💰 Financial Performance

Revenue Growth by Segment

Total turnover grew 65.15% YoY to INR 405.57 Cr in FY25. The Lab-Grown Diamonds (LGD) segment was a primary driver, delivering explosive growth of 262.8% YoY and contributing 10.6% of the total incremental growth for the year.

Geographic Revenue Split

Overall exports surged by 314% YoY. The company is strategically reducing its dependence on the U.S. market due to tariff uncertainties and is increasing its focus on Dubai, Singapore, and Hong Kong, the latter recently providing an export order worth INR 16.65 Cr.

Profitability Margins

Operating Profit Margin improved by 22.92% to reach 4.15% in FY25. However, the Net Profit Margin saw a slight contraction of 2.66%, settling at 0.85% (INR 3.44 Cr), as the company scaled operations and managed higher volumes.

EBITDA Margin

Operating profitability (OPM) stood at 4.15% in FY25 compared to 3.38% in FY24, reflecting better operational efficiency and a shift toward higher-margin LGD products which now represent 5.9% of the total mix.

Capital Expenditure

The company utilized a fresh capital infusion to expand working capital capacity, which is critical for holding inventory and offering competitive credit terms to drive a 65% topline growth. Specific fixed asset CAPEX in INR Cr was not disclosed.

Credit Rating & Borrowing

The company is rated 'CRISIL D (Issuer Not Cooperating)' as of February 2025 for bank loan facilities totaling INR 9 Crore, indicating significant challenges in credit cooperation and potential liquidity constraints despite revenue growth.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include rough diamonds (both natural and lab-grown), gold, silver, and other precious metals used in jewellery manufacturing.

Import Sources

Raw diamonds are imported from international hubs including Antwerp (Belgium), Dubai (UAE), and Conakry (Guinea).

Key Suppliers

Historically associated with MMTC for Russian rough diamond procurement; current specific private suppliers are not listed, though the company maintains integrated supply relationships.

Capacity Expansion

The company is scaling its export footprint and enhancing 'turnaround efficiency' to support repeat orders. It is executing an integrated LGD value chain from sourcing rough to manufacturing finished jewellery.

Raw Material Costs

Raw material costs are highly sensitive to global bullion and polished diamond price movements. The company uses a risk-management framework to mitigate price volatility which can fluctuate by 10-15% annually.

Manufacturing Efficiency

Inventory Turnover Ratio improved by 20.85% to 14.27 in FY25, indicating faster movement of stock and improved manufacturing-to-sales cycles.

Logistics & Distribution

The company utilizes a blended staffing model of core employees and job-work partners to maintain agility and manage distribution costs without increasing fixed overheads.

📈 Strategic Growth

Expected Growth Rate

65%

Growth Strategy

Growth is targeted through the 'Integrated LGD Strategy,' expanding from rough processing to retail jewellery. This includes scaling the 'Namra Jewels' retail subsidiary, launching e-commerce platforms, and securing large export orders like the USD 1.85 million contract from Hong Kong.

Products & Services

Cut and polished diamonds (natural and synthetic), lab-grown diamond jewellery, gold jewellery, silver jewellery, and rough diamond trading.

Brand Portfolio

Namra Jewels (wholly owned retail subsidiary).

New Products/Services

Lab-grown jewellery manufactured with silver, gold, and precious metals. LGD category mix expanded by 320 bps YoY to 5.9% of total revenue.

Market Expansion

Active expansion into Dubai and Singapore as alternative export hubs; deepening domestic retail penetration through online platforms and design refresh cycles.

Market Share & Ranking

Not disclosed, but the company notes that LGD's industry-wide retail share rose from 3.5% in 2018 to 18.5% in 2023.

Strategic Alliances

Partnership with Jewellery Trendz Limited (Hong Kong) for the supply of lab-grown polished diamonds.

🌍 External Factors

Industry Trends

The industry is seeing a massive shift toward Lab-Grown Diamonds (LGD) due to affordability and ethical positioning, with LGD expected to exceed 20% of the retail mix in 2024.

Competitive Landscape

The industry is fragmented with many small players; MDIL differentiates through formal compliance, hallmarking (HUID), and international certification standards.

Competitive Moat

Sustainable advantages include a 30-year heritage (est. 1987), GIA-trained leadership, and an integrated supply chain that reduces dependence on external midstream processors.

Macro Economic Sensitivity

Highly sensitive to global discretionary spending and macroeconomic slowdowns which affect retailer order cycles and consumer demand for luxury goods.

Consumer Behavior

Younger, sustainability-conscious consumers are increasingly preferring LGD over natural diamonds due to the 70-80% lower price point and ethical sourcing narratives.

Geopolitical Risks

Evolving global sanctions on diamond origins and traceability requirements increase the risk of 'substitution' and higher compliance costs for natural diamonds.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with BIS mandatory HUID hallmarking across 361 districts in India and adherence to Ind AS accounting standards.

Taxation Policy Impact

Benefiting from policy tailwinds such as gold duty rationalization which supports formal trade flows.

Legal Contingencies

No specific pending court cases or litigation values were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Volatility in LGD pricing due to rapid technology-led capacity additions globally could impact margins by an estimated 5-10%.

Geographic Concentration Risk

While diversifying, the company still faces concentration risks in Hong Kong and the Middle East, which are now 'priority markets' for its export book.

Third Party Dependencies

Relies on a 'blended staffing model' including job-work partners, which could pose risks to quality consistency if not strictly monitored.

Technology Obsolescence Risk

Risk of rapid shifts in LGD manufacturing technology making older processing methods less cost-competitive.

Credit & Counterparty Risk

Despite improvements, the company faces 'working-capital intensity' and potential receivable risks from international clients with 150-day payment terms.