Shankesh Jewellers is in the business of hand-crafted gold jewellery and customization services, with an asset-light operating model. The company primarily acts as a principal contractor, managing the design, material sourcing and finished jewellery-making process, while relying on third-party job workers and localized karigars for actual production. This model enables the company to focus on design, inventory management and client servicing without significant investment in manufacturing infrastructure.

The company offers a diverse range of hand-crafted gold jewellery in 22-karat and 18-karat, including bangles, bridal jewellery, chokers, jhumkas, long and short necklace sets, mangal sutras, rings and combined jewellery sets. Its product portfolio covers various categories such as Antique, Semi-Antique, Calcutta, Temple, Gheru Polish, and Yellow, Rhodium and Rose Gold jewellery. Its gold jewellery is BIS-hallmarked in accordance with applicable regulatory guidelines.

The company also provides customized jewellery based on specific customer designs and requirements.

Kantilal Khemraj Jain started the business in 1992 as a proprietorship firm under the name Shankesh Jewellers. The business was subsequently incorporated as H.K. Gold in 2005 and renamed Shankesh Jewellers in August 2006.

The company caters to a diversified clientele comprising reputed corporate and non-corporate entities. Its corporate clientele includes Joyalukkas India, P. N. Gadgil & Sons, Kalyan Jewellers India, P N Gadgil Jewellers, Manoj Vaibhav Gems ‘N’ Jewellers, Novel Jewels (Aditya Birla Group), Bhima Jewellery Madurai, Hari Prasad Gopi Krishna Saraf, D.P Abhushan and others. Its non-corporate clientele includes Verma Jewellers and Sham Jewellers, among others. The company operates from Mumbai and distributes its products to clients across India.

The company served 418 customers in FY26, comprising 334 repeat customers and 84 new customers, compared with 457 customers in FY25 and 448 customers in FY24.

In FY26, Corporate Clients contributed 64.25% to revenue, and Non-Corporate Client 35.75%.

Its Top 5 clients contributed 23.26% to revenue in FY26.

The company does not have significant in-house manufacturing capacity and primarily relies on skilled job workers (karigars) for jewellery production. During FY26, it was associated with 72 job workers, of which 66 had entered into agreements with the company, providing access to multiple experienced karigars specializing in different types of hand-crafted jewellery. The company’s designers develop new products in line with latest trends, customer preferences and lifestyles while working closely with experienced job workers.

The company currently operates exclusively in the domestic market, with a presence across multiple states in India. In FY26, Maharashtra contributed 25.46% of revenue, followed by Bihar at 17.07%, Uttar Pradesh at 10.71%, Tamil Nadu at 9.36% and Odisha at 5.25%, with the remaining revenue coming from other states.

The Indian gold jewellery market is expected to grow at a CAGR of 11.4% between CY25 and CY30, supported by rising disposable incomes and increasing consumer preference for organised and certified jewellery. The shift towards organised jewellery retail, driven by BIS hallmarking, GST compliance and demand for standardised and traceable products, is expected to benefit organised manufacturers and suppliers.

The company continues to strengthen its brand and customer outreach through participation in major B2B jewellery exhibitions such as IIJS Signature, IIJS Premiere, IIJS Tritiya, Preferred Manufacturer of India (PMI) and the Indian Gem and Jewellery Show (GJS). These platforms help it connect with existing and prospective clients, showcase new designs and expand its market presence.

Offer and its objects

The IPO comprises fresh issue of equity shares worth up to Rs 274.18 crore and an offer for sale of 1,00,00,000 equity shares aggregating up to Rs 93 crore by Kantilal Kheemraj Jain and Manoj Kantilal Jain.

Price band for the IPO is Rs 88 to Rs 93 per equity share of face value Rs 5 each.

The objectives of the fresh issue include Rs 158 crore for repayment/pre-payment, of certain borrowings, Rs 38 crore for funding working capital requirements, and remaining amount for general corporate purpose.

The promoters are Kantilal Kheemraj Jain, Mahavir Kantilal Jain and Manoj Kantilal Jain. The promoters and promoter group hold an aggregate of 11,22,32,400 equity shares, aggregating to 95.48% of the pre-offer issued and paid-up equity share capital. Their post IPO shareholding is expected to be around 69.53%.

The issue, through the book-building process, will open on 18 Aug 2026 and will close on 20 Aug 2026.

Strengths

Offers jewellery suitable for various occasions, including weddings, festivals and daily wear, catering to the diverse requirements of its clientele.

The asset-light model enables the company to maintain control across the value chain while focusing on inventory management, jewellery design and customization.

Its principal-contractor model allows the company to scale production by leveraging its job-worker network without significant investment in in-house manufacturing infrastructure.

Operating margin improved significantly from 2.69% in FY24 to 9.68% in FY26, indicating improvement in profitability.

Pan-India customer reach, with customers spread across 21 states and four Union Territories.

Established relationships with reputed jewellery retailers, including GRT Jewellers, P. N. Gadgil & Sons, Senco Gold, Novel Jewels and others, with a diversified customer base spanning both corporate and non-corporate segments.

Extensive experience of promoters and senior management personnel.

Weaknesses

Exposed to gold-price volatility, which can affect jewellery demand, inventory values and working capital requirements.

Complete dependence on third-party job workers for manufacturing, with production concentrated among karigars in Maharashtra,

A significant portion of revenue is concentrated in Maharashtra and Bihar, which together contributed 42.53% of FY26 revenue, exposing the company to regional demand and economic risks.

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

Product returns rose from 4.36% of revenue in FY24 to 7.22% in FY26, posing quality and customer preference risks.

High supplier concentration and absence of long-term supply agreements expose the company to raw material procurement risks, with its top supplier accounting for 55.3% of FY26 purchases.

Operating cash flow remained weak, turning negative at Rs 23.1 crore in FY25 and recovering only marginally to Rs 0.3 crore in FY26.

Valuation

Net sales increased 16% to Rs 1,630.79 crore in FY26 as compared with FY25. OPM improved 503 bps to 9.68%, leading to 142% increase in OP to Rs 157.9 crore. OI increased 27% to Rs 0.14 crore. Interest cost rose 26% to Rs 13.34 crore. Depreciation costs went up 56% to Rs 1.31 crore. PBT surged 165% to Rs 143.39 crore. Tax expenses were Rs 36.71 crore as compared with Rs 13.72 crore. PAT soared 165% to Rs 106.68 crore.

The FY26 EPS on post-issue equity works out to Rs 7. At the upper price band of Rs 93, P/E is 13.

Total outstanding borrowings amounted to Rs 329.9 crore as on June 30, 2026. As much as 59% of the debt will be repaid from the issue proceeds, bringing down interest costs substantially and boosting profit. The FY26 EPS works out to Rs 8, if 59% of its interest cost is removed, keeping all other items, including tax rate, same. The reworked P/E at the upper price band stands at 12.

Listed peers such as Shanti Gold International traded at FY26 P/E of 14, and Sky Gold & Diamonds at FY26 P/E of 44 as on 17 Aug 2026. The OPM and ROE stood at 9.68% and 50.94%, respectively, in FY26. These were 9.86% and 23.42% for Shanti Gold International, and 6.9% and 23.37% for Sky Gold & Diamonds, respectively.