Shankesh Jewellers Limited

Sector: Gems & Jewellery (B2B Wholesale Gold Jewellery Manufacturing)

1. Overview

Shankesh Jewellers Limited is a Mumbai-based, business-to-business (B2B) wholesale gold jewellery company engaged in the design and supply of hand-crafted gold jewellery in 22-karat and 18-karat, along with customisation services. Originally incorporated in July 2005 as H. K. Gold Private Limited, the Company was renamed Shankesh Jewellers Private Limited in 2006 and converted to a public limited company in April 2025 ahead of its listing. Its operations are anchored in Zaveri Bazaar, Mumbai — one of India's largest bullion and jewellery trading hubs.

The Company operates a distinctive asset-light model: it acts as principal contractor, controlling design, material sourcing and quality, while the physical manufacturing is outsourced to skilled artisans (Karigars) engaged through Jobworkers concentrated in Maharashtra. The Company collaborated with 66 Jobworkers as of Fiscal 2026 (down from 90 in FY24 and 87 in FY25), reflecting consolidation of its production network.

Commercially, Shankesh supplies both large corporate jewellery retailers — including Joyalukkas India Limited, P. N. Gadgil & Sons Limited, Kalyan Jewellers India Limited, P N Gadgil Jewellers Limited and Novel Jewels (Aditya Birla Group) — and non-corporate clients. This clientele positions the Company as a supplier to the organised retail jewellery ecosystem, which is gaining share from the unorganised segment.

2. Business Model and Revenue Streams

Revenue by Client Type

The Company's revenue is split between corporate and non-corporate channels, with corporate clients contributing the larger and growing share (64.25% in FY26, up from ~55% in prior years):

Revenue by Geography

Revenue is concentrated in a top-5 state cluster (~62–68% of total), exposing the Company to regional demand risk:

Operating Model & Key Metrics

• Contract model: Primarily spot/order-based B2B supply to jewellery retailers; the Company does not hold long-term or exclusive contracts with its customers — a structural risk to revenue visibility.
• Job-work variant: Clients may supply bullion with specific requirements, which the Company executes through Karigars and delivers as finished jewellery.
• Client concentration: In FY26 the Top 1 client contributed ~6.12%, Top 5 ~23.26% and Top 10 ~39.56% of revenue from operations — a moderate but rising concentration.
• Supplier concentration: The Top 10 suppliers accounted for ~91.22% of raw-material purchases in FY26, with no firm long-term supply agreements in place.
• Gold processed: 1,397.48 Kg in FY26 (vs 1,935.92 Kg in FY25 and 1,795.52 Kg in FY24), indicating a shift toward higher-value output as revenue rose even as volume of gold processed fell.

3. Products and Service Portfolio

Product Range

The Company offers a broad, design-led portfolio of hand-crafted gold jewellery in 22-karat and 18-karat, spanning:

Core categories: Bangles, Bridal Jewellery, Chokers, Jhumkas, Long and Short Necklace sets, Mangalsutra and Rings, plus combined jewellery sets.

Design styles: Antique Jewellery, Semi-Antique, Calcutta Jewellery, Temple Jewellery, Gheru Polish, and Yellow / Rhodium / Rose Gold finishes.

Customisation: Capability to create bespoke jewellery tailored to specific customer/retailer specifications — the Company's principal service differentiator.

Production & Operating Data

Manufacturing is fully outsourced to Karigars via Jobworkers; the Company retains in-house design capability managed by its Promoters.

Each finished product undergoes 2–3 rounds of quality verification by the Company's team (including Promoters) before dispatch.

Margin profile (improving): Gross profit margin rose to 11.06% in FY26 (from 5.56% in FY25 and 4.27% in FY24); EBITDA margin 9.68% and PAT margin 6.54% in FY26.

4. Key Business Strengths

• Strong historical financial growth: Revenue up ~54% over two years and PAT up ~8x (FY24→FY26), demonstrating operating leverage and disciplined working-capital deployment.
• Marquee corporate clientele: Established supply relationships with Joyalukkas, Kalyan Jewellers, P. N. Gadgil and Aditya Birla's Novel Jewels, embedding the Company in the fast-growing organised retail jewellery channel.
• Asset-light, capital-efficient model: Outsourced manufacturing minimises capex, depreciation and fixed-cost risk, enabling flexible scaling across demand cycles.
• Deep Karigar/Jobworker network: Long-standing relationships with skilled artisans in Mumbai's craftsmanship belt, supporting intricate, differentiated hand-crafted designs.
• In-house design capability: Promoter-led design team aligns product output to latest trends and customer preferences, feeding a customisation-driven value proposition.
• Experienced, promoter-driven leadership: Promoters bring ~19–32 years of jewellery-sector experience and remain actively involved in client management and design.

5. Future Growth Strategy

• Capture organised-market formalisation: Position as a wholesale manufacturing partner to expanding organised retailers as market share shifts from the unorganised segment toward branded, hallmarked jewellery.
• Scale operational capacity: Leverage existing supplier relationships and client connections to secure larger order volumes from current corporate clients and win new accounts.
• Strengthen the balance sheet & reduce debt dependence: Deploy Net Proceeds toward repayment/pre-payment of borrowings (₹158.00 Cr) to improve financial flexibility and lower the 0.81 debt-to-equity position.
• Fund working-capital-led growth: Apply ₹38.00 Cr of Net Proceeds to working capital, supporting inventory and receivables needs of a scaling, inventory-intensive gold business.
• Invest in marketing & brand building: Continue participation in industry exhibitions (e.g., IIJS, GJS) and digital engagement to deepen B2B partnerships and stay abreast of design trends.