R.K.Fashion Accessories SME IPO

Strengths · 8

• 01Revenue grew 77% in FY2026, from Rs 17.82 crore to Rs 31.54 crore, after Rs 14.46 crore in FY2024.
• 02Profit after tax grew from Rs 0.95 crore in FY2024 to Rs 2.00 crore in FY2025 and Rs 6.29 crore in FY2026.
• 03Margins are high for a trading business, with a PAT margin of 24.40% and an EBITDA margin of 34.08%.
• 04Debt is very low at Rs 1.70 crore as on 31 March 2026 against a net worth of Rs 16.16 crore, a debt to equity ratio of 0.17.
• 05The whole Rs 34.99 crore issue is fresh capital with no offer for sale.
• 06Most of the money builds capacity and reach: Rs 8.80 crore for a new plating facility at Baruipur, Rs 5.37 crore for a B2B showroom in Kolkata, Rs 2.48 crore to complete consumer stores, Rs 5.60 crore for their stock and Rs 5.21 crore for working capital.
• 07Net worth has grown from Rs 7.82 crore in FY2024 to Rs 17.99 crore by 30 June 2026.
• 08It sells through wholesale, retail and online channels, and has corporate tie-ups alongside its B2B customer base.

Risks · 11

• 01The FY2024 figures cannot all be right. EBITDA is shown as Rs 0.11 crore while profit after tax for the same year is Rs 0.95 crore, and profit cannot exceed EBITDA.
• 02The two return figures are far apart. Return on equity is shown as 10.71% while return on net worth is shown as 40.66%, and return on capital employed as 12.56%, so the profitability of the business cannot be pinned down from the published set.
• 03The reserves row does not fit either, falling from Rs 9.16 crore in FY2025 to Rs 4.91 crore in FY2026 while net worth rose from Rs 9.81 crore to Rs 16.16 crore.
• 04The latest column is a three month stub to 30 June 2026 showing income of Rs 7.49 crore, which cannot be compared with a full year.
• 05The growth comes off a very small base. Revenue was Rs 14.46 crore in FY2024 and profit Rs 0.95 crore, so one good year lifts the percentages a long way.
• 06A PAT margin of 24.40% is unusually high for imitation jewellery wholesaling and cosmetics trading, where goods are bought in and resold.
• 07The company manufactures nothing itself. All jewellery is made by contract manufacturers, so quality, cost and delivery sit with third parties.
• 08The Rash Behari Avenue property is still under construction, so the retail expansion the issue is funding has not started trading.
• 09Imitation jewellery is a crowded trade with low entry barriers, and designs are copied quickly.
• 10Promoter holding falls from 99.67% to 72.26% after the issue.
• 11This is an SME issue. One lot is 1,600 shares, which is about Rs 1.31 lakh at the upper band of Rs 82, and SME shares usually trade in low volume after listing.

R.K. Fashion Accessories Limited was incorporated in March 2010. It sells handcrafted imitation jewellery, which it does not make itself but has made by contract manufacturers, and also trades branded cosmetics.

The jewellery combines traditional designs with contemporary styles. Most sales are wholesale to business customers, and the company is adding direct sales to individual buyers through a multi-platform e-commerce presence and corporate tie-ups. It runs multi-stage inspection and quality checks on what the contract manufacturers deliver.

It has bought a property on Rash Behari Avenue in Kolkata, still under construction, to add retail space and reach consumers in parts of the city where it has fewer business customers. Issue money is also going into a new plating facility at Baruipur in West Bengal, a new business-to-business showroom in Kolkata, completion of consumer stores and stock for them. As on 30 June 2026 it had 50 permanent employees, with contract labour taken on for large orders.

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