Sunil Gold India IPO

Strengths · 7

• 01Revenue from operations rose from Rs 317.08 crore in FY2024 to Rs 521.15 crore in FY2025 and Rs 1,341.95 crore in FY2026.
• 02Profit after tax grew from Rs 12.63 crore in FY2024 to Rs 93.42 crore in FY2026.
• 03Return on net worth was 88.82% and return on capital employed was 53.68% in FY2026.
• 04The design library grew from 48,884 designs in FY2024 to 83,321 designs in FY2026, with 16,164 new designs added in FY2026.
• 05The debt-equity ratio improved from 2.31 in FY2025 to 1.14 in FY2026.
• 06Net working capital days fell from 88 in FY2025 to 68 in FY2026.
• 07Gold processed for manufacturing rose from 418.99 kg in FY2024 to 1,029.50 kg in FY2026.

Risks · 10

• 01Customer concentration is high: the top 5 customers gave 55.22% and the top 10 gave 74.37% of FY2026 revenue from operations, and the top customer alone gave 21.25%.
• 02Manufacturing depends on 100 third-party Karigars, and the in-house Lower Parel facility is not yet operational.
• 03Operating cash flow was negative at Rs -7.13 crore in FY2026 and Rs -64.32 crore in FY2025 while profit after tax rose, so working capital absorbed the cash.
• 04Gold bullion was 97.58% of raw material purchases in FY2026, and the top 10 suppliers accounted for up to 87.40% of purchases.
• 05Six southern and western states gave 99.63% of FY2026 revenue from operations, so a regional slowdown would hit the whole business.
• 06Inventories were Rs 206.30 crore as of FY2026, 15.37% of revenue from operations, up from Rs 36.03 crore in FY2024.
• 07Total borrowings were Rs 177.46 crore in FY2026 against Rs 51.97 crore in FY2024.
• 08The entire fresh issue object is working capital of Rs 220.00 crore, and the general corporate purposes amount is not yet stated.
• 09Promoters Shrenik Mohanlal Jain and Anil Mohanlal Jain sell 25,00,000 shares each in the offer for sale, at a weighted average cost of Nil and Rs 0.07 per share.
• 10The EBITDA margin fell from 9.08% in FY2025 to 7.00% in FY2026.

Sunil Gold India Limited designs and supplies handcrafted 22-karat gold jewellery on a business-to-business basis, mainly to organised jewellery retail chains. It makes contemporary, heritage, temple-inspired and other traditional designs. The range includes maang-tikkas, earrings, chains, necklaces, chokers, armlets, bracelets, bangles, rings, bridal jewellery and complete wedding sets.

The company works on an order-driven and design-led model. Designs are developed and customised from customer requirements, market trends and regional preferences. As of 31 March 2026 it had over 83,000 jewellery designs, and 83,321 designs in its KPI table against 67,157 a year earlier. An in-house design and quality control team of 12 people supports this.

The company does not own a factory today. Manufacturing is done through a network of 100 skilled third-party Karigars under its supervision and quality control. It is setting up an in-house manufacturing facility at Lower Parel, Mumbai, which it expects to be fully operational by the end of the fourth quarter of FY2027. After that it plans a hybrid model of in-house and external Karigars.

The company started operations in 2012 from Mumbai, Maharashtra. Its registered office is in Mumbai and it has a branch office in Chennai, Tamil Nadu. It supplied customers in nine states and one Union Territory in India as of 31 March 2026, and has also supplied customers in the United Arab Emirates. Revenue from India was 99.66% of revenue from operations in FY2026.

Sales to organised jewellery retail chains were 96.76% of total income in FY2026. The company served 49 customers in that year. It is a single-segment company under Ind AS 108, so the document gives no segment-wise revenue. The promoters are Prem Mohanlal Jain, Shrenik Mohanlal Jain and Anil Mohanlal Jain, each with over 20 years of experience in the jewellery industry.

The industry

According to the CRISIL report quoted in the document, the Indian gems and jewellery market, including gold bars and coins, grew from about Rs 3,280 billion in FY2019 to Rs 8,283 billion in FY2025. It is projected to grow at a CAGR of about 9-10% between FY2026 and FY2030, reaching about Rs 15,100-15,500 billion. The Indian gold retail market rose from Rs 4,280 billion in FY2022 to an estimated Rs 6,875 billion in FY2025. Southern India accounts for about 38-43% and western India for about 22-27% of gold jewellery demand in FY2025.

Customer concentration: Top 5 customers gave 55.22% of FY2026 revenue from operations (74.53% in FY2025 and 75.74% in FY2024), and the top customer gave 21.25%.