Hyderabad-based B2B gold supplier Deepa Jewellers will launch its Rs 250 crore IPO on September 1, 2026. The funds are earmarked for inventory management across its southern India network. While the company reported a sharp rise in profits to Rs 104.8 crore in fiscal 2026, investors should consider risks like its heavy reliance on the southern market and gold price fluctuations.
Deepa Jewellers, a gold supply company based in Hyderabad, has finalized the launch of its initial public offering. The subscription process for the public issue will begin on September 1, 2026, and is scheduled to close on September 3, 2026. The company intends to raise Rs 250 crore through a fresh issue of equity shares, alongside an offer for sale where promoters Ashish, Seema, and Dev Agarwal will sell 1.18 crore shares.
Financial Growth and Business Model
The company operates on a business-to-business model, supplying gold jewellery to retailers. In the fiscal year ending March 2026, the company reported a significant increase in financial performance. Net profit rose to Rs 104.8 crore, up from Rs 40.58 crore in fiscal 2025. Revenue for the same period climbed to Rs 1,926.7 crore, marking a 38 percent increase from the Rs 1,400.10 crore reported in the prior fiscal year. Unlike traditional retail jewellers, the company relies on an outsourced manufacturing model, which means it focuses on the supply chain and inventory management rather than running its own large manufacturing plants.
Use of Funds and Investor Risks
The primary purpose of the fresh issue is to fund long-term working capital requirements. The company plans to use the majority of the Rs 250 crore to procure and manage inventory for its operations, which are concentrated in Telangana, Karnataka, Andhra Pradesh, Tamil Nadu, and Kerala.
Investors should note the specific business risks associated with this model. Because the company’s operations are heavily concentrated in southern India, any local economic or market disruptions in these states could impact revenue. Additionally, the company is sensitive to gold price volatility, which affects the value of its inventory. Because the company outsources its manufacturing, it also relies on a network of external artisans, which could create challenges in maintaining consistent supply or quality if the network faces disruptions. Prospective investors will likely monitor how effectively the company manages this inventory expansion and whether the growth trajectory seen in fiscal 2026 can be sustained in future quarters.