Lalithaa Jewellery Mart is a jewellery retailer operating under the brand name, Lalithaa, offering a diverse range of gold jewellery, silver jewellery, and diamond jewellery across styles, designed to cater to regional preferences of the southern Indian jewellery markets.

The company has strong presence across South India, with stores operating in Tier I, II and III cities. As of March 31, 2026, it operated 61 stores across 51 cities in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and Puducherry, covering a total operational area of 6.5 lakh sq. ft.

Gold jewellery remains the company’s key revenue driver, contributing 92.33% of revenue in FY26, followed by silver jewellery and articles at 6.63%, while other products contributed the remaining 1.04%.

It also offers customized jewellery, silverware (spoons, dishes, utensils), and Dosham-free diamond jewellery with VVS clarity and E-F colour grade, certified for authenticity. Designs span traditional Indian to Indo-western styles, catering to diverse consumer preferences.

In FY26, 45 of its 61 stores were located in Tier II and Tier III cities, contributing 60.25% of revenue, highlighting its focus on high-growth markets.

In FY26, Tamil Nadu contributed 53.98% to revenue, Andhra Pradesh 18.97%, Telangana 14.47%, Karnataka 0.39%, and Puducherry 1.65%. Its market share in the southern states of India was 4.97% in FY2026

The company operates some of the largest jewellery stores in India, including a 1 lakh sq. ft. store in Vijayawada, along with large-format stores in Somajiguda and Visakhapatnam. Of its 61 stores, 51 stores had an area of more than 5,000 sq. ft., including 39 stores in Tier II and Tier III cities.

The company reported the highest operating revenue per store among key organised jewellery players in India, at Rs 410.2 crore in FY26, Rs 281.6 crore in FY25 and Rs 316.8 crore in FY24.

In FY26, revenue per sq. ft. stood at Rs 3.8 lakh.

It also offers jewellery schemes such as ‘Dhana Vandhanam’ and ‘Free-yo-Flexi’, which encourage repeat purchases by providing customers with additional benefits and flexibility. Under Dhana Vandhanam, customers can invest Rs 1,000–10,000 per month for 11 months and receive a 50% bonus equivalent to one month’s instalment along with a 50% discount on value addition charges at the time of purchase. The scheme also allows customers to choose between weight-based or rupee-based instalment credits, providing protection against gold price fluctuations.

Under the Free-yo-Flexi scheme, customers can invest Rs 1,000–25,000 per month and, on completion of 11 months, avail 100% discount on value addition charges, subject to the scheme’s terms and conditions. As of FY26, around 4.73 lakh customers were actively enrolled in these schemes.

The company had the highest advances from customers among key organized jewellery players in India, amounting to 20.15% of total revenue in FY26 and 18.61% in FY25. These customer advances provide visibility into future sales and support operational planning.

South India accounted for around 40% of India’s gold market in FY24, providing a significant opportunity for organized jewellery retailers catering to the mass-market segment. With its focus on affordable offerings and presence across these markets, the company is well positioned to benefit from this transition and expand into newer markets.

Operates two manufacturing facilities in Thirumudivakkam, Chennai and Maraimalai, Kanchipuram, with a total area of around 63,862 sq. ft. In FY26, the company engaged 816 karigars under exclusive arrangements, enabling in-house manufacturing of gold, silver and diamond jewellery.

In addition, it had short-term, non-exclusive arrangements with 296 karigars as of March 31, 2026, supporting the production and supply of various jewellery products.

Plans to expand into untapped markets across South India, including five new stores each in FY27 and FY28, while increasing focus on studded gold jewellery, which can improve gross margins given its typically higher margin profile.

Plans to expand silverware and other lower-value product ranges to cater to a wider customer base and mitigate the impact of fluctuations in gold prices.

Offer and its objects

The IPO comprises a fresh issue of equity shares worth up to Rs 1,200 crore and an offer for sale aggregating up to Rs 500 crore by M. Kiran Kumar Jain.

Price band for the IPO is Rs 190 to Rs 201 per equity share of face value Rs 5 each.

The objectives of the fresh issue include Rs 34.5 crore for capital expenditure towards fit-outs, including furniture and fixtures, equipment, IT hardware and software, Rs 998.6 crore for inventory costs for setting up new stores, and the remaining amount for general corporate purposes.

The promoters are M. Kiran Kumar Jain and Hemaa Kiran Kumar Jain. The promoters and promoter group hold an aggregate of 48,85,74,576 equity shares, aggregating to 97.72% of the pre-offer issued and paid-up equity share capital. Their post IPO shareholding is expected to be around 82.85%.

The issue, through the book-building process, will open on 17 Aug 2026 and will close on 19 Aug 2026.

Strengths

Strong regional presence across South India, a large and growing jewellery market that accounted for around 40% of India’s gems and jewellery industry in FY26.

Operates an asset-light business model, with 61 stores in FY26, of which only three were owned, supporting expansion with relatively lower capital requirements.

Well positioned to benefit from the shift from unorganized to organized jewellery retail, driven by its focus on affordable offerings for price-conscious customers.

Offers diverse range of jewellery schemes that attract customers on a repeated and recurring basis, with advances from customers among the highest compared with key organized jewellery peers.

In-house manufacturing capabilities provide greater control over product quality, designs and pricing, while helping reduce manufacturing wastage and costs.

Its large-format and medium-format stores enable the company to offer a wide range of gold, silver and diamond jewellery, while its standardized approach to store location, size and customer experience supports expansion across existing and new markets.

Strong brand pull in Tier II and Tier III cities, which contributed 60.25% of FY26 revenue and offer significant growth potential.

Extensive experience of promoters and senior management personnel.

Weaknesses

High dependence on South India, limiting geographic diversification and making revenue vulnerable to regional economic or competitive changes.

Exposed to gold price volatility, as fluctuations in gold prices can affect customer demand, inventory values and margins.

High working-capital intensity, with significant funds tied up in jewellery inventory.

Customer advances form a significant part of the company‘s business model. Any inability to appropriately use these advances could affect its cash flows.

High employee attrition, with a 30.90% attrition rate in FY26, posing challenges in retaining skilled talent.

Experienced negative cash flows from operating activities in FY 2026 and in FY 2024, respectively.

High supplier concentration, with the top supplier accounting for 50.44% of total raw material costs.

Valuation

Net sales increased 48% to Rs 25,023.93 crore in FY26 as compared with FY25. The OPM improved 231 bps to 6.69%, leading to 126% increase in OP to Rs 1,673.51 crore. OI increased 50% to Rs 15.88 crore. Interest cost rose 24% to Rs 198.45 crore. Depreciation cost went up 50% to Rs 130.66 crore. PBT surged 170% to Rs 1,360.27 crore. Tax expenses were Rs 350.45 crore as compared with Rs 138.58 crore. PAT soared 177% to Rs 1,009.82 crore.

The FY26 EPS on post-issue equity works out to Rs 18. At the upper price band of Rs 201, P/E is 11.

Listed peers such as Kalyan Jewellers India traded at FY26 P/E of 45, Senco Gold trades at FY26 P/E of 10, P N Gadgil Jewellers traded at FY26 P/E of 22, and Thangamayil Jewellery at FY26 P/E of 46 as on 13 Aug 2026. The OPM and ROE stood at 6.69% and 41.6% respectively, in FY26. These were 6.97% and 24.3% for Kalyan Jewellers, 11.49% and 25.63% for Senco Gold, 5.74% and 23.31% for P N Gadgil Jewellers, and 6.8% and 27.93% for Thangamayil Jewellery, respectively.