Deepa Jewellers Limited

Deepa Jewellers Limited is an organized business-to-business (B2B) designer, processor, and supplier of hallmarked gold jewellery. Originally incorporated as a private limited company under the name "Deepa Jewellers Private Limited" in May 2016, the company was subsequently converted into a public limited company in September 2025. Operating on a capital-light, outsourced manufacturing model, the company manages a comprehensive value chain across the organized wholesale gold jewellery market. Rather than investing in and maintaining heavily staffed physical manufacturing plants, the company utilizes its dedicated creative teams to design exquisite ornaments, then outsources the physical production to a trusted network of 41 skilled karigars.

Under this outsourced model, Deepa Jewellers supplies primary gold bullion, alloys, and precious stones directly to the karigars. These artisans fabricate the finished ornaments in accordance with the company’s precise technical drawings and specifications and return the completed jewelry in exchange for making charges. This operational workflow provides the company with high flexibility and scalability to meet volatile seasonal demands without incurring heavy fixed asset capital expenditure. To ensure absolute trust across the B2B chain, all finished gold jewelry undergoes strict internal quality and structural checks before being sent to government-approved hallmarking centers for official purity certification in accordance with Bureau of Indian Standards (BIS) norms.

The company's product portfolio is highly diverse and specialized, featuring 16 distinct product categories and 110 Stock Keeping Units (SKUs) as of July 31, 2026. Plain and studded gold jewelry weights range from 2.50 grams up to 300 grams to suit varied buyer budgets and regional market tastes. Deepa Jewellers is particularly dominant in two traditional bridal and high-value categories: vaddanam (traditional South Indian bridal waistbands) and CNC machine-cut bangles. In Fiscal 2026, vaddanam sales accounted for 41.85% of total revenue (Rs 8,062.41 million), while CNC machine-cut bangles accounted for 30.87% of revenue (Rs 5,948.53 million). Combined, these two categories form the structural bedrock of the company’s product line, contributing 72.72% of its operational sales.

As a pure B2B player, the company operates with zero consumer-facing retail showrooms, wholesaling its collections directly to regional independent jewellers and national retail chains. As of July 31, 2026, the company’s active customer network extends to 373 clients across 13 states and 1 union territory in India, comprising 47 prominent jewelry retail chains and 326 standalone stores. Its key institutional retail partners include major national and regional brands such as Joyalukkas India Limited, Kalyan Jewellers India Limited, Lalithaa Jewellery Mart Limited, GRT Jewellers India Private Limited, and Manoj Vaibhav Gems 'N' Jewellers Limited. Geographically, the company's core market is heavily focused in Southern India (Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, and Kerala). To capture additional market share, the company opened a branch sales office in Vijayawada, Andhra Pradesh, in November 2025, and plans to set up an additional sales office in Bengaluru in Fiscal 2027.

Deepa Jewellers carries out all primary administrative, logistics, and design processes from its 4,464.00 square foot registered office in Basheerbagh, Himayathnagar, Hyderabad. Because 100% of historical production is outsourced to independent karigars, the company does not operate a traditional manufacturing factory, making historical physical capacity and capacity utilization metrics not applicable. However, to strengthen operational control, reduce its complete reliance on third-party karigars, and lower making charges, the company is actively setting up an in-house manufacturing facility (the "Proposed Facility") spanning 6,696.00 square feet in Hyderabad. The Proposed Facility is designed to integrate automated precision machinery, and orders have already been placed for a ProJet MJP 300W real wax 3D printer, a vacuum pressure casting machine, and an induction melting furnace. Once operational, this facility will enable rapid prototype variations, minimize gold loss through specialized filtration systems, and safeguard proprietary design confidentiality.

As per financial performance, Deepa Jewellers Limited has posted total income / net profits of Rs 1,025.73 Cr / Rs 24.35 Cr (FY24), Rs 1,400.10 Cr / Rs 40.58 Cr (FY25) and Rs 1,927.73 Cr / Rs 104.79 Cr (FY26). So as per previous financials data, the company has shown extraordinary top-line and bottom-line expansion, with total income growing at a CAGR of 37.06% and net profits surging at a CAGR of 107.46% over the last three financial periods, although this scaling has been accompanied by a leverage increase as total outstanding borrowings rose from Rs 77.93 Cr in FY24 to Rs 111.12 Cr in FY26. Company has an average EPS of Rs 8.54 and average RoNW of 45.26% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 6.10 as per NAV of Rs 29.03 as on 31.03.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 3.49. If we attribute the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue, then the asking price is at a Post-Issue P/E of around 69.88, 41.93, and 16.24 respectively. As per RHP, a comparison between listed peers shows that the peer group P/E ratio ranges from a lowest of 10.08 to a highest of 57.56, with an average P/E of 23.92, indicating that Deepa Jewellers is valued at a reasonable 32.1% discount to its listed peer average on a post-issue FY26 earnings basis.

On BRLM's front, Emkay Global Financial Services Limited and Valmiki Leela Capital Private Limited are associated with this IPO, and Emkay Global Financial Services Limited has handled 4 IPOs in the last three fiscal years. (as on 26.08.26)

• 1 Ashish Agarwal
• 2 Seema Agarwal
• 3 Dev Agarwal