PNGS Reva IPO Review: Apply or Avoid?

PNGS Reva Diamond Jewellery (“Reva”) is a retail jewellery brand that mainly sells diamond-studded, precious stone, and platinum jewellery through stores and in-store counters, with many products starting around ₹20,000. Its IPO runs from 24-26 Feb 2026 at ₹367-₹386 per share, raising ₹380 crore as a 100% fresh issue (no promoter selling).

In this explainer, we’ll break down how PNGS Reva earns money, where the IPO funds will go (especially the 15 new stores), the biggest strengths and risks, peer comparison, valuation comfort, and what the financial trend is really saying.

IPO Overview

• IPO Date: 24 to 26 Feb, 2026
• Total Issue Size: ₹380 crore
• Price Band: ₹367 to ₹386 per share
• Minimum Investment: ₹12,352
• Lot Size: 32 Shares
• Tentative Allotment Date: Feb 27, 2026
• Listing Date: Mar 4, 2026 (Tentative)

How PNGS Reva Makes Money

• Reva sells jewellery through a “shop-in-shop” setup (a small Reva counter inside a bigger partner store), so it gets good locations without building full stores from day one; as of Mar 31, 2025, it ran 33 such outlets across 25 cities, plus only 1 standalone store. This model can reduce high fixed costs like store build-out and help the brand ride on existing walk-in customers.
• It does not run its own factories; it uses in-house designs and third-party makers (54+ external manufacturers/artisans), buys finished jewellery, and sells it to customers through its retail network. In simple terms, it focuses on “design + selling”, while specialists do the “making”.
• The brand is linked to its corporate promoter, P.N. Gadgil & Sons, with a 190+ year legacy, which can help trust-building for jewellery where buyers care deeply about reputation. Trust matters because many customers buy diamonds for weddings and big life moments, where they don’t want surprises.
• The next growth engine is shifting from “mostly counters inside promoter stores” to “more brand-exclusive stores”, with a plan to open 15 new exclusive stores by FY28 to build stronger Reva-only visibility. In simple words, it's moving from “a strong kiosk inside a mall” to “your own full shop on the main road”.

Objectives of the IPO

• Open 15 brand-exclusive stores: PNGS Reva plans to use ₹286.56 crore to set up 15 new exclusive stores by FY28 (store interiors, electrical fittings, and especially inventory (jewellery stock) to fill those stores). This is the core “expansion story” behind the IPO.
• Marketing for new markets: It has earmarked ₹35.40 crore for marketing and promotions so people in new cities notice and remember the Reva brand. For a brand-led retail business, this spend is meant to create demand, not just decorate the brand.
• General corporate purposes: The remaining money will go to general corporate needs like working capital (cash needed to run daily operations), lease deposits, salaries, rent, and admin costs.

Strengths:

• Steady growth with profits: Revenue from operations increased from ₹198.85 crore in FY23 to ₹258.18 crore in FY25. Profit after tax (PAT) rose from ₹51.75 crore to ₹59.47 crore in the same period, which means the company did not just sell more, it also kept more profit.
• ​Cost-light store model supports returns: Out of 34 stores, 33 run on a “shop-in-shop” model (small Reva counters inside the corporate promoter’s, P.N. Gadgil & Sons, stores), and only 1 is a standalone company-owned store. This helps save on big upfront store costs, which also supported returns on equity - RoE of 34.08% in FY25 (roughly ₹34 profit for every ₹100 of shareholders’ money).
• Operating profitability is strong: Operating profit margin was 30.83% in FY25 and 28.70% in FY24, which means for every ₹100 of sales, the business kept about ₹31 in FY25 as operating profit, helped by its higher-margin focus on diamond and precious stone jewellery versus plain gold.

Risks:

• Heavy Maharashtra dependence: In the six months ended Sep 2025, about 97.54% of revenue (₹152.87 crore) came from Maharashtra, meaning the business is exposed to one region’s demand, competition, and disruption risk. If that one market slows, the whole company can feel it quickly.
• Cash and inventory pressure: Inventory turnover days were 360 in FY25 (stock sitting about a year on average), and inventory was ₹313.07 crore as of Sep 2025; at the same time, operating cash flow was negative ₹54.67 crore in H1 FY26. In simple words, money can get stuck in jewellery stock even if the income statement shows profits.
• Execution shift to standalone stores: Today, the network is mostly counters inside promoter premises, but the plan is 15 exclusive stores; standalone stores usually mean higher rent, staffing, and store-running costs, and success depends on store productivity (sales per store). If new stores don’t ramp up fast, margins can compress from the FY25 level.

For detailed information, visit PNGS Reva Diamond Jewellery’s official IPO page at INDmoney.

Peer Comparison

Source: RHP, internal calculation

• Scale gap is real: FY25 revenue was about ₹258.18 crore for Reva, while Senco Gold did ₹6,328.07 crore and Thangamayil did ₹4,910.58 crore. Considering this, Reva is much smaller and still “proving” its model outside its core region.
• Profitability looks unusually strong: Reva’s FY25 net profit margin was 23.04% (₹23 profit per ₹100 sales), while peers like Senco (2.52%) and Thangamayil (2.42%) keep roughly ₹2-₹3 per ₹100. This can be a strength of its current setup, but the key question is whether margins fall when standalone stores increase costs.

IPO Valuation

At the upper band, the post-IPO P/E is 30.4x using annualised H1 FY26 profit (P/E means how much people pay for every ₹1 of yearly profit). On FY25 profit, it is at a much lower P/E (around 10.96x), but that gap itself tells you profits have been uneven, so valuation changes a lot depending on which period you trust more. Against peers, Senco is at 33x, Thangamayil much higher (80.96x), and TBZ lower (15.74x), so Reva’s 30.4x (on annualised H1 FY26) sits near the large organised peer range rather than “cheap”. If you feel the issue is “aggressive”, the practical reason is simple: the IPO price is asking you to believe the 15-store rollout works without crushing margins and cash flows.

Analyst View

This IPO’s structure is clean: ₹380 crore is 100% fresh issue capital meant mainly for 15 new exclusive stores plus marketing, so the story is clearly “build and expand”, not “exit and cash out”. The business also shows very strong FY25 margins and return ratios, which tells you the current model has been efficient.

At the same time, the toughest questions are not about designs, they’re about execution and cash. Revenue concentration in Maharashtra and negative operating cash flow matter because standalone expansion needs both demand in new regions and steady cash to fund inventory. If you’re evaluating this as a medium-term bet, it’s reasonable to treat it as a “consumption + expansion” play, but only after you’re comfortable with (1) store ramp-up assumptions and (2) how the company plans to manage inventory and debt during the rollout.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: PNGS Reva Diamond Jewellery's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.