Royal Chain IPO

Strengths · 7

• 01Revenue from operations grew 53.88% in FY2025 and 30.83% in FY2026 to reach Rs 4,732.45 crore.
• 02Profit after tax rose from Rs 27.36 crore in FY2024 to Rs 63.33 crore in FY2025 and Rs 173.34 crore in FY2026, and PAT margin from 1.16% to 3.66%.
• 03Margins widened as value addition grew: gross margin went from 4.62% in FY2024 to 7.84% in FY2026 and EBITDA margin from 2.71% to 6.09%.
• 04Installed capacity was raised from 7,000 kg in FY2024 to 12,000 kg in FY2026, and utilisation of 33.37% in FY2026 leaves room to grow without fresh capital expenditure.
• 05The balance sheet has strengthened, with debt to equity falling from 2.50 times in FY2024 to 1.36 times in FY2026 while RoCE improved to 24.56% and RoNW to 53.34%.
• 06The customer base is spread out: about 1,887 customers were served in FY2026 and the top five gave only 14.32% of revenue from operations.
• 07The statutory auditors reported no qualifications or modifications in their reports for FY2026, FY2025 and FY2024.

Risks · 10

• 01Gold is the main input and its price moves straight through the accounts. Materials consumed were Rs 3,655.07 crore in FY2026, or 81.11% of total expenses.
• 02The business runs on short-term money. Working capital loans were 72.72% of total borrowings as of 31 March 2026, against 59.15% as of 31 March 2024, and total borrowings were Rs 560.24 crore.
• 03All manufacturing is at the single leased Mahape facility in Navi Mumbai, so a shutdown there, or a breach or non-renewal of the lease, would stop production.
• 04Capacity utilisation fell to 33.37% in FY2026 from 64.15% in FY2024 even as installed capacity rose to 12,000 kg, so a large part of the plant is idle.
• 05Cash flow lags profit. Operating activities used Rs 216.52 crore in FY2026 while profit after tax was Rs 173.34 crore, and working capital days rose to 56 from 39 in FY2025.
• 06The only stated use of the fresh issue is repaying Rs 650.00 crore of loans and accrued interest; the rest is general corporate purposes, with no capacity or expansion spending listed.
• 07The offer for sale of Rs 150.00 crore goes to the promoter sellers and not to the company, and their weighted average cost of acquisition is Rs 1.67 per share for Suresh Futarmal Jain and Manish Futarmal Jain and Rs 11.30 for Celestial Charms and Foxy Feathers.
• 08Revenue leans on one region and the domestic market: West India gave 51.19% of FY2026 revenue and exports fell to 3.79% from 9.61% in FY2024.
• 09The largest customer of FY2026, Aalishaan Jewels LLP, was acquired by the company with effect from 1 April 2026, so part of the FY2026 top-five revenue of 14.32% came from an entity that is now inside the group.
• 10Pending matters include 3 tax and 1 statutory proceeding against the company involving Rs 1.05 crore, and 1 tax and 1 statutory proceeding against the promoters involving Rs 0.53 crore of alleged unaccounted cash transactions.

Royal Chain Limited is an original design manufacturer of gold chains and jewellery that sells to other jewellery businesses rather than to shoppers. The TKC report in the document places it among the top five players in India's organised business-to-business jewellery manufacturing industry by installed capacity as of 31 March 2026, with an annual installed capacity of 12,000 kg. It makes chains, bracelets, rings, bangles, kadas, earrings, necklaces, anklets and pendants in 14, 18 and 22 karat white, yellow and rose gold, and had a portfolio of over 27,000 designs as of 30 June 2026. Products are sold under in-house brands including Rico, SAR and Anamitra, a children's jewellery brand, and through collections such as Aalishaan Jewels, Orant and Indigo.

Customers are dealers, wholesalers, organised retailers and export buyers. The company served about 1,887 customers in FY2026, of which nine were institutional customers. Revenue from institutional and corporate clients grew from Rs 131.03 crore in FY2024 to Rs 199.58 crore in FY2025 and Rs 322.99 crore in FY2026, which was 6.83% of revenue from operations. The top five customers gave 14.32% of FY2026 revenue and the top 10 gave 22.32%, so no single buyer dominates the book.

All manufacturing runs from the Mahape facility at Trans Thane Creek Industrial Area, Navi Mumbai, which spans about 88,980.64 square feet and is held on lease. Operations that were earlier spread across several units were brought into this single campus during FY2025, and the site holds design, production, refining, quality control and administrative areas. Installed capacity has been raised from 7,000 kg in FY2024 to 9,750 kg in FY2025 and 12,000 kg in FY2026. Production was 4,004.81 kg in FY2026 and capacity utilisation was 33.37%, against 64.15% in FY2024.

The business is a single segment, the manufacture and trading of gold jewellery. Sales are concentrated in West India, which gave 51.19% of revenue from operations in FY2026 against 31.54% in FY2024. Domestic sales were 96.21% of FY2026 revenue and exports 3.79%, down from 9.61% in FY2024.

The promoters are the Jain family, their family trust and two partnership firms. Suresh Futarmal Jain is Managing Director and Snneh Suresh Jain is Executive Director and Chief Executive Officer, both associated with the company since incorporation. Revenue from operations has grown from Rs 2,350.58 crore in FY2024 to Rs 4,732.45 crore in FY2026, profit after tax from Rs 27.36 crore to Rs 173.34 crore, and total borrowings stood at Rs 560.24 crore at the end of FY2026.

The industry

The TKC report in the document values India's jewellery market at about Rs 7,778.4 billion in Fiscal 2026, growing to about Rs 15,479.7 billion by Fiscal 2031 at a CAGR of about 14.8%. The business-to-business jewellery manufacturing market inside it was about Rs 5,818.5 billion in Fiscal 2026 and is expected to reach about Rs 11,333.6 billion by Fiscal 2031 at about 14.3% CAGR. The organised share of that B2B market is expected to rise from 23.9% in Fiscal 2026 to 28.7% by Fiscal 2031, taking the organised segment from about Rs 1,390.6 billion to about Rs 3,252.7 billion at a CAGR of about 18.5%. The segment stays fragmented, with the top two players holding only about 16.5% of the market in Fiscal 2025.

Customer concentration: The top five customers gave 14.32% of revenue from operations in FY2026, 15.17% in FY2025 and 18.04% in FY2024, and the top 10 gave 22.32%, 24.43% and 24.75% in those years.