Deepa Jewellers Limited

Product concentration

Vaddanam and CNC machine cut bangles together contributed 84.67 percent of revenue in the six months ended September 30, 2025. Material reduction in orders for these products could adversely affect cash flows and financial performance.

product concentration · high (p.28)

Inventory and working-capital risk

The business requires large amounts of capital for bullion, inventory and receivables. Net working capital rose to Rs 2,797.48 million and the IPO proposes Rs 2,150.00 million for long-term working capital. Demand-forecast errors or inventory mismanagement could strain liquidity.

working capital · high (p.28, 48, 107)

Gold price and hedging exposure

Gold is the key raw material and price or availability is outside the Company's control. The Company uses Gold Metal Loans, commodity futures and internal mechanisms, but its hedging does not cover 100 percent of inventory, leaving residual exposure to gold-price movements and execution or counterparty failures.

commodity · high (p.29, 39, 46)

Third-party karigar dependence

Production and manufacturing depend on third-party karigars and formal agreements are not in place with some of them. Discontinuation, capacity disruption, quality failures or leakage of proprietary designs could affect production, reputation and profitability.

operations · high (p.29, 313)

Promoter unsecured loans repayable on demand

As of November 30, 2025, promoter unsecured borrowings aggregated Rs 431.90 million. They are repayable on demand subject to lender consent, and a repayment request during constrained liquidity could force refinancing or increase indebtedness and finance costs.

liquidity and related party · high (p.43, 44)