SILGO - Silgo Retail

📊 NSE: SILGO 🏢 Diamond Cutting / Jewellery 📅 Last Updated: 12/14/2025 13:24

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew 26.66% YoY to INR 44.37 Cr (4437.48 Lakhs) in FY25, primarily driven by branded, lightweight silver jewellery sales.

Geographic Revenue Split

The company is expanding its digital presence and D2C capabilities across Tier-2 and Tier-3 cities in India while actively working to reduce export reliance.

Profitability Margins

Net Profit Margin improved to 10.09% in FY25 from 8.99% in FY24. Profit After Tax (PAT) grew 42.04% YoY to INR 4.48 Cr.

EBITDA Margin

EBITDA margin stood at 14.14% in FY25 (INR 6.27 Cr), compared to 15.76% in FY24, reflecting an 11.97% YoY growth in absolute EBITDA.

Capital Expenditure

The company follows an asset-light model; fixed assets stood at INR 0.13 Cr (13.36 Lakhs) as of March 31, 2025.

Credit Rating & Borrowing

The company accepted an Inter-Corporate Deposit (ICD) loan of up to INR 15 Cr in November 2025. It also provided an inter-corporate loan to an associate at an interest rate of 12% p.a.

⚙️ Operational Drivers

Raw Materials

Silver is the primary raw material, with global industrial consumption expected to exceed 700 million ounces in 2025.

Capacity Expansion

The company is increasing its Authorized Share Capital from INR 18.50 Cr to INR 45 Cr to support operational expansion.

Raw Material Costs

Silver markets are projected to run a deficit of 117.6 million ounces in 2025, which may impact procurement costs.

Manufacturing Efficiency

The company utilizes an asset-light model to enhance resilience and scalability in a competitive environment.

📈 Strategic Growth

Expected Growth Rate

26.66%

Growth Strategy

Growth will be achieved through a Rights Issue to raise funds for operational purposes, expanding digital and D2C capabilities in Tier-2/3 cities, and a strategic investment of up to INR 64.26 Cr in an associate company for solar energy and business continuity.

Products & Services

Branded, lightweight, and design-led silver jewellery targeted at millennials and Gen Z consumers.

Brand Portfolio

SILGO

New Products/Services

Contemporary designs and lightweight collections are being launched to capture demand from younger demographics.

Market Expansion

Targeting Tier-2 and Tier-3 cities in India where demand for affordable silver jewellery is rising sharply.

Strategic Alliances

Strategic investment and loan agreement with associate company M/s Hare Krishna Creative Realty Private Limited.

🌍 External Factors

Industry Trends

The silver market is entering its fifth consecutive year of deficit (117.6 million ounces), while industrial demand is at record highs.

Competitive Landscape

The industry is witnessing a shift from unorganised to organised silver jewellery markets in India.

Competitive Moat

Moat is built on brand trust, design-led offerings, and an asset-light model that allows for rapid scaling with low capital intensity.

Macro Economic Sensitivity

Revenue is sensitive to rising disposable incomes and aspirational spending trends in India.

Consumer Behavior

Millennials and Gen Z are showing a growing preference for branded, lightweight silver jewellery over traditional heavy pieces.

Geopolitical Risks

Regulatory uncertainties regarding customs duties and export market dynamics could disrupt operations.

⚖️ Regulatory & Governance

Industry Regulations

Strict adherence to BIS hallmarking mandates, traceability, and ethical sourcing (child labour scrutiny).

Environmental Compliance

The company follows ESG standards and is investing in solar energy objects via an associate company to future-proof operations.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 26.2% based on a PBT of INR 6.07 Cr and PAT of INR 4.48 Cr.

⚠️ Risk Analysis

Key Uncertainties

The company has approved a material related party transaction to loan up to INR 64.26 Cr to an associate, representing 144.82% of its annual consolidated turnover.