Master Chains N Jewels IPO

Strengths · 7

• 01Revenue from operations rose from Rs 1,272.64 crore in FY2024 to Rs 1,512.20 crore in FY2025 and Rs 1,680.59 crore in FY2026.
• 02Profit after tax grew from Rs 22.04 crore in FY2024 to Rs 97.27 crore in FY2026, and EBITDA margin moved from 3.17% to 8.68%.
• 03Return on net worth was 41.93% and return on capital employed was 77.09% in FY2026.
• 04Customers are spread out: the top 5 gave 18.91% of FY2026 revenue and the top 10 gave 28.79%.
• 05Retained customers, who have dealt with the company for three or more years, gave 71.86% of FY2026 revenue from operations.
• 06Creditor days were only 2 in FY2026, as the company buys gold bullion from a few large suppliers.
• 07The three auditor reports on FY2024 to FY2026 carry no reservations, qualifications or adverse remarks.

Risks · 10

• 01Operating cash flow was negative at Rs 73.65 crore in FY2026 while profit after tax was Rs 97.27 crore, so working capital absorbed the cash.
• 02Debtor days rose from 10 in FY2024 to 33 in FY2026 and the working cycle from 50 to 76 days.
• 03Total borrowings nearly doubled from Rs 113.72 crore in FY2025 to Rs 214.19 crore in FY2026.
• 04The top 10 suppliers gave 67.60% of purchases in FY2026, with no long-term arrangements, and gold price swings affect margins and working capital.
• 05Western and southern India gave 77.94% of FY2026 revenue from operations, up from 67.81% in FY2024.
• 06The top 10 customers gave 28.79% of FY2026 revenue and there are no long-term contracts with them.
• 07The fresh issue of Rs 400.00 crore is mostly for working capital (Rs 350.00 crore) and the rest is general corporate purposes, which the document has not yet fixed.
• 08Promoter Taruna Madan Kothari is selling up to 59,06,250 shares at a weighted average cost of Rs 0.07 per share, so the sale proceeds go to her and not to the company.
• 09The promoters hold 99.55% before the issue and a bonus of 20 shares for every 1 share was issued in June 2026, so older per-share figures were restated.
• 10Sales volume fell from 2,807.01 kg in FY2024 to 2,369.91 kg in FY2026, and sales are made to jewellers on a wholesale basis.

Master Chains N Jewels Limited designs, manufactures and sells gold jewellery, and also does job-work. The company was earlier called Master Chains N Jewels Private Limited and Master Chain Private Limited. Its registered office is in Zaveri Bazar, Mumbai.

The product range covers 14 karat, 18 karat and 22 karat gold. It includes chains, earrings, bracelets, necklaces, rings, mangalsutras, pendant sets, daily wear and kids' jewellery. The pieces are made in yellow gold, rhodium and rose gold, and the company can make customised designs. It says its focus is on lightweight jewellery for festive and daily wear as well as weddings.

The business is wholesale. Customers are retail jewellers, both single-store and multi-store. The top 5 customers gave 18.91% of gross revenue from operations in FY2026 and the top 10 gave 28.79%. Sales to retained customers, who have dealt with the company for three years or more, were Rs 1,207.72 crore in FY2026, or 71.86% of revenue from operations.

Most sales come from western and southern India. These two regions gave 77.94% of revenue from operations in FY2026, up from 67.81% in FY2024. The main states are Maharashtra, Karnataka and Telangana, Gujarat and Punjab. The company has two manufacturing units in Mumbai and branch offices in Delhi, Hyderabad and Bengaluru.

Gold bullion is the key raw material. The top 10 suppliers made up 67.60% of purchases in FY2026, and the company has no long-term arrangements with them. In FY2026 the sales volume was 2,369.91 kg, down from 2,807.01 kg in FY2024, while revenue rose, so the rise in revenue came with a lower volume sold.

In September and October 2025 the company took over the businesses of Aurous Jewels LLP and Kanak Shilp, linked to promoters Khushbu Raj Kothari and Taruna Madan Kothari, under a Business Transfer Agreement dated 18 October 2025.

The industry

The industry report by CARE says India's gems and jewellery sector contributes about 7% of GDP and about 15% of total merchandise exports. India produces over 90% of the world's polished diamonds. In 2025 gold made up 80% of the Indian gems and jewellery market, followed by diamonds at 10%, silver at 5% and other materials at 5%. Master Chains N Jewels works only in gold jewellery for wholesale buyers.

Customer concentration: Top 5 customers gave 18.91% of FY2026 revenue (19.28% in FY2025); top 10 gave 28.79% (32.08% in FY2025).