Varyaa Creations Ltd. Share Price

Lalithaa Jewellery Mart

• Lalithaa Jewellery Mart is coming out with a 100% book building; initial public offering (IPO) of 8,95,08,771 shares of face value Rs 5 each in a price band Rs 190-201 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on August 17, 2026 and will close on August 19, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 5 and is priced 38.00 times of its face value on the lower side and 40.20 times on the higher side.
• Book running lead managers to the issue are Anand Rathi Advisors and Equirus Capital.
• Compliance officer for the issue is Jitendra Kumar Pal. 

Profile of the company

Lalithaa Jewellery Mart is a jewellery retailer operating under the brand name ‘Lalithaa’, offering a diverse range of gold jewellery, silver jewellery, and diamond jewellery across styles, designed to cater to regional preferences of the southern Indian jewellery markets. It strives to serve the southern Indian market with authenticated BIS-hallmarked jewellery through its 61 stores in 51 cities in the states of Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and the Union Territory of Puducherry. It stands out as a disruptive brand, offering gold jewellery at competitive prices due to its in-house manufacturing capabilities.

The company also offers jewellery schemes such as ‘Dhana Vandhanam’ and ‘Free-yo-Flexi’ that attracts customers on a repeated basis. These schemes are designed to provide added value and flexibility to its clientele, encouraging them to engage with its brand repeatedly. Under the ‘Dhana Vandhanam’ scheme, at the time of jewellery purchase, the customer can choose either weightbased calculation or rupee-based calculation as monthly instalments’ credit. This protects the customers from gold rate fluctuations during the entire period of the scheme. Further, under ‘Free-yo-Flexi’ scheme (which starts from Rs 1,000 monthly instalments and can go up to Rs 25,000 monthly instalments), on completion of 11 months, it offers its customers 100% discount on the value addition charges at the time to buying jewellery subject to fulfillment of terms and conditions specified in the scheme.

Proceed is being used for: 

• Funding of expenditure towards setting up of 10 new stores in India. The funding is proposed to be utilised towards the following broad heads: (a) Capital expenditure for fit-outs in the nature of furniture and fixtures, equipment, IT hardware and software; and (b) expenditure towards inventory costs for setting up of new stores
• General corporate purposes 

Industry overview

The gems and jewellery industry in India holds immense economic and cultural significance. This industry contributes to country’s GDP and employment generation, particularly for artisans and craftsmen. India is among the leading countries for production and export of gems and jewellery. Gems and jewellery serve as a symbol of status, wealth and adornment in Indian society, making it an integral part of celebrations, ceremonies and everyday life.

The Indian gems and jewellery retail industry was estimated at Rs 12,887 billion in fiscal 2026, with gold jewellery continuing to dominate overall consumption. The sector’s performance remains closely linked to gold price movements, wedding-led demand, festive purchases, disposable income trends and consumer sentiment. In fiscal 2026, demand has decreased; however, increase in gold prices supported growth in value terms. The market recovered sharply after pandemic in fiscal 2022, led by deferred purchases, particularly bridal jewellery, along with improvement in consumer sentiment and disposable income. In fiscal 2023, the industry grew by 9% in value terms, primarily supported by higher gold prices, while fiscal 2024 witnessed robust momentum, with overall industry growth of 18%, aided by both volume expansion and price-led growth, indicating strong domestic consumption.

Future gold demand is expected to remain largely stable over the medium term, as elevated and volatile gold prices are likely to constrain discretionary purchases. While underlying demand remain intact, sustained high prices are expected to weigh on volume growth, resulting in a moderation of market expansion. The industry remains largely dominated by standalone, family-owned jewellers, reflecting the long-standing trust Indian households place in local retailers for personalised service, regional design preferences and relationship-based purchases. However, the market is gradually moving towards greater formalisation, with national and regional jewellery retail chains gaining share. This shift is being driven by stronger brand recall, broader product offerings, transparent pricing, assured quality and a more standardised retail experience.

Pros and strengths 

Strong regional presence with deep penetration in high-growth South Indian markets: Jewellery has held a significant influence in southern India for occasions ranging from weddings to cultural practices. The gems and jewellery retail market in South Indian region was valued at Rs 5,026.00 billion in Fiscal 2026, which is about 40% of the overall Indian gems and jewellery industry.  Jewellery consumers in the South Indian region are evolving with their purchasing habits where jewellery purchase is no longer confined to weddings and festivals. Consumers are now purchasing jewellery on various other celebratory occasions such as earning a bonus, graduation or landing a new job. Though gold jewellery dominates the bridal market in South India, the increasing preference for minimalist jewellery is emerging as a growth driver in the region. The company has forged a strong brand image amongst its customers across various states in South India. It has expanded its store footprint from 53 stores as on March 31, 2024, to 61 stores as on March 31, 2026 in 51 cities across the States of Telangana, Andhra Pradesh, Tamil Nadu, Karnataka and the Union Territory of Puducherry.

Brand pull in Tier II and Tier III cities in southern India with focus on quality, craftsmanship and original designs: Its brand enjoys significant pull in Tier II and Tier III cities across southern India. Its affordable pricing and reliable quality have built a solid foundation of trust and loyalty amongst its customers in these cities. Its focus on quality, craftsmanship and original designs, together with its targeted marketing and customer service, has contributed to its strong brand recognition and customer loyalty. Its marketing campaigns are tailored to enhance its brand recall and generate increased footfalls in its stores throughout the year. Jewellery retail chains have considerable share accounting for 54-59% share of the south Indian gems and jewellery market in Fiscal 2026. Tier II and III cities in South India region are estimated to have a high growth potential and the jewellery retail chain players are well-positioned to penetrate and capture the market share due to strong regional presence. In Fiscal 2026, 45 out of its 61 stores are located in Tier II and Tier III cities.

Large format stores and medium format stores driving scale: Its strategy of opening Large Format Stores and Medium Format Stores has played a crucial role in driving scale for the company. Such retail spaces allow it to present an extensive selection of gold, silver and diamond jewellery, accommodating diverse tastes and preferences. The enhanced product visibility and variety draw in a larger customer base, resulting in increased foot traffic and higher sales volumes. Large Format Stores and Medium Format Stores allows it to showcase a wide selection of gold, silver and diamond jewellery. As on March 31, 2026, it has 8 Large Format Stores, 43 Medium Format and 10 small format stores spread across various states.

Robust customer base owing to diverse range of jewellery schemes: The company offers a diverse range of jewellery schemes that attract customers on a repeated and recurring basis. These schemes are designed to provide added value and flexibility to its clientele, which it encourages them to engage with its brand repeatedly. Its jewellery schemes are a cornerstone of its business. It offers exchange, buyback, and financing options so as to ensure customer satisfaction. For instance, on diamond jewels bought from the company, it offers 85.00% buyback against cash and 100.00% buy back against exchange. The company also offers jewellery schemes such as ‘Dhana Vandhanam’ and ‘Free-yo-Flexi’ that attracts customers on a repeated basis. These schemes are designed to provide added value and flexibility to its clientele, encouraging them to engage with its brand repeatedly. 

Risks and concerns

High revenue dependence on gold jewellery sales: Its revenues have been significantly dependent on sale of gold jewellery, which accounted for 92.33%, 94.58% and 93.96% of its revenue from operations, for the Financial Years 2026, 2025 and 2024, respectively. Accordingly, any factors adversely affecting its sales of gold jewellery, such as, an increase in international gold prices, higher import duties or regulatory restrictions, decline in consumer discretionary spending, shift in consumer preferences to alternatives, etc. may negatively impact its business, financial condition, results of operations and prospects.

Reliance on key raw material suppliers and absence of long-term supply agreements: Its primary raw material is gold. It typically procures gold through purchase orders and does not enter into any long-term agreements with its suppliers. The company is dependent on its top three suppliers of raw materials who have contributed 58.03%, 67.20% and 66.98% in Fiscals 2026, 2025 and 2024, respectively of its total cost of raw materials. In the event its suppliers are unable to provide it the required quantity of raw materials, or if it is unable to find alternate suppliers at commercially acceptable terms, its ability to manufacture its products in a timely manner will be adversely affected and it may not be able to meet its obligations to supply its products. The loss of any of these suppliers or interruptions in the supply of raw materials could adversely affect its business, results of operations and financial condition. 

Geographic concentration of stores in Southern India: The company operates 61 stores in 51 cities across states of Andhra Pradesh, Karnataka, Tamil Nadu, Telangana and Union Territory of Puducherry. As of Fiscal 2026, it has 23 stores in Andhra Pradesh, 20 stores in Tamil Nadu, 7 in Karnataka, 10 in Telangana and 1 in Puducherry. The geographic concentration of all (100%) its stores in the southern regions of India heightens its exposure to adverse developments related to competition, economic downturn and demographic changes in these regions, which may adversely affect its business prospects, financial conditions and results of operations.

Intense competition and risk of loss of market share: The company operates in highly competitive and fragmented markets, and its market share in the southern states in India may get adversely affected due to competition in these markets which is based primarily on market trends, pricing and customer preferences. It faces competition from both the organized and unorganised sectors of the jewellery retail business, including online marketplaces. The players in the retail jewellery sector in India often offer their products at highly competitive prices. Its market share in the southern states of India was 4.97% in Fiscal 2026, 5.13% in Fiscal 2025, and 6.46% in Fiscal 2024. Its market share may get adversely affected due to change in market trends, pricing and customer preferences, and it risk losing substantial portion of its customers which will adversely affect its business, financial condition, results of operations and prospects.

Outlook

Lalithaa Jewellery Mart is engaged in the business of manufacturing, sale and trading of gold jewellery, diamond studded jewellery, platinum, silver jewellery and articles. The company also has interests in the garments and textile sector through one of its subsidiaries (Centigrade Apparels), which presently derives its income from the renting of immovable property. On the concern side, it receives advances from its customers under various schemes introduced by the company. The amounts received in the schemes amount to more than 10% of its revenue from operations for the respective financial periods. Inability to appropriate such advances received from customers under jewellery purchase schemes may adversely impact its revenues and results of operations and future profitability.

The issue has been offering 8,95,08,771 shares in a price band of Rs 190-201 per equity share. The aggregate size of the offer is around Rs 1,700.67 crore to Rs 1,799.13 crore based on lower and upper price band respectively. Minimum application is to be made for 74 shares and in multiples thereon, thereafter. On performance front, its total income increased by 48.10% from Rs 169,078.80 million in Financial Year 2025 to Rs 250,398.03 million in Financial Year 2026. Its profit for the year increase by 176.87% from Rs 3,647.26 million in Financial Year 2025 to Rs 10,098.17 million in Financial Year 2026.

Meanwhile, the company intends to increase its focus on studded gold jewellery going forward as these products have widened the consumer base to which it caters and also typically have a higher gross margin profile than its other gold jewellery. It intends to continue increasing its gross margins by focusing on product categories within gold jewellery which yield higher margins. To this end, it intends to prioritise gold jewellery, as it typically involves higher gross margins than other product offerings. It also intends to increase precious material ornament and design-centric jewellery sales through various initiatives such as, amongst others, online promotions, digital advertisements and marketing.

The Sales for the quarter ended June 2026 of Rs. 30.83 million declined by -92.60% from Rs. 416.70 millions.Net Profit of the company move down -30.82% to Rs. 22.31  millions from Rs. 32.25 millions  in the same quarter last year.Operating profit for the quarter ended June 2026 decreased to 24.26 millions as compared to 46.10 millions of corresponding quarter ended June 2025.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202606	202506	% Var	202606	202506	% Var	202603	202503	% Var
Sales	30.83	416.70	-92.60	30.83	416.70	-92.60	460.55	2200.21	-79.07
Other Income	12.06	10.52	14.64	12.06	10.52	14.64	755.79	27.09	2689.92
PBIDT	24.26	46.10	-47.38	24.26	46.10	-47.38	778.11	154.25	404.45
Interest	1.89	13.79	-86.29	1.89	13.79	-86.29	0.02	39.19	-99.95
PBDT	22.37	32.31	-30.76	22.37	32.31	-30.76	778.09	115.06	576.25
Depreciation	0.06	0.06	0.00	0.06	0.06	0.00	0.23	0.20	15.00
PBT	22.31	32.25	-30.82	22.31	32.25	-30.82	777.86	114.86	577.22
TAX	0.00	0.00	0.00	0.00	0.00	0.00	247.83	6.58	3666.41
Deferred Tax	0.00	0.00	0.00	0.00	0.00	0.00	243.51	-13.56	-1895.80
PAT	22.31	32.25	-30.82	22.31	32.25	-30.82	530.03	108.28	389.50
Equity	1179.70	1094.70	7.76	1179.70	1094.70	7.76	1179.70	1094.70	7.76
PBIDTM(%)	78.69	11.06	611.28	78.69	11.06	611.28	168.95	7.01	2309.92

The revenue for the June 2026 quarter is pegged at Rs. 1073.26 millions, about 23.30% up against Rs. 870.46 millions recorded during the year-ago period.An average growth of 37.59% was recorded for the quarter ended June 2026 to Rs. 110.47  millions from Rs. 80.29 millions.OP of the company witnessed a marginal growth to 163.53 millions from 127.59 millions in the same quarter last year.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202606	202506	% Var	202606	202506	% Var	202603	202503	% Var
Sales	1073.26	870.46	23.30	1073.26	870.46	23.30	4895.44	4621.12	5.94
Other Income	0.11	0.02	450.00	0.11	0.02	450.00	62.92	7.39	751.42
PBIDT	163.53	127.59	28.17	163.53	127.59	28.17	932.82	701.93	32.89
Interest	10.84	15.24	-28.87	10.84	15.24	-28.87	60.39	87.96	-31.34
PBDT	152.69	112.35	35.91	152.69	112.35	35.91	869.40	613.97	41.60
Depreciation	4.36	4.52	-3.54	4.36	4.52	-3.54	18.53	19.95	-7.12
PBT	148.33	107.83	37.56	148.33	107.83	37.56	850.87	594.02	43.24
TAX	37.86	27.54	37.47	37.86	27.54	37.47	213.80	162.32	31.72
Deferred Tax	0.15	0.16	-6.25	0.15	0.16	-6.25	0.12	0.09	33.33
PAT	110.47	80.29	37.59	110.47	80.29	37.59	637.07	431.70	47.57
Equity	1137.51	984.46	15.55	1137.51	984.46	15.55	1001.76	984.46	1.76
PBIDTM(%)	15.24	14.66	3.95	15.24	14.66	3.95	19.05	15.19	25.45

The sales moved down -38.29% to Rs. 190.62 millions for the June 2026 quarter as compared to Rs. 308.92 millions during the corresponding quarter last year.Profit for the quarter ended June 2026 rises by 70.97% to Rs. 3.18  millions from Rs. 1.86 millions.Operating profit surged to 6.24 millions from the corresponding previous quarter of 3.23 millions.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202606	202506	% Var	202606	202506	% Var	202603	202503	% Var
Sales	190.62	308.92	-38.29	190.62	308.92	-38.29	1791.27	1619.53	10.60
Other Income	0.00	0.00	0.00	0.00	0.00	0.00	0.01	0.02	-50.00
PBIDT	6.24	3.23	93.19	6.24	3.23	93.19	21.37	19.85	7.66
Interest	2.50	0.77	224.68	2.50	0.77	224.68	8.73	9.26	-5.72
PBDT	3.74	2.46	52.03	3.74	2.46	52.03	12.64	10.59	19.36
Depreciation	0.00	0.00	0.00	0.00	0.00	0.00	0.85	0.88	-3.41
PBT	3.74	2.46	52.03	3.74	2.46	52.03	11.79	9.71	21.42
TAX	0.56	0.60	-6.67	0.56	0.60	-6.67	3.30	2.17	52.07
Deferred Tax	0.00	0.00	0.00	0.00	0.00	0.00	0.00	-0.23	0.00
PAT	3.18	1.86	70.97	3.18	1.86	70.97	8.49	7.54	12.60
Equity	126.38	126.38	0.00	126.38	126.38	0.00	126.38	126.38	0.00
PBIDTM(%)	3.27	1.05	213.07	3.27	1.05	213.07	1.19	1.23	-2.67