Deepa Jewellers

Significant revenue contribution from Southern India

The company operates primarily in South India which has the highest market share (38-43%) in jewellery consumption. The company's revenue from South Indian states was ₹18,181.87 million (94.37%) in Fiscal 2026.

Well established customer base with long-standing relationship with jewellery retail chains and standalone stores

The company has 373 customers comprising 47 jewellery retail chains and 326 standalone stores as of July 31, 2026, with 18 customers associated since inception and established relationships with major chains.

Diverse product portfolio with varied weight ranges, designs and specialisation in vaddanam and CNC machine cut bangles

The company offers 16 products with 110 SKUs spanning weight categories from 2.50 grams to 300 grams. The company is recognized as a key processor and supplier of vaddanam and CNC machine cut bangles.

Established procurement network and long-standing relationship with karigars

The company has a network of 41 karigars with 25 associated for more than 5 years, and maintains procurement from RBI registered bullion banks, independent dealers, and international exchanges.

Well experienced Promoters and a professional management team with sectoral experience

The company's Promoters have 25 years of experience in the gem and jewellery industry since 2001, supported by an experienced management team with expertise in marketing, governance, and finance.

Robust financial performance with consistent growth

The company demonstrated consistent growth with revenue increasing from ₹10,245.68 million in Fiscal 2024 to ₹19,266.76 million in Fiscal 2026, and EBITDA margin improving from 3.49% to 7.60%.

Customer Concentration Risk

The company's top 10 customers accounted for ₹12,460.30 million, ₹8,839.29 million and ₹6,901.89 million representing 64.67%, 63.27% and 67.36% of revenue from operations for Fiscal 2026, 2025 and 2024 respectively. Any decision by these key customers to reduce or terminate their business could significantly impact the company's business, financial condition and results of operations.

Product Concentration Risk

The company derives significant revenue from vaddanam (41.85% in Fiscal 2026) and CNC machine cut bangles (30.87% in Fiscal 2026). Any cancellation of purchase orders for these products or changes in consumer preferences could adversely affect the company's business, cash flows, financial condition, and overall results of operations.

Geographic Concentration Risk

A significant portion of the company's business operations and revenue generation is concentrated in Southern India, representing 94.37%, 98.33% and 99.55% of total revenue for Fiscal 2026, 2025 and 2024 respectively. This regional concentration exposes the company to economic, cultural, geopolitical and local market risks specific to this region.

Gold Price Volatility and Raw Material Procurement Risk

The company's business is significantly affected by the availability and cost of gold bullion, with prices fluctuating from ₹94,590 to ₹154,039 per 10 grams in Fiscal 2026. The non-availability or volatility in the cost of gold and absence of complete hedging facilities may have an adverse effect on the company's business, results of operations, financial condition and prospects.

Supplier Concentration Risk

The company depends on certain key suppliers for gold bullion, with top 10 suppliers accounting for 91.81%, 82.32% and 96.89% of total purchases for Fiscal 2026, 2025 and 2024 respectively. The company does not have long-term contracts with suppliers, and any failure by suppliers to perform their obligations in a timely manner may adversely affect the company's business and operations.

Inventory Management Risk

The company's inventories were ₹873.62 million, ₹827.87 million and ₹722.56 million representing 4.53%, 5.93%, and 7.05% of revenue from operations for Fiscal 2026, 2025 and 2024 respectively. The company's inability to accurately forecast demand or effectively manage inventory may have an adverse effect on business, financial condition, results of operations and cash flows.

Dependence on Third-Party Karigars

The company is dependent on third party karigars for production and manufacturing of all products, with 41 karigars as of July 31, 2026, of which formal agreements exist with only 29. Any discontinuation of services by these karigars, disruptions at their facilities, or failure to adhere to quality standards may negatively affect the company's reputation, business and financial condition.