Lalithaa Jewellery Mart IPO

The Indian gems and jewellery retail industry was valued at ₹12,887 billion in Fiscal 2026 and is projected to grow at a 4-5% CAGR between Fiscals 2026 and 2030, reaching ₹15,100-15,500 billion.  

Gold jewellery accounts for around 80-85% of the retail gems and jewellery market. The gold retail industry was valued at ₹10,619 billion in Fiscal 2026 and is expected to grow at a 3-5% CAGR through Fiscal 2030.  

South India accounted for around 38-43% of India's gold and jewellery demand in Fiscal 2026. Its retail gems and jewellery market is projected to grow at a 6-7% CAGR, reaching ₹6,200-6,600 billion by Fiscal 2030.  

Organised jewellery retailers increased their market share from 30-35% in Fiscal 2020 to 37-42% in Fiscal 2026. Their share is expected to reach 45-50% by Fiscal 2030, supported by increasing consumer preference for branded and certified jewellery.  

Wedding and festival purchases remain key demand drivers, while working women and younger consumers are increasing demand for lightweight, minimalist and studded jewellery.  

Online jewellery sales increased to 5-7% of the market in Fiscal 2026 and are projected to reach 9-11% by Fiscal 2030. Retailers are increasingly combining digital discovery with physical store purchases.  

Jewellery retail remains a working-capital-intensive business due to the need to maintain gold and diamond inventory. Dependence on imported raw materials also exposes retailers to gold prices, currency movements and changes in import duties.  

GST, mandatory BIS hallmarking, HUID requirements and PAN requirements for high-value purchases have supported greater transparency and the shift towards organised jewellery retail. 

Lalithaa reported the highest operating revenue per store among key organised jewellery retailers at ₹4,102.28 million in Fiscal 2026. It also reported ROCE of 42.60% and ROE of 41.60%.  

The company operates 61 stores across 51 cities in South India. Its operational revenue grew at a 22.09% CAGR between Fiscals 2024 and 2026.  

Its jewellery savings schemes had 473,412 active customers as of March 31, 2026. Customer advances stood at ₹50,427.50 million in Fiscal 2026.  

Lalithaa operates two manufacturing facilities and has 816 in-house karigars, helping it controls manufacturing and wastage costs.  

The company owns only 3 store properties, while the remaining 58 stores operate on a lease or leave-and-license basis, helping limit capital requirements for expansion.  

The company operates large and medium-format stores, allowing it to offer a wide range of jewellery products and cater to different customer preferences.  

The organised jewellery retail segment in India is projected to increase its market share from 37–42% in Fiscal 2026 to 45–50% by Fiscal 2030.  

45 of Lalithaa’s 61 stores were in Tier-II and Tier-III cities in Fiscal 2026, contributing 60.25% of operational revenue.  

Growing preference for lightweight and diamond-studded jewellery among younger consumers and working women provides an opportunity to expand this higher-margin segment.  

Revenue from silver jewellery and articles increased from ₹6,525.96 million in Fiscal 2024 to ₹16,588.49 million in Fiscal 2026, providing an additional product segment beyond gold.  

Gold jewellery contributed 92.33% of revenue from operations in Fiscal 2026, making the company highly dependent on gold demand, procurement and consumer preferences.  

Lalithaa reported negative cash flow from operating activities of ₹3,977.62 million in Fiscal 2026 and ₹180.02 million in Fiscal 2024, mainly due to high working capital and inventory requirements.  

The company does not use standard gold hedging practices such as metal loans, forward contracts or options, leaving its inventory and margins exposed to fluctuations in gold prices.  

Inventory accounted for 96.81% of total current assets as of March 31, 2026. High inventory levels can lock up significant working capital and affect liquidity.  

Customer advances stood at ₹50,427.50 million in Fiscal 2026. Changes in regulations governing customer advance schemes could affect the company's cash flows and sales.  

The company operates 58 of its 61 stores on a leased or leave-and-license basis, exposing it to lease renewal and rental risks. Employee attrition was also high at 30.90% in Fiscal 2026.  

The company's top three suppliers accounted for 58.03% of raw material purchases in Fiscal 2026. It also relies on in-house and external karigars for jewellery production, creating supply and workforce-related risks.  

Handling large quantities of gold exposes the company to theft and losses. Lalithaa has reported instances of jewellery theft and losses involving artisans who absconded with gold inventory.  

All 61 retail stores are located in South India, exposing the company to regional economic conditions, regulatory changes and local disruptions, including extreme weather events.  

Changes in customs duties and other government policies can affect gold costs, consumer demand, and jewellery margins. Higher duties may also affect affordability.  

Lalithaa has entered into transactions with related parties, including purchases of diamond ornaments from a proprietorship owned by promoter M. Kiran Kumar Jain.  

Lalithaa Jewellery Mart IPO DRHP 

Lalithaa Jewellery Mart IPO RHP 

Anand Rathi Advisors Limited 

Contact Number: 022-49186000 

Email Address: lalithaajewellery.ipo@linkintime.co.in