IPO closes on 26 Feb'26
PNGS Reva Diamond Jewellery Ltd
Minimum Investment
₹ 12,352 / 32 shares
Our Verdict:
Avoid
- PNGS Reva Diamond Jewellery Ltd (Reva) represents a structurally differentiated play within India’s organised diamond jewellery retail segment. Unlike gold-centric peers whose margins are constrained by commodity-linked revenues, Reva’s diamond-focused portfolio enables significantly superior profitability, with PAT margins of 23% in FY25 — among the highest in the Indian jewellery retail industry.
- From a valuation perspective, the IPO appears reasonably priced and well below the broader industry average.
- However, investors should remain cautious. The company has demonstrated uneven growth in revenue and profitability, including a noticeable decline in FY24, followed by an improvement in the IPO year. This raises questions regarding the sustainability and consistency of its financial performance.
- Additionally, the business model exhibits high promoter dependency. 33 out of 34 stores operate under a shop-in-shop (SIS) model within P. N. Gadgil and Sons outlets. Any adverse changes to franchise or trademark agreements could materially affect the business.
- Considering these factors, it would be prudent to avoid the IPO at this stage and instead monitor the company’s performance over the next few quarters before taking an investment decision.
About the company
Founded in
20 Dec'24
Managing director
Amit Modak
- Established as an independent entity in January 2025 following a strategic slump sale from its 190-year-old legacy promoter, P. N. Gadgil & Sons, the company operates under its flagship brand “Reva” as a focused, design-led diamond jewellery retailer with a strong presence in western India.
- Reva’s portfolio is primarily skewed towards diamond-studded jewellery, including rings, earrings, pendants, necklaces, mangalsutras and bridal collections. Its studded-heavy product mix supports relatively higher gross margins compared to plain gold-focused peers.
- Currently, the company operates 34 stores across 25 cities in the states of Maharashtra, Gujarat and Karnataka, predominantly under the FOCO (Franchisee Owned, Company Operated) and FOFO (Franchisee Owned, Franchisee Operated) models.
STRENGTHS
- Brand Heritage: The company benefits from the 190-year legacy of its Corporate Promoter, P. N. Gadgil and Sons, which provides a strong foundation of customer trust and immediate brand recognition in the jewellery sector. This association enables access to established sales channels and deep industry expertise.
- Financial Performance: In FY25, revenue from operations increased to Rs 258.18 crore from Rs 195.63 crore in FY24. After a decline in EBITDA and PAT in FY24, the company delivered a sharp recovery in FY25, reporting EBITDA of Rs 79.61 crore and PAT of Rs 59.47 crore.
- Diversified Portfolio: The company caters to a broad demographic through a versatile product range spanning everyday wear to premium bridal collections. Entry-level pricing begins at ~Rs 20,000, enhancing affordability and accessibility, while premium offerings extend up to Rs 40,00,000.
- Superior Margin Profile: Unlike gold-centric peers whose margins are constrained by commodity-linked revenues, Reva’s diamond-focused portfolio supports significantly higher profitability. The company reported PAT margins of 23% in FY25 — among the highest in the Indian jewellery retail industry.
RISK FACTORS
- Geographic Concentration: Maharashtra contributes ~97% of total revenue, with just 5 stores accounting for ~31% of H1FY26 revenue. Any regional economic slowdown, regulatory changes or adverse social developments in the state could have a disproportionate impact on the company’s business and financial performance.
- Promoter Dependency: 33 out of 34 stores operate under a shop-in-shop (SIS) model within P. N. Gadgil and Sons outlets. Any adverse changes to the franchise or trademark arrangement, could materially affect Reva’s customer footfall, sales generation and overall operations.
- Competitive Risk: India’s lab-grown diamond (LGD) jewellery market grew from Rs 2,158.8 crore in CY22 to Rs 2,855.8 crore in CY24. With similar optical properties to natural diamonds but lower price points, LGDs are gaining traction in retail. Increasing adoption could impact demand and pricing power for natural diamond jewellery, which forms the core of Reva’s revenue mix.
- High Inventory Holding Risk: Inventory days stood at 316 in FY23, 364 in FY24 and 360 in FY25, effectively representing close to a full year of inventory. Volatility in gold and diamond prices can directly impact inventory valuation, leading to significant working capital pressure and mark-to-market risks on the balance sheet.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 380 crore
Fresh Issue
₹ 380 crore
OFS
₹ -
Price range
₹ 367 - 386
Lot size
32 shares
Issue Objective
The net proceeds from the fresh issue are proposed to be utilised for the following purposes:
- Funding capital expenditure for the setting up of 15 new stores;
- Meeting marketing and promotional expenses associated with the launch of these new stores; and
- General corporate purposes.
Dates
Bidding open
24 Feb'26
Bidding close
26 Feb'26
Allotment date
27 Feb'26
Refund date
2 Mar'26
Listing
4 Mar'26
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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