Nityas Gems and Jewellery IPO Review: Good or Bad?

Is the Nityas Gems and Jewellery IPO good or bad? Going by the numbers, it is a fast-growing and profitable jewellery maker whose growth is absorbing cash, and whose price is roughly in line with listed peers rather than cheap. That is a more useful answer than a one-word verdict, so the rest of this article shows you where it comes from.

We read the company's Red Herring Prospectus (RHP) and pulled the figures that decide whether this issue suits you. Every number below comes from the RHP unless we name another source. If you are new to the document itself, our guide to the red herring prospectus explains what each section tells you.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This article is for education and is not investment advice.

Nityas Gems and Jewellery IPO Details

Here are the terms you need before you bid. The price band and lot size were announced after the RHP was filed, so we took them from the exchange data shown on the Rupeezy IPO page.

Source: Nityas Gems and Jewellery Limited RHP; price band, lot size and minimum investment as shown on the Rupeezy IPO page, 29 September 2026.

What Does Nityas Gems and Jewellery Do?

Nityas was incorporated in April 2022 and is based in Surat, Gujarat. It designs and manufactures 18-carat and 14-carat gold jewellery studded with lab-grown diamonds (LGDs): rings, earrings, pendants, bracelets, mangalsutras, necklaces and bangles. The RHP says the company employs 192 permanent staff and that promoter Rajnikant Chanchad, its chairman and managing director, has over 20 years of experience in the gems and jewellery sector.

Most of the money comes from B2B sales. Nityas designs collections, or builds to a customer's brief, and sells to retail chains, standalone jewellers and wholesalers across 18 states and 2 union territories. Overseas sales were only 2.56% of FY26 revenue.

The direct-to-consumer side is new. In July 2025 Nityas bought a 50.04% stake in Ayaani Diamonds and Jewellery Private Limited, an LGD jewellery brand with an online store and ten stores across eight cities. There is a detail worth noticing: Ayaani was Nityas's single largest customer in FY25, at 19.48% of revenue. The acquisition moved a big buyer inside the group.

Where FY26 Revenue Came From

Source: RHP, revenue by customer type, certified by the statutory auditors. D2C revenue is counted only from 22 July 2025.

The mix moved a lot in one year. Standalone retailers went from 17.26% of revenue to 42.75%, while retail chains fell from 46.58% to 24.57%. Sales follow whichever buyers order in bulk, so the mix can swing again.

Lab-Grown Diamond Jewellery: The Market Nityas Is Betting On

The company's pitch rests on LGD jewellery becoming an everyday purchase. The industry report in the RHP, prepared by CareEdge Research and commissioned and paid for by the company, puts the Indian LGD jewellery market at Rs. 1,374 crore in CY20 and Rs. 3,450 crore in CY25. It projects Rs. 7,189 crore by CY30, a 15.8% compound annual growth rate over CY25 to CY30.

The same report says LGD jewellery is typically 60% to 80% cheaper than natural diamond jewellery, which opens studded pieces to buyers in smaller cities. Keep in mind that the report was paid for by the issuer, and that the same low prices cut both ways: the RHP itself lists falling global LGD prices as a risk, since they can squeeze selling prices.

Nityas Gems and Jewellery Financial Analysis

Source: RHP, restated consolidated financial information and key performance indicators.

Three things stand out.

Growth is mostly organic. B2B revenue rose from Rs. 96.84 crore to Rs. 193.92 crore in FY26, a 100% jump. Ayaani added only Rs. 8.81 crore of D2C sales, or 4.34% of the total, in its first eight months in the group.

Part of the jump is price, not just volume. The RHP reports that LGD jewellery sold rose 78% to 178.89 kg and gold processed rose 55% to 98.53 kg, while revenue rose 109.5%. Gold bullion is the main raw material, so a higher gold price lifts revenue without more pieces being sold.

Falling return on net worth is not a warning sign by itself. It dropped from 122.44% to 43.75% because net worth grew almost fifteen-fold, helped by fresh equity of Rs. 26.21 crore raised across FY25 and FY26, retained profit and Rs. 16.99 crore of minority interest that came with Ayaani. A 43.75% return is still high for a jewellery business.

The Cash Flow Question Behind the Profit Growth

This is the part of the RHP we would ask you to read twice. The company reports profit every year, yet the cash flow statement shows it used cash in its day-to-day operations in all three years.

Source: RHP, restated consolidated cash flow statement and key performance indicators.

Over three years Nityas reported Rs. 36.13 crore of profit and used Rs. 25.83 crore of cash in operations. The gap was filled by new equity and short-term bank borrowings. On the balance sheet, inventories went from Rs. 5.27 crore in March 2024 to Rs. 63.59 crore in March 2026, roughly twelve times, while revenue grew about 3.8 times.

The company's explanation is that jewellery is a working-capital business: it buys gold upfront, keeps a wide range of designs in stock to win larger buyers, and gives credit to customers. Creditor days of about 10 also show it pays suppliers fast. To be fair to Nityas, the RHP notes that its net working capital days are lower than those of some listed peers, which run at 112 to 290 days. Our concern is the direction, not the level, and the plan for FY27 points further the same way. The company expects its working capital need to reach Rs. 110.31 crore, from Rs. 44.95 crore in FY26, and receivable days to rise to about 31.

If you want the basics behind these ratios, see our explainer on the working capital turnover ratio.

Customer and State Concentration

Source: RHP. In FY25 the largest customer was Ayaani, which became a subsidiary on 22 July 2025.

The trend is in the right direction. In FY26 the top 10 customers brought in 55.49% of revenue, down from 84.24% two years earlier. Ayaani leaving the customer list when it became a subsidiary likely explains part of that drop.

Even so, 55% from ten buyers and 85% from five states is high. The state mix also swings sharply: Tamil Nadu went from 18.17% of revenue in FY25 to 3.77% in FY26, and Karnataka went from 4.89% to 23.42%. That pattern suggests revenue follows a handful of large orders rather than steady regional demand, so losing one big account could show up quickly in the numbers.

Nityas Gems and Jewellery IPO Valuation vs Listed Peers

The RHP compares Nityas with three listed jewellery companies: Golkunda Diamonds and Jewellery, Goldiam International and Renaissance Global. All figures are for FY26.

Source: RHP, comparison with listed industry peers. Peer P/E is based on closing prices on 10 September 2026.

How We Worked Out Nityas's P/E

The RHP reports a basic earnings per share (EPS) of Rs. 5.52 for FY26. At Rs. 75, that gives a P/E ratio of about 13.6. But EPS in the RHP is averaged over a year in which the share count changed, and the IPO will add 1.4456 crore new shares. After the issue there will be about 5.76 crore shares, so the market value at Rs. 75 is about Rs. 432 crore. Divided by FY26 profit of Rs. 22.32 crore, that is roughly 19 times. The second figure is the fairer test of what you are paying for.

On that basis Nityas sits close to the peer range, not below it. The RHP states an industry average of 20.16 times (range 18.63 to 21.69), although its own peer table shows Golkunda at 16.61 times, so treat the exact average with care. Against book value, Rs. 75 is about five times the FY26 net asset value of Rs. 15.13 per share.

One more disclosure is easy to miss. The RHP lists no new shares issued in the last 18 months, but secondary transfers among existing holders in that period had a weighted average cost of Rs. 18.42 per share, and some transfers in May 2025 were priced at an adjusted Rs. 11.82. Early investors are therefore sitting on a much lower cost than the Rs. 70 to Rs. 75 you would pay.

Objects of the Nityas Gems and Jewellery IPO

Because the issue is entirely fresh shares, all the money goes to the company. The RHP allocates it as follows:

• Working capital: Rs. 70 crore, to be deployed in FY27.

• General corporate purposes: the balance, capped at 25% of gross proceeds under SEBI rules.

The RHP also says these estimates come from management and a chartered accountant's certificate, and have not been appraised by any bank or financial institution. In plain terms, the money will not build a new factory or repay big debt. It will stock more gold and diamonds and fund longer credit to customers, which matches the cash flow pattern above.

Strengths of Nityas Gems and Jewellery

• Fast, mostly organic growth. B2B revenue doubled in FY26, and profit grew faster than sales.

• Improving margins. EBITDA margin rose from 10.21% to 15.27% in two years. Its 11.00% PAT margin is well above Golkunda (4.86%) and Renaissance Global (3.21%), though below Goldiam (17.46%).

• High returns. Return on net worth of 43.75% and return on capital employed of 42.93% compare with 6% to 19% and 8% to 24% for the three peers.

• Low borrowings. Debt-to-equity is 0.29, with borrowings of Rs. 9.08 crore against net worth of Rs. 79.43 crore.

• A widening customer base. The top 10 customers fell from 84.24% to 55.49% of revenue in two years.

• A clean legal record. The RHP shows no criminal cases, regulatory actions or material civil cases against the company. The one item is a direct tax demand of Rs. 2.95 crore for assessment year 2023-24.

Risks of Nityas Gems and Jewellery IPO

• Negative operating cash flow. The company has consumed cash in operations for three years running, and management expects working capital needs to keep growing.

• Heavy dependence on a few customers and states. Ten customers give 55.49% of revenue, five states give 85.03%, and B2B is 95.58% of sales.

• Gold price exposure. Gold bullion was 72.33% of purchases in FY26 (standalone), and the RHP says the company has no comprehensive hedging against price swings.

• LGD price and acceptance risk. The RHP notes global LGD prices are declining. Cheaper stones widen demand but can pull down selling prices and the value of stock on hand.

• Young business and an early-stage acquisition. The company is four years old. Ayaani's D2C revenue is 4.34% of sales, and the deal created Rs. 7.86 crore of goodwill on the balance sheet.

• One manufacturing base. Production is concentrated in Surat, so a disruption there would affect all output.

• First-time listing. There is no trading history, and the RHP warns the issue price may not reflect the market price after listing.

Is Nityas Gems and Jewellery IPO Good or Bad?

Neither label fits cleanly. The filing supports one story and questions another, so we have put them side by side.

Questions to Settle Before You Bid

• Are you comfortable owning a small company whose cash flow is negative while its profit rises?

• Are you bidding for a listing-day move or for the business over several years? The two need different risk appetites.

• How much of your portfolio would this one small-cap take, and can you accept losing part of it?

• Have you read the risk factors in the RHP yourself, not only summaries?

You will see grey market premium (GMP) numbers quoted everywhere for this IPO. We do not use them: GMP is an unofficial sentiment signal, and our explainer on what GMP is and why it can mislead covers the risks. If you want to compare with other jewellery issues we have reviewed, start with Deepa Jewellers, Priority Jewels, Shankesh Jewellers and Lalithaa Jewellery Mart.

How to Apply for Nityas Gems and Jewellery IPO on Rupeezy

If you decide to bid, you can apply through Rupeezy. Rupeezy's IPO page states "Zero fees on IPOs. Free account opening," so there is no charge for applying. That is a fact about our pricing, not a reason to bid. Rupeezy is a stockbroker and earns from other services if you become a client, which has no bearing on the analysis above.

1. Open a demat account. Open a free demat account with Rupeezy and finish the online KYC.

2. Keep a UPI ID ready. It must be linked to the bank account that holds your funds.

3. Go to the IPO section. Log in, open the IPO page and select Nityas Gems and Jewellery. Bidding is open from 10:00 am to 5:00 pm on 30 September and 1, 3, 4 and 5 October (the exchanges may not take bids on weekends; check the live window in the app).

4. Choose your bid. Pick the number of lots (1 to 13 for retail investors) and a price within Rs. 70 to Rs. 75, or bid at the cut-off price.

5. Approve the UPI mandate. The amount is blocked in your account, not debited, until shares are allotted.

6. Track allotment. Allotment is expected on 6 October. Check it on the Rupeezy IPO allotment status page, the Bigshare website, BSE or NSE. Unallotted money is unblocked on 7 October.

New to this? Our step-by-step guide to applying for an IPO online covers the process, and these explainers help with the details: the IPO allotment process, IPO apply time and anchor investors.

Apply for Nityas Gems and Jewellery IPO  |  Open a free demat account

Frequently Asked Questions

Is Nityas Gems and Jewellery IPO good or bad?

The RHP shows revenue and profit more than doubling in FY26 and a valuation near listed peers, but also negative operating cash flow for three years and high dependence on a few customers and states. Whether it suits you depends on your risk appetite; this is not a recommendation.

What is the price band, lot size and minimum investment for Nityas Gems and Jewellery IPO?

The price band is Rs. 70 to Rs. 75 per share and one lot is 200 shares. The minimum bid is Rs. 15,000 at the upper band, and retail investors can bid for up to 13 lots, or Rs. 1,95,000.

When does the Nityas Gems and Jewellery IPO open, close and list?

Bidding opens on 30 September 2026 and closes on 5 October 2026. Allotment is expected on 6 October, refunds and demat credit on 7 October, and listing on BSE and NSE on 8 October 2026.

Is Nityas Gems and Jewellery IPO a mainboard or SME issue?

It is a mainboard issue. The shares will list on both BSE and NSE, and NSE is the designated stock exchange.

How will Nityas Gems and Jewellery use the IPO money?

The issue is entirely fresh shares. The company plans to use Rs. 70 crore for working capital in FY27, with the balance for general corporate purposes capped at 25% of gross proceeds.

How can I apply for Nityas Gems and Jewellery IPO for free on Rupeezy?

Open a demat account with Rupeezy, log in, go to the IPO section, select Nityas Gems and Jewellery, choose your lots and price, and approve the UPI mandate. Rupeezy states zero fees on IPOs and free account opening.

Sources

• Nityas Gems and Jewellery Limited, Red Herring Prospectus (September 2026): company website. Source for financials, cash flow, customer and state data, peer comparison, objects of the issue, litigation and the issue timetable.

• CareEdge Research, "Lab Grown Diamond Jewellery Industry in India" (2026), as cited in the RHP. Commissioned by the company.

• Rupeezy IPO page for exchange data on price band, lot size and minimum investment, and its fee statement: rupeezy.in/ipo, accessed 29 September 2026.

All data is as of 29 September 2026. Figures in Rs. crore are converted from the RHP's Rs. million figures and rounded. Post-issue P/E, market value and holding are our calculations from RHP data.