Shankesh Jewellers Limited is a B2B jewellery manufacturer and supplier focused on handcrafted gold jewellery and customised jewellery products for institutional clients across India. The company is preparing to launch its Mainboard IPO with a total issue size of ₹367.18 crore, comprising a fresh issue of ₹274.18 crore and an Offer for Sale of ₹93 crore. The IPO proceeds from the fresh issue are primarily intended for debt repayment, working capital requirements and general corporate purposes.
The company has reported strong growth in revenue and profitability over FY24 to FY26, while its FY26 EBITDA and PAT margins improved substantially. At the upper price band of ₹93 per share, the issue is valued at approximately 10.2 times FY26 earnings based on diluted EPS of ₹9.09.
This Shankesh Jewellers IPO Analysis covers the issue structure, dates, application limits, business model, financial performance, use of proceeds, valuation, peer comparison, strengths and risks to help investors assess the offer.
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Table of Contents
- Shankesh Jewellers IPO 2026: Key Issue Details
- Shankesh Jewellers IPO Date and Important Timeline
- Shankesh Jewellers IPO Price, Lot Size and Investment Requirement
- Shankesh Jewellers IPO Subscription Categories and Investment Limits
- Shankesh Jewellers Business Model and Operations
- How Shankesh Jewellers Generates Revenue
- Objects of the Shankesh Jewellers IPO
- Shankesh Jewellers Financial Performance
- Profitability and Key Financial Ratios
- What Drove the Improvement in FY26
- Shankesh Jewellers IPO Valuation and Peer Comparison
- Key Strengths of Shankesh Jewellers
- Key Risks to Consider
- Shankesh Jewellers IPO Review: What Investors Should Consider
- Final Takeaway
The Shankesh Jewellers IPO is a Mainboard issue comprising both a fresh issue and an Offer for Sale. The fresh issue will raise capital for the company, while the OFS component will provide an exit opportunity to existing selling shareholders.
| Particulars |
Details |
| IPO opening date |
18 August 2026 |
| IPO closing date |
20 August 2026 |
| Price band |
₹88 to ₹93 per share |
| Face value |
₹5 per share |
| Lot size |
160 shares |
| Total issue size |
₹367.18 crore |
| Fresh issue |
₹274.18 crore |
| Offer for Sale |
₹93 crore |
| Listing exchanges |
NSE and BSE |
| Tentative listing date |
25 August 2026 |
| Lead managers |
Aryaman Financial Services Ltd, Smart Horizon Capital Advisors Pvt Ltd |
| Registrar |
KFin Technologies Limited |
The fresh issue accounts for the larger portion of the offering. Of the ₹367.18 crore total issue, ₹274.18 crore will be raised by the company, while ₹93 crore will be offered through the OFS route.
This distinction is important because fresh issue proceeds are available to the company for its stated business objectives, whereas proceeds from an OFS generally go to the selling shareholders.
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Get the latest details on the issue, including price band, lot size, IPO dates and key offer structure of the Shankesh Jewellers IPO.
The Shankesh Jewellers IPO is scheduled to remain open for three days from 18 August to 20 August 2026. The subsequent allotment, refund and listing process is expected to follow the tentative schedule below.
| IPO Event |
Date |
| IPO opens |
18 August 2026 |
| IPO closes |
20 August 2026 |
| Basis of allotment |
21 August 2026 |
| Refunds and demat credit |
24 August 2026 |
| Tentative listing |
25 August 2026 |
The IPO Date is particularly relevant for investors planning their application because bids can be submitted only during the issue period. The final allotment depends on subscription levels and the applicable basis of allotment.
The IPO price band has been fixed at ₹88 to ₹93 per equity share, with a face value of ₹5 per share. Investors must apply in multiples of the prescribed lot size of 160 shares.
At the upper price band of ₹93, one retail lot requires an investment of ₹14,880. The maximum retail application of 13 lots represents an investment of ₹1,93,440.
| Investor |
Minimum application |
Investment at ₹93 |
| Retail |
160 shares / 1 lot |
₹14,880 |
| S-HNI |
2,240 shares / 14 lots |
₹2,08,320 |
| B-HNI |
10,880 shares / 68 lots |
₹10,11,840 |
The investment amounts above are calculated using the upper end of the price band. The actual amount at the lower band of ₹88 would be lower.
The issue is divided between retail investors, non-institutional investors and qualified institutional buyers. Retail investors have a minimum reservation of 35%, while the QIB portion can account for up to 50% of the issue. The NII portion accounts for 15%, within which small HNI and big HNI applications are classified according to the applicable investment thresholds.
| Investor category |
Reservation and application details |
| Retail Individual Investor |
Not less than 35%; minimum 160 shares or 1 lot; maximum 13 lots |
| Small HNI |
Part of the 15% NII portion; minimum 2,240 shares or 14 lots; maximum 67 lots |
| Big HNI |
Part of the 15% NII portion; minimum 10,880 shares or 68 lots |
| QIB |
Not more than 50% of the issue |
At the upper price band of ₹93, one retail lot requires ₹14,880. The maximum retail application of 13 lots represents 2,080 shares and an investment of ₹1,93,440.
For small HNI investors, the minimum application is 14 lots, or 2,240 shares, requiring ₹2,08,320 at the upper price band. The maximum specified application of 67 lots represents 10,720 shares and an investment of ₹9,96,960.
Big HNI investors need to apply for at least 68 lots, equivalent to 10,880 shares. At ₹93 per share, this represents ₹10,11,840.
Shankesh Jewellers operates primarily as a B2B supplier of handcrafted gold jewellery and customised jewellery products. Rather than depending primarily on a large network of its own retail stores, the company focuses on supplying institutional jewellery clients across India.
Its business model uses third-party karigars, artisans and specialised job workers for manufacturing activities. This asset-light structure allows the company to access specialised craftsmanship without having to build the entire manufacturing process through a large in-house workforce and extensive fixed production infrastructure.
The model also allows Shankesh Jewellers to concentrate on areas such as jewellery design, product development, sourcing and customer relationships.
Handcrafted and Customised Jewellery Focus
The company works with handcrafted and customised jewellery, where product requirements can vary according to client specifications. This creates a business model that is more dependent on design capabilities, sourcing, craftsmanship and execution than on a standardised mass-production approach.
The use of specialised artisans and job workers supports production flexibility. At the same time, it means the company's operations remain dependent on the availability and performance of these external production partners.
B2B Institutional Customer Base
Shankesh Jewellers serves B2B institutional customers located across India. The institutional customer base provides access to recurring business opportunities, although the company does not have direct long-term contracts covering all of its B2B orders.
This makes customer relationships and repeat business important to revenue continuity. Investors therefore need to distinguish between an established customer base and legally secured long-term contractual revenue.
Revenue is primarily linked to the sale and supply of gold jewellery products to B2B customers. The business requires the company to source gold bullion and maintain jewellery inventory to fulfil customer requirements.
Because gold represents a significant component of the product value, revenue can be large in absolute terms even though the underlying operating margin is considerably lower than the value of the jewellery sold.
The company's FY26 performance indicates that profitability improved much faster than revenue. Total income increased 16.16% year on year in FY26, while EBITDA increased 141.62% and PAT rose 164.65%. This shows that the improvement in earnings was not driven solely by higher sales.
Product mix, operating leverage and improved margins therefore become important factors when assessing the sustainability of FY26 profitability.
The company plans to use the ₹274.18 crore fresh issue proceeds primarily for debt reduction and working capital. The largest allocation is towards repayment or prepayment of existing borrowings.
| Use of proceeds |
Amount |
| Debt repayment/prepayment |
₹158 crore |
| Working capital |
₹38 crore |
| General corporate purposes |
Remaining proceeds |
₹158 Crore for Debt Reduction
The company plans to use ₹158 crore for the full or partial prepayment or repayment of existing working capital borrowings and loans.
This is one of the most important elements of the issue because Shankesh Jewellers had total borrowings of ₹167.30 crore in FY26. Using a significant portion of the fresh capital for debt reduction could reduce the company's interest burden and strengthen the balance sheet.
A lower debt burden can also improve financial flexibility. However, the actual benefit will depend on the amount of debt ultimately repaid, the associated interest savings and the company's future borrowing requirements.
₹38 Crore for Working Capital
Another ₹38 crore is earmarked for working capital requirements. The jewellery business requires substantial funds for sourcing gold bullion and maintaining inventory.
Working capital is particularly important in this sector because the value of inventory can be high relative to operating margins. Additional working capital gives the company greater flexibility to purchase bullion and maintain inventory levels needed to fulfil customer orders.
General Corporate Purposes
The remaining net proceeds will be used for general corporate purposes. These funds can support routine business requirements and broader operational needs within the limits specified for the issue.
The company's financial performance improved considerably between FY24 and FY26. Total income increased from ₹1,061.91 crore in FY24 to ₹1,630.93 crore in FY26.
The stronger improvement came at the profit level. EBITDA increased from ₹28.60 crore in FY24 to ₹157.90 crore in FY26, while PAT increased from ₹12.82 crore to ₹106.68 crore over the same period.
FY24 Financial Performance
| Financial Metric |
FY24 |
| Total Income |
₹1,061.91 crore |
| EBITDA |
₹28.60 crore |
| PAT |
₹12.82 crore |
| Net Worth |
₹60.29 crore |
| Total Borrowings |
₹109.81 crore |
FY25 Financial Performance
| Financial Metric |
FY25 |
| Total Income |
₹1,404.00 crore |
| EBITDA |
₹65.35 crore |
| PAT |
₹40.31 crore |
| Net Worth |
₹100.60 crore |
| Total Borrowings |
₹145.63 crore |
FY26 Financial Performance
| Financial Metric |
FY26 |
| Total Income |
₹1,630.93 crore |
| EBITDA |
₹157.90 crore |
| PAT |
₹106.68 crore |
| Net Worth |
₹209.43 crore |
| Total Borrowings |
₹167.30 crore |
The company's financial performance can be assessed through its revenue growth, operating profitability and net profit growth over the three-year period.
Revenue Growth
Total income rose from ₹1,061.91 crore in FY24 to ₹1,404 crore in FY25, representing strong year-on-year growth. It increased further to ₹1,630.93 crore in FY26.
The FY25 to FY26 increase was 16.16%. While this is a healthy increase, it was considerably lower than the growth recorded in EBITDA and PAT.
This difference indicates that the company's FY26 earnings improvement was primarily supported by better profitability rather than simply by revenue expansion.
EBITDA Growth
EBITDA increased from ₹65.35 crore in FY25 to ₹157.90 crore in FY26, a rise of 141.62%.
The EBITDA margin also expanded substantially, reaching 9.68% in FY26 compared with 4.65% in FY25.
Such a sharp improvement is significant because it means a larger portion of revenue was converted into operating earnings. Investors should nevertheless assess whether this margin level can be maintained in future periods, particularly given the company's exposure to gold prices, inventory requirements and product mix.
Profit After Tax Growth
PAT increased from ₹40.31 crore in FY25 to ₹106.68 crore in FY26, representing 164.65% growth.
PAT margin improved from 2.87% in FY25 to 6.54% in FY26. The increase in net profitability was therefore much faster than the growth in total income.
The key consideration for investors is whether the FY26 improvement represents a sustainable change in the company's earnings profile or whether some of the improvement was linked to factors that may not repeat at the same level.
The company's FY26 ratios show a significant improvement in profitability and capital efficiency. The following metrics provide a closer look at its margins, returns, leverage and earnings performance.
EBITDA and PAT Margins
FY26 EBITDA margin stood at 9.68%, compared with 4.65% in FY25. PAT margin increased to 6.54% from 2.87%.
The expansion in both margins suggests that the company generated substantially higher operating and net earnings from each rupee of revenue in FY26.
For investors, the sustainability of these margins will be an important factor to monitor after listing.
ROE and ROCE
Shankesh Jewellers reported a Return on Equity of 50.94% and Return on Capital Employed of 41.57%.
A high ROE indicates that the company generated strong earnings relative to its shareholders' equity. The FY26 net worth also more than doubled from ₹100.60 crore in FY25 to ₹209.43 crore.
However, ROE should not be assessed in isolation. Investors should also consider the company's leverage, working capital requirements and whether the FY26 profitability level can be maintained.
Debt-to-Equity Ratio
The debt-to-equity ratio declined from 1.44 in FY25 to 0.80 in FY26.
This improvement indicates that equity increased faster relative to borrowings. However, total borrowings still rose from ₹145.63 crore to ₹167.30 crore during the same period.
The planned use of ₹158 crore from the fresh issue for debt repayment could further reduce leverage, subject to the amount and nature of borrowings actually repaid.
Diluted EPS
The company's diluted EPS stands at ₹9.09 based on FY26 financial performance. At the upper IPO price of ₹93, this EPS is used to derive an implied P/E of approximately 10.2 times.
EPS is particularly relevant to IPO valuation because it allows investors to compare the offer price with the company's earnings and with listed peers.
The financial data show that revenue growth alone does not explain the company's FY26 performance.
Total income increased by 16.16% between FY25 and FY26, while EBITDA increased by 141.62% and PAT by 164.65%. The company's EBITDA margin more than doubled from 4.65% to 9.68%, while PAT margin increased from 2.87% to 6.54%.
The data therefore point towards a combination of improved product mix and operating leverage contributing to the stronger profitability.
Operating leverage can allow profit to grow faster than revenue when incremental sales are generated without a proportionate increase in operating costs. In Shankesh Jewellers' case, the sharp rise in EBITDA relative to revenue is consistent with such an improvement in operating profitability.
The key issue after the IPO will be whether the company can sustain this margin profile while continuing to manage gold prices, inventory and working capital requirements.
At the upper price band of ₹93 per share and based on FY26 diluted EPS of ₹9.09, the company is valued at approximately 10.2 times earnings.
This multiple provides a straightforward way to compare the offer with selected listed jewellery companies.
| Company |
P/E |
Return on Net Worth |
| Shankesh Jewellers |
~10.2x |
50.94% |
| Sky Gold and Diamonds |
35.42x |
23.37% |
| Shanti Gold International |
9.76x |
23.42% |
On the supplied peer data, Shankesh Jewellers is valued at a significant discount to Sky Gold and Diamonds on a P/E basis. Its valuation is broadly close to Shanti Gold International, while its reported return profile is higher.
However, a lower P/E does not automatically mean that an IPO is undervalued. Valuation also needs to be considered alongside business scale, customer concentration, margin sustainability, working capital requirements, debt levels and future growth prospects.
How the IPO Valuation Looks at ₹93
At ₹93, the implied P/E of around 10.2x is based on FY26 diluted EPS of ₹9.09.
The valuation case therefore depends substantially on the company's ability to maintain the earnings achieved in FY26. If margins remain near FY26 levels and revenue continues to grow, the current earnings multiple may appear reasonable relative to the selected peer set.
If margins normalise significantly, however, the effective forward valuation could be higher than the headline FY26 P/E suggests.
This makes post-listing earnings performance an important factor for investors assessing the issue.
Shankesh Jewellers has several characteristics that could support its growth and profitability, although each comes with considerations that investors need to evaluate.
1. Asset-Light Manufacturing Structure
The company relies on third-party karigars, artisans and specialised job workers for production. This limits the need for extensive fixed manufacturing infrastructure and allows the company to focus resources on design, sourcing and customer relationships.
An asset-light model can also provide greater production flexibility as customer requirements change.
2. Established B2B Customer Base
The company supplies jewellery to institutional B2B customers across India. A broad institutional customer network can provide recurring order opportunities and reduce dependence on direct consumer retail operations.
However, the absence of direct long-term contracts means that the continuity of business remains dependent on customer relationships and repeat orders.
3. Strong FY26 Profitability
The sharp improvement in EBITDA and PAT in FY26 is one of the most notable aspects of the company's financial profile.
EBITDA increased to ₹157.90 crore and PAT reached ₹106.68 crore. EBITDA margin rose to 9.68%, while PAT margin reached 6.54%.
The company's ROE of 50.94% and ROCE of 41.57% further indicate strong reported capital efficiency in FY26.
4. Planned Reduction in Debt
The proposed allocation of ₹158 crore towards repayment or prepayment of borrowings is a significant part of the IPO.
If implemented as planned, the reduction in debt could lower interest costs and improve the company's financial flexibility. It could also reduce the pressure created by working capital borrowings.
The company's financial growth and proposed debt reduction need to be considered alongside several business and sector-specific risks.
Below are the key risks investors should consider for the Shankesh Jewellers IPO:
1. Gold Price Volatility
Gold is a major input for the company's business. Significant fluctuations in bullion prices can affect inventory values, working capital requirements and margins.
Higher gold prices can also increase the amount of capital required to maintain inventory and fulfil orders. This can create additional dependence on short-term financing.
The company therefore operates in a sector where changes in the underlying commodity price can have a direct effect on financial requirements.
2. Geographic Concentration
More than 60% of revenues are concentrated across five states: Tamil Nadu, Maharashtra, Uttar Pradesh, Bihar and Odisha.
This concentration creates geographic exposure. Changes in demand, competitive conditions or business activity across these markets could have a disproportionate effect on the company's overall performance.
3. Working Capital Intensity
Jewellery manufacturing and supply require the company to maintain valuable gold and finished or semi-finished inventory.
High-value inventory creates an ongoing working capital requirement. Even after the proposed debt repayment, the company may continue to require borrowings or internal cash generation to support inventory and business growth.
This is why the ₹38 crore working capital allocation is an important part of the IPO's use of proceeds.
4. Dependence on Customer Relationships
The company does not have direct long-term contracts covering its B2B orders.
As a result, revenue visibility depends partly on maintaining relationships with existing customers and continuing to secure repeat orders. The absence of long-term contractual commitments can make future revenue less predictable than a business with substantial contracted revenue.
5. Sustainability of FY26 Margins
The most important financial consideration is the sharp increase in profitability during FY26.
PAT grew 164.65% while total income increased 16.16%. EBITDA increased even faster, resulting in a substantial expansion in margins.
Investors should therefore monitor whether the FY26 EBITDA margin of 9.68% and PAT margin of 6.54% are sustainable. A significant margin correction could affect future earnings and consequently the valuation.
The available financial and issue data present a company with strong recent earnings growth, high reported returns and a clear plan to use IPO proceeds for debt reduction and working capital.
From a balance sheet perspective, the proposed ₹158 crore debt repayment is particularly relevant. Total borrowings stood at ₹167.30 crore in FY26, meaning the proposed allocation is substantial relative to the reported borrowing base.
From a profitability perspective, FY26 was considerably stronger than the previous year. Revenue grew 16.16%, but EBITDA and PAT increased by 141.62% and 164.65% respectively. The improvement in margins is therefore a major part of the investment case.
The valuation also appears relatively moderate on the supplied FY26 numbers. At ₹93 per share, the company trades at approximately 10.2x FY26 diluted EPS, compared with 35.42x for Sky Gold and Diamonds and 9.76x for Shanti Gold International.
At the same time, investors should not assess the IPO purely on its P/E multiple. The company's exposure to gold price movements, inventory requirements, geographic concentration and the absence of direct long-term contracts creates risks that could affect future earnings.
What Short-Term Investors Should Monitor
Investors primarily interested in listing gains may track Grey Market Premium activity closer to the IPO bidding period of 18 to 20 August 2026.
GMP can indicate market sentiment around an issue, but it is not a guarantee of the listing price or future returns. Subscription levels across retail, NII and QIB categories may also provide additional information about demand during the issue period.
What Long-Term Investors Should Monitor
Long-term investors should focus more on operating performance after listing than on short-term subscription sentiment.
The key indicators include:
-
Revenue growth and order generation.
-
Sustainability of the FY26 EBITDA and PAT margins.
-
Gold price movements and their effect on working capital.
-
Inventory levels and working capital requirements.
-
Reduction in borrowings after the IPO.
-
Interest costs following debt repayment.
-
Customer concentration and repeat B2B business.
-
Geographic diversification.
-
Return on equity and return on capital employed.
These indicators will help determine whether the strong FY26 performance represents a sustainable improvement in the company's underlying earnings profile.
Shankesh Jewellers enters the IPO market with a combination of strong FY26 financial performance, an asset-light manufacturing model and a substantial planned reduction in debt. Total income reached ₹1,630.93 crore in FY26, while EBITDA stood at ₹157.90 crore and PAT reached ₹106.68 crore. The company also reported a 50.94% ROE, 41.57% ROCE and a debt-to-equity ratio of 0.80.
The ₹367.18 crore issue includes a ₹274.18 crore fresh issue, of which ₹158 crore is planned for debt repayment and ₹38 crore for working capital. This gives the IPO a clear balance-sheet and operational funding objective.
At the upper price band of ₹93, the implied P/E of approximately 10.2x based on FY26 diluted EPS of ₹9.09 appears moderate compared with the selected peer set. However, the investment case also depends on whether the sharp FY26 expansion in profitability can continue.
For investors evaluating the offer, the central considerations are therefore the sustainability of margins, management of gold-related working capital, customer and geographic concentration, and the extent to which the planned debt reduction improves future earnings and financial flexibility.
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