Ashapuri Gold Ornament Ltd Management Discussions

<dhhead-MANAGEMENT DISCUSSION AND ANALYSIS REPORT </dhhead-

GLOBAL ECONOMIC REVIEW

ccording to the April 2026 World Economic Outlook (WEO) by the IMF, the global economy is undergoing a period of significant recalibration amid renewed geopolitical shocks. Global growth is projected to moderate from 3.4% in 2025 to 3.1% in 2026, before improving slightly to 3.2% in 2027. While these growth levels remain below historical averages, global activity and disinflation efforts continue to adjust to earlier pressures in the Middle East, which are now showing signs of easing. The broader outlook, therefore, remains adaptive.

This transitional phase reflects a cautious investment environment and recent volatility in energy markets, with oil prices fluctuating around the USD 105 mark following disruptions to maritime navigation. On a positive note, labour markets have demonstrated notable resilience, even as overall growth remains below the historical average of 3.7% recorded between 2000 and 2019. At the same time, global headline inflation is expected to rise to 4.4% in 2026 before declining to 3.7% in 2027, as ongoing price-stabilisation efforts continue to support the global economys gradual return to more stable conditions.

World Economic Outlook Projections (GDP Growth)	2024	2025	2026
	3.2	3.2	3.1

In 2025, the global gold jewellery industry remained resilient despite an evolving trade environment and heightened macroeconomic uncertainty. In 2026, geopolitical tensions, currency fluctuations and supply-chain disruptions continued to create challenges, while elevated gold prices increased pressure on raw-material procurement, working capital and production planning.

Gold strengthened its safe-haven appeal, reaching unprecedented levels amid sustained central bank purchases and global economic concerns. The resulting price volatility required manufacturers to adopt disciplined procurement, efficient inventory management and prudent working-capital practices, while ensuring uninterrupted production and timely fulfilment of customer orders.

At the same time, changing consumption patterns increased demand for value-driven, differentiated and lightweight jewellery. This created opportunities for manufacturers with strong design capabilities, agile production systems and the ability to cater to diverse customer requirements. The continued shift from the unorganised to the organised jewellery sector further supported growth, favouring manufacturers with consistent quality, reliable delivery, scalable capabilities and strong relationships across the jewellery value chain.

OUTLOOK

The global economy is expected to witness modest growth of 3.1% in 2026 and 3.2% in 2027, with easing inflation providing scope for gradual monetary policy relaxation. However, geopolitical uncertainties and gold-price volatility are expected to remain key challenges.

For the gold jewellery manufacturing industry in FY27, demand is expected to remain supported by the continued formalisation of the jewellery sector and steady domestic consumption. Manufacturers will need to focus on disciplined gold procurement, efficient working-capital management, agile production and innovative, lightweight designs. The growing shift towards organised jewellery retail is expected to create further opportunities for manufacturers with strong quality, design and timely delivery capabilities.

INDIA ECONOMIC OVERVIEW

India continued to remain one of the fastest-growing major economies, demonstrating resilience amid a challenging global environment. Real GDP is estimated to have grown by 7.7% in FY 2025-26, supported by robust domestic consumption, investment and strong performance across the services and industrial sectors. For FY 2026-27, real GDP growth is projected in the range of 6.8% 7.2%, reflecting the strength of Indias underlying economic fundamentals.

Indias growth momentum continues to be supported by infrastructure development, policy reforms, improving business conditions and rising domestic demand. The manufacturing sector also remained an important contributor, with manufacturing GVA growing strongly during the first half of FY 2025-26.

India remains one of the worlds largest consumers of gold, with jewellery accounting for a significant share of domestic gold demand. The jewellery industry continues to benefit from Indias strong cultural affinity towards gold, particularly wedding-related demand, as well as the gradual shift from the unorganised to the organised sector.

For gold jewellery manufacturers, the continued formalisation of the jewellery industry presents significant opportunities. Increasing demand for quality, design innovation, consistent craftsmanship and timely delivery is encouraging jewellery retailers to strengthen relationships with organised manufacturing partners. At the same time, elevated gold prices underscore the importance of efficient gold procurement, inventory management, working-capital discipline and agile production capabilities.

The Indian jewellery sector is therefore well positioned for long-term growth, supported by rising consumer aspirations, increasing formalisation, evolving designs and favourable structural trends. Manufacturers with strong production capabilities, quality standards, design expertise and the ability to respond swiftly to changing market requirements are expected to benefit from the sectors continued evolution.

(Source: Economic Survey 2025-26 and Ministry of Statistics & Programme Implementation (MoSPI))

MARKET SIZE

The global jewellery market continues to witness steady growth, supported by rising disposable incomes, increasing consumer aspirations and sustained demand for gold jewellery. Despite elevated gold prices, jewellery demand remained resilient, with global jewellery consumption value reaching a record level in 2025.

India remains one of the worlds largest jewellery markets, with gold continuing to account for the largest share of the market. The Indian gold jewellery industry was valued at approximately 7,105 billion in CY2024 and is projected to reach 11,548 billion by CY2029, representing a CAGR of around 10.2%.

During FY2025-26, high gold prices influenced consumer purchasing behaviour, with jewellery volumes moderating while overall spending remained strong. Indias jewellery demand continued to be supported by weddings, festivals, investment-led purchases and the enduring cultural significance of gold.

For gold jewellery manufacturers, the continued formalisation of the jewellery sector, increasing preference for organised and branded jewellery, demand for lightweight and contemporary designs, and the growing need for reliable manufacturing partners present significant growth opportunities. Manufacturers with strong design capabilities, efficient production systems, quality standards and agile gold procurement are well positioned to benefit from the evolving market.

(Source: World Gold Council (WGC), SEBI and industry research reports.)

The Indian gems and jewellery industry continued to evolve during FY 2025-26, supported by increasing formalisation, changing consumer preferences, technological advancement and growing demand for quality and design-led jewellery. For jewellery manufacturers, these trends are creating opportunities to strengthen manufacturing capabilities, enhance product development and adopt modern technologies to improve productivity, precision and quality.

India continued to strengthen its position as a global jewellery manufacturing and export hub. During FY 2025-26, the sector benefited from expanding international market opportunities and increasing focus on value-added jewellery manufacturing. The India-UK Comprehensive Economic and Trade Agreement (CETA), signed in July 2025 and subsequently brought into force in July 2026, provides enhanced market access for Indian exports, including gems and jewellery, and is expected to improve the competitiveness of Indian manufacturers in the UK market.

Key developments supporting the sector during FY 2025-26 include:

1. India-UK CETA: The agreement provides enhanced market access for Indian exports to the UK and is expected to create additional opportunities for Indian jewellery manufacturers and exporters.

2. India-EU Trade Agreement: The agreement provides preferential market access for Indian gems and jewellery exports to the European Union, supporting opportunities for manufacturers seeking to expand their international presence

3. Technology and Modernisation: Increasing adoption of CAD/CAM, 3D modelling, advanced manufacturing equipment and automation is enabling jewellery manufacturers to improve design capabilities, productivity and consistency.

4. BIS Hallmarking: Continued implementation of mandatory hallmarking and quality standards is strengthening consumer confidence and encouraging greater formalisation across the jewellery value chain.

5. Export-Oriented Manufacturing: Government initiatives and duty-remission mechanisms for the gems and jewellery sector continue to support export-oriented manufacturing and improve the competitiveness of Indian jewellery manufacturers.

6. Product Innovation: Growing demand for lightweight, contemporary and value-oriented jewellery is encouraging manufacturers to invest in new designs, product development and flexible manufacturing capabilities.

The sector is expected to benefit from continued formalisation, technological advancement, expanding export opportunities and the enduring cultural significance of gold jewellery in India. Manufacturers with efficient production infrastructure, strong design capabilities, quality systems and prudent investment strategies are well positioned to capitalise on these opportunities.

Sources: Ministry of Commerce & Industry, Government of India; Gem & Jewellery Export Promotion Council (GJEPC); Bureau of Indian Standards (BIS); and relevant industry reports.

BUSINESS OVERVIEW

Ashapuri Gold Ornament Limited is an established B2B jewellery manufacturer based in Ahmedabad, Gujarat, engaged in the design, manufacturing and supply of gold jewellery to reputed jewellery retailers and business partners across India. With an established presence in the industry, the Company has built its business around quality, craftsmanship, design capabilities and reliable customer service.

The Company commenced in-house jewellery manufacturing in 2019, reducing its dependence on job-work arrangements and strengthening its control over the manufacturing process. Its in-house manufacturing capabilities enable better coordination of manpower and materials, improved inventory management, enhanced quality control and greater flexibility in product development and delivery.

The Company offers a diverse range of gold jewellery, including traditional, contemporary, lightweight and antique-inspired designs. Its design capabilities, supported by in-house and external design resources, enable it to respond effectively to changing market preferences and the requirements of organised jewellery retailers.

During FY 2025-26, the Company continued to strengthen its position as a B2B jewellery manufacturer.

The Company recorded total revenue of approximately 31720.85 Lakhs and Profit After Tax of approximately 1856.40 Lakhs, reflecting continued business growth and improved profitability.

During FY 2025-26, the Company continued to strengthen its position as a B2B jewellery manufacturer, supported by its established customer relationships, manufacturing capabilities and expanding market presence. The Company remains focused on improving operational efficiency, strengthening its product portfolio and enhancing its manufacturing capabilities.

The Company has developed a presence across key jewellery markets in India, including Ahmedabad, Mumbai, New Delhi and Bengaluru, supported by its sales and business development network. Its geographic reach enables it to serve customers across multiple regions and strengthen relationships with established jewellery retailers.

Going forward, the Company aims to deepen its presence in the organised jewellery sector by expanding its manufacturing capabilities, investing in technology and design, improving operational efficiency and developing long-term partnerships with leading retailers. The Company remains committed to delivering quality products, innovative designs, competitive pricing and reliable delivery to its customers.

OUR COMPETITIVE STRENGTH

VAST EXPERIENCE OF OVER TWO DECADES WITH SOUND MARKET KNOWLEDGE

Our promoters Shri Saremal Soni, Shri Dinesh Soni and Shri Jitendra Soni have been involved in Jewellery business and have completed approx. 30 years in this Industry. The Promoters of our Company have a background of jewellery business and are actively involved in the operations of the Company. We get the benefit of experience from our Promoters and the core management team.

PRIME LOCATION OF OUR SHOWROOM

Most of the show rooms of Gold jewellery are located on C.G. Road and its vicinity. The 2363 sq. feet our showroom is situated at 109 to 112A &114, 1st Floor Supermall, Nr. Lal Bunglow, C.G. Road, Ahmedabad

380009. Most of the branded Jewellery show rooms viz. Tanishq, Joyalukkas, Malabar Gold, etc. are located in C.G. Road.

Also we have our own manufacturing facility at C. G. Road and have opened up the Branch Office at Bangalore.

DESIGN, INNOVATION AND PRODUCT RANGE

The wide experience of our Promoters in the Gold industry helps us to know about the exact requirement of the customers, which in turn helps to design the products accordingly. Our wide range of product offerings caters to diverse customer segments, from the value market to high-end customized jewellery. Our product profile includes antique, traditional, bridal contemporary and combination designs across jewellery lines, usages and price points.

LONG TERM RELATIONS WITH CLIENTS:

We believe in providing quality products and timely delivery of the products as per the requirement of customers, which in turn has helped the Company to build very strong relations with them and the Company was able to fetch repetitive orders from the same customers.

QUALITY OF OUR PRODUCTS

The in-house designing of the jewellery and in house manufacturing helps the company to have better management and coordination of man and material, better utilization of labour force, better inventory management and quality control on the final products. On account of Own manufacturing unit, The Company has complied the stringent requirement norms of the known retail brand Jewellery show room. We guarantee our esteemed customers for the time bound delivery of the products.

STRONG IN-HOUSE DESIGNING CAPABILITIES

Our in house designers who have been using both conventional and modern jewellery designing methods and continuously focuses on creating newer and newer designs. Our designing team concentrates on creating a wide variety of designs in Indo-western, & modern jewelleries.

SUPPLIER TO REPUTED RETAIL SHOW ROOMS (COMPANIES):

On account of Own manufacturing unit, The Company has complied the stringent requirement norms of the known retail brand Jewellery show room. The Client list of the Company includes leading reputed jewellery retailer which are multinational well reputed and having very good network.

SWOT ANALYSIS

	The Promoters have been involved in the Jewellery business since 25 years
	Very good reputation and trust in the market
	Most of our designs are very antique and unique
	Showroom is located at a prime location i.e. C.G Road, Ahmedabad
Strength	Branch offices in Bangalore.
	Understanding of Customer Preference.
	Supplier to Reputed Retail Show Rooms (Companies)
	Limited geographical area of Operations
	Uncertainty in market fluctuations.
Weakness	Gold Price Volatility
	To tie-up with large chain jewelry retail stores for supply of jewelry
	Started in house manufacturing unit.
Opportunities	Recruited sales team to cover the wide region
	We may face competition from organized and unorganized sector.
	Dealing in lifestyle products, economic slowdown will reduce the demand and hamper the
Threat	growth of the Company.
	Fluctuation in raw material, since the prices are going up and theres volatility in prices of
	gold.

 

Risk	Impact
Macroeconomic &	Global economic uncertainties, geopolitical tensions, inflation, interest- rate movements and changes in consumer demand may affect the
Geopolitical Risk	jewellery industry and the Companys business.
Gold Price Risk	Volatility in gold prices may impact procurement costs, inventory valuation, working capital, product pricing and profitability.
Raw Material &	Changes in the availability and cost of gold may affect production
Procurement Risk	schedules, inventory levels and operating margins.
Margin Risk	Gold-price volatility, operating-cost pressures, competitive pricing and foreign exchange movements may adversely impact margins and profitability.
	Competition from organised manufacturers, branded jewellers and
Competition Risk	unorganised players may put pressure on pricing, quality, design and customer retention.
Customer & Order Risk	Changes in customer preferences, order volumes, pricing expectations or dependence on key customers may impact revenue and business performance.
Manufacturing & Operational Risk	Production delays, equipment breakdowns, quality issues, skilled manpower constraints or operational inefficiencies may affect capacity utilisation and timely delivery.
	Changing jewellery trends and increasing demand for lightweight and
Design & Product Risk	contemporary designs require continuous product innovation. Failure to adapt may affect demand and competitiveness.
Working Capital & Inventory Risk	The high value of gold inventory requires effective inventory and working-capital management. Inefficient inventory planning or delayed collections may affect liquidity.
Regulatory & Compliance Risk	Changes in hallmarking, taxation, gold-related regulations, import-export policies and other statutory requirements may increase compliance costs and affect operations.
Quality & Reputation Risk	Any compromise in gold purity, product quality, craftsmanship or delivery standards may adversely affect customer confidence, relationships and the Companys reputation.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human resource is an asset to any industry, sourcing and managing is very important task for the management. We believe that our employees are the key to the success of our business. We focus on hiring and retaining employees and workers who have prior experience in jewellery manufacturing Industry and wholesale marketing. We view this process as a necessary tool to maximize the performance of our employees. We have not experienced any strikes, work stoppages, labour disputes or actions by or with our employees and we have good and cordial relationship with our employees. As on 31st March 2026 the Company had a total of 82 employees.

SEGMENT WISE OPERATIONAL PERFORMANCE

The Companys main business is manufacturing of Gold Ornaments and all the activities of the Company during the year are related to this business. As such there are no separate reportable segments.

DISCUSSION ON FINANCIAL PERFORMANCE OF THE COMPANY

The Companys total Revenue from operation of the company during the Financial Year 2025-26 is

31720.85 Lakhs as against 31719.85 Lakhs of the previous year registering no growth in revenue of Company.

Further The Company has made net profit of 1856.40 Lakhs for the financial year 2025-26 as against 1203.64 Lakhs of previous year after considering Depreciation and Provision of tax and registered a growth of 54.23% in Net Profit of the Company

INTERNAL CONTROL

The Company has set up a proper and adequate and sound internal control system to safeguard the

Groups assets and to enhance shareholders investment, as well as reviewing its adequacy and effectiveness of the said system. The duty of reviewing the adequacy and effectiveness of the internal control system has been assigned to the Audit Committee ("AC"), to seek assurance on the adequacy and effectiveness of the internal control system through reports it receives from independent reviews conducted by the Internal Auditor. The Company constantly reviews its processes and the systems with an aim to remain competitive and address the changing regulatory and business environment. The Control Systems provide a reasonable assurance of recording the transactions of its operations in all material aspects and of providing protection against misuse or loss of Companys assets. The external auditors as well as the internal auditors periodically review the internal control systems, policies and procedures for their adequacy, effectiveness and continuous operation for addressing risk management and mitigation strategies.

KEY FINANCIAL RATIOS ON STANDALONE OPERATIONS

Ratios	FY 2025-26	FY 2024-25	% Change	Remarks
Trade Receivables	13.79	12.28	12.24	The Trade receivable Turnover Ratio has increased due to decrease in Trade Receivables of the Company
Inventory Turnover	2.75	3.95	-30.38	Inventory Turnover ratio has decreased due to increase in Inventories of the Company.
Interest Coverage	1385.51	42.34	3172.65	Interest Coverage Ratio is high because no major borrowings during the year.
Current Ratio	24.90	21.00	18.54	Current ratio has increased due to increase in Inventories of the Company. Higher the ratio, better it is.
Debt Equity Ratio	0.00	0.00	0.00	No Material Changes in Absolute amount.
Operating Profit Margin %	8.12	5.43	49.54	Increase in EBIT due to reduction in material consumption is attributed to Increase in profit margin in current year.
Net Profit Margin %	5.85	3.79	54.35	Decrease in Consumption of Goods, decrease in finance cost and favorable inventory movement is attributed to increase in Net Profit Margin
Return on Net Worth %	15.03	11.23	33.84	Due to significant increase in net profit there is an increase in Return on Net worth.

CAUTIONARY STATEMENT:

Statement in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectation or prediction may be "forward-looking" statements within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied.

Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factors.