Nityas Gems and Jewellery (NGJL) is engaged in the design, manufacturing and sale of lab-grown diamond studded gold jewellery in India. The company operates through anbusiness model comprising business-to-business (B2B) manufacturing and distribution to organized retailers, standalone retailers and wholesalers, along with direct-to-consumer (D2C) omni-channel retail operations through its subsidiary, Ayaani Diamonds and Jewellery Private Limited (Ayaani).

The operations cover raw material procurement, product design, manufacturing, quality control, distribution and branded retail.

Lab-grown diamond studded gold jewellery is offered across categories including rings, earrings, pendants, bracelets, mangalsutras, nose pins, necklaces, cufflinks and bangles. The portfolio caters to daily wear, occasion-based, men’s jewellery and customised segments, with a strategic focus on lightweight and affordable jewellery.

Prominent B2B customers include GIVA, Palmonas, ONYA and Ladia Diamonds, among others. It supplies products based on its own designs as well as customised requirements relating to purity, weight, design and finishing.

NGJL commenced operations in July 2022 as a B2B manufacturer and supplier and supplies jewellery across 18 states and 2 union territories in India, as well as to customers in the UAE, Australia, Canada, Taiwan and Kenya. Its manufacturing facility is located in Surat, Gujarat, and includes in-house designing, prototyping and production capabilities, enabling the company to manage product quality, costs and lead times.

In July 2025, the NGJL acquired Ayaani, a D2C lab-grown diamond jewellery brand, which operates an online storefront and 10 physical retail stores across eight cities in India through company-operated and franchise-operated formats.

The integration of B2B manufacturing and D2C retail enables serving both institutional and end consumers while gaining direct insights into customer preferences.

The company is supported by an in-house workforce comprising designers, karigars, quality control, operations, procurement, sales and other functions.

Object of the offer

The IPO is entirely a fresh issue of shares worth Rs 108.42 crore at the upper price band of Rs 75. There is no OFS component. At the upper end of the price band, the company is expected to be valued at Rs 431.95crore post listing.

The funds of Rs 70 crore raised will be used for funding working capital requirements and the balance will be utilised for general corporate purposes.

Strengths

Well positioned to capitalize on the growth of lab-grown diamond jewellery.

Manufacturing capabilities are supported by in-house design and technology integration.

B2B and D2C business model with a growing and diversified customer base.

Skilled in-house workforce enabling quality control and reduced dependence on external job work.

Weaknesses

Revenue from operations is significantly concentrated among a limited number of B2B customers. Revenue from B2B contributed around 95.6% of the total revenues in FY2026.

Business is dependent on the availability and price of lab-grown diamonds.

Faces supplier concentration risk as more than 86% of total purchases are contributed by top 10 suppliers in FY2026.

Manufacturing operations are concentrated at a single facility in Surat, Gujarat. Also, of the total revenues, 37.4% is derived from Gujarat in FY2026. As such, faces geographical concentration risk.

Operations are working capital intensive with inventory and receivable days.

Demand for lab-grown diamond studded gold jewellery is discretionary in nature.

Incurred negative cash flows in the past.

The Indian gems and jewellery industry is highly fragmented and competitive marked by presence of large number of organized and unorganized players.

Valuation

Consolidated sales were up by 109.5% to Rs 202.89crore in FY2026.Growth in revenues was primarily driven by higher sales volume of lab-grown diamond jewellery, supportedby growing consumer preference for sustainable and cost-effective alternatives to natural diamonds.Operating profit margin (OPM) expanded from 13.33% to 15.05%, leading to a 136.6% increase in operating profit to Rs 30.54 crore. Other income increased to Rs 0.43 crore. Interest cost inclined 210.9% to Rs 1.46 crore and depreciation cost inclined by 381.8% to Rs 2.59 crore. PBT after EO was higher by 126.2% to Rs 26.93 crore as against Rs 11.90 crore. PAT was higher by 127.8% to Rs 22.32crore as against Rs 9.80 crore in FY2025. Tax expenses was 4.61 crore in FY2026 as against Rs 2.11 crore in FY2025.

At the higher price band of Rs 75, the offer is made at a P/E of 19.35 times FY2026 EPS (of Rs 3.88).

The business mixes and scales of near comparable listed players differ materially from NGJL. Hence it’s better not to go by their valuations.