Motisons Jewellers Limited has successfully completed the conversion of 4,00,000 warrants into equity shares, marking a significant milestone in its fund-raising initiatives. The Fund-raising Committee of the Board of Directors approved the allotment of 40,00,000 equity shares to Nexpact Limited on December 11, 2025.

Warrant Conversion Details

The company allotted equity shares following the partial conversion of warrants from its preferential issue program:

Fund Utilization and Capital Structure

The conversion follows the company's earlier preferential issue where it had raised Rs. 42.50 crores, which was fully utilized for regulatory compliance:

Following the warrant conversion, the company's issued and paid-up capital has increased to Rs. 98.85 crores, consisting of 98,84,60,000 equity shares of Re. 1 each.

Outstanding Warrants and Future Prospects

Significant conversion potential remains with the company:

The warrants were originally allotted at Rs. 170 per warrant, with 25% paid upfront and the remaining 75% payable upon conversion. The newly allotted equity shares rank pari-passu with existing equity shares of the company.

Regulatory Compliance

Motisons Jewellers continues to demonstrate strong regulatory adherence, having previously received clean reports from CRISIL Ratings Limited as the Monitoring Agency. The company maintains transparency in fund utilization and has reported no deviations from stated objectives in the use of preferential issue proceeds.

The successful warrant conversion strengthens the company's financial position while providing growth capital for expansion in the competitive jewellery market. With substantial warrant conversion potential still available, the company is well-positioned for continued capital enhancement over the coming months.

Motisons Jewellers , a prominent player in the Indian jewelry market, has reported a mixed set of financial results for the second quarter of the fiscal year. The company's performance showcases resilience in profitability despite facing challenges in revenue generation.

Revenue Decline

For Q2, Motisons Jewellers reported revenue of 904.00 million rupees, marking a decrease from 1,100.00 million rupees in the corresponding period of the previous year. This represents a 17.82% year-on-year decline in sales, indicating potential headwinds in the market or shifts in consumer spending patterns.

Profit Surge

Despite the revenue contraction, Motisons Jewellers demonstrated remarkable improvement in its bottom line. The company's net profit more than doubled, reaching 214.00 million rupees compared to 104.00 million rupees in the same quarter last year. This translates to a substantial 105.77% increase in net profit year-on-year.

Improved Operational Efficiency

A standout aspect of the Q2 results is the significant enhancement in operational efficiency. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin saw a dramatic improvement, rising to 33.80% from 15.95% in the previous year. This substantial margin expansion suggests effective cost management and operational optimization strategies implemented by the company.

Financial Performance Overview

To provide a clearer picture of Motisons Jewellers' Q2 performance, here's a tabular representation of the key financial metrics:

Note: 'pp' denotes percentage points

Looking Ahead

As Motisons Jewellers navigates through a challenging market environment, investors and market analysts will likely keep a close watch on how the company balances its revenue growth initiatives with its demonstrated ability to improve profitability and operational efficiency.

The jewelry sector, being sensitive to economic conditions and consumer sentiment, may face ongoing challenges. However, Motisons Jewellers' ability to substantially improve its profit margins in a quarter with reduced revenue could be seen as a positive indicator of the company's resilience and adaptability.