💰 Financial Performance

Revenue Growth by Segment

Total operating income grew 29.28% YoY to INR 582.19 Cr in FY25 from INR 450.32 Cr in FY24. Revenue has grown at a 4-year CAGR of 14.5% since FY21. Growth in FY25 was primarily driven by a 33% increase in average gold price realizations, which offset a 3% decline in sales volumes.

Geographic Revenue Split

Export sales (100% to UAE) contributed 24.78% of total revenue in FY24, up from 17.33% in FY23. Domestic sales accounted for the remaining 75.22% of revenue in FY24.

Profitability Margins

Net profit (PAT) margin improved to 1.57% in H1FY25 compared to 1.29% in H1FY24. Historical PAT was INR 3.91 Cr in FY18, INR 4.79 Cr in FY19, and INR 5.32 Cr in FY20. Margins remain modest due to the outsourcing of manufacturing to third-party artisans, which limits value addition.

EBITDA Margin

PBILDT margin stood at 3.01% in FY24, an improvement from 2.34% in FY23. For H1FY25, the margin was 2.98%. The company expects to sustain margins around 3% through economies of scale as operations expand.

Capital Expenditure

Fixed assets (Property, Plant, and Equipment) increased to INR 0.75 Cr as of September 30, 2025, from INR 0.43 Cr as of March 31, 2025. The company primarily operates an asset-light model by outsourcing manufacturing.

Credit Rating & Borrowing

Credit rating upgraded to CARE BBB; Stable (Long Term) and CARE A3+ (Short Term) in November 2025. The upgrade followed an equity infusion of INR 45.13 Cr via rights issue in FY25 and INR 13.50 Cr via preferential issue in H1FY26, which reduced reliance on debt.

⚙️ Operational Drivers

Raw Materials

Gold represents the primary raw material, accounting for the bulk of the cost of goods sold. Procurement is done on an advance payment basis from registered dealers and banks.

Import Sources

Sourced domestically from Indian banks and registered bullion dealers; exports are focused on the UAE market.

Key Suppliers

Not specifically named, but identified as registered bullion dealers and commercial banks providing gold metal loans.

Capacity Expansion

Current operations generated INR 582.19 Cr in revenue for FY25. While specific MT capacity is not disclosed, the company is utilizing equity infusions to fund higher working capital requirements to support volume growth.

Raw Material Costs

Raw material costs are highly sensitive to global gold prices; a 33% rise in gold prices in FY25 directly increased the revenue base but also increased the working capital required for procurement.

Manufacturing Efficiency

Manufacturing is outsourced to specialized artisans to maintain low fixed overheads, though this results in modest PBILDT margins of 2-3%.

Logistics & Distribution

Distribution is focused on B2B wholesale, supplying manufactured gold jewellery to retail showrooms across India and exporting to the UAE.

📈 Strategic Growth

Expected Growth Rate

14.50%

Growth Strategy

Growth will be achieved by leveraging the recent INR 58.63 Cr total equity infusion to fund working capital, expanding the export footprint in the UAE (which grew from 17% to 25% of revenue), and increasing market share in the specialized 'Kolkata Bangle' segment through its established B2B distribution network.

Products & Services

Gold jewellery including specialized Kolkata Bangles, gold chains, and traditional gold ornaments.

Brand Portfolio

Moksh Ornaments

New Products/Services

Expansion of the vertical chain product line in Mumbai to complement the existing Kolkata Bangle specialization.

Market Expansion

Increasing focus on export markets, specifically the UAE, which now accounts for nearly a quarter of total sales.

Strategic Alliances

Maintains long-term relationships with third-party manufacturing artisans in Kolkata and Mumbai.

🌍 External Factors

Industry Trends

The gold jewellery industry is shifting toward organized players. While the industry is growing, it remains highly fragmented with intense competition from both organized and unorganized segments, pressuring margins to the 2-3% range.

Competitive Landscape

Faces strong competition from large organized jewellery brands and local unorganized wholesalers in the Mumbai and Kolkata markets.

Competitive Moat

Moat is based on a 20-year track record and specialization in 'Kolkata Bangles'. This is a moderate moat as it relies on specific artisan skills, but it is susceptible to competition from larger organized retailers.

Macro Economic Sensitivity

Highly sensitive to gold price volatility and consumer discretionary spending patterns in India and the UAE.

Consumer Behavior

Demand is seasonal, peaking during festive and wedding seasons in India, which drives the need for high inventory levels during those periods.

Geopolitical Risks

Trade relations with the UAE are critical given it is the sole export destination.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by Hallmarking regulations and GST compliance (GST No. 27AAICM0504E1ZX). Export operations must comply with RBI and FEMA guidelines for foreign exchange realization.

Environmental Compliance

Not applicable as a primary risk factor for jewellery wholesaling and outsourced manufacturing.

Taxation Policy Impact

Current tax liabilities stood at INR 0.087 Cr as of September 2025. The company is subject to standard Indian corporate tax rates.

Legal Contingencies

The company confirmed there have been no instances of non-compliance with rules and regulations prescribed by Stock Exchanges or SEBI during the last three years.

⚠️ Risk Analysis

Key Uncertainties

Negative cash flow from operating activities, which worsened to INR -22.58 Cr in FY25 from INR -13.62 Cr in FY24, poses a liquidity risk if not managed by continuous equity or debt funding.

Geographic Concentration Risk

High geographic concentration in the UAE for exports (100% of export revenue) and India for domestic sales.

Third Party Dependencies

Heavy reliance on third-party manufacturers (artisans) for 100% of production, creating a risk of supply chain disruption or quality inconsistency.

Technology Obsolescence Risk

Low risk of technology obsolescence due to the traditional nature of gold jewellery, but a risk exists in failing to adopt digital B2B sales platforms.

Credit & Counterparty Risk

Trade receivables increased significantly to INR 49.95 Cr in September 2025 from INR 26.54 Cr in March 2025, indicating potential credit risk or elongation of the collection cycle.