base.

Market Expansion

Targeting expansion in rural India where organized jewellery retail presence is currently limited.

Market Share & Ranking

Dominant player in the niche segment of flat diamond and colored stone studded jewellery.

Strategic Alliances

Strategic and operational linkages with the HRS Group provide access to proprietary techniques and a large design portfolio.

🌍 External Factors

Industry Trends

The Indian jewellery industry is valued at USD 89.65 billion (2024) and is expected to reach USD 124.70 billion by 2030, driven by the middle class and wedding demand.

Competitive Landscape

Key competitors include Asian Star, PC Jewellers, TBZ, Sky Gold, and Radhika Jeweltech.

Competitive Moat

Moat is based on operational discipline, working capital management, and B2B focus, which allows for superior margins (NPM 5.72%) compared to retail-heavy peers.

Macro Economic Sensitivity

Highly sensitive to gold prices and interest rates. Gold prices surged to record levels in 2025, acting as a safe-haven asset but impacting manufacturing costs.

Consumer Behavior

Shift towards luxury and branded jewellery, particularly in the bridal segment which is growing at 6.6%.

Geopolitical Risks

Vulnerable to disruptions in global supply chains for diamonds and gemstones due to international trade barriers.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (LODR) Regulations 2015 and Section 135 of the Companies Act 2013 for CSR.

Environmental Compliance

CSR expenditure of INR 11.10 Lakhs in FY25 focused on tribal education and health.

⚠️ Risk Analysis

Key Uncertainties

Gold price fluctuations and the 'Issuer Not Cooperating' credit rating status, which may impact future borrowing costs and transparency.

Geographic Concentration Risk

Manufacturing is concentrated in Hyderabad, making operations vulnerable to regional disruptions.

Third Party Dependencies

High dependency on nominated banks for gold procurement and the HRS Group for strategic resources.

Technology Obsolescence Risk

The company uses state-of-the-art machinery and IT personnel to manage regulatory and manufacturing shifts.

Credit & Counterparty Risk

Trade Receivable Turnover Ratio was 6.12 in FY25; quality of receivables is considered high due to the blue-chip nature of B2B clients.