Nityas Gems & Jewellery IPO (30 Sep-05 Oct) Analysis

Sep 30

7 min read

Updated: Oct 4

IPO Analysis | Mainboard (BSE and NSE) | Book Built Offer (Fresh Issue Only) | Regulation 6(1)

Based on Red Herring Prospectus dated September 24, 2026 | Lab Grown Diamond Studded Gold Jewellery, B2B and D2C | Surat, Gujarat

Nityas Gems and Jewellery Limited's registered office is at Sector 1, 6th and 7th Floor, Ratih House, Survey No. 376, TPS 4, PI 7, Paiki Part B, Parshottam Farm Compound, Opposite Podar Arcade, Varachha Road, A.K. Road, Surat 395008, Gujarat. The website is www.nityas.in. The promoters are Rajnikant Lallubhai Chanchad, Sonalben Rajnikant Chanchad and Savaliya Dhruv Janakbhai. Manvi Meet Shah is Company Secretary and Compliance Officer.

The company designs, manufactures and distributes 18 karat and 14 karat lab grown diamond studded gold jewellery, operating predominantly business to business, supplying retailers, wholesalers and trade partners, alongside a direct to consumer omnichannel retail presence.

The company served 323 B2B customers across 18 states and 2 union territories in FY2026, and has developed a design portfolio exceeding 32,000 designs as of August 31, 2026, up from approximately 3,000 designs in Fiscal 2023, produced with 122 in house karigars at an integrated manufacturing facility in Surat with installed capacity of approximately 360 kg per annum.

In July 2025, the company acquired Ayaani Diamonds and Jewellery Private Limited, previously one of the company's own key B2B customers and its D2C retail arm, as a subsidiary; Ayaani was the single largest customer in FY2025 before becoming a consolidated subsidiary. The financial year ends March 31.

Key Basics

This is a mainboard book built issue on the BSE and NSE, made under Regulation 6(1) of the SEBI ICDR Regulations, meaning the company meets the standard profitability and net worth track record test. The RHP is dated September 24, 2026. The Price Band, lot size and Bid dates remain undetermined at this stage.

Field	Value
Document Type	Red Herring Prospectus dated September 24, 2026. Price Band, lot size and Bid dates are [TBD].
Platform	Mainboard, BSE and NSE.
Issue Structure	Fresh Issue only, up to 1,44,56,000 Equity Shares. No Offer for Sale.
Face Value	Rs.5 per Equity Share
BRLM	Not identified in the extracted document
Registrar	Not identified in the extracted document
Bid Dates	[TBD]

What distinguishes this issue is the July 2025 acquisition of Ayaani Diamonds and Jewellery Private Limited, previously the company's own top B2B customer, which converted what had been arm's length trade sales into consolidated group revenue and materially reshapes how prior year revenue and customer concentration figures should be read. This is a Fresh Issue only, with no promoter or investor exit.

How Will the IPO Money Be Used?

This is a Fresh Issue only, with no Offer for Sale.

Object	Amount (Rs. Lakhs)	Details
Working capital	7,000.00	To fund incremental working capital as the business scales; the company states the LGD jewellery industry is inherently working capital intensive, requiring upfront gold procurement while extending customer credit.
General corporate purposes	[TBD]	Capped at 25% of Gross Proceeds.
Total Net Proceeds	[TBD]	To be finalised once the Issue Price is set.

This is the simplest use of proceeds in this batch: a single quantified object, working capital, with no capital expenditure or debt repayment line. The object has been certified by a chartered accountant for the working capital requirement but not appraised by a bank or financial institution.

Financial Performance

Revenue, EBITDA, and Profitability

Consolidated (Rs. Lakhs)	FY2026	FY2025	FY2024
Revenue from Operations	20,289.40	9,684.50	5,365.50
Profit After Tax (Owners)	2,277.30	979.00	402.60
EPS, Basic and Diluted (Rs.)	5.52	4.37	1.83
EBITDA Margin	15.27%	NA	10.21%
Return on Net Worth	43.75%	70.17%	122.44%

Revenue grew from Rs.5,365.50 Lakhs in FY2024 to Rs.20,289.40 Lakhs in FY2026, a 94.46% CAGR by the RHP's own calculation, and PAT attributable to owners grew from Rs.402.60 Lakhs to Rs.2,277.30 Lakhs over the same period. EBITDA margin improved from 10.21% in FY2024 to 15.27% in FY2026.

RoNW has fallen sharply every year despite growing absolute profit, from 122.44% in FY2024 to 43.75% in FY2026, as the equity base expanded following the July 2025 acquisition and related share issuances.

Customer concentration eased significantly: top 10 customers fell from 84.24% of revenue in FY2024 to 55.49% in FY2026, though this trend is affected by the Ayaani acquisition converting a former top customer into a consolidated subsidiary rather than being purely organic diversification.

Balance Sheet and Cash Flow

Consolidated (Rs. Lakhs)	FY2026	FY2025	FY2024
Total Assets	11,641.50	3,986.60	1,174.60
Total Equity	7,943.00	2,257.20	532.90
Inventories	6,359.20	2,621.80	526.90
Trade Receivables	2,145.80	1,061.00	406.40
Net Cash from Operating Activities	(1,473.20)	(1,005.20)	(105.10)
NAV per Share (Rs.)	15.13	NA	NA

Operating cash flow has been negative in all three years shown and grew sharply more negative, from Rs.105.10 Lakhs used in FY2024 to Rs.1,473.20 Lakhs used in FY2026, driven by inventory growing from Rs.526.90 Lakhs to Rs.6,359.20 Lakhs over the same period, consistent with the company's own description of the business as working capital intensive.

The balance sheet grew nearly tenfold in FY2026, reflecting both the Ayaani acquisition and continued organic scaling. Right of use assets rose sharply in FY2026, primarily attributable to consolidating Ayaani's leased retail store and office premises.

How Does It Compare to Peers?

The RHP names three listed peers: Golkunda Diamonds and Jewellery, Goldiam International and Renaissance Global, based on closing NSE and BSE prices as of September 10, 2026. Nityas Gems and Jewellery's own P/E cannot be shown until the Price Band is set.

Company	EPS (Rs.)	P/E (x)	NAV (Rs.)	RoNW (%)
Nityas Gems and Jewellery	5.52	[TBD]	15.13	43.75%
Golkunda Diamonds and Jewellery	19.66	16.61	115.22	18.81%
Goldiam International Limited	15.11	21.69	97.95	18.38%
Renaissance Global Limited	8.40	18.63	140.62	6.09%

Nityas Gems and Jewellery's RoNW of 43.75% is far higher than all three named peers, none of which exceed 19%, though its NAV per share of Rs.15.13 is well below all three, reflecting a much smaller and more recently expanded equity base. All three peers are considerably larger by revenue, from Rs.28,150.20 Lakhs to Rs.2,81,303.10 Lakhs against the company's Rs.20,289.40 Lakhs.

Key Risks

• In July 2025 the company acquired Ayaani Diamonds and Jewellery Private Limited, previously its own top B2B customer, converting what had been arm's length third party sales into consolidated group revenue; prior year revenue and customer concentration trends should be read with this structural change in mind rather than as purely organic growth or diversification.

• Operating cash flow has been negative in all three years shown and has grown sharply more negative, from Rs.105.10 Lakhs used in FY2024 to Rs.1,473.20 Lakhs used in FY2026, as inventory grew more than twelve fold over the period.

• Top 10 customers were still 55.49% of FY2026 revenue even after the improvement from 84.24% in FY2024, and that improvement is partly attributable to the Ayaani acquisition itself rather than independent customer base broadening.

• RoNW has fallen sharply every year despite growing absolute profit, from 122.44% in FY2024 to 43.75% in FY2026, as the equity base expanded rapidly following the acquisition and related capital raises.

• The business is working capital intensive by the company's own description, requiring upfront gold procurement while extending customer credit; the entire quantified Net Proceeds are directed at funding this same working capital cycle rather than diversifying the funding base.

• The company operates in the lab grown diamond segment, where pricing and demand depend on continued consumer acceptance relative to natural diamonds and on evolving production technology; the RHP's own industry data comes from a CareEdge Report commissioned and paid for by the company.

• The company operates a single manufacturing facility in Surat, Gujarat, so any disruption there directly affects the entire business.

• All three named listed peers are considerably larger by revenue, from roughly 1.4 to 13.9 times the company's own FY2026 revenue, so the RoNW comparison should be read alongside this scale gap.

• This report could not identify the Book Running Lead Manager or Registrar from the extracted text; investors should confirm these directly from the final RHP.

• The lab grown diamond jewellery market's own growth projections, cited from the CareEdge Report, assume continued technological advancement and rising consumer acceptance that may not materialise as forecast.

• The company's own risk disclosure names dependence on a limited number of B2B customers as a specific risk despite the recent improvement in concentration.

Positives to Note

• Revenue grew from Rs.5,365.50 Lakhs in FY2024 to Rs.20,289.40 Lakhs in FY2026, a 94.46% CAGR by the RHP's own calculation, and PAT attributable to owners grew from Rs.402.60 Lakhs to Rs.2,277.30 Lakhs over the same period.

• EBITDA margin improved from 10.21% in FY2024 to 15.27% in FY2026, evidence of genuine operating leverage alongside the acquisition driven growth.

• RoNW of 43.75% in FY2026 is far ahead of all three named listed peers, none of which exceed 19%.

• The design portfolio has grown from approximately 3,000 designs in Fiscal 2023 to over 32,000 as of August 2026, supported by 122 in house karigars and CAD/CAM enabled processes, evidence of genuine design and manufacturing capability rather than a purely acquisition driven growth story.

• The company operates across 18 states and 2 union territories, providing genuine geographic diversification within India.

• The integrated B2B and D2C model, now including Ayaani's retail operations, gives the company visibility into end consumer preferences that can feed back into its core B2B design and manufacturing business.

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