Arjun Jewellers IPO: Issue Size, Business, Financials and Key Details 

Arjun Jewellers Limited is a Saurashtra focused jewellery retailer selling gold, diamond, silver and platinum jewellery through a growing physical store network. The company does not manufacture jewellery itself. Instead, it procures finished products from third party suppliers, largely in Gujarat and Maharashtra, and sells them through its showrooms. 

Arjun Jewellers IPO is a fresh issue of up to ₹200 crore. A substantial ₹160 crore, or 80% of the gross issue size, is earmarked for incremental working capital requirements, mainly to fund inventory for existing and proposed stores. That makes inventory funding, store expansion and cash conversion central to understanding this IPO. 

The business has scaled quickly. Revenue from operations rose at a 45.75% CAGR between FY24 and FY26, while EBITDA margin expanded from 4.28% to 7.49%. At the same time, operating cash flow remained negative in each of the three years because growth absorbed significant working capital. The IPO therefore sits at the intersection of rapid retail expansion and a balance sheet that needs more inventory funding. 

Arjun Jewellers IPO dates and launch details 

The company is currently at the Draft Red Herring Prospectus (DRHP) stage. The DRHP is dated 1 August 2026. The IPO opening date, closing date, price band and minimum bid lot have not yet been announced and will be finalised at a later stage. 

Arjun Jewellers IPO price band and investment details 

 How is the Arjun Jewellers IPO structured? 

 Because the offer is entirely a fresh issue, the money raised will go to the company rather than selling shareholders. The biggest proposed use is working capital. The company plans to use ₹160 crore to procure inventory for existing showrooms and new stores in Saurashtra, Gujarat. This is economically important because jewellery retail requires a large amount of capital to remain tied up in stock before a sale is made. 

About Arjun Jewellers  

Arjun Jewellers began as a partnership firm in 2017 and was converted into a private limited company in 2020. It later became a public limited company in July 2025. The business is retail-focused and operates through physical showrooms in the Saurashtra region of Gujarat. 

As of 30 June 2026, the company operated four showrooms: three in Rajkot and one in Jamnagar, with a combined operational area of 787.23 square metres. At the end of FY26, it had three operating stores; the fourth showroom opened on 19 June 2026. It also plans two additional stores, one in Morbi and another at University Road in Rajkot. 

Its product portfolio covers traditional, bridal, festive and lightweight daily-wear jewellery across gold, diamond, silver and platinum. Gold remains overwhelmingly dominant, contributing 96.00% of FY26 revenue. The company has also introduced 9-karat jewellery and its AEVUM brand, which focuses on lightweight diamond and platinum jewellery aimed at younger and more contemporary consumers. 

The company outsources all manufacturing and procures finished jewellery from third-party suppliers. This keeps manufacturing assets relatively light, but it shifts the economic burden to inventory, supplier relationships and store-level selling efficiency. 

How concentrated is the store network? 

The concentration is notable. Showroom 1 alone generated about 70% of FY26 revenue, while all current stores are located within Saurashtra. The company is using a cluster-based expansion strategy, which can improve local brand recall and operating familiarity, but it also increases exposure to one regional demand pool. 

Arjun Jewellers financial performance 

 Revenue and profit growth have accelerated 

Revenue rose from ₹280.32 crore in FY24 to ₹595.46 crore in FY26, implying a two year CAGR of 45.75%. Growth also accelerated in FY26, when revenue increased 55.3% year on year. The store network expanded from two stores at the end of FY25 to three at the end of FY26, while the Jamnagar store contributed ₹102.14 crore in its first reported fiscal period. 

Profitability improved faster than revenue. EBITDA increased from ₹11.99 crore in FY24 to ₹44.58 crore in FY26, while EBITDA margin expanded from 4.28% to 7.49%. PAT rose from ₹6.17 crore to ₹27.20 crore over the same period and PAT margin improved from 2.20% to 4.57%. The DRHP attributes the gross-margin improvement to better product pricing, procurement efficiencies, optimisation of making charges and a higher contribution from value-added jewellery. 

The cash-flow picture is materially weaker than the P&L 

Despite strong profit growth, operating cash flow was negative in FY24, FY25 and FY26. FY26 was the weakest of the three, with net cash used in operating activities of ₹34.43 crore. The main drag was working capital: inventory increased by ₹30.57 crore during FY26, while other current assets and related balances absorbed another ₹41.88 crore. 

Using the established mStock free-cash-flow methodology, FCF was negative ₹24.53 crore in FY24, negative ₹5.42 crore in FY25 and negative ₹37.08 crore in FY26. This does not mean the business was loss-making. It means reported profits were being reinvested into inventory and other working-capital assets faster than cash was being generated from sales. 

Inventory is the centre of the balance sheet 

Inventory rose from ₹87.41 crore in FY24 to ₹124.36 crore in FY25 and ₹154.93 crore in FY26. At FY26-end, inventory represented roughly 72% of total assets. Working-capital requirements, as defined in the DRHP, increased from ₹67.67 crore in FY24 to ₹91.61 crore in FY25 and ₹160.77 crore in FY26. 

This explains the IPO structure. The planned ₹160 crore allocation to incremental working capital is almost the same size as the company’s FY26 working-capital requirement. The question for investors is therefore not just whether new stores can grow revenue, but whether inventory deployed into those stores can turn quickly enough to improve cash conversion. 

Borrowings have risen even as leverage ratios improved 

Total borrowings increased from ₹60.87 crore in FY24 to ₹71.03 crore in FY25 and ₹98.34 crore in FY26. All disclosed borrowings at FY26-end were current borrowings. Net debt stood at ₹96.74 crore. 

At the same time, the debt-to-equity ratio improved sharply from 5.19 in FY24 to 1.44 in FY26 because equity expanded through retained profits and share issuance. This is an important distinction: leverage relative to equity has improved, but absolute debt has still risen. The IPO proceeds are not earmarked for debt repayment; they are mainly intended to fund more inventory. 

Operating indicators to watch 

 Working-capital days increased to 99 in FY26 even as inventory turnover recovered to 3.73x. That combination suggests the company is selling stock more efficiently than in FY25, but the broader expansion still requires more capital to support inventory and other current assets. 

Sector and market context 

The DRHP’s industry section shows the tension currently shaping Indian jewellery retail. Gold remains culturally entrenched, particularly around weddings and festivals, but elevated gold prices have affected affordability and jewellery volumes. India’s gold jewellery consumption declined to about 430.5 tonnes in CY2025, down nearly 24% from CY2024, according to the industry report reproduced in the DRHP. 

This does not remove demand, but it changes the mix. Consumers are increasingly considering lighter-weight and lower-karat products to manage ticket sizes. Organised retailers also benefit from greater emphasis on hallmarking, certification and transparent pricing. Arjun Jewellers is responding through 9-karat jewellery and the AEVUM lightweight diamond-and-platinum collection, although these categories remain small relative to its core gold business. 

Gold-price movements matter in two directions. Higher prices can lift the rupee value of sales and inventory, but they can also reduce volumes and force consumers towards smaller-ticket products. Lower prices can support demand but may also create inventory-value risk if stock was procured at higher prices. For a retailer with large inventory holdings, the interaction between gold prices, making charges, product mix and turnover is therefore more important than revenue growth in isolation. 

Key considerations for investors 

Strengths 

• Fast recent growth: revenue grew at a 45.75% CAGR from FY24 to FY26, while EBITDA and PAT grew faster than revenue.
• Improving margins: EBITDA margin expanded from 4.28% in FY24 to 7.49% in FY26, alongside better gross-margin economics.
• Regional retail depth: the company has built a four-showroom presence in Saurashtra and is following a cluster-led expansion model.
• Broader product ladder: traditional gold jewellery is being complemented by 9-karat offerings, bullion and AEVUM lightweight diamond/platinum products.
• Improving reported capital efficiency: ROCE rose from 15.17% in FY24 to 25.67% in FY26. 

Risks and monitorables 

• Geographic concentration: all four current showrooms are in Saurashtra, and future expansion is also focused on the same region.
• Store concentration: the Mavdi showroom generated about 70% of FY26 revenue.
• Gold dependence: gold jewellery accounted for 96.00% of FY26 revenue, leaving the business sensitive to gold prices, affordability and consumer behaviour.
• Working-capital intensity: operating cash flow was negative across FY24-FY26, while working-capital requirements rose to ₹160.77 crore in FY26.
• Supplier dependence: the company does not manufacture jewellery and has no long-term contracts with suppliers. Its top 10 suppliers accounted for 50.86% of FY26 purchases.
• Rising absolute debt: borrowings increased to ₹98.34 crore in FY26 despite an improving debt-to-equity ratio.
• Execution risk from store expansion: additional locations require upfront inventory and can dilute store productivity if sales ramp-up is slower than expected.
• Control and compliance history: the DRHP discloses a suspected inventory misappropriation of ₹0.26 crore recognised in FY25 and a penalty relating to audit-trail non-compliance. 

What does the IPO structure tell investors? 

The absence of an OFS means the IPO is designed to bring fresh capital into the company. However, the use of proceeds is not capex-heavy. Instead, 80% of the gross issue size is intended for working capital. This is consistent with the economics of jewellery retail, where scale requires large inventory holdings across stores. 

That makes the post-IPO cash-conversion cycle a key monitorable. If additional inventory leads to faster store growth, stronger sales per store and stable margins, the working-capital infusion can support scale. If inventory grows faster than sales or new stores mature slowly, the business could remain dependent on external funding despite higher accounting profits. 

Conclusion 

Arjun Jewellers enters the IPO process with strong recent growth, expanding margins and a growing store footprint in Saurashtra. Revenue more than doubled between FY24 and FY26, while EBITDA margin improved materially. The company is also widening its product portfolio beyond traditional gold jewellery through lower-karat offerings and its AEVUM brand. 

The counterweight is cash conversion. Expansion has consumed working capital, operating cash flow has remained negative, and borrowings have risen in absolute terms. Since ₹160 crore of IPO proceeds is intended primarily to finance inventory, the central investor question is whether new capital can translate into productive store growth without creating a larger inventory burden. Store productivity, inventory turnover, working-capital days, margin resilience and operating cash flow should therefore be tracked closely once the business expands further. 

Disclaimer: This blog is only for educational and informational purposes and does not constitute investment advice. Please consult your financial advisor before taking any investment decisions.