Rathod Jewellery IPO

Easy to miss in the prospectus

• Fiscal 2024 is not comparable with the two years after it. The plain gold jewellery division was demerged into Avichandra Enterprises Private Limited under an NCLT order of 6 January 2026, effective 1 April 2024, and the DRHP states the restated statement of assets and liabilities at 31 March 2024 reflects continuing operations only and carries no split, so balance-sheet comparisons across that break are not like-for-like.
• This record carries profit from CONTINUING operations throughout, so Fiscal 2024 reads Rs 16.79 Cr. The DRHP's own headline 'Profit for the year' for Fiscal 2024 is Rs 36.28 Cr, which adds Rs 19.50 Cr earned after tax by the discontinued plain gold division. The continuing figure is the one the issuer uses everywhere a ratio depends on it - the basic EPS of 5.41 rupees, the net profit margin of 4.86%, the return on net worth of 12.06% and its own litigation materiality threshold all reconcile on it and none of them reconcile on Rs 36.28 Cr.
• Net worth FELL in Fiscal 2025, from Rs 139.21 Cr to Rs 107.14 Cr, despite a Rs 33.97 Cr profit, because the demerger took Rs 66.05 Cr of reserves out with the plain gold division. That is also why return on net worth jumps from 12.06% to 31.71% between those two years: the denominator shrank.
• Return on net worth here is struck on CLOSING net worth, not the average, as the DRHP's own note states - Rs 50.47 Cr over Rs 158.01 Cr gives 31.94%. The separately disclosed return on equity of 38.07% is the same profit measured against average equity. The two are not alternative readings of one ratio; the filing discloses both.
• The per-share figures are restated for capital changes that all happened after the balance sheet date. Equity share capital at 31 March 2026 was Rs 0.16 Cr, being 16,000 shares of Rs 100 each. A 21-for-4 bonus on 25 May 2026, a sub-division of Rs 100 shares into Rs 10 shares on 16 August 2026 and a 30-for-1 bonus on 9 September 2026 produced the 3,10,00,000 pre-issue shares on which the EPS of 16.28 and the NAV of 50.97 rupees are computed. All of it was capitalised out of reserves, so net worth is unchanged.
• Other income of Rs 5.45 Cr in Fiscal 2026 is mostly a foreign exchange gain of Rs 4.42 Cr, up from Rs 1.99 Cr. The disclosed EBITDA excludes other income by its own stated definition, so the 10.76% margin is not flattered by it - but profit before tax is.
• The peer set is two companies. Sky Gold and Diamonds at a P/E of 57.49 and Priority Jewels at 15.93, both struck on NSE closing prices of 22 September 2026 against Fiscal 2026 diluted EPS. The DRHP's 'average' industry P/E of 36.71 is simply the midpoint of those two, and Sky Gold is more than nine times this company's revenue while Priority Jewels is smaller than it.
• The market share, the market sizing and the industry outlook all come from an ICRA report dated 28 September 2026 that the company commissioned and paid for exclusively for this issue, with ICRA appointed on 10 July 2026.
• Two different gold-dependency figures appear in the same document: the forward-looking statements summary gives 84.74%, 82.41% and 78.46% of raw-material purchases, while the risk factor's own table gives 84.64%, 82.37% and 78.39% and reconciles with the amounts printed beside it. This record uses the risk factor's figures.
• The company filed two suo moto adjudication applications with the Registrar of Companies, Pune on 30 September 2026 - the same day the DRHP is dated - one for corporate social responsibility shortfalls across Fiscal 2020 to Fiscal 2023 and one for failing to appoint an internal auditor in Fiscal 2020, 2021, 2023 and 2024. Both are pending.
• The board and finance function were assembled for the listing. All four independent directors were appointed between 16 August and 8 September 2026, and the chief financial officer and company secretary both joined on 10 August 2026, so neither drew any remuneration in Fiscal 2026. The DRHP's own risk factor notes that only three of the eight directors have ever sat on a listed company's board.
• The promoters' disclosed average cost of acquisition is Rs 0.18 per share for Chandrakant and Rupali Rathod and nil for Reeva and Hridhay Rathod, whose entire holdings came from the bonus issues.
• Statutory dues were paid late more than once: four goods and services tax instances totalling Rs 34.29 lakhs and two tax-deducted-at-source instances totalling Rs 36.51 lakhs in Fiscal 2025, and seven and five instances respectively in Fiscal 2024, the latter totalling Rs 120.93 lakhs. Fiscal 2026 shows only small labour welfare fund and profession tax delays.
• Smaller exposures worth knowing: an outstanding export obligation of Rs 2.58 Cr under an EPCG authorisation dated 2 June 2026; nine trademark applications still pending before the Trade Marks Registry and no registration of the jewellery designs; contingent liabilities of Rs 0.03 Cr at 31 March 2026; and a Rs 1.16 Cr commercial suit the company filed in Kolhapur over jewellery supplied in 2019 and never paid for.
• No dividend has been declared in the last three fiscals, and the board adopted its dividend distribution policy only on 28 September 2026.