Deepa Jewellers IPO

Strengths · 8

• 01Profit has grown more than four times in two years, from Rs 24.35 crore in FY2024 to Rs 40.58 crore in FY2025 and Rs 104.79 crore in FY2026.
• 02Sales have almost doubled over the same period, from Rs 1,025.73 crore in FY2024 to Rs 1,400.10 crore in FY2025 and Rs 1,927.73 crore in FY2026.
• 03EBITDA rose sharply from Rs 35.77 crore in FY2024 to Rs 56.01 crore in FY2025 and Rs 146.34 crore in FY2026.
• 04Return ratios are the highest among the current mainboard issues, with RoCE of 52.08% and RoNW of 56.45%.
• 05Net worth grew from Rs 92.55 crore in FY2024 to Rs 238.07 crore in FY2026.
• 06The customer base is wide and spread out, with 373 customers made up of 47 jewellery retail chains and 326 standalone stores across 13 states and one union territory.
• 07It has a specialisation in vaddanam and CNC machine cut bangles, which are not made well by every supplier.
• 08Rs 215 crore of the fresh money goes into building up inventory, which in this trade directly supports higher sales.

Risks · 9

• 01The profit margin is thin at 5.44%. In gold jewellery the metal itself is most of the sale value, so a small movement in cost or price changes the profit sharply.
• 02The P/E and EPS are not stated in the data available to us, so the issue cannot be compared with jewellery peers on earnings from here.
• 03The growth is very fast for a young company. It was started only in 2016 and profit has gone up more than four times in two years, which is difficult to keep up.
• 04Borrowing rose from Rs 80.79 crore in FY2025 to Rs 111.11 crore in FY2026.
• 05The entire Rs 215 crore of fresh money goes into inventory, that is gold stock, and not into any fixed asset or new capacity.
• 06This is a fresh issue combined with an offer for sale, so a part of the money goes to the selling shareholders and not to the company.
• 07The business is concentrated in the southern market, so any slowdown or added competition in that region affects most of the sales.
• 08Selling to jewellery chains and stores means the buyers decide order size and payment terms, and gold price swings affect how much they stock.
• 09Promoter holding will come down from 100% to 72.98% after the issue.

Deepa Jewellers Ltd was started in 2016. The company is in the retail and wholesale trading of gold and diamond jewellery. It sources, designs and sells jewellery in both traditional and modern designs.

Its product range covers vaddanam, which is a waist belt, CNC machine cut bangles, gents kada, vanky or armlet, dandpatti also called bajuband, gundlamala haaram and necklace, kangan, earrings, mangtika or forehead pendant, maatil which is an ear chain, champasaralu which is an ear to hair chain, jada or braid ornament, and rings. As on 31 July 2026 it had 16 products and 110 SKUs across these categories.

The company sells mainly to other jewellers rather than to the public. As on 31 July 2026 its customer network covered 13 states and one union territory with 373 customers, made up of 47 jewellery retail chains and 326 standalone stores. It is strongest in the southern market and specialises in vaddanam and CNC machine cut bangles. It also uses a mobile application under its own name, commissioned in June 2021, to show high resolution images of its designs to customers who are far away.

Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.