Deepa Jewellers Limited IPO

Deepa Jewellers Limited IPO closed on 3 Sept 2026. Allotment 4 Sept 2026, listing 8 Sept 2026. Price band ₹168–₹177, lot 84 shares, GMP +₹24 (13.56%). Track allotment on Allotly.

About Deepa Jewellers Limited

Deepa Jewellers is a business-to-business (B2B) company engaged in designing, processing and supplying 22-karat hallmarked gold jewellery to jewellery retail chains and standalone stores. The company also undertakes job work assignments and trades in silver ornaments, 18-karat and 20-karat gold ornaments, precious stones, and gold bullion. Its jewellery portfolio includes vaddanam which is a a traditional South Indian gold waist belt, CNC machine-cut bangles, gents kada, vanky, dandpatti, necklaces, kangan, earrings, mangtika, maatil, jada, rings, and bracelets, among other products. As of July 31, 2026, it had 16 product categories and 110 SKUs, with 15 in-house designers. The company follows an outsourced manufacturing model and works with a network of 41 karigars. It supplies gold, alloys, and precious stones to the karigars, who manufacture jewellery according to its designs and…

Strengths

• Deepa Jewellers derives 94.37% of its FY26 revenue from Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, and Kerala. Telangana was its largest market, contributing 41.58% of revenue, followed by Tamil Nadu at 23.52% and Andhra Pradesh at 19.28%.
• As of July 31, 2026, the company had 373 customers, comprising 47 jewellery retail chains and 326 standalone stores across 13 states and one Union Territory. Its customer base includes established jewellery retailers such as Joyalukkas, Kalyan Jewellers, Lalithaa Jewellery and Tribhovandas Bhimji Zaveri.
• The company claims to be one of the key processors and suppliers of vaddanam, a traditional South Indian gold waist belt, and CNC machine-cut bangles. Vaddanam contributes 41.85% and CNC machine-cut bangles account for 30.87% of total revenue from operations.
• The company offers 16 product categories with 110 SKUs as of July 31, 2026. Its portfolio covers products such as vaddanam, bangles, gents kada, vanky, necklaces, earrings, mangtika, jada, rings and bracelets, with products ranging from 2.50 grams to 300 grams.
• The company claims to have a network of 41 karigars as of July 31, 2026, including 29 with formal agreements. Of these, 25 karigars have been associated with the company for more than five years, supporting its outsourced manufacturing model.
• The company reported growth in total income from Rs 1,024.57 crore in FY24 to Rs 1,397.01 crore in FY25 and Rs 1,926.68 crore in FY26. During the same period, PAT increased from Rs 24.35 crore to Rs 40.58 crore and Rs 104.79 crore, while the debt-to-equity ratio declined from 0.84 to 0.47.

Risks

• The top 10 customers of the company contributed Rs 1,246.03 crore (64.67%), Rs 883.93 crore (63.27%), and Rs 690.19 crore (67.36%) to its revenue from operations in FY26, FY25, and FY24, respectively. Any significant reduction in business from these customers, loss of one or more key customers, or inability to maintain existing order volumes could adversely affect the company’s business and financial condition. Further, the company does not enter into long-term contracts with its customers, which may increase the risk of fluctuations in future orders.
• The company’s revenue from vaddanam stood at Rs 806.24 crore (41.85%), Rs 483.06 crore (34.58%), and Rs 375.56 crore (36.66%) in FY26, FY25, and FY24, respectively. Revenue from CNC machine-cut bangles stood at Rs 594.85 crore (30.87%), Rs 584.22 crore (41.82%), and Rs 407.59 crore (39.78%) during the same periods. Cancellation of any purchase orders or decline in demand for these products due to changing consumer preferences could hurt the company’s business, cash flows, and financial condition.
• The company generated Rs 1,818.19 crore (94.37%), Rs 1,373.81 crore (98.33%), and Rs 1,019.98 crore (99.55%) of its revenue from Southern India in FY26, FY25, and FY24, respectively. Any adverse economic, political, regulatory, or local market developments, natural disasters, extreme weather conditions or disruptions to transportation and supply chains in Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Kerala could adversely affect the company’s operations, sales, cash flows and financial condition.
• The company’s top 10 suppliers accounted for Rs 1,602.19 crore (91.81%), Rs 1,084.59 crore (82.32%), and Rs 958.28 crore (96.89%) of its total purchases in FY26, FY25, and FY24, respectively. The company does not have long-term agreements with its RBI-registered bullion bank, IIBX, independent bullion dealers, or customers supplying gold through exchanges. Any failure by key suppliers to fulfil their obligations, disruption in gold supplies, or inability to procure gold from alternate sources on commercially acceptable terms could adversely affect the company’s operations and financial condition.
• The company recorded negative cash flows from operating activities of Rs 14.73 crore in FY26 and Rs 9.86 crore in FY25, compared with positive cash flow of Rs 4.84 crore in FY24. The negative cash flows in FY26 and FY25 were primarily due to growth-driven increases in inventories and trade receivables, along with income tax payments, including interest, during the period of business expansion. While these negative cash flows were primarily driven by the company’s business expansion, it will need to generate positive free cash flows from operating activities to fund its growth plans internally and reduce its reliance on external funding, which would entail additional finance costs.
• The company’s sales are subject to seasonal fluctuations, with higher order volumes during festival periods, wedding seasons, and harvest seasons. Any slowdown in demand during these peak periods or inaccurate forecasting could result in excess or insufficient inventory, missed sales opportunities and strained cash flows, which could adversely affect the company’s operating results and financial condition.
• As of July 31, 2026, the company had total borrowings of Rs 127.41 crore. Any inability to service or repay these borrowings could adversely affect the company’s business, financial condition and results of operations.

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