SHRINGARMS - Shringar House

📊 NSE: SHRINGARMS 🏢 Gems, Jewellery And Watches 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in the Mangalsutra manufacturing segment, where revenue grew 25.36% YoY to INR 8,614.05 million in H1 FY26 compared to INR 6,871.35 million in H1 FY25. Annual revenue grew 29.8% from INR 11,015.23 million in FY24 to INR 14,298.15 million in FY25.

Geographic Revenue Split

In H1 FY26, the domestic market contributed 98.94% of volumes (964.82 kgs), while international markets (UAE, UK, New Zealand) contributed 1.06% (10.34 kgs). In Q2 FY26, domestic volume was 99.65% (523.55 kgs) and international was 0.35% (1.84 kgs).

Profitability Margins

PAT margins have shown consistent improvement, rising from 2.46% in FY23 to 2.82% in FY24, 4.27% in FY25, and reaching 5.96% in H1 FY26. This trend is driven by increased scale and better operational efficiencies in manufacturing.

EBITDA Margin

EBITDA margin stood at 8.63% in H1 FY26, a 139 bps increase from 7.24% in H1 FY25. Core profitability improved as EBITDA rose 49.48% YoY to INR 743.76 million in H1 FY26.

Capital Expenditure

Property, plant, and equipment increased to INR 67.34 million in H1 FY26 from INR 50.82 million in FY25, reflecting ongoing investments in manufacturing capabilities. Right-of-use assets stood at INR 143.58 million in H1 FY26.

Credit Rating & Borrowing

Total borrowings as of H1 FY26 were INR 1,828.30 million (INR 1,818.30 million current and INR 10.00 million non-current). The Debt-Equity ratio improved from 0.88 in FY23 to 0.61 in FY25, indicating a stronger balance sheet post-IPO.

⚙️ Operational Drivers

Raw Materials

Gold (18k, 22k, and 24k purity) is the primary raw material, with the cost of raw materials consumed reaching INR 7,257.01 million in H1 FY26, representing 84.2% of total revenue.

Capacity Expansion

Current installed capacity is 2,500 kg per annum. Capacity utilization was 69% in FY25 (1,724.91 kg produced). The company plans to augment fund-based capacities to scale operations and increase manufacturing capability.

Raw Material Costs

Raw material costs increased significantly in H1 FY26 to INR 7,257.01 million from INR 4,704.36 million in H1 FY25. The company uses a weighted average method for inventory valuation, with an average closing stock price of ~INR 8,900 per gram in Q2 FY26.

Manufacturing Efficiency

The company maintains an integrated 8,300 sq. ft. facility in Mumbai. Efficiency is highlighted by the 'Excellence in Self-Certification Level-1' from Titan, allowing for streamlined quality assurance.

📈 Strategic Growth

Expected Growth Rate

9.0%

Growth Strategy

Growth will be achieved by establishing a pan-India supply chain through third-party intermediaries, opening new branch offices in Delhi and Pune, and strengthening ties with marquee B2B clients like Titan and Malabar Gold. The company is also focusing on its premium 'Ziya' brand and 24K gold Mangalsutras.

Products & Services

Designing, manufacturing, and marketing a varied range of Mangalsutras in 18k, 22k, and 24k gold purity.

Brand Portfolio

Ziya (Premium Mangalsutra range).

New Products/Services

The company recently launched the 24 Karat Shudh Mangalsutra, being the first in India to do so, targeting the high-purity segment.

Market Expansion

Expansion plans include targeting untapped geographical regions across India and increasing export sales, which currently represent 1.06% of volume.

Market Share & Ranking

Organized manufacturers held a 10.9% share of the Indian wholesale gold jewellery market in CY23. Shringar is a leading player in the specialized Mangalsutra segment.

Strategic Alliances

The company maintains long-standing partnerships (10-15 years) with major retailers including Titan, Malabar Gold, Reliance Retail, and Novel Jewels (Aditya Birla Group).

🌍 External Factors

Industry Trends

The organized wholesale gold jewellery market is expected to grow at a 9.0% CAGR to reach INR 489 billion by CY29. There is a clear shift from unorganized to organized players driven by hallmarking (HUID) and consumer trust.

Competitive Landscape

Competes with other organized manufacturers and a large unorganized sector. Key competitive advantage is the first-mover status in 24K Mangalsutras.

Competitive Moat

The moat is built on a 15-year legacy, 10,000+ active SKUs, and specialized manufacturing for Mangalsutras. The 'Excellence in Self-Certification' from Titan acts as a high entry barrier and a mark of quality sustainability.

Macro Economic Sensitivity

The business is sensitive to the Indian economy and gold prices. High inflation can reduce discretionary spending on jewellery, while gold price hikes increase the cost of raw materials (INR 7,257.01 million in H1 FY26).

Consumer Behavior

Shift toward minimalistic designs and hallmarked jewellery. Traditional Mangalsutras still dominate with a 62.3% market share by design.

Geopolitical Risks

Exposure to international markets (UAE, UK, New Zealand) introduces risks related to trade barriers and global gold price benchmarks.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by gold hallmarking standards (HUID) and the company is a member of the Responsible Jewellery Council and the Indian Bullion and Jewellers Association.

Taxation Policy Impact

The effective tax expense for H1 FY26 was INR 169.75 million on a profit before tax of INR 683.30 million (approx. 24.8%).

⚠️ Risk Analysis

Key Uncertainties

Gold price volatility and the capital-intensive nature of operations are primary risks. A 10% increase in gold prices significantly impacts the cost of the 100kg+ monthly gold requirement.