Uday Jewellery Industries Ltd (539518)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Uday Jewellery's revenue was ₹143 Cr (+26.8% year on year, -36.6% on the previous quarter), and net profit ₹10.7 Cr (+33.4% year on year); the operating margin was 11.1%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹143 | +26.8% | -36.6% |
| Operating profit | ₹15.9 | +44.2% | +5.8% |
| Net profit | ₹10.7 | +33.4% | -3.0% |
| EPS (₹) | 3.15 | -7.1% | -0.6% |
| Operating margin | 11.1% | — | — |
📢 Recent Corporate Announcements
Uday Jewellery Industries Ltd announced three strategic business updates on October 16, 2026. First, it is implementing a job work model where large clients supply gold, aiming to lower inventory holding, optimize working capital, and enhance utilization. Second, the company is introducing lightweight plain gold jewellery to broaden its product catalog. Lastly, it is exploring supply tie-ups with large corporate clients, though discussions remain preliminary with no binding agreement executed.
- Adopting customer-supplied gold job work model to lower gold inventory needs and debt pressure (current debt at ₹162 Cr)
- Expanding product portfolio into lightweight plain gold jewellery to meet growing retail demand
- Preliminary discussions underway for corporate supply tie-ups; no definitive or binding agreements executed as on October 16, 2026
Uday Jewellery Industries Limited submitted the Consolidated Scrutinizer's Report for its 27th Annual General Meeting held on September 28, 2026. All 11 resolutions (Item Nos. 1 to 11) tabled before the shareholders were passed with the requisite majority. Remote e-voting was conducted between September 25, 2026, and September 27, 2026, along with e-voting during the virtual AGM.
- All 11 resolutions (Item Nos. 1 to 11) approved by members with requisite majority
- 27th Annual General Meeting conducted virtually on September 28, 2026, at 12:30 P.M. IST
- Remote e-voting was held from September 25, 2026 (9:00 A.M.) to September 27, 2026 (5:00 P.M.)
Uday Jewellery Industries Ltd has submitted disclosures under Regulation 29(2) of SEBI (SAST) Regulations, 2011, and SEBI PIT Regulations concerning transactions by Sarala Sanghi and Sanjay Kumar Sanghi. The announcement text serves as a formal cover intimation without detailing the exact quantity or percentage of shares transacted. As of June 2026, total promoter holding stood at 74.38%. The company has an overall market capitalization of Rs 463 Cr and generated TTM revenue of Rs 709 Cr.
- Disclosure submitted under Regulation 29(2) of SEBI (SAST) Regulations, 2011 on 26-09-2026
- Filing covers transactions pertaining to Sarala Sanghi and Sanjay Kumar Sanghi (Managing Director)
- Specific volume and transaction value were not disclosed in the transmittal letter
- Company promoter holding stood at 74.38% as of June 2026 quarter end
Uday Jewellery Industries announced an off-market inter-se transfer of equity shares by way of gift within the promoter group executed on September 25, 2026. Mrs. Sarla Sanghi gifted her entire holding of 14,87,896 equity shares (4.37% of paid-up capital) to her son, Mr. Sanjay Kumar Sanghi (CMD – Corporate Affairs). Consequently, Mr. Sanghi's stake increased from 16.64% to 21.01%, while overall aggregate promoter group holding remained unchanged at approximately 74.38%. The transaction involves no consideration and does not trigger open offer obligations or change in control.
- Transfer of 14,87,896 equity shares (4.37% stake) executed on September 25, 2026
- Mrs. Sarla Sanghi's shareholding decreased from 4.37% to 0.00%
- Mr. Sanjay Kumar Sanghi's shareholding increased from 16.64% (56,65,422 shares) to 21.01% (71,53,318 shares)
- Aggregate promoter group holding remains unchanged across 3,40,52,925 total paid-up equity shares
Uday Jewellery Industries Limited has received approval for the direct listing and trading of its 3,40,52,925 equity shares of face value Rs 10 each on the National Stock Exchange (NSE). The shares will be admitted to dealings on NSE under the symbol UDAYJEW effective Friday, September 25, 2026. The company's shares will continue to trade on the BSE as well. Out of the total share capital, 31,62,900 shares remain forfeited and unissued.
- 3,40,52,925 equity shares approved for trading on NSE under symbol UDAYJEW
- Trading commences effective Friday, September 25, 2026 in the 'EQ' series
- 31,62,900 equity shares of the company stand forfeited and are not re-issued
- Company continues to be traded simultaneously on BSE under scrip code 539518
Uday Jewellery Industries has proposed the appointment of M/s. Venugopal & Chenoy as its Statutory Auditors for a five-year term, effective from the conclusion of the upcoming 27th AGM until 2031. This appointment replaces the retiring auditors, M/s. Anant Rao & Malik, whose term is concluding. The incoming firm, established in 1964, has previously audited the company, suggesting familiarity with its operations. This is a routine regulatory transition in line with statutory rotation requirements.
- Appointment for a first term of 5 consecutive years starting from the 27th AGM.
- The term will conclude at the 32nd AGM to be held in the year 2031.
- Incoming auditor M/s. Venugopal & Chenoy is a Hyderabad-based firm established in 1964.
- The transition replaces retiring auditors M/s. Anant Rao & Malik.
Uday Jewellery Industries reported a 7.2% YoY revenue growth to ₹143.27 Cr for Q1 FY27, supported by steady demand and the integration of Narbada Gems. Profitability improved with PAT rising 5.7% to ₹10.67 Cr, while EBITDA margins expanded to 11.8% from 11.1% YoY. A notable 249 bps improvement in gross margins was achieved through a favorable product mix. The company is also actively pursuing a listing on the National Stock Exchange (NSE) to complement its BSE presence.
- Revenue from operations grew 7.2% YoY to ₹143.27 Cr, representing ~21% of TTM revenue.
- Gross Profit Margin expanded significantly by 249 basis points to 16.4% due to sourcing efficiencies.
- EBITDA increased 13.7% YoY to ₹16.93 Cr, with margins improving to 11.8%.
- Paid-up equity capital increased to ₹34.05 Cr following the conversion of the final tranche of warrants on May 1, 2026.
- The company confirmed its application for listing on the National Stock Exchange (NSE) is in progress.
Uday Jewellery Industries Ltd has confirmed the full utilization of Rs 34.65 crore raised through a preferential issue for its intended purpose of working capital. The funds were raised in multiple tranches between November 2024 and May 2026. For the quarter ended June 30, 2026, the company reported zero deviation or variation from the objects stated in the offer documents. Additionally, the company noted the conversion of 22,50,000 warrants into equity shares as part of this capital structure update.
- Total amount raised through preferential issue: Rs 34.65 crore
- Deviation in the utilization of funds for the quarter: Nil
- Total warrants converted into equity shares: 22,50,000
- Final allotment date for the fundraise: May 1, 2026
Uday Jewellery Industries has proposed the appointment of M/s. Venugopal & Chenoy as its Statutory Auditors for a five-year term, effective from the conclusion of the upcoming 27th Annual General Meeting (AGM) until 2031. This appointment replaces the retiring auditors, M/s. Anant Rao & Malik, whose term concludes at the 27th AGM. The incoming firm, established in 1964, has previously served as the company's auditors, suggesting a return to a familiar audit partner. This is a standard procedural change in line with SEBI and Companies Act regulations.
- Appointment of M/s. Venugopal & Chenoy for a 5-year term from FY 2026-27 to FY 2031-32
- The new auditing firm was established in 1964 and has prior experience with the company
- Replaces retiring auditors M/s. Anant Rao & Malik at the conclusion of the 27th AGM
- The appointment is subject to shareholder approval at the ensuing 27th AGM
Uday Jewellery Industries reported a steady Q1 FY27 with revenue growing 7.2% YoY to ₹143.27 Cr. Net profit saw a modest 5.7% YoY increase to ₹10.67 Cr, while remaining flat on a sequential basis despite a significant 36.7% QoQ revenue drop from the March quarter. These results are the first Q1 figures following the NCLT-approved merger with Narbada Gems and Jewellery Limited, with all prior-period figures restated for comparability. Operating margins improved to approximately 9.9% for the quarter, up from the TTM average of 6.2%.
- Revenue from operations stood at ₹143.27 Cr, a 7.2% increase over the restated ₹133.64 Cr in Q1 FY26.
- Net profit for the quarter reached ₹10.67 Cr, compared to ₹10.09 Cr in the corresponding previous year quarter.
- Earnings Per Share (EPS) for the quarter was ₹3.15, compared to ₹3.09 in Q1 FY26 and ₹3.17 in Q4 FY26.
- Total expenses decreased significantly to ₹130.08 Cr from ₹215.21 Cr in the preceding quarter, reflecting seasonal volume shifts.
- The merger with Narbada Gems and Jewellery Limited (appointed date April 1, 2024) is now fully reflected in the restated financials.
Uday Jewellery Industries approved its unaudited Q1 FY27 results and fixed September 21, 2026, as the record date for the FY26 dividend. The board significantly increased borrowing and investment limits to ₹250 crore each, which represents approximately 120% of the company's current net worth of ₹207 crore. The company is also availing an additional credit facility from Kotak Mahindra Bank to support working capital. Furthermore, the board formalized the appointment of new statutory auditors for a five-year term and provided updates on the Narbada Gems merger integration.
- Increased borrowing powers under Section 180(1)(c) to ₹250 crore
- Increased limit for loans, guarantees, and investments under Section 186 to ₹250 crore
- Fixed September 21, 2026, as the Record Date for FY25-26 dividend entitlement
- Appointed M/s. Venugopal & Chenoy as Statutory Auditors for a 5-year term until 2031
- Approved an additional credit facility (ECLGS 5.0) from Kotak Mahindra Bank for working capital
Uday Jewellery Industries has scheduled a board meeting for August 13, 2026, to approve Q1 FY27 results and seek approval for a significant increase in borrowing and investment limits to ₹250 Cr each. The proposed ₹250 Cr borrowing limit is substantial, representing approximately 120% of the company's current net worth (₹207 Cr) and 67% of its market cap (₹371 Cr). The board will also finalize the dividend record date for FY26 and formalize the integration of Narbada Gems & Jewellery following their amalgamation. Additionally, two related parties are proposed for appointment to business development roles, which warrants monitoring for governance.
- Proposed increase in borrowing powers to ₹250 Cr under Section 180(1)(c), up from current debt of ₹162 Cr.
- Proposed limit for loans, guarantees, and investments increased to ₹250 Cr under Section 186.
- Board to approve unaudited financial results for the quarter ended June 30, 2026.
- Administrative integration step: Closure of bank accounts of erstwhile Narbada Gems & Jewellery Limited post-amalgamation.
- Appointment of related parties Tejas Sanghi and Sakshi Sanghi to Business Development roles.
Uday Jewellery Industries has formally applied to the National Stock Exchange (NSE) for the direct listing of its 3,72,15,825 equity shares. These shares, with a face value of ₹10 each, are currently listed only on the BSE. The Board of Directors had previously approved this move on May 28, 2026. The listing is subject to final approval from the NSE and does not guarantee immediate admission to trading.
- Application submitted for listing 3,72,15,825 equity shares on the NSE
- Shares have a face value of ₹10 each and are already listed on BSE
- Board of Directors approved the proposal on May 28, 2026
- Listing is subject to NSE's final review and grant of approval
Financial Performance
Revenue Growth by Segment
The company achieved a historical revenue CAGR of approximately 30% between FY16 and FY20. In FY2024, the company reported total revenue of INR 173.8 Cr. Growth is primarily driven by the B2B segment, which remains the company's core strength, while the export segment (commenced in 2018) is being scaled to become a significant revenue contributor in the medium term.
Geographic Revenue Split
The majority of revenue is derived from the domestic Indian market, particularly through large retail chains. The company expanded into the Middle Eastern market (UAE) in 2018, and management expects international sales to account for a significant portion of revenues as they scale global outreach.
Profitability Margins
Operating margins remained stable at 7.7% in FY2024 compared to 7.6% in FY2023. While gross contribution margins improved, the gains were offset by increased employee costs. Net margins are expected to be boosted as the higher-margin B2C/retail business gains traction.
EBITDA Margin
The operating margin stood at 7.7% in FY2024. Core profitability is supported by an ROCE of ~18% (as of FY20). Interest coverage improved from 9.0 times in FY2024 to 9.7 times in FY2025, indicating strengthening debt-servicing capabilities.
Capital Expenditure
The company planned a capital expenditure of approximately INR 2 Cr for FY2025. This follows a significant capacity expansion in November 2023, where manufacturing was shifted to a new 10,000 sq. ft facility in Hyderabad.
Credit Rating & Borrowing
ICRA reaffirmed a long-term rating of [ICRA]BBB (Stable). The company's total rated debt is INR 40.92 Cr, including a INR 40.00 Cr cash credit limit. Borrowing costs are managed through a conservative capital structure with a debt-to-operating profit ratio of 1.5 times in FY2025.
Operational Drivers
Raw Materials
Primary raw materials include Gold (unhedged), Cubic Zirconia (CZ) diamonds, and various colored gemstones. Gold represents the most significant cost component and is subject to price volatility.
Import Sources
Raw materials are sourced through an established vendor network perfected over 100 years. The group maintains production facilities in both India and China to optimize sourcing and manufacturing costs.
Key Suppliers
Specific supplier names are not disclosed, but materials are procured from a longstanding network of vendors. CZ and gemstones are purchased at volume-based attractive prices due to the scale of HRS Group operations.
Capacity Expansion
Current manufacturing is centralized in a 10,000 sq. ft unit in Hyderguda, Hyderabad, established in November 2023. This facility is fully integrated with technology-enabled processes to ensure high quality at economical costs.
Raw Material Costs
Raw material costs are a major revenue component. The company uses a proactive real-time market participation policy for gold procurement to mitigate costs. However, high levels of unhedged inventory expose the company to gold price volatility.
Manufacturing Efficiency
The company utilizes state-of-the-art equipment that allows it to produce jewellery at a fraction of the cost incurred by smaller players. Integrated facilities ensure end-to-end control over the production cycle.
Logistics & Distribution
The company utilizes an efficient logistics platform perfected over 100 years of group operations to serve national retail chains and international clients.
Strategic Growth
Expected Growth Rate
30%
Growth Strategy
Growth will be achieved through the amalgamation with Narbada Gems and Jewellery Limited (NGJL), which is currently in the NCLT process. Additionally, the company is launching an online B2C platform to capture the e-commerce boom and is aggressively scaling its export footprint in the UAE and Middle East.
Products & Services
Gold jewellery studded with Cubic Zirconia (CZ), colored stone-studded jewellery (Hyderabadi Gharana tradition), fashion jewellery, and precious gemstone-studded artifacts.
Brand Portfolio
Uday Jewellery Industries Limited (UJIL), Hanumanth Rai Sanghi Group (HRS Group).
New Products/Services
Expansion into the B2C segment via e-commerce and franchise channels is expected to provide a de-risking cushion and higher margins compared to the traditional B2B model.
Market Expansion
Targeting Tier 2 and Tier 3 Indian cities as demand hotspots and expanding the global footprint in the UAE. The online jewellery market in India is expected to reach USD 3.6 billion in three years.
Market Share & Ranking
UJIL is a dominant player in the niche CZ and gem-studded jewellery market in India, backed by the HRS Group, one of the largest organized players in the sector.
Strategic Alliances
Amalgamation with Narbada Gems and Jewellery Limited (NGJL). The company also maintains symbiotic relationships with major branded retail players.
External Factors
Industry Trends
The Indian fashion jewellery market is valued at INR 150 Billion, growing at a 20% CAGR. There is a significant shift from unorganized to organized players due to mandatory hallmarking and increased transparency requirements.
Competitive Landscape
Faces competition from large organized players like Titan (Tanishq) and Kalyan Jewellers, as well as a vast unorganized manufacturing sector.
Competitive Moat
The moat is built on a 100-year legacy, integrated manufacturing that lowers costs, and deep-rooted relationships with India's largest jewellery retailers. These advantages are sustainable due to the high capital intensity required for competitors to build captive supply chains.
Macro Economic Sensitivity
Highly sensitive to the growth of the Indian middle class, which is expected to reach 547 million by 2025, driving jewellery demand.
Consumer Behavior
Increasing preference for branded, hallmarked jewellery and a rising trend in men's jewellery (rings, bracelets) and affordable CZ pieces for high-end customers.
Geopolitical Risks
Armed conflicts and global tensions (e.g., US-Iran, Middle East instability) can disrupt the gold market, leading to rising prices and falling demand.
Regulatory & Governance
Industry Regulations
Mandatory hallmarking (effective June 2021), mandatory customer KYC, and rigorous regulatory environments for gold procurement and transparency.
Environmental Compliance
Exposure to environmental risks is low, though physical climate change (flooding/crop loss) can indirectly impact rural demand for jewellery.
Taxation Policy Impact
Subject to standard Indian corporate tax rates; fiscal policies promoting jewellery exports benefit the company's international scaling plans.
Legal Contingencies
The company is currently undergoing the NCLT process for the amalgamation of Narbada Gems and Jewellery Limited (NGJL) with UJIL.
Risk Analysis
Key Uncertainties
Gold price volatility (unhedged inventory), high customer concentration (59.7% revenue from top 5), and potential impact of large retailers setting up their own captive production units.
Geographic Concentration Risk
Heavy reliance on the Indian market, specifically through national retail chains, though export diversification is underway.
Third Party Dependencies
Dependency on a skilled workforce for manufacturing and a specific network of gemstone/CZ vendors.
Technology Obsolescence Risk
The company is mitigating technology risks by investing in state-of-the-art manufacturing and developing an omni-channel e-commerce platform.
Credit & Counterparty Risk
High receivable days due to credit offered to large retail customers; however, the 'sticky' nature of these marquee clients provides some comfort.
