IPO closes on 3 Sep'26
Deepa Jewellers Limited
Minimum Investment
₹ 14,868 / 84 shares
Our Verdict:
Neutral
- Deepa Jewellers is an organized B2B designer, processor and supplier of hallmarked gold jewellery specialising in vaddanam and CNC machine cut bangles; revenue grew from ₹1,024.57 crore (FY24) to ₹1,926.68 crore (FY26), and PAT grew sharply from ₹24.35 crore to ₹104.79 crore, more than doubling in FY26 alone.
- Despite the strong reported profit growth, operating cash flow was negative in both FY25 and FY26, and actually worsened in FY26 (₹14.73 crore used, up from ₹9.86 crore in FY25) — a gap between reported earnings and cash generated that's worth understanding.
- Price Band ₹168–₹177; Issue of ₹459.72 crore (₹250 crore Fresh Issue + ₹209.72 crore Offer for Sale); Lot Size 84 shares. Anchor Aug 31, Opens Sept 1, Closes Sept 3, Allotment Sept 4, tentative Listing Sept 8, 2026 on BSE/NSE. GMP ~₹44 (~25%) as of Sept 1, the opening day.
- Customer concentration (top 10 = 64.67% of FY26 revenue), product concentration (vaddanam + CNC bangles = 72.72% of revenue), geographic concentration (Southern India = 94.37%), and supplier concentration (top 10 = 91.81% of purchases) are all elevated — a business with several overlapping single points of dependency.
- Strong, accelerating revenue and profit growth, an asset-light model, and a genuinely clean compliance record are real positives, and the ~25% GMP suggests healthy near-term demand, but the multiple concentration risks stacked together (customer, product, geography and supplier) plus the widening gap between profit and operating cash flow are worth weighing carefully before assuming the FY26 trajectory is fully sustainable.
About the company
Founded in
14 Jan'16
Managing director
Ashish Agarwal
- Deepa Jewellers is an organized business-to-business (B2B) company engaged in designing, getting manufactured, and supplying hallmarked 22-karat gold jewellery, primarily specialising in vaddanam (waist belts) and CNC machine cut bangles, along with other products including gents kada, vanky, dandpatti, gundlamala haaram, kangan, earrings and rings.
- The Company follows an outsourced manufacturing model supported by a network of 41 karigars, who manufacture jewellery according to the Company's designs and specifications using raw materials (gold, alloys and precious stones) supplied by the Company; an in-house manufacturing facility spanning 6,696 sq. ft. in Hyderabad is under construction and expected to become operational in the first half of Fiscal 2027.
- As of July 31, 2026, the Company served 373 customers (47 jewellery retail chains and 326 standalone stores) across 13 states and 1 union territory in India, with primary presence in Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala.
- Promoters: Ashish Agarwal (Chairman & Managing Director, 25+ years of experience), Seema Agarwal (Non-Executive Non-Independent Director, 25+ years of experience) and Dev Agarwal (Whole-time Director, 5+ years of experience).
STRENGTHS
- Established B2B Position in Gold Jewellery: An organized B2B designer, processor and supplier of hallmarked gold jewellery, specialising in vaddanam (waist belts) and CNC machine cut bangles, serving 373 customers across 13 states and 1 union territory.
- Revenue and Profit Growth: Revenue from operations grew from ₹1,024.57 crore (FY24) to ₹1,926.68 crore (FY26); PAT grew from ₹24.35 crore to ₹104.79 crore over the same period.
- Asset-Light Outsourced Manufacturing Model: Operates through a network of 41 karigars who manufacture jewellery to the Company’s designs and specifications, providing operational flexibility without significant capital investment; an in-house facility is under construction in Hyderabad.
- Long-Standing Customer Relationships: Well-established relationships with jewellery retail chains and standalone stores across Southern India.
- § Clean Compliance Record: No auditor qualifications, reservations or adverse remarks, and no litigation proceedings pending against the Company, its Promoters, Directors, KMPs or Senior Management.
RISK FACTORS
- Customer Concentration: Top 10 customers contributed 64.67% of FY26 revenue from operations (63.27% FY25, 67.36% FY24); loss of these customers could significantly affect the business.
- Product Concentration: Vaddanam and CNC machine cut bangles together made up 72.72% of FY26 revenue from operations; cancellation of purchase orders for these two product types could materially affect results.
- Geographic Concentration in Southern India: 94.37% of FY26 revenue came from Southern India, exposing the Company to regional economic and market risks.
- Supplier Concentration and No Long-Term Contracts: Top 10 suppliers accounted for 91.81% of FY26 total purchases, with no long-term contracts in place with bullion dealers, banks or the India International Bullion Exchange.
- Negative and Worsening Operating Cash Flows: Operating cash flow was negative in FY25 (₹9.86 crore used) and worsened further in FY26 (₹14.73 crore used), even as reported profit grew sharply.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ ₹459.72 crore
Fresh Issue
₹ ₹250 crore
OFS
₹ ₹209.72 crore
Price range
₹ 168 - 177
Lot size
84 shares
Issue Objective
- Net Proceeds from the Fresh Issue (₹250 crore) are proposed to be used for: (i) funding long-term working capital requirements towards procurement, maintenance and scaling up of inventory (~₹215 crore); and (ii) general corporate purposes (balance amount, capped at 25% of Gross Proceeds).
Dates
Bidding open
1 Sep'26
Bidding close
3 Sep'26
Allotment date
4 Sep'26
Refund date
5 Sep'26
Listing
8 Sep'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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