Deepa Jewellers
Deepa Jewellers is an organised B2B designer, processor and supplier of hallmarked gold jewellery, primarily serving customers across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala. Unlike traditional retailers, the company operates primarily as a B2B player, supplying 22 karat gold jewellery to retail chains and standalone jewellery stores rather than selling directly to end consumers.
Follows an asset-light outsourced manufacturing model, supported by a network of 41 karigars. Its in-house design team develops jewellery based on customer requirements, prevailing trends and regional preferences, allowing it to offer a diverse and customised product portfolio. Under the outsourced model, the company provides gold, alloys and precious stones to karigars, who manufacture the jewellery according to the company?s designs and specifications and return the finished ornaments against making charges.
Its product portfolio primarily comprises plain gold and precious-stone studded jewellery, including vaddanam (waist belts), CNC machine-cut bangles, gents kada, vanky (armlets), dandpatti (bajuband), gundlamala haaram, necklaces, kangan, earrings, mangtika, maatil, champasaralu, jada, rings and bracelets. Vaddanam and CNC machine-cut bangles are among its key products, with vaddanam traditionally worn by South Indian women as a symbol of prosperity and cultural heritage, while CNC machine-cut bangles cater to both bridal and daily wear segments. The company also undertakes job-work services and trades in jewellery and related products, providing multiple revenue streams across the jewellery value chain.
Its revenue is generated through three key business streams: (1) Sale of products through processing, (2) Sale of services through job work and (3) Sale of products through trading. Sale of products through processing remained the dominant revenue stream, contributing 99% of revenue in FY26, while job work and trading accounted for the balance.
As of July 31, 2026, the company had a diversified product portfolio comprising 16 products and 110 SKUs across its various product categories, offering a broad range of jewellery products to cater to different customer requirements.
In FY26, its key products, vaddanam and CNC machine-cut bangles, contributed 41.85% and 30.87% of revenue, respectively. The company sold a total of 1,644 kg of jewellery during FY26.
As of July 31, 2026, the company had a customer network spanning 13 states and one union territory, comprising 373 customers, including 47 jewellery retail chains and 326 standalone stores. Average revenue per customer stood at Rs 9 crore in FY26.
The company does not operate any standalone retail stores. However, it is setting up a 6,696 sq ft in-house manufacturing facility in Hyderabad, which is expected to be operational before the end of H1 FY27. The facility will be equipped with a real wax 3D printer, vacuum pressure casting machine and induction melting furnace. As of March 31, 2026, the company had incurred Rs 2.28 crore towards the facility, funded entirely through internal accruals.
The proposed facility is expected to reduce dependence on karigars, improve production timelines and lower making charges, thereby providing greater control over manufacturing costs. It will also enable standardized processes, machine-led precision and direct quality supervision, supporting consistency in craftsmanship and adherence to customer specifications.
The company is also expanding its presence in South India through new sales offices, having opened a leased office in Vijayawada in November 2025 and planning to establish another office in Bengaluru in FY27.
The company has an in-house design team of 15 designers as of July 31, 2026, which develops new products based on customer requirements, regional preferences and prevailing market trends.
The company participates in B2B jewellery exhibitions across key markets such as Mumbai, Hyderabad, Bengaluru, Chennai and Vijayawada to showcase its latest collections, acquire new customers and assess potential markets for expansion. It also uses a dedicated mobile application for B2B customers to remotely access its jewellery catalogue, with users increasing to 312 in FY26 from 152 in FY25.
The company?s jewellery is hallmarked in accordance with applicable regulatory standards, providing assurance regarding the purity and authenticity of the gold used. In FY26, Hallmark Jewellery contributed 91.5% to sales.
Plans to expand its product portfolio by adding two new product categories and 22 SKUs by FY27 to its existing portfolio of 16 products and over 110 SKUs. The new offerings are expected to include paper casting and nakshi kundan jewellery, with a focus on catering to evolving B2B customer preferences and expanding into segments with higher margin potential. The company also intends to increase its design team from 15 to 20 members to accelerate new product and SKU development.
Offer and its objects
The IPO comprises fresh issue of equity shares worth up to Rs 250 crore and an offer for sale of 1,18,48,340 equity shares aggregating up to Rs 209.72 crore by Ashish Agarwal and Seema Agarwal.
Price band for the IPO is Rs 168 to Rs 177 per equity share of face value Rs 2 each.
The objectives of the fresh issue include Rs 215 crore for funding long-term working capital requirements towards procurement, maintenance and scaling up of inventory, and remaining amount for general corporate purpose.
The promoters are Ashish Agarwal, Seema Agarwal and Dev Agarwal. The promoters and promoter group hold an aggregate of 8,19,99,800 equity shares, aggregating to 100% of the pre-offer issued and paid-up equity share capital. Their post IPO shareholding is expected to be around 73%.
The issue, through the book-building process, will open on 1 Sept 2026 and will close on 3 Sept 2026.
Strengths
Specialized B2B jewellery player with strong presence in vaddanam and CNC machine-cut bangles, catering to regional preferences.
Diverse product portfolio with customized design capabilities, comprising 16 product categories and 110 SKUs across varied designs and weight ranges of 2.5 grams to 300 grams.
Its asset light model provides flexibility to scale production in line with demand while limiting the need for significant manufacturing-related capital investment.
Long-standing relationships with leading jewellery retail chains and standalone stores, including Joyalukkas India, Kalyan Jewellers India, Lalithaa Jewellery Mart, Manoj Vaibhav Gems ?N? Jewellers and Tribhovandas Bhimji Zaveri, among others.
Positioned to cater to rising B2B jewellery demand, driven by weddings, festivals and other occasions, supported by its diverse product portfolio, regional expertise and ability to offer customized designs.
Established multi-channel procurement network, sourcing gold and silver through RBI-registered bullion banks, independent bullion dealers, the India International Bullion Exchange and exchanges from customers, while sourcing gemstones from key domestic and international markets.
Upcoming in-house manufacturing facility in Hyderabad is expected to enhance production capacity, improve turnaround times and support scalability.
Extensive experience of promoters and senior management personnel.
Weaknesses
High dependence on vaddanam and CNC machine-cut bangles, which together accounted for 72.72% of revenue in FY26. Any cancellation or reduction in purchase orders for these products could adversely affect business.
Volatility in prices and availability of gold bullion can affect jewellery demand, inventory values and working capital requirements.
High geographical concentration in Southern India exposes it to regional economic and local market conditions. South India accounted for 94.37% of revenue in FY26, with Telangana alone contributing 41.58%.
High supplier concentration exposes the company to supply-chain risks, with its top two suppliers accounting for 39.61% of total purchases in FY26.
Dependence on third-party karigars for manufacturing exposes the company to production delays, quality risks and higher costs, particularly as some karigars are not bound by formal agreements.
Experienced negative cash flows from operating activities in FY25 and FY26.
High working-capital requirements, as its B2B jewellery manufacturing model requires substantial funds for raw material procurement and inventory.
Limited protection for jewellery designs, as the company does not register its designs under the Designs Act, 2000, increasing the risk of imitation by competitors.
Valuation
Net sales increased 38% to Rs 1,926.68 crore in FY26 as compared with FY25. The OPM improved 359 bps to 7.6%, leading to 161% increase in OP to Rs 146.34 crore. OI fell 66% to Rs 1.05 crore. Interest cost rose 45% to Rs 6.31 crore. Depreciation cost went up 182% to Rs 0.74 crore. PBT surged 158% to Rs 140.33 crore. Tax expenses were Rs 35.55 crore as compared with Rs 13.89 crore. PAT soared 158% to Rs 104.79 crore.
The FY26 EPS on post-issue equity works out to Rs 10.9. At the upper price band of Rs 177, P/E is 16.
Listed peers such as Khazanchi Jewellers traded at FY26 P/E of 22, RBZ Jewellers at FY26 P/E of 11, Shanti Gold International traded at FY26 P/E of 13, and Sky Gold & Diamonds at FY26 P/E of 46 as on 31 Aug 2026. OPM and ROE stood at 7.6% and 56.45%, respectively, in FY26. These were 6.11% and 32.46% for Khazanchi Jewellers, 14.43% and 20.11% for RBZ Jewellers, 9.86% and 37.34% for Shanti Gold International 6.9% and 23.88% for Sky Gold & Diamonds, respectively.
| Deepa Jewellers: Issue Highlights | |
| For Fresh Issue Offer size (in no of shares) |
|
| - On lower price band | 1,48,80,952 |
| - On upper price band | 1,41,24,293 |
| Offer size (in Rs crore) | 250 |
| For Offer for Sale Offer size (in Rs crore) |
|
| - On lower price band | 199.05 |
| - On upper price band | 209.72 |
| Offer size (in no of shares) | 1,18,48,340 |
| Price band (Rs) | 168-177 |
| Minimum Bid Lot (in no. of shares) | 84 |
| Post issue capital (Rs crore) |
|
| - On lower price band | 19.38 |
| - On upper price band | 19.22 |
| Post-issue promoter & Group shareholding (%) | 73 |
| Issue open date | 01-09-2026 |
| Issue closed date | 03-09-2026 |
| Listing | BSE, NSE |
| Rating | 43/100 |
| Deepa Jewellers: Restated Financials | |||
|
| 2403 (12) | 2503 (12) | 2603 (12) |
| Sales | 1,024.57 | 1,397.01 | 1,926.68 |
| OPM (%) | 3.49% | 4.01% | 7.60% |
| OP | 35.77 | 56.00 | 146.34 |
| Other inc. | 1.16 | 3.09 | 1.05 |
| PBIDT | 36.93 | 59.09 | 147.39 |
| Interest | 3.96 | 4.36 | 6.31 |
| PBDT | 32.97 | 54.73 | 141.07 |
| Dep. | 0.29 | 0.26 | 0.74 |
| PBT | 32.68 | 54.47 | 140.33 |
| Share of Profit/(Loss) from Associates/JV | - | - | - |
| PBT before EO | 32.68 | 54.47 | 140.33 |
| Exceptional items | - | - | - |
| PBT after EO | 32.68 | 54.47 | 140.33 |
| Taxation | 8.34 | 13.89 | 35.55 |
| PAT | 24.34 | 40.58 | 104.79 |
| EPS (Rs)* | 2.5 | 4.2 | 10.9 |
| * EPS is annualized on post issue equity capital of Rs 19.22 crore of face value of Rs 2 each | |||
| # EPS is not annualised due to seasonality of business |
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| EO: Extraordinary items. EPS is calculated after excluding EO and relevant tax |
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| Figures in Rs crore |
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| Source: Capitaline Corporate Database |
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