Anjali Labtech IPO

Strengths · 7

• 01The document cites the Wazir report for an estimated 36% global share by volume in MPCVD machines used to grow lab-grown diamonds as of 31 March 2026, and about 41% in India.
• 02Revenue from operations grew from Rs 223.19 crore in FY2024 to Rs 615.51 crore in FY2026, a rise of 30.27% in FY2026 after 111.71% in FY2025.
• 03All five revenue lines are made in-house, with MPCVD machinery at 31.84% of FY2026 revenue and polished diamonds at 39.79%, so no single product carried more than two fifths.
• 04The company supplied 2,253 customers in FY2026, including 807 outside India across 23 countries, against 14 countries in Fiscal 2024.
• 05Return on equity was 47.99% and return on capital employed 46.23% in FY2026, with a debt to equity ratio of 0.27.
• 06Cash flow from operating activities was Rs 306.95 crore in FY2026, above the profit after tax of Rs 200.92 crore for the same year.
• 07Promoters and the promoter group hold 99.53% of the pre-offer equity and are selling shares worth up to Rs 300.00 crore in the offer.

Risks · 10

• 01The company was incorporated in Fiscal 2022 and its only track record is profit after tax of Rs 200.92 crore in FY2026, Rs 146.79 crore in FY2025 and Rs 90.06 crore in FY2024.
• 02The top 10 customers gave 59.37% of FY2026 revenue from operations and the single largest customer gave 31.90%.
• 03MPCVD machine sales were 31.84% of FY2026 revenue, and the company sells those machines to the same lab-grown diamond industry whose output it also sells, so one slowdown can hit both lines.
• 04Export sales were 34.11% of FY2026 revenue, and the document names United States tariffs and trade measures on diamond products sourced from India as a risk.
• 05The EBITDA margin fell from 49.23% in FY2024 to 42.93% in FY2026 and the profit after tax margin from 39.52% to 32.18%, while wholesale lab-grown diamond prices per carat corrected.
• 06A claim of AED 45,640,722, equal to Rs 118.61 crore, is pending against the company before a UAE court, filed by Muegge GmBH over dealings of another defendant.
• 07Total borrowings rose from Rs 18.95 crore in Fiscal 2024 to Rs 137.83 crore in FY2026, and Rs 75.00 crore of the fresh issue is earmarked to repay borrowings.
• 08Net working capital days rose from 47 in Fiscal 2024 to 62 in FY2026, so growth is absorbing more working capital.
• 09The statutory auditors and the previous statutory auditors included observations under the Companies (Auditor's Report) Order, 2020 for FY2026, FY2025 and FY2024.
• 10The document states that the company has no exact comparable listed peer in India or globally, and credit ratings in the past were withdrawn or assigned under Issuer Not Cooperating status.

Anjali Labtech Limited, formerly Anjali Diamonds Private Limited, is a Surat based company that works across the lab-grown diamond chain. It designs, manufactures and supplies microwave plasma chemical vapour deposition machines, called MPCVD machines, which third parties use to grow rough lab-grown diamonds. The company also installs the same machines in its own plants, grows rough diamonds, processes them into polished diamonds using robotics, and makes lab-grown diamond studded jewellery. The Wazir report cited in the document calls it the first and leading vertically integrated Indian player in the lab-grown diamond industry.

Revenue comes from five streams. In FY2026, MPCVD machinery brought Rs 196.00 crore or 31.84% of revenue from operations, polished diamonds Rs 244.88 crore or 39.79%, studded jewellery Rs 110.97 crore or 18.03%, colour enhancement services Rs 34.11 crore or 5.54%, and others, which covers machine parts and scrap, Rs 29.54 crore or 4.80%. Jewellery and colour enhancement services started only in Fiscal 2024 and the others segment only in Fiscal 2026, so the revenue mix is still changing every year.

In FY2026 the company supplied 2,253 customers, of which 807 were outside India. Export revenue was Rs 209.94 crore, or 34.11% of revenue from operations, across 23 countries, against Rs 227.09 crore and 48.06% across 28 countries in FY2025. It sold 1,446 MPCVD machines in FY2026, up from 994 in Fiscal 2024, along with 3,60,953 carats of polished diamonds and 1,02,406 grams of studded jewellery. Seven manufacturing facilities, all on leased premises, are in Surat, Gujarat.

Profit after tax rose from Rs 90.06 crore in FY2024 to Rs 200.92 crore in FY2026. The EBITDA margin was 42.93% in FY2026 against 49.23% in FY2024, so profit grew while the margin came off its FY2024 level. Net worth stood at Rs 518.96 crore and total borrowings at Rs 137.83 crore as on 31 March 2026, a debt to equity ratio of 0.27. Cash flow from operating activities was Rs 306.95 crore in FY2026 against Rs 49.62 crore in FY2025, while the investing outflow was Rs 321.49 crore.

The company was incorporated in Fiscal 2022, so its track record is short. The offer is a fresh issue of up to Rs 925.00 crore and an offer for sale of up to Rs 300.00 crore by three promoter group shareholders, a total of up to Rs 1,225.00 crore. Promoters and the promoter group together hold 99.53% of the pre-offer capital. The company may also raise up to Rs 185.00 crore in a pre-IPO placement, which would be reduced from the fresh issue.

The industry

The Wazir report in the document puts global lab-grown diamond trade at USD 3.3 billion in CY 2024, up from USD 0.5 billion in CY 2018, a CAGR of 37%. India's rough lab-grown diamond market is estimated at 17 to 19 million carats in FY 2026 and is projected to grow at a CAGR of 21 to 24% to 40 to 41 million carats by FY 2030. Operational MPCVD machines in India have grown from about 1,200 units in FY 2020 to an estimated 13,700 units in FY 2026, and India accounts for about 87% of global MPCVD machine manufacturing, with 40 to 50 domestic manufacturers of whom the top 5 hold around 80% of the domestic market. The report also records that wholesale lab-grown diamond prices per carat corrected as production capacity expanded in India and China.

Customer concentration: Top 5 customers gave 49.91% of FY2026 revenue from operations (49.60% in FY2025), and the top 10 customers gave 59.37%.