Shankesh Jewellers IPO

Strengths · 8

• 01Profit has grown fast for two years in a row. Profit after tax went from Rs 12.82 crore in FY2024 to Rs 40.31 crore in FY2025 and then to Rs 106.68 crore in FY2026.
• 02Sales have also grown steadily, from Rs 1,061.91 crore in FY2024 to Rs 1,403.94 crore in FY2025 and Rs 1,630.93 crore in FY2026.
• 03EBITDA improved sharply, from Rs 28.60 crore in FY2024 to Rs 65.35 crore in FY2025 and Rs 157.90 crore in FY2026.
• 04The customer list has reputed jewellery brands such as Joyalukkas, Kalyan Jewellers, P. N. Gadgil & Sons and Novel Jewels of the Aditya Birla Group.
• 05RoNW was 40.07% in FY2026.
• 06The asset light model keeps the fixed cost low. Making work is given to karigars instead of running a large own factory.
• 07At the upper band of Rs 93 the post issue P/E is about 12.81 times on an EPS of Rs 7.26.
• 08Out of the Rs 367.18 crore issue, Rs 274 crore is fresh money, and Rs 158 crore of it will repay borrowings, which will bring down interest cost.

Risks · 8

• 01Profit grew much faster than sales. In FY2026 income rose only 16% but profit after tax rose 165%. Such a jump in margin may not repeat every year.
• 02PAT margin is only 2.87%. This is a low margin business where most of the sale value is the gold itself.
• 03Borrowing is high against own funds. Total borrowing was Rs 167.30 crore as on 31 March 2026 against a net worth of Rs 209.43 crore.
• 04The company depends on outside karigars. It has only 46 permanent employees and works with 72 jobworkers, so production is not fully in its own control.
• 05Sales depend on a small number of large jewellery houses. If one or two big clients cut orders, the effect will be felt immediately.
• 06Job work is a service with a fixed making charge and gives lower margin than selling own jewellery.
• 07Rs 93.18 crore of the issue is an offer for sale and that amount will not come to the company.
• 08Gold price movement affects both working capital need and customer ordering.

Shankesh Jewellers Limited was started in 2005. The company makes handmade gold jewellery on order. It works mainly in 22 karat and 18 karat gold and makes bangles, bridal jewellery, chokers, jhumkas, necklace sets, mangalsutras, rings and full sets in antique, semi antique, Calcutta, temple and gheru polish designs.

The company does not sell to the public directly. It supplies across India to other jewellers, including well known names such as Joyalukkas, P. N. Gadgil & Sons, Kalyan Jewellers, Novel Jewels of the Aditya Birla Group and Manoj Vaibhav Gems N Jewellers. It also does job work, where the client gives the gold and the design and the company only makes the jewellery for a charge.

The company follows an asset light model. It gives the making work to skilled local karigars and jobworkers, and keeps design, gold sourcing, quality check and delivery in its own hands. All jewellery is BIS hallmarked. As on 31 May 2026 the company had 46 permanent employees and worked with 72 jobworkers.

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