Advit Jewels Ltd Management Discussions

ECONOMIC SCENARIO GLOBAL ECONOMIC OVERVIEW

The global economy has held its footing through a demanding period. Growth is projected at 3.0 percent in 2026 and 3.4 percent in 2027, broadly steady but unevenly distributed across regions. Two forces have pulled in opposite directions. Elevated energy costs have weighed on energy-importing economies, tightening household budgets and raising input costs for manufacturers. Against this, sustained investment in artificial intelligence and digital infrastructure has lifted countries positioned within the global technology value chain, supporting asset markets and productivity expectations.

For businesses, the practical consequence has been a year of navigation rather than certainty. Geopolitical developments, shifting trade arrangements, energy price movement, financial market volatility and the trajectory of inflation have each required close attention. Precious metals have been a direct beneficiary of this environment. Gold has drawn steady safe- haven demand through periods of uncertainty, with central bank accumulation adding a further layer of support to prices. For jewellery manufacturers, that translates into a raw material whose cost is set as much by global risk sentiment as by domestic demand.

Advanced economies

Growth across advanced economies is projected at 1.7 percent in 2026, easing marginally to 1.8 percent in 2027. The aggregate figure conceals a widening divergence, driven largely by whether a country imports or produces its energy.

The United States is expected to grow 2.3 percent in 2026 and 2.2 percent in 2027, holding steady across successive forecast revisions. Heavy investment in artificial intelligence infrastructure, spanning data centres, advanced chips and power generation, has been the principal support, alongside favourable terms of trade as an energy producer.

The Euro Area presents the sharper contrast, with growth forecast at just 0.9 percent in 2026 before recovering to 1.2 percent in 2027. The 2026 figure was revised down through the year as the energy shock worked through a bloc heavily dependent on imported fuel. The United Kingdom faces similar pressure, with growth projected to fall to 1.0 percent in 2026 before recovering to 1.3 percent in 2027 as energy costs normalise.

Emerging markets

Emerging market and developing economies are projected to grow 3.8 percent in 2026, rebounding to 4.5 percent in 2027. The downgrade for the current year reflects the disproportionate burden that higher energy and food costs place on commodity-importing economies with limited fiscal room.

China stands among the few major economies to have received an upward revision, with growth now expected at 4.6 percent in 2026 and 4.1 percent in 2027, supported by a stronger first quarter, lower effective tariff rates on its exports and continued policy stimulus. Growth across emerging and developing Asia more broadly is moderating from the pace recorded in 2025, though the region remains the fastest-expanding part of the world economy.

Outlook

The IMF characterises the path ahead as a V-shaped recovery, with subdued growth in 2026 giving way to a rebound in 2027 as the current shocks fade and the technology-led investment cycle broadens. That recovery assumes de-escalation of present geopolitical tensions and an orderly normalisation of energy markets.

Risks remain significant, although the IMF assesses them to be more balanced than earlier in the year. A renewed escalation of geopolitical conflict could disrupt energy supplies, raise commodity prices and intensify inflationary pressures. A sharp correction in financial markets, including in technology-related assets, or renewed trade friction could weaken investment, slow global trade and tighten financial conditions. Policymakers will need to preserve price stability, rebuild fiscal space and strengthen international cooperation to support a more stable recovery.

INDIAN ECONOMIC REVIEW AND OUTLOOK

India is one of the fastest-growing major economies. The Indian economy grew at a marked growth of 7.7% in FY26 compared with 7.1% in FY25. The services sector grew by 9.1% in FY26, up from 7.2% in FY25 and contributed 53.6% of GDP in the first half of FY26. What gives this phase of growth greater resilience is that consumption, investment and government expenditure have advanced together rather than any one component carrying the burden alone. Manufacturing benefited from policy support, including production-linked incentive schemes and continuing supply-chain diversification towards India. Construction maintained momentum on the back of infrastructure investment, while agriculture and allied activities were supported by favourable monsoon conditions.

Rural demand also remained relatively resilient. As per estimates rural FMCG consumption growth outpaced urban growth for several consecutive quarters, supported by improved agricultural conditions, easing inflation and stronger rural incomes. While this trend relates specifically to fast-moving consumer goods and should not be treated as a direct proxy

for jewellery demand, it indicates improving consumption capacity across non-metropolitan markets. This is relevant for the jewellery sector, where demand is widely distributed across cities, towns and rural areas.

Retail inflation was 4.38% in June 2026, while food inflation was 5.32%. The RBI kept the repo rate at 5.25% and expects the economy to grow by 6.7% in FY27. Indias foreign exchange reserves increased by $10.51 billion, reaching $692.87 billion in the week ended July 31,2026.

The Union Budget for 2026-27 reinforced this foundation, raising public capital expenditure to a record level while narrowing the fiscal deficit target through a combination of higher public investment alongside continued consolidation. Reforms to the goods and services tax structure have simplified rates and eased the burden on a range of goods, supporting affordability and consumption recovery among rural and middle-income households in particular.

Outlook

Indias economic outlook remains positive, supported by rising incomes, urbanisation, digitalisation and strong domestic consumption. India is expected to become the worlds third-largest economy by 2030, with a projected GDP of approximately USD 7.3 trillion.

Private consumption is also expected to reach nearly USD 1.9 trillion by 2030, driven by a growing middle class and changing consumer preferences. Indias demographic profile reinforces this trajectory, with a large working-age population moving into peak earning and household-formation years over the coming decade. Rising urbanisation, deepening digital adoption and the continued formalisation of economic activity are expected to broaden the base of discretionary spending across both metropolitan and smaller cities.

Sustained public capital expenditure, a broadly stable monetary environment and continued policy focus on manufacturing, infrastructure and ease of doing business are expected to support Indias medium-term growth. The projected moderation in FY 2026-27 should be viewed in the context of a high growth base in the preceding year and an uncertain global environment. Domestic consumption, investment activity, infrastructure creation and favourable demographic trends continue to provide a strong foundation for the economys longer-term expansion.

(Sources: PIB, IMF, India budget, Goldhub)

INDUSTRY STRUCTURE AND DEVELOPMENTS

Overview

The gems and jewellery sector occupy a distinctive position in the Indian economy, contributing approximately 7% of national GDP and providing employment to an estimated 4.6 to 5 million people across mining, processing, manufacturing, wholesale and retail activity. It accounts for close to 15% of Indias merchandise exports, making it one of the countrys most significant foreign exchange earning industries.

The sectors structure remains distinctly Indian. Manufacturing is concentrated in specialised regional clusters, each with its own craft heritage, with Surat dominating diamond processing, Jaipur recognised globally for coloured stone cutting and traditional handcrafted jewellery, and Mumbai serving as the principal trading and export hub. This clustering has preserved artisanal skills transmitted across generations while allowing scale to develop around them.

Indias jewellery market remained strong in FY26, with the overall market estimated at approximately Rs.7.5-8.0 trillion, supported by wedding and festive demand, rising incomes, and a growing preference for branded and organised jewellery. This reflects a growing preference for gold as a safe-haven investment amid global economic uncertainty and ongoing geopolitical and trade tensions.

The defining feature of the year was a sharp divergence between value and volume. Domestic gold jewellery consumption rose approximately 43% in value terms during FY2026, driven by a roughly 60% year-on-year increase in gold prices, even as jewellery volumes declined by around 22%. Gold import volumes fell approximately 7% during the year, confirming moderation in physical offtake.

Household behaviour shifted rather than weakened. Calendar year 2025 data shows total gold demand in India at 710.9 tonnes, down 11 %, with jewellery consumption falling 24% to 430.5 tonnes while bar and coin demand rose 17% to 280.4 tonnes, the highest level since 2013. The value of jewellery demand nonetheless reached a record USD 49 billion, and total demand value rose 30% to T7,51,490 crore. Indian buyers did not step away from gold; they moved a portion of their spending from ornament to investment.

Export performance

Indias gem and jewellery exports stood at USD 27.72 billion in FY2025-26, registering a 3.32% decline amid global economic challenges and changing tariff conditions. In rupee terms, however, exports grew 0.93% to T2,44,827.26 crore, a distinction that reflects currency movement rather than demand contraction.

Cut and polished diamond exports, which accounted for 43.9% of total exports, declined 8.52% to USD 12.16 billion, while gold jewellery exports remained largely stable at USD 11.36 billion. Within the gold jewellery segment, plain gold jewellery

declined 7.42% due to higher prices, while studded gold jewellery grew 6.27%, reflecting increasing consumer preference for design-led and higher-value products.

Exports of polished lab-grown diamonds declined 10.55% to USD 1.13 billion, mainly due to lower prices. However, studded jewellery made with lab-grown diamonds grew strongly by 31.3%, showing rising consumer interest in these products.

The most consequential development was the reordering of destination markets.

Destination	FY2025-26	Change
UAE	USD 8.70 billion	Up 10.52%
United States	USD 5.09 billion	Down 44.92%
Australia	USD 360.21 million	Up 38.33%
Canada	USD 319.57 million	Up 115.01%

The UAE emerged as Indias largest gems and jewellery export destination during FY 2025-26, supported by the India-UAE Comprehensive Economic Partnership Agreement and stronger regional trade links. The United States recorded a significant decline, reflecting changing tariff conditions and demand uncertainty. Australia and Canada, meanwhile, recorded healthy growth, highlighting the importance of diversifying export markets beyond traditional destinations.

The composition of these numbers is instructive. Categories carrying higher craftsmanship content in studded gold jewellery and studded lab-grown diamond jewellery grew even as the commodity-linked segments contracted. Value addition, rather than volume, increasingly determines competitive position.

Market structure and channels

The market continues to divide between an unorganised segment of family jewellers and local goldsmiths, dominant particularly in Tier 2 and rural India and sustained by multi-generational customer relationships, and a rapidly consolidating organised segment comprising national chains, regional brands and digital-first players.

Distribution has diversified considerably. Traditional standalone retail now operates alongside organised brick-and-mortar chains, multi-brand outlets, e-commerce platforms, omnichannel formats that combine online research with in-store completion, direct-to-consumer social commerce and duty-free international retail. Physical stores continue to dominate the market, accounting for approximately 85.2% of Indias jewellery-market revenue in 2025. However, online jewellery retail is expected to expand at a faster pace, with a projected CAGR of approximately 9.3% between 2026 and 2033.

Digital channels are increasingly influencing product discovery, design comparison, price evaluation and customer engagement, even when the final transaction takes place in a physical store. Organised retailers are responding through virtual try-on tools, online catalogues, appointment booking, store-level inventory visibility and integrated fulfilment options. This gradual integration of digital and physical channels is expected to strengthen customer convenience, improve transparency and support the growth of organised jewellery retail.

Digital adoption has reshaped expectations rather than simply adding a channel. Live gold rate visibility, transparent making charges, certification disclosure, home trials, virtual try-on and insured delivery have collectively raised the baseline of what buyers expect, including from offline sellers.

Regulatory developments

Mandatory BIS hallmarking, introduced in phases from June 2021, requires eligible gold jewellery to carry the BIS mark, purity or fineness information , the jewellers identification mark and the hallmarking-centre identification mark . The measure has strengthened consumer confidence, improved purity assurance and supported the formalisation of the jewellery trade .

Certain traditional jewellery categories are exempt from mandatory hallmarking under Clause 2(3)(k) of the

Hallmarking of Gold Jewellery and Gold Artefacts Order, 2020, as amended . These categories include Kundan, Polki and Jadaau jewellery, which have distinctive manufacturing characteristics that may not be suited to the standard hallmarking process.

Other significant measures include the application of the Prevention of Money Laundering Act to dealers in precious metals and precious stones. Dealers engaging in cash transactions of f 10 lakh or more with a customer, whether in a single transaction or linked transactions , are subject to prescribed record-keeping and reporting requirements. The reduction of basic customs duty on gold and silver to 6% and platinum to 6.4%, announced in the Union Budget 2024, narrowed the gap between domestic and international pricing and was intended to reduce incentives for unofficial imports .

The proposed gold spot exchange is expected to support more transparent price discovery and provide structured mechanisms for managing price volatility. However, it remains an emerging market-development initiative and should not be viewed as an established feature of the sector.

Government initiatives

Export promotion: The Government has allowed 100% foreign direct investment through the automatic route and has entered into multiple Free Trade Agreements to support jewellery exports.

Bharat Ratnam facility: The Bharat Ratnam Mega Common Facilitation Centre at SEEPZ, Mumbai, provides modern infrastructure and services to support the jewellery trade.

Export Promotion Mission: Gems and jewellery are included among the priority sectors under the Governments Export Promotion Mission, which has an overall outlay of T25,060 crore.

The sector has also received Authorized Economic Operator status for trade facilitation, benefiting from faster cargo clearance and reduced bank guarantee requirements, alongside continued support through common facility centres, testing laboratories and organised buyer-seller meets.

These initiatives are expected to improve transparency, strengthen organised jewellery businesses, increase consumer confidence and support Indias target of expanding its gems and jewellery market to approximately T11,27,230 crore by 2030.

Growth drivers

Growth in organised retail: Organised jewellery players are expected to increase their market share to approximately 45% by FY30, supported by hallmarking, transparency and branded retail.

Value growth in FY26: ICRA projected that the domestic gold jewellery industry would record value growth of approximately 15-17% during FY 2025-26, despite a projected decline of 12-13% in volumes. The projection reflected the expected effect of elevated gold prices, which were likely to support value growth even as affordability pressures moderated physical jewellery purchases.

Strong export base: Indias gems and jewellery exports reached approximately USD 27.72 billion in FY26.

Diamond-processing leadership: India processes approximately 90% of the worlds polished diamonds, supported by skilled artisans and established manufacturing hubs such as Surat, Jaipur and Mumbai.

Rising consumer incomes: Increasing disposable incomes and a growing middle class are supporting demand for premium, branded, bridal and designer jewellery.

Expansion into smaller cities: Jewellery companies are expanding into Tier 1, Tier 2 and Tier 3 cities through stores, franchise networks, exhibitions and digital channels.

Digital transformation: Social media, e-commerce, online catalogues and virtual consultations are helping jewellery companies reach a wider customer base at lower distribution costs.

Product customisation: Growing demand for customised, lightweight, traditional and contemporary jewellery is encouraging companies to introduce new designs and collections.

Wedding and festive demand: Weddings, festivals and gifting continue to generate regular demand for gold, diamond, Kundan, Polki and bridal jewellery across India.

Skilled artisan base: India employs nearly 1.3 million skilled artisans in the diamond industry alone, with expertise passed down across generations is a competitive advantage that cannot be replicated quickly elsewhere.

Indian jewellery market outlook

The Indian gems and jewellery market is expected to grow from approximately USD 85 billion to around USD 130 billion by 2030. This represents an estimated growth of approximately 53% over the period.

Growth is expected to be driven by wedding and festive demand, rising incomes, premiumisation, branded jewellery, digital sales and the expansion of organised retailers. Organised jewellery players are expected to increase their market share to approximately 45% by FY30. The key challenges for the industry will include high gold prices, competition, working-capital requirements, regulatory changes and changing consumer preferences. Overall, the Indian jewellery market is expected to maintain a positive long-term outlook through 2030.

The direction of travel appears settled even if the pace remains uncertain. Formalisation, certification and design differentiation are steadily displacing price negotiation and personal familiarity as the basis of competition, while the segments that reward craftsmanship and value addition are outperforming those tied purely to metal content.

(Sources: BIS, ICRA, The Hindu business Line, PIB, IBEF, GJEPC)

BUSINESS AND FINANCIAL OVERVIEW

Advit Jewels Limited is a Jaipur-based manufacturer and seller of handcrafted fine jewellery, with its principal portfolio spanning Kundan, Polki, Diamond and Studded jewellery. Incorporated in 2019, the Company carries forward the rich jewellery heritage of the Rambhajo brand, established in Jaipur in 1921 and renowned for its 105 Years of timeless elegance, while combining traditional craftsmanship with contemporary product development. Its offerings extend across necklaces,

earrings, rings, bangles and other customised pieces, serving diverse requirements ranging from elaborate bridal jewellery to traditional and contemporary collections.

The Companys operating model covers the jewellery value chain from concept development through manufacturing and final delivery. CAD-supported designing and prototyping are followed by casting, stone setting, polishing and finishing at its Jaipur facility. This enables Advit to translate customer specifications into made-to-order products while maintaining closer coordination between design and production. The business is predominantly oriented towards jewellery retailers, wholesalers and dealers through the B2B channel while select customers are also served directly through customised orders.

A key characteristic of Advits business is its design-led approach. Its collections span bridal, antique, traditional and contemporary styles, supported by an in-house design team that develops products around customer requirements and changing market preferences. The Company has progressively broadened its customer relationships and market reach, creating a wider base for its handcrafted jewellery while continuing to deepen its presence with established jewellery retailers and wholesalers.

FY2025-26 marked another year of business expansion for the Company. Revenue from operations increased to Rs.16,701.56 Lakh, supported by higher business volumes and an expanding customer base. EBITDA stood at Rs.4,923.80 Lakh while Profit after Tax was Rs.3,438.79 Lakh. The year also saw operating cash flow turn positive, alongside an improvement in the Companys debt-equity position. These developments reflect the increasing scale of operations while maintaining healthy profitability and a disciplined approach to capital deployment.

The Companys financial statements were prepared as per the Indian Accounting Standards (Ind AS) as prescribed by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (the Act), read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended), other relevant provisions of the Act and other accounting principles generally accepted in India.

Its brief financial performance for 2025-26 is given below: (Amount in Rs. Lakhs)

Particulars	2025-26	2024-25
Revenue from Operations	16,701.56	12,493.73
PBDIT	4,923.80	3,715.41
Interest and Financial Charges	645.23	582.51
Depreciation and amortization	116.38	62.75
Tax expenses	724.20	533.44

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in Key Financial Ratios, alongwith detailed explanations thereof including:

Ratios	2025-26	2024-25	% Change	Reason
Debtors Turnover (Times)	14.05	11.18	25.67%	Higher Sales while maintain steady receivables
Current Ratio (Times)	2.21	1.76	25.72%	Increase in CA and decrease in CL
Debt Equity Ratio (Times)	0.77	1.29	-40.40%	YoY increase in Retained Earning and change Capital Structure

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Advit Jewels Limited has established internal control systems appropriate to the nature and scale of its operations. The framework is designed to safeguard the Companys assets, support accurate financial reporting, ensure compliance with applicable requirements and maintain discipline across key business processes. Given the high-value nature of jewellery operations, particular emphasis is placed on inventory control, procurement, production, quality assurance and movement of precious materials. The Company also uses technology-enabled systems for accounting, inventory and production management along with its customised Jewels Software for real-time tracking and traceability of raw materials and finished products.

The Audit Committee provides oversight of the Companys financial reporting and internal control framework. Its responsibilities include evaluating internal financial controls and risk management systems, reviewing the adequacy of internal controls and internal audit processes and discussing significant observations and corrective actions with management and the auditors. The Committee also reviews internal control weaknesses, if any, and monitors appropriate follow-up action.

The Company continues to review and strengthen its control processes in line with the growth and increasing complexity of its operations, with a focus on transparency, accountability and sound governance practices.

RISKS AND CONCERNS

Advit Jewels Limited operates in a dynamic jewellery industry where business performance is influenced by fluctuations in precious metal and gemstone prices, availability of quality raw materials, evolving consumer preferences, seasonal demand and changing regulatory requirements. The business also remains exposed to risks associated with inventory management, working capital requirements, supplier and customer concentration and competition within the organised and unorganised jewellery market.

At the operational level, the concentration of manufacturing activities at Jaipur, dependence on skilled artisans and the need to consistently maintain product quality, design relevance and authenticity remain important areas of focus. Any disruption in sourcing, manufacturing or timely delivery may impact business continuity and customer relationships.

The Company seeks to manage these risks through its integrated manufacturing model, disciplined sourcing practices, structured inventory controls, multi-stage quality assurance systems, strong security measures and comprehensive insurance coverage. Its in-house design capabilities, experienced management team and continued focus on customer and geographic diversification further support operational resilience and sustainable growth.

Key Risks and Mitigation Measures

Risk Area	Risk	Mitigation
Raw Material Prices	Changes in gold, diamond polki and gemstone prices can affect procurement costs, product pricing, inventory value and margins.	The Company focuses on planned procurement, regular inventory monitoring, sourcing optimisation and appropriate product pricing to manage fluctuations in input costs.
Raw Material Availability	Timely availability of gold and quality precious and semi-precious stones is important for uninterrupted manufacturing and order fulfilment.	Raw materials are procured through authorised and trusted suppliers. A dedicated procurement team also supports quality assessment and sourcing decisions.
Inventory Management	The need to maintain a wide range of designs and valuable raw materials can increase inventory carrying requirements and the risk of slow-moving products.	The Company uses its customised Jewels Software for tracking raw materials and finished jewellery with greater visibility, traceability and inventory control.
Customer Dependence	Dependence on key customers may expose the business to changes in order volumes, purchasing decisions or payment cycles.	The Company continues to broaden its customer base, strengthen relationships with existing customers and expand its presence across different markets and sales channels.
Changing Customer Preferences	Jewellery preferences can change with fashion trends, weddings, festivals, gold prices and evolving customer lifestyles.	The in-house design team regularly develops new collections and customised products supported by CAD-based designing, customer feedback and market understanding.
Business Continuity	Concentration of manufacturing operations at one location can expose production to operational disruptions, utility interruptions or other unforeseen events.	Integrated operations, preventive controls, fire-safety systems, security arrangements and insurance coverage support continuity and protection of operations.
Product Quality	Any inconsistency in purity, craftsmanship, stone setting or product specifications can affect customer confidence and brand reputation.	A multi-stage quality process covers design verification, purity checks, stone testing, setting inspection and final approval before dispatch.
Skilled Workforce	Jewellery manufacturing requires skilled artisans and designers with specialised knowledge of handcrafted products.	The Company focuses on building an experienced in-house team along with employee engagement, training and retention initiatives to support craftsmanship and operational continuity.
Safety and Security	The handling and storage of gold, gemstones and finished jewellery require strong safeguards against loss, theft or damage.	The Company maintains secure storage, surveillance systems, access controls, trained security personnel and insurance protection for high-value materials and assets.
Regulatory and Market Changes	Changes in hallmarking requirements, product certification norms, customs duties, import regulations and other compliance obligations may increase operating costs, affect product availability or require changes in documentation and business	The Company monitors regulatory developments and periodically reviews its compliance processes, documentation and product-certification practices. It works with authorised suppliers and testing or
Risk Area	Risk	Mitigation
	processes. Changes in competition, gold prices and consumer demand may also affect market conditions and margins.	certification agencies, where applicable, to support adherence to quality and regulatory requirements. Market risks are addressed through product diversification, regular review of pricing and product mix, customer engagement and ongoing monitoring of demand and competitive trends.

OPPORTUNITIES AND THREATS Opportunities

The Indian jewellery industry is steadily becoming more organised, with customers placing greater emphasis on certified quality, consistent craftsmanship, product authenticity and reliable delivery. This shift creates favourable opportunities for organised manufacturers with established processes and strong quality controls. Advit Jewels is well positioned in this environment through its integrated manufacturing facility in Jaipur, where design, production, stone setting, polishing and quality assurance are managed under one roof.

The Companys specialisation in Kundan and Polki jewellery provides another important advantage. These categories remain highly craftsmanship-driven and depend significantly on the skills of experienced artisans. Their strong association with weddings, bridal purchases and traditional occasions continues to support demand. Advits heritage through the Rambhajo brand, with roots dating back to 1921, further strengthens customer confidence in a segment where reputation, authenticity and long-standing relationships remain important differentiators.

The Company also has meaningful headroom for growth within its existing manufacturing infrastructure. With installed capacity available to support higher volumes, Advit can cater to incremental demand without requiring a proportionate increase in manufacturing infrastructure. The proposed flagship store in Jaipur is expected to provide a stronger physical presence for the brand while also serving as a foundation for future expansion through franchise outlets across Tier I and Tier II cities. A wider product portfolio, presence across multiple states and the commencement of exports provide further avenues for expanding the Companys customer base and market reach.

Threats

High and volatile gold prices remain one of the most significant challenges for the jewellery industry. Sustained increases in gold prices can affect customer affordability, influence purchase decisions and encourage a shift towards lighter or lower-ticket jewellery. For a Company with a strong presence in bridal and traditional jewellery, maintaining the balance between design value, craftsmanship and affordability remains an important consideration.

Consumer preferences are also evolving. Younger customers are increasingly exploring lightweight, contemporary and everyday jewellery while alternative categories such as lab-grown diamonds are gaining visibility. At the same time, digital- first jewellery brands, large organised chains and established regional jewellers continue to intensify competition across product categories and markets. This makes continued innovation, customer engagement and design relevance increasingly important.

The business also remains exposed to external factors affecting the availability and cost of gold, gemstones and other precious materials. Changes in import policies, currency movements, global supply conditions and logistics disruptions can influence procurement costs and product pricing. In addition, evolving requirements relating to certification, transaction transparency and regulatory compliance may increase the cost and complexity of operations. However, these developments are also likely to favour organised and compliant businesses as the industry continues to consolidate.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Companys human resources comprise skilled artisans, designers, production personnel, quality-control staff and administrative employees, with a total employee strength of 118 employees in FY26. Its integrated manufacturing facility in Jaipur supports design and prototype development, casting, stone setting, polishing, finishing and multi-stage quality inspection. These processes enable the Company to manufacture Kundan, Polki, diamond, studded, bridal and customised jewellery while maintaining control over quality and production timelines.

INFORMATION & TECHNOLOGY

Advit Jewels Limited leverages technology to bring precision, traceability and operating control to a business rooted in traditional craftsmanship. The Company has implemented a scalable Enterprise Resource Planning system integrating key functions such as accounting, inventory and production management. Its customised proprietary platform, Jewels Software, provides real-time visibility over raw materials and finished jewellery,

Technology also plays an important role in design development and manufacturing execution. Computer-Aided Design software enables designers to visualise the shape, stone placement, clasp mechanism, dimensions and weight balance of a jewellery piece before production begins. Approved designs can then be converted into physical prototypes using 3D printing and precision model-making techniques, combining digital accuracy with the expertise of skilled artisans across

casting, stone setting, polishing and finishing. This integration helps improve design consistency, supports customised orders and reduces the risk of errors before valuable raw materials enter production.

The Companys digital inventory controls extend to the secure handling of high-value materials, including gold, diamond polki and precious and semi-precious stones. Every movement is digitally recorded through Jewels Software, while restricted-access storage and surveillance systems strengthen accountability and material security. Looking ahead, Advit Jewels intends to deepen technology integration across design, production planning, inventory control, order fulfilment and customer engagement, while strengthening its presence through social media and other digital platforms. These capabilities are expected to support faster execution, tighter operational control and scalable growth across the Companys expanding domestic and international market presence.

CORPORATE SOCIAL RESPONSIBILITY

At Advit Jewels, responsible growth extends beyond business performance. The Company believes that its progress should contribute positively to the communities and society around it. This approach is supported by a formal Corporate Social Responsibility Policy that provides a structured framework for identifying, implementing and monitoring social initiatives in accordance with applicable regulations.

The Company has constituted a dedicated CSR Committee to guide its social responsibility agenda. The Committee oversees the CSR Policy, recommends programmes and expenditure and monitors the implementation of the annual action plan to ensure that initiatives remain purposeful, transparent and aligned with the areas prescribed under Schedule VII of the Companies Act, 2013.

During FY2025-26, the Board approved an annual contribution of up to Rs.41.13 Lakh towards CSR activities. Through a disciplined and governance-led approach, Advit seeks to progressively strengthen its contribution to social welfare while building a business that creates value beyond jewellery and commerce.

CAUTIONARY STATEMENT

This document contains certain statements that may be considered forward-looking statements, including statements relating to business plans, growth prospects, market opportunities, financial performance and future strategies. Such statements are based on present expectations and assumptions and are subject to various risks and uncertainties, including changes in economic conditions, gold prices, consumer demand, competition, government regulations, technology, financing costs and the Companys ability to implement its plans.

Actual results, performance or achievements may differ materially from those expressed or implied in such statements. The Company does not undertake any obligation to update or revise these forward-looking statements, whether as a result of future events, new information or otherwise. The information contained in this document is for general purposes and should not be construed as a guarantee of future performance or as investment advice.