What the company does
The company supplies bangles, bridal jewellery, necklaces, chokers, earrings, mangalsutras and rings to B2B customers across India. Customers include large jewellery chains as well as non-corporate retailers.
Manufacturing is outsourced to artisans and job workers while Shankesh manages design, customization, bullion sourcing, quality control and delivery. This limits fixed manufacturing assets but creates third-party capacity, craftsmanship, labour-compliance and quality risks.
Revenue comes from direct sale of finished jewellery and job-work arrangements where customers provide bullion. Revenue, gross margin and working-capital intensity differ materially between these routes, so gold processed and product mix matter alongside headline sales.
Corporate clients contributed 64.25% of FY26 revenue from operations, up from 55.80% in FY25. The disclosed customer set includes organised chains, making sell-through and procurement decisions at large retailers relevant to Shankesh's order flow.
Shankesh does not maintain a formal order book, and both customer and supplier orders are generally communicated orally or during physical meetings. Revenue and bullion availability therefore lack a published contracted pipeline.
At FY26 the company had 44 payroll employees and 72 job workers. The RHP says 66 of those 72 job workers had executed the prescribed agreement, while the job-worker base fell from 87 in FY25 and 90 in FY24.
Where the IPO money goes
Three-year financial snapshot
| Year | Revenue | EBITDA | PAT | Net worth | Borrowings | Assets |
|---|---|---|---|---|---|---|
| FY24 | ₹1,061.78 Cr | ₹28.6 Cr | ₹12.82 Cr | ₹60.29 Cr | ₹108.58 Cr | ₹177.07 Cr |
| FY25 | ₹1,403.83 Cr | ₹65.35 Cr | ₹40.31 Cr | ₹100.6 Cr | ₹144.84 Cr | ₹249.56 Cr |
| FY26 | ₹1,630.79 Cr | ₹157.9 Cr | ₹106.68 Cr | ₹209.43 Cr | ₹167.3 Cr | ₹403.76 Cr |
Restated financial information from IPO source materials; rounding may create small differences.
FY26 EBITDA margin
9.68%
Up from 4.65% in FY25 as gross margin nearly doubled to 11.06%.
FY26 PAT margin
6.54%
PAT rose 164.6% to ₹106.68 crore while revenue increased 16.2%.
FY26 operating cash flow
₹0.33 crore
Only a fraction of FY26 PAT converted to operating cash; FY25 operating cash flow was negative ₹23.11 crore.
Core working-capital days
81.33 days
Up from 62.35 days in FY25 and 58.85 days in FY24.
FY26 product returns
7.22% of revenue
₹117.76 crore, up from 5.23% in FY25 and 4.36% in FY24; this is a quality, rework and cash-conversion indicator.
Upper-band diluted P/E
12.82×
Based on 14.7032 crore post-offer shares, ₹93 and FY26 PAT of ₹106.68 crore.
June working-capital line utilisation
97.6%
₹162.94 crore outstanding against ₹167.00 crore of facilities at 30 June 2026 before the proposed ₹158 crore repayment.
FY26 working-capital gap
₹360.53 crore
Inventory was ₹239.96 crore, or 67% of the gap; receivables were ₹126.42 crore while trade payables were only ₹2.20 crore.
Projected FY27 working-capital gap
₹401.17 crore
11.3% above FY26; the plan shows no bank working-capital funding after repayment and ₹38 crore from fresh proceeds.
Largest supplier share
55.30%
The top five supplied 88.43% and the top ten 91.22% of FY26 purchases; gold bars were 93.27% of raw-material procurement.
FY26 related-party transactions
₹63.34 crore
3.88% of revenue from operations, down from 4.95% in FY25 and 9.03% in FY24.
FY26 good receivables under six months
99.99%
₹126.40 crore of the ₹126.42 crore net receivable balance was under six months; a separate ₹0.64 crore credit-impaired balance was fully provided rather than included in net receivables.
FY26 job-worker attrition
17.24%
Up from 3.33% in FY25 and 1.10% in FY24; employee attrition was 10.39% and six of 72 job workers had not executed the prescribed agreement.
FY26 contingent liabilities
₹4.06 crore
Comprising a ₹1.06 crore income-tax demand and a ₹3.00 crore bank guarantee.
Aggregate insurance cover
₹886.06 crore
The RHP compares this with ₹242.51 crore of FY26 insurable assets, or 365.37%; overlapping policy limits, deductibles and exclusions mean this is not assured loss recovery.
Jeweller's-block policy limit
₹476.25 crore
Valid through 28 October 2026 for specified transit, stock-at-premises, public-liability and money risks; the company separately says it has no product-liability insurance.
Secured borrowing rate
8.39–9.75%
The final RHP describes the working-capital facilities as generally repayable on demand. Where a facility stipulates a prepayment penalty, it is 2% of the sanctioned amount; actual lender consent and charges must be confirmed at repayment.
Debt object / FY26 borrowings
94.44%
The ₹158 crore repayment object is 94.44% of ₹167.30 crore FY26 borrowings, so the post-offer funding of bullion inventory and receivables becomes a central liquidity question.
Fresh issue / FY26 net worth
130.92%
The ₹274.18 crore cap-price fresh issue exceeds the ₹209.43 crore FY26 net worth; post-offer return ratios will therefore face substantial equity dilution even if absolute profit is unchanged.
Promoter-group holding after offer
69.53%
Cap-price illustration from the final RHP: promoters and promoter group retain 10,22,32,400 of 14,70,31,420 post-offer shares. The three named promoters alone retain 52.56% after Kantilal sells 48 lakh shares and Manoj sells 52 lakh.
OFS seller stake sold
16.52% / 16.57%
Kantilal sells 48,00,000 of his 2,90,64,000 pre-offer shares; Manoj sells 52,00,000 of 3,13,74,000. The fixed share counts make these percentages independent of final offer price.
OFS seller WACA
₹0.44 / ₹0.37 per share
Final-RHP weighted acquisition costs for Kantilal and Manoj, respectively. The ₹93 cap is about 211× and 251× those historical costs; the comparison describes seller economics and capital history, not operating value.
Promoter lock-in framework
20% for 18 months; excess for 6 months
The RHP applies the periods from allotment and also subjects the remaining pre-offer capital to a six-month lock-in, with specified regulatory exceptions. Exact promoter shares and dates are deferred to the final prospectus and depository records.
Anchor allocation
₹110.15 Cr
BSE notice 20260817-31 confirms 1,18,44,600 shares subscribed at ₹93 on 17 August, equal to 30% of the 3,94,82,000-share gross offer.
Anchor lock-in
50% for 30 days / 50% for 90 days
The final RHP measures both periods from the date of allotment. The two cohorts equal 59,22,300 shares each; calendar unlock dates remain unavailable until allotment is finalized.
BSE second-session post-window snapshot
73,76,640 bids / 0.2669×
Official category book timestamped 5:00 p.m. IST on 19 August against the 2,76,37,400-share post-anchor pool: 14,45,600 QIB, 22,70,080 NII and 36,60,960 retail shares bid. The day's bidding window had ended, but this remains a preliminary exchange snapshot because the issue continues through 20 August.
NSE latest pre-final-day display
1,87,07,520 bids / 0.6769×
Official current-issue endpoint rechecked at 7:08 a.m. IST on 20 August, before the final-day bidding window opened. It was unchanged from the 19 August post-window display, is kept separate from BSE's category book and is not a fresh final-day or final subscription figure.
BSE issue-record recheck
No addendum or corrigendum
Official issue record 7889 rechecked at approximately 8:25 p.m. IST still showed 18–20 August bidding, ₹88–₹93, a 160-share minimum and blank addendum, corrigendum and remarks fields.
What stands out
- Long promoter experience and established relationships with organised jewellery retailers support repeat B2B orders and market access.
- The final RHP confirms FY26 revenue of ₹1,630.79 crore and PAT of ₹106.68 crore, with EBITDA margin rising to 9.68%.
- The outsourced artisan network reduces fixed-asset intensity and allows product flexibility across handcrafted designs.
- Debt repayment represents the largest use of fresh proceeds and can reduce finance costs and balance-sheet risk if completed as disclosed.
Key concerns
- FY26 profit grew far faster than revenue while gold processed fell 27.8% to 1,397.48 kg. The durability of the gross-margin step-up needs verification across product mix and customer contracts.
- The business is working-capital intensive: FY26 inventory represented 67% of the ₹360.53 crore gap, receivables were ₹126.42 crore and trade payables were only ₹2.20 crore, reflecting an almost entirely upfront funding model.
- At 30 June 2026, ₹162.94 crore was drawn against ₹167.00 crore of working-capital facilities, equal to 97.6% utilisation. The offer proposes ₹158 crore repayment while the FY27 gap is projected to increase to ₹401.17 crore.
- The FY27 funding schedule shows no bank working-capital facility and classifies the facilities repaid from offer proceeds as part of internal accruals and owned funds. Actual liquidity therefore depends on whether freed bank capacity remains available and how the post-offer funding mix is implemented.
- Secured bank facilities are generally repayable on demand and carry stated rates of 8.39–9.75%. Their events of default include TOL/adjusted net worth above 2.00×, total debt/PBDIT above 3.00× and stock-statement non-compliance; applicable prepayment penalties can be 2% of the sanctioned amount. Offer-funded repayment therefore requires lender consent, covenant compliance and a clear charges-and-guarantees release trail.
- Gold-price volatility affects reported revenue, inventory values, collateral requirements, customer demand and the timing of procurement and settlement.
- Raw-material procurement is highly concentrated: one supplier represented 55.30%, the top five 88.43% and the top ten 91.22% of FY26 purchases. Supplier arrangements are not long term and are commonly oral, increasing bullion availability, pricing and counterparty risk.
- All manufacturing is outsourced to artisans and job workers, exposing the company to capacity shortages, labour practices, theft, quality defects and delivery delays.
- Job-worker attrition increased to 17.24% in FY26 and the network contracted to 72 from 87 in FY25. Six FY26 job workers had not executed the prescribed agreement, adding documentation and continuity risk to an entirely outsourced production model.
- The top 10 customers contributed 39.56% of FY26 revenue and the top five states 67.84%, creating customer and geographic concentration.
- Customer orders are orally communicated or placed in physical meetings, with no long-term contracts or volume commitments. This weakens revenue visibility and can limit contractual remedies in payment or specification disputes.
- The company does not maintain a formal order book. The combination of seasonal demand, oral customer orders and no guaranteed pipeline makes near-term revenue visibility weaker than the FY26 growth rate alone suggests.
- Two promoter shareholders are selling while the company raises funds to repay debt. Kantilal sells 16.52% of his pre-offer position and Manoj 16.57%; their holdings fall to 2,42,64,000 and 2,61,74,000 shares respectively. Their RHP-reported weighted acquisition costs are ₹0.44 and ₹0.37 per share versus the ₹88–₹93 band. Those large cap-price-to-cost gaps describe seller economics and capital history, not the value of the operating business. The three promoters move from 74.25% to about 52.56%, while promoters plus promoter group move from 95.48% to about 69.53%. Control remains concentrated after both the OFS transfer and fresh-issue dilution.
- FY26 related-party transactions were ₹63.34 crore, or 3.88% of revenue, principally involving remuneration, interest, unsecured loans and rent. The ratio has declined, but the absolute scale warrants post-listing audit-committee scrutiny.
- Customer product returns rose to ₹117.76 crore, or 7.22% of FY26 revenue, from 5.23% in FY25 and 4.36% in FY24, creating increasing quality, rework and cash-flow risk.
- The ageing schedule is current, with only ₹0.02 crore of good receivables beyond six months, but a separate fully provided credit-impaired balance increased to ₹0.64 crore from ₹0.37 crore in FY24. Near-term ageing therefore looks contained while absolute impaired exposure and provisioning have still moved upward.
- Although the SHANKESH marks are protected through registered trademarks and copyright, the company says it does not register individual jewellery designs under the Designs Act because designs change frequently. Design imitation and ownership disputes may therefore depend on less specific forms of protection.
- The FY26 balance sheet included ₹2.63 crore of derivative margin money and ₹12.88 crore of margin or settlement balance with a bullion-hedging broker. Because hedging gains and losses are included in inventory valuation, hedge exposure, collateral and bank-stock-statement reconciliation deserve separate disclosure.
- Differences between audited inventory and stock statements submitted to lenders arose because hedging gains and losses included in audited inventory valuation were omitted from bank submissions and some submissions preceded quarter-close entries. This makes timely reconciliation of collateral reports, bullion hedges and statutory accounts an important control test.
- The FY26 aggregate insurance limit was ₹886.06 crore against ₹242.51 crore of disclosed insurable assets, while the principal jeweller's-block policy was limited to ₹476.25 crore and subject to transit-value limits, exclusions and deductibles. Multiple policy limits should not be read as guaranteed recovery, and the company maintains no product-liability insurance despite potential quality claims.
- Promoters, directors and members of the promoter family have provided personal guarantees for bank facilities that are also secured over current assets, book debts and mortgaged property. The planned ₹158 crore repayment should reduce reliance on these facilities, but release of guarantees and collateral is not automatic and needs post-offer confirmation.
- The official price-band advertisement states a 13.90% weighted-average RoNW, while the separately published basis-of-offer-price table derives 42.37% from FY24–FY26 RoNW of 21.26%, 40.07% and 50.94%. The annual figures reconcile to 42.37%; the advertisement discrepancy should be treated as unresolved unless corrected by the issuer or bookrunners.
- The ₹38 crore working-capital allocation is modest relative to FY26 borrowings and the scale of bullion throughput, making cash conversion important after deleveraging.
What to monitor after listing
- Gold processed, realization and direct-sale versus job-work mix, alongside revenue growth.
- Gross and EBITDA margins after the FY25–FY26 expansion, including customer- and product-level concentration.
- Top-one, top-five and top-ten bullion-supplier concentration, procurement pricing, payment terms and continuity of oral supply arrangements.
- Order inflow and conversion despite the absence of a formal order book, including seasonal cancellations or postponements.
- Actual debt repayment, finance-cost savings, bank-limit utilisation and adjusted debt/equity.
- Availability and use of the repaid ₹167 crore bank limits, the distinction between freed borrowing capacity and internally generated funds, and the funding of the projected ₹401.17 crore FY27 gap.
- Inventory and receivable days, operating cash flow and gold-metal-loan or bullion funding arrangements.
- Migration of the ₹126.42 crore net receivable book beyond six months, additions to the fully provided credit-impaired bucket and cash collections from the organised-retail customer base.
- Artisan concentration, quality rejects, losses or theft, labour compliance and delivery performance.
- Job-worker retention, executed agreements for the full artisan network and employee attrition after the FY26 increase.
- Bullion-hedge positions, margin balances, collateral calls and reconciliation between hedged inventory and bank stock statements.
- Renewal and claim terms for the ₹476.25 crore jeweller's-block policy, location and transit sub-limits, and any product-liability exposure that remains uninsured.
- Formal release of promoter-family guarantees, current-asset charges and mortgages after the proposed ₹158 crore debt repayment.
- Lender consent, actual prepayment penalties, covenant compliance and release of on-demand facilities after the ₹158 crore repayment.
- Final allotment share count and the derived 52.56% promoter / 69.53% promoter-group ownership bridge, alongside related-party transactions and contingent liabilities after listing.
- The final prospectus and depository record identifying the promoter shares that form the 18-month minimum contribution, the six-month excess and pre-offer blocks, and the actual lock-in end dates.
- Final anchor-allotment date and the two equal 59,22,300-share anchor unlock cohorts after the 30- and 90-day lock-in periods.
Valuation context
The FY26 share capital implies 11.755 crore pre-offer shares. Adding 2.9482 crore fresh shares gives 14.7032 crore post-offer shares and, at the NSE-published ₹93 cap, a market capitalisation of approximately ₹1,367.40 crore.
Against FY26 PAT of ₹106.68 crore, the fully diluted P/E at the NSE-published cap is about 12.82×. This is higher than the simple ₹93 divided by pre-offer FY26 EPS of ₹9.09 because the fresh issue dilutes EPS.
The final RHP reports FY26 pre-offer NAV of ₹17.82 per share, putting the ₹93 cap at about 5.22× pre-offer book. Adding the cap-price fresh proceeds to FY26 net worth gives an illustrative gross post-offer book value of about ₹32.89 per share and 2.83× price-to-book, before issue expenses and subsequent trading; this is a derived bridge, not the final reported NAV.
Potential references include listed jewellery manufacturers and retailers, but Shankesh's B2B outsourced model, direct-sale/job-work mix and lower margins make retail-chain comparisons imperfect.
The issuer's offer-price document identifies Shanti Gold International and Sky Gold & Diamonds as peers, with 15 July 2026 trailing P/E of 10.04× and 34.86× respectively. Shankesh's post-offer FY26 P/E of about 12.82× sits near the low end, but its one-year margin step-up and weak cash conversion limit a mechanical comparison.
The central valuation question is whether FY26 profitability is durable when gold throughput fell and operating cash conversion was almost zero.
Shankesh Jewellers IPO FAQs
What is the Shankesh Jewellers IPO price band?
The stated price band is ₹88–₹93. Offer terms should be checked against the final prospectus and exchange notices.
When does the Shankesh Jewellers IPO open and close?
The IPO is scheduled to open on 18 August 2026 and close on 20 August 2026. The stated listing date is Expected 25 August 2026.
What is the Shankesh Jewellers IPO issue size?
The stated total issue size is ₹367.18 Cr, comprising ₹274.18 Cr of fresh issue and ₹93 Cr of offer for sale.
What is the minimum lot for the Shankesh Jewellers IPO?
The stated minimum lot is 160 shares.
What do the latest Shankesh Jewellers financials show?
For FY26, the offer documents report revenue of ₹1,630.79 Cr, EBITDA of ₹157.9 Cr and PAT of ₹106.68 Cr. Read these figures with the cash-flow, leverage and working-capital analysis on this page.
What is a key risk in the Shankesh Jewellers IPO analysis?
FY26 profit grew far faster than revenue while gold processed fell 27.8% to 1,397.48 kg. The durability of the gross-margin step-up needs verification across product mix and customer contracts.
How is the Shankesh Jewellers IPO valued?
The FY26 share capital implies 11.755 crore pre-offer shares. Adding 2.9482 crore fresh shares gives 14.7032 crore post-offer shares and, at the NSE-published ₹93 cap, a market capitalisation of approximately ₹1,367.40 crore.