Shankesh Jewellers IPO

Revenue grew at a CAGR of 23.93% from ₹1,061.78 crore in FY24 to ₹1,630.79 crore in FY26. Net profit also jumped sharply, reaching ₹106.68 crore in FY26 from ₹12.82 crore in FY24.

The company outsources jewellery manufacturing to independent jobworkers and artisans in Mumbai. This keeps it from having to spend heavily on factories and machinery, while keeping fixed costs low. As a result, it delivered a strong Return on Equity (ROE), which measures how efficiently it uses shareholders’ money, of 50.94% in FY26.

It serves 418 clients across 21 states, including major national chains such as Kalyan Jewellers and Joyalukkas. This wide customer base reduces its reliance on any one buyer, with its largest customer contributing just 6.12% of revenue in FY26.

Strong earnings helped bring its debt-to-equity ratio down from a high of 1.80 times in FY24 to 0.80 times in FY26. In simple words, the company now relies less on borrowed money, making its balance sheet stronger ahead of the public listing.

Better operating efficiency helped lift its EBITDA margin, a measure of operating profit, from 2.69% in FY24 to 9.68% in FY26. This improvement suggests the company has become better at managing changes in raw gold costs and passing them on to customers.

The company has built strong, repeat relationships with its customers. Of its 418 customers in FY26, 334, or 79.90%, were repeat buyers, compared with 279 repeat customers out of 448 in FY24. This high repeat rate supports a more steady and predictable flow of business.

The company is steadily shifting more of its business toward large national jewellery chains. Sales from corporate clients rose from 55.08%, or ₹584.86 crore, in FY24 to 64.25%, or ₹1,047.70 crore, in FY26.

A large 67.84% of its operating revenue in FY26 came from just five states, with Tamil Nadu and Maharashtra alone contributing more than 30%. A local economic slowdown, natural disaster, or regulatory change in these regions could have a major impact on sales.

The business needs a lot of cash because it pays upfront for gold but often gives customers time to pay. This led to negative operating cash flow of ₹23.11 crore in FY25, which could make future expansion harder to fund.

The company does not manufacture jewellery itself and depends entirely on third-party jobworkers and artisans. Many of these relationships are not covered by written contracts, which increases the risk of design leakage, labour disruptions, or sudden quality problems.

Quality issues have led to significant product returns, which rose to ₹117.76 crore in FY26 from ₹46.27 crore in FY24. These returns were equal to 7.22% of total revenue in FY26, putting pressure on profitability.

The company relies heavily on a small group of bullion suppliers, with its top five suppliers accounting for 88.43%, or ₹1,327.38 crore, of raw material purchases in FY26. Financial trouble or disputes involving any of these key suppliers could seriously disrupt its operations.

Its registered and corporate office in Mumbai, along with its branch offices, are leased from third parties. If these leases are not renewed or the company has to move, it could face business disruptions and higher operating costs.