Nityas Gems and Jewellery IPO DRHP: ₹70 crore fresh issue; revenue CAGR at 94.46%
- Nityas Gems files for ₹70 crore SME IPO to fund working capital
- Revenue grew at 94.46% CAGR to ₹202.89 crore in FY2026
- PAT surged to ₹22.32 crore with improving EBITDA margins
- Key risks include negative operating cash flows and high supplier concentration
*this image is generated using AI for illustrative purposes only.
Nityas Gems and Jewellery Limited, a Surat-based designer and manufacturer of lab-grown diamond (LGD) studded gold jewellery, has filed its Draft Red Herring Prospectus for a ₹70 crore SME IPO. The company, incorporated in 2022, operates an integrated B2B and D2C model and recorded a revenue CAGR of ~94.46% over the last two fiscal years.
About the Company
Headquartered in Surat, Gujarat, Nityas Gems and Jewellery Limited specializes in the design, manufacturing, and sale of LGD jewellery. The company serves both business-to-business and direct-to-consumer segments. Its B2B operations supply organized retailers, standalone retailers, and wholesalers across 18 Indian states and two union territories, with international presence in the UAE, Australia, Canada, Taiwan, and Kenya. The B2B customer base expanded from 74 in FY2024 to 323 in FY2026.
In July 2025, the company acquired Ayaani Diamonds and Jewellery Private Limited, establishing a D2C retail presence with 10 stores across 8 cities under the 'Ayaani' brand. Manufacturing is conducted at a ~7,000 sq. ft. facility in Surat with an installed capacity of 360 kg per annum. The facility utilizes CAD/CAM tools and employs 122 in-house Karigars and 29 designers, supporting a portfolio of over 32,000 jewellery designs.
Financial Performance
The company has demonstrated rapid growth in revenue and profitability. Revenue from operations increased from ₹53.66 crore in FY2024 to ₹202.89 crore in FY2026, representing a two-year CAGR of ~94.46%. Profit After Tax (PAT) grew from ₹4.02 crore to ₹22.32 crore during the same period, a CAGR of ~135.48%. EBITDA margins improved from 10.21% in FY2024 to 15.27% in FY2026.
| Metric | FY2024 (₹ Crore) | FY2025 (₹ Crore) | FY2026 (₹ Crore) |
|---|---|---|---|
| Revenue from Operations | 53.66 | 96.85 | 202.89 |
| Profit After Tax (PAT) | 4.02 | 9.79 | 22.32 |
| Total Assets | 11.75 | 39.87 | 116.42 |
| Total Equity | 5.33 | 22.57 | 79.43 |
| Operating Cash Flow | -1.05 | -10.05 | -14.73 |
Despite strong top-line growth, the company reported negative cash flows from operating activities across all three years, driven by high inventory levels and trade receivables.
Why the Company Is Raising Funds
The entire ₹70 crore fresh issue is designated for funding working capital requirements for Fiscal 2027. The company’s working capital needs have risen sharply, from ₹6.77 crore in FY2024 to ₹44.95 crore in FY2026, with projections indicating a requirement of ₹110.31 crore in FY2027. This increase is attributed to upfront raw material procurement, inventory maintenance, and credit extension to customers. Additionally, up to 25% of gross proceeds may be allocated to general corporate purposes, including brand building and strategic initiatives.
Business Strengths
Nityas benefits from an integrated omnichannel model that reduces dependency on single channels. The acquisition of Ayaani Diamonds has diversified revenue streams through physical retail stores. The company holds a competitive position in the high-growth LGD segment, where the Indian market is projected to expand at a CAGR of 15.8% through CY2030. In-house manufacturing capabilities, supported by a large design portfolio and skilled workforce, enable quality control and customization.
Key Risks
The company faces significant customer concentration risk, with the top 10 customers accounting for 55.49% of revenue in FY2026. Supplier concentration is also high, with the top 10 suppliers representing 86.16% of total purchases. The business is exposed to raw material price volatility, as gold and lab-grown diamonds constitute over 90% of purchases, without a comprehensive hedging mechanism. Furthermore, the attrition rate among Karigars rose to 55.45% in FY2026, posing operational challenges. The company also relies on a single manufacturing facility in Surat.
Important IPO Dates
- IPO Opening Date: 30-Sep-2026
- IPO Closing Date: 05-Oct-2026
- Allotment Date: 06-Oct-2026
- Listing Date: 08-Oct-2026
Offer Details
The offering comprises a fresh issue of equity shares aggregating up to ₹70 crore. There is no offer for sale component. Specific details regarding the price band, lot size, and face value are not yet disclosed in the current data set.
Bottom Line
Nityas Gems and Jewellery presents a high-growth profile in the nascent LGD market, with revenue nearly quadrupling in two years. However, the investment thesis relies heavily on the effective deployment of IPO proceeds to address persistent negative operating cash flows and mitigate risks related to customer concentration and workforce attrition.
How will Nityas Gems address the persistent negative operating cash flows and rising working capital requirements post-IPO to ensure sustainable liquidity?
What specific strategies will the company implement to mitigate the high customer and supplier concentration risks while scaling its B2B network?
How does the planned allocation of IPO proceeds for brand building aim to differentiate the 'Ayaani' D2C retail segment from established competitors in the growing lab-grown diamond market?
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