LYPSAGEMS - Lypsa Gems

📊 NSE: LYPSAGEMS 🏢 Trading 📅 Last Updated: 12/14/2025 9:21

💰 Financial Performance

Revenue Growth by Segment

Total consolidated revenue grew 30.02% YoY in Q2 FY18 to INR 83.47 Cr and 49.36% YoY in HY18 to INR 164.91 Cr. Segment-specific growth percentages for Diamond Cutting, Polished Sales, and Jewellery are not explicitly broken down, though the company is shifting focus toward higher-margin jewellery and rough trading.

Geographic Revenue Split

The company operates a Middle-eastern subsidiary and conducts global sales of polished products. While specific regional percentages are not disclosed, the Middle-eastern operations are identified as a primary focus area for future growth.

Profitability Margins

Net Profit Margin for HY18 was approximately 8.9% (INR 14.69 Cr PAT on INR 164.91 Cr revenue). Profit After Tax (PAT) grew significantly by 66.37% YoY in Q2 FY18 to INR 7.62 Cr and by 82.48% YoY in HY18 to INR 14.69 Cr.

EBITDA Margin

EBITDA margin for Q2 FY18 was 9.3%, representing a 94 bps increase YoY. On a half-yearly basis, the EBITDA margin was 9.05% for HY18, up 37 bps. Historically, the annual EBITDA margin improved from 4.7% in FY16 to 9.7% in FY17.

Capital Expenditure

Not disclosed in available documents; however, the company emphasizes investment in technology and skill for diamond cutting and polishing to maximize yield.

Credit Rating & Borrowing

ICRA has assigned a 'Simple' complexity indicator to the company's long-term and short-term fund-based/non-fund-based instruments. Specific interest rate percentages and total borrowing costs are not provided in the documents.

⚙️ Operational Drivers

Raw Materials

Rough diamonds (representing the primary cost of goods sold) and gold (used for studded jewellery).

Import Sources

Rough diamonds are sourced from Belgium, Dubai, and various countries in Africa.

Key Suppliers

Sourced through diamond tenders and specialized diamond dealers in Belgium, Dubai, and Africa.

Capacity Expansion

Current focus is on producing polished goods below 0.15cts. The company is realigning its model to focus on vertical integration across the diamond pipeline, though specific MT or unit capacity figures are not disclosed.

Raw Material Costs

Total expenditure for HY18 was INR 149.97 Cr, a 48.4% increase from INR 101.03 Cr in HY17, primarily driven by rough diamond procurement to support the 49.36% revenue growth.

Manufacturing Efficiency

Efficiency is driven by the use of technology and specialized skills to obtain superior results in cutting and polishing rough diamonds to maximize yield and quality.

Logistics & Distribution

Distribution is handled through global sales channels and tie-ups with leading Indian e-commerce platforms for the jewellery segment.

📈 Strategic Growth

Expected Growth Rate

49.36%

Growth Strategy

Growth is targeted through a vertically integrated business model across the diamond pipeline. Key strategies include realigning businesses toward a profitability-focused model, expanding the Middle-eastern subsidiary, and increasing the focus on the 'Oropel' and 'Atelier' jewellery brands through e-commerce tie-ups.

Products & Services

Polished diamonds (specifically below 0.15cts), rough diamonds (assorted and processed), and diamond-studded gold jewellery.

Brand Portfolio

Oropel, Atelier.

New Products/Services

Expansion of bespoke and e-commerce jewellery lines under 'Oropel' and 'Atelier' brands, focusing on value-added studded jewellery.

Market Expansion

Targeted growth in the Middle East through a dedicated subsidiary and expanded presence on Indian e-commerce platforms.

Strategic Alliances

The company has established tie-ups with leading Indian e-commerce platforms to distribute its jewellery brands.

🌍 External Factors

Industry Trends

The industry is shifting toward vertical integration and e-commerce distribution. Lypsa is positioning itself by moving from pure trading to value-added jewellery manufacturing and online retail.

Competitive Landscape

Competes with other diamond manufacturers and jewellery brands in India and the Middle East; differentiates through bespoke services and e-commerce presence.

Competitive Moat

The moat is built on vertical integration (rough sourcing to retail) and a focus on a specific niche (polished goods below 0.15cts). This is sustainable as it allows for higher EBITDA margins (9.7% in FY17) compared to pure trading.

Macro Economic Sensitivity

Highly sensitive to global diamond demand and gold price fluctuations. A significant rise in gold prices directly impacts the affordability of the company's jewellery products.

Consumer Behavior

Dynamic preferences of clients are driving a shift toward branded, diamond-studded jewellery sold through digital platforms.

Geopolitical Risks

Trade barriers or supply disruptions in Belgium, Dubai, or Africa could impact the procurement of rough diamonds.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company adheres to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

Taxation Policy Impact

The company reported INR 0.0 tax for HY18 and Q2 FY18, suggesting utilization of tax credits or specific jurisdictional benefits.

Legal Contingencies

Zero complaints were filed, disposed of, or pending regarding sexual harassment in FY25. No penalties or strictures were imposed by SEBI or Stock Exchanges during the last three years (2022-2025).

⚠️ Risk Analysis

Key Uncertainties

Gold price volatility (high impact on jewellery demand), fluctuations in rough diamond availability, and changes in global market preferences for diamonds.

Geographic Concentration Risk

Significant reliance on the Middle-eastern market and Indian e-commerce for retail growth; sourcing is concentrated in Belgium, Dubai, and Africa.

Third Party Dependencies

Dependency on diamond tenders and specific dealers in Belgium and Dubai for raw material supply.

Technology Obsolescence Risk

Risk of falling behind in diamond processing technology; the company mitigates this by focusing on technological implementation for superior cutting results.