UTSSAV - Utssav

📊 NSE: UTSSAV 🏢 Diamond Cutting / Jewellery 📅 Last Updated: 12/14/2025 14:48

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 90.4% YoY to INR 607.33 Cr in FY25. The 18 Karat segment grew 68.6% to INR 406.82 Cr (62.94% of revenue), while the 22 Karat segment grew 150% to INR 236.82 Cr (36.64% of revenue). H1 FY26 revenue reached INR 777 Cr, a 67% YoY growth.

Geographic Revenue Split

Domestic sales contribute 98.25% (INR 596.7 Cr) of total revenue in FY25, while Exports represent 1.75% (INR 10.6 Cr). Domestic revenue grew 96.3% YoY, whereas exports declined by 29.6% from INR 15.05 Cr in FY24.

Profitability Margins

PAT margin improved from 3.76% in FY24 to 3.87% in FY25, and further rose to 6.17% in H1 FY26 (up 271 bps). PAT for H1 FY26 rose 197% to INR 29 Cr. Profitability is driven by a shift toward high-margin designer jewelry and manufacturing efficiency.

EBITDA Margin

EBITDA margin was 6.23% in FY25 (INR 40.34 Cr) and improved significantly to 9.45% in H1 FY26 (up 388 bps). EBITDA for H1 FY26 increased 184% to INR 45 Cr due to improved product mix and operating leverage.

Capital Expenditure

Historical capex is reflected in investing cash flows of INR 18.54 Cr in FY25. Planned expansion includes a target to reach INR 4,000-5,000 Cr revenue by FY2030, necessitating significant capacity and working capital investment.

Credit Rating & Borrowing

Infomerics Ratings upgraded long-term and short-term bank facilities in FY25 with a Stable outlook. Upward rating factors include maintaining EBITDA margins above 8% and gearing below 1x. Borrowing costs are reflected in finance costs of INR 6.19 Cr for FY25.

⚙️ Operational Drivers

Raw Materials

Gold and Cubic Zirconia (CZ) are the primary raw materials. Gold represents the largest cost component, with the company recently diversifying into Real Diamonds to enhance margins.

Capacity Expansion

Current capacity supports H1 FY26 revenue of INR 777 Cr. The company plans to scale operations to achieve a revenue range of INR 1,100-1,200 Cr for FY26 and up to INR 5,000 Cr by FY2030.

Raw Material Costs

Raw material costs are managed through a day-to-day hedging strategy where gold is purchased immediately upon sale to lock in margins. Owned stock remains unhedged, exposing the company to price fluctuations.

Manufacturing Efficiency

The company focuses on 'Designer Jewelry' which offers higher margins than normal jewelry. Efficiency is reflected in containing employee expenses at INR 1.47 Cr for 130 employees in FY25.

📈 Strategic Growth

Expected Growth Rate

33%

Growth Strategy

The company aims to reach INR 4,000-5,000 Cr by FY2030 through a focus on high-margin designer jewelry, expansion into the Real Diamond segment, and strengthening relationships with large B2B clients like Kalamandir, Bhima, and TBZ. Growth is supported by a guidance of INR 1,100-1,200 Cr for FY26.

Products & Services

18K, 20K, and 22K CZ Gold Jewelry, and Real Diamond Jewelry.

Brand Portfolio

Utssav.

New Products/Services

Recently launched Real Diamond jewelry line, expected to contribute to margin improvement as its share of total sales increases.

Market Expansion

Focusing on expanding the export strategy and increasing domestic footprint through established B2B relationships.

Strategic Alliances

Maintains fixed B2B relationships with major retailers including Kalamandir, Bhima, TBZ, and C. Krishniah Chetty Jewellers.

🌍 External Factors

Industry Trends

The industry is shifting toward organized players and designer-led jewelry. Utssav is positioned as a specialist in CZ gold jewelry with a growing presence in real diamonds.

Competitive Landscape

Faces intense competition from both organized players (Sky Gold) and unorganized local manufacturers.

Competitive Moat

Moat is built on 'Designer Jewelry' expertise and long-standing B2B relationships. This is sustainable as long as the company maintains its design edge and manufacturing efficiency over 'normal' jewelry producers.

Macro Economic Sensitivity

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

Consumer Behavior

Increasing consumer preference for 18K designer jewelry and real diamonds over traditional 22K plain gold jewelry.

Geopolitical Risks

Susceptibility to international gold trade regulations and import duty fluctuations.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Bureau of Indian Standards (BIS) hallmarking norms and regulatory changes regarding gold sourcing and unhedged inventory limits.

Taxation Policy Impact

Effective tax expense was INR 7.97 Cr on PBT of INR 33.03 Cr in FY25 (approx 24%).

Legal Contingencies

The company reported no pending litigations as of March 31, 2025, that could materially impact its financial position.

⚠️ Risk Analysis

Key Uncertainties

Unhedged inventory risk and working capital cycle stretches are key uncertainties. A volume-driven decline in income below INR 500 Cr would trigger a negative rating action.