Uday Jewellery Industries Limited reported a 127% increase in net profit to ₹35.77 crore for FY26, driven by significant inorganic growth from recent corporate actions.

The company’s revenue from operations surged 95% year-on-year to ₹725.63 crore, compared to ₹371.76 crore in FY25. This sharp expansion was primarily attributed to the acquisition of Sanghi Jewellers Private Limited’s business and the amalgamation of Narbada Gems and Jewellery Limited, which added high-value diamond manufacturing capabilities.

Financial Performance Highlights

The company’s total income stood at ₹733.63 crore, reflecting a robust operational scale-up. Profit before tax rose to ₹48.61 crore from ₹21.32 crore in the previous year. Earnings per share (EPS) improved significantly, with basic and diluted EPS rising to ₹10.78 from ₹4.92.

Strategic Consolidation and Growth

The financial results reflect the impact of the Scheme of Amalgamation with Narbada Gems and Jewellery Limited, sanctioned by the NCLT Hyderabad Bench in January 2026. The scheme, effective from February 19, 2026, with an appointed date of April 1, 2024, led to the allotment of 97.81 lakh equity shares to Narbada shareholders. Additionally, the integration of Sanghi Jewellers Private Limited’s operations in October 2025 contributed materially to the expanded revenue base.

Management highlighted that the combined entity now benefits from an enlarged manufacturing footprint, including a 40,000 sq. ft. facility in Hyderabad with an installed capacity of 125 kg per month. The company plans to leverage this scale to deepen its wholesale distribution network and explore B2C opportunities through franchising and e-commerce.

What the Numbers Show

A divergence between revenue growth and margin stability is evident. While revenue nearly doubled, the net profit margin remained relatively consistent at approximately 4.9%, suggesting that the inorganic growth was accretive without diluting profitability. However, working capital intensity increased significantly; inventories rose to ₹205.44 crore and trade receivables climbed to ₹133.91 crore, indicating higher capital deployment to support the larger operational scale.

Governance and Shareholder Returns

At the 27th Annual General Meeting held via video conferencing, shareholders approved a dividend of ₹0.50 per equity share for FY26. The board also approved special resolutions to enhance borrowing powers up to ₹250 crore and to approve related party transactions with Sanghi Jewellers Private Limited, underscoring the ongoing integration of group entities. The company has also applied for listing on the National Stock Exchange (NSE), aiming to broaden its investor base beyond its current BSE listing.

Uday Jewellery Industries saw a shift in promoter shareholding as Sanjay Kumar Sanghi acquired 14,87,896 equity shares through an inter-se transfer by way of gift from Sarala Sanghi.

The transaction, executed on September 25, 2026, increased Sanjay Kumar Sanghi's holding to 71,53,318 shares, representing 21.01% of the company's total voting capital. Concurrently, Sarala Sanghi's holding fell to nil from her previous position of 14,87,896 shares (4.37%).

Regulatory Disclosures Filed

The company filed disclosures under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, and Regulation 7 of the SEBI (Prohibition of Insider Trading) Regulations, 2015. The mode of acquisition was specified as an inter-se transfer by gift, with no cash consideration involved in the open market.

Shareholding Pattern Shift

The following table details the change in promoter holdings resulting from the gift transaction:

What the Numbers Show

The aggregate promoter holding remains unchanged at 21.01% of the total voting capital, indicating that the transaction was purely a redistribution within the promoter group rather than an external acquisition or dilution. The total equity share capital of the company remained constant at ₹34,05,29,250 before and after the transaction.