Hyderabad-based Deepa Jewellers (DJL), an organised B2B gold jewellery designer, processor, and supplier, has filed its DRHP with the Securities and Exchange Board of India (SEBI). Deepa Jewellers IPO comprises a fresh issue of INR 250 crore and an OFS of 1.18 crore shares by promoter shareholders Ashish Agarwal and Seema Agarwal.
The offer is being managed by Emkay Global Financial Services and Valmiki Leela Capital, with Bigshare Services serving as the registrar.
Deepa Jewellers IPO: Financial Trajectory & Profitability
Deepa Jewellers has delivered consistent growth across revenue and profit metrics over the past three years.
- Revenue from operations increased from INR 921.26 crore in FY23 to INR 139.70 crore in FY25.
- Profit after tax (PAT) rose from INR 22.02 crore in FY23 to INR 40.58 crore in FY25, reaching INR 48.62 crore in the six months ended 30 September 2025.
- The company’s EBITDA margin improved to 8.32% during the six-month period of FY26, compared with 4.01% in FY25, and PAT margin expanded to 5.99%.
- The return on equity (RoE) stood at a robust 30.87%, while the debt-to-equity ratio reduced to 0.55, signaling strengthened financial health.
Utilisation of Net Proceeds
Deepa Jewellers intends to deploy approximately INR 215 crore from the net proceeds toward long-term working capital, particularly for procurement and scaling of inventory. The balance will go toward general corporate purposes.
The fresh infusion is expected to reinforce the company’s operational capacity and support its upcoming in-house manufacturing facility in Hyderabad.
Deepa Jewellers IPO: Business Overview
Founded in 2016, Deepa Jewellers operates as a B2B designer, processor, and supplier of hallmarked 22-karat gold jewellery. The company specializes in vaddanam (traditional waist belts) and CNC machine-cut bangles, which together accounted for over 84% of its revenue in FY25.
Its product portfolio includes 14 product categories and 76 SKUs — ranging from gents kada, armlets, bajuband, and necklaces to earrings, jadas, and mangtikas. As of November 2025, the company services 315 customers across 13 states and one union territory, comprising 43 jewellery retail chains and 272 standalone stores.
Key retail clients include industry heavyweights such as Joyalukkas India, Kalyan Jewellers India, Lalithaa Jewellery Mart, CMR Jewellers, and Bhima Jewels.
Geographic and Market Strength
According to the CRISIL report, South India commands 38–43% of India’s jewellery consumption, making it the largest regional market. Deepa Jewellers derives nearly 98% of its revenues from South Indian states, with Telangana (48.5%) and Tamil Nadu (20%) leading its regional contribution.
The company has expanded its physical footprint by opening a sales office in Vijayawada, Andhra Pradesh, and plans to open another in Bengaluru by FY27 to deepen its Southern market penetration.
Manufacturing Integration and Operational Efficiency
To strengthen production control and reduce dependence on external karigars, Deepa Jewellers is setting up a 6,696 sq. ft. in-house manufacturing facility at its Hyderabad headquarters. The new facility — expected to be operational before FY26 end — will feature advanced machinery including 3D wax printers, vacuum pressure casting machines, and induction melting furnaces.
The firm currently works with a network of 40 karigars, 24 of whom have been associated with the company for over five years. The move toward internal manufacturing is aimed at improving quality control, reducing making charges, and minimising pilferage.
Deepa Jewellers IPO: Industry Outlook & Positioning
The Indian jewellery sector, valued at INR 6,87 lakh crore in FY25, is expected to grow at a CAGR of 12–14% to reach INR 12.40 lakh crore by FY30. Within this, South India remains the dominant growth engine.
Deepa Jewellers’ focus on B2B clients, design-driven differentiation, and digital engagement through its proprietary “Deepa Jewellers” app positions it favorably within this expanding ecosystem.
Conclusion
Deepa Jewellers IPO filing reflects the company’s evolution from a regional B2B player into a scaled, organized jewellery enterprise with strong profitability, operational discipline, and expansion ambitions. Deepa Jewellers IPO could mark a significant debut for the South Indian jewellery ecosystem — potentially making the company one of the most closely watched mid-sized jewellery listings of 2026.
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