Grover Jewells Ltd Management Discussions

Industrial Outlook:

Indian Economic Overview

Indias gold and diamond trade contributes about 7% to the countrys Gross Domestic Product (GDP), with the Gems & Jewellery sector employing nearly five million people. Recognizing its immense potential for growth and value addition, the Government has identified the sector as a focus area for export promotion.

To strengthen Brand India in the global market, several initiatives have been introduced, including measures to promote investment, upgrade technology, and enhance skills. The Government has also permitted 100% FDI in the sector under the automatic route, allowing foreign investors and Indian companies to invest without prior approvals. Further, the India-United Kingdom (UK) Comprehensive Economic and Trade Agreement (CETA), signed in July 2025, has eliminated import duties of 2.5-4% on plain gold and diamond jewellery, giving Indian exporters a competitive edge and expected to more than double Indias Gems & Jewellery exports to the UK to Rs. 21,183 crore (US$ 2.5 billion) by 2027.

Growing demand

In January 2026, Gold ETF alone saw inflows worth US$ 2.72 billion (Rs. 24,040 crore), which is nearly double of Decembers US$ 1.32 billion (Rs. 11,647 crore). Meanwhile, silver ETFs recorded a US$ 1.07 billion (Rs. 9,463 crore) inflow, highlighting the rising interest of investors in exchange-traded products that are not equities.

Indias gold demand is projected to remain in the range of 600-700 tonnes in 2026, with rising investment demand offsetting weaker jewellery consumption due to elevated gold prices.

Indias gold ETF holdings increased significantly, crossing 110 tonnes in January 2026, compared to 77.3 tonnes in September 2025, supported by record inflows and strong investor participation..

Market Size:

Indias Gems & Jewellery market size stood at Rs. 7,31,255 crore (US$ 85 billion) in January 2026 and is projected to expand to Rs. 11,18,390 crore (US$ 130 billion) by 2030. During FY26 (April-February 2026), Indias gems and jewellery exports stood at US$ 25.93 billion. The latest growth momentum is being driven by increasing global demand for gold jewellery and cut & polished diamonds, supported by favourable trade agreements and rising consumer spending in key markets such as the US, UK, and the Middle East.

Government Initiative:

Under Union Budget 2025-26, the customs tariff on jewellery (HSN code 7113) was reduced from

25% to 20% and on platinum findings from 25% to 5%, making jewellery more affordable and boosting domestic demand.

The sector now has AEO status from the finance ministry, easing export-import processes with quicker cargo release, 50% lower bank guarantees.

India and the Gulf Cooperation Council (GCC) moved a step ahead by signing a Joint Statement to initiate negotiations for the proposed India-GCC Free Trade Agreement (FTA). The negotiations are expected to bring more predictability to the business community and help enhance the long-standing economic and cultural ties between India and the GCC countries. The main Indian exports to the GCC include engineering goods, rice, textiles, machinery, and gems and jewellery.

IIJS Bharat Signature 2026 witnessed a defining momentforIndiasgemandjewelleryindustrywith the launch of JewelStart, GJEPCs first dedicated innovation, incubation and acceleration platform for gems, jewellery and allied startups.

Unveiled at the show in Mumbai on 10th January 2026, JewelStart signals a deliberate move to embed structured innovation, entrepreneurship and technology-led problem solving into the industrys growth story. Conceived as an industry-led incubation platform, JewelStart has been designed to address the specific needs of the gem and jewellery value chain. The initiative aims to enable start-ups, MSMEs to transform ideas into scalable, market-ready enterprises, while fostering collaboration between industry, academia, investors and government bodies. Through this initiative, GJEPC seeks to further reinforce Indias position as the Jeweller to the World. The Government has reduced customs duty on cut and polished diamonds and colored gemstones from 7.5% to 5% and NIL.

Revised SEZ Act is also expected to boost Gem & Jewellery exports.

Road Ahead:

The future of Indias Gems & Jewellery sector will be shaped by the growing dominance of large retailers and established brands, which are steadily expanding their presence across the country. Organised players are not only introducing greater variety in terms of designs and product lines but are also driving higher levels of professionalism, transparency, and consumer trust in the market.

Policy support remains a key growth catalyst. The governments liberal measures, such as easing restrictions on gold imports, reintroducing low-cost gold metal loans, and promoting exports through favourable trade agreements, are providing a strong foundation for sustained expansion.

Indiaisalreadyrecognizedasaglobalhubforjewellery manufacturing, supported by ~450 organized manufacturers, importers, and exporters. These players, backed by increasing government support and rising global demand, are well-positioned to cater to both domestic and international markets. With these positive developments, Indias Gems & Jewellery industry is projected to grow to Rs. 11,18,390 crore (US$ 130 billion) by 2030, reaffirming role in the countrys exports and retail ecosystem

( link of the source: https://gjepc.org/news; https://www. ibef.org/industry/gems-jewellery-india)

Company Overview:

Grover Jewells Limited is positioned to lead the manufacturing and wholesale gold jewellery industry. Journey which has started in 2010 under sole proprietary model has today unfolded itself into trusted, renowned and emerging brand in gold jewellery industry. Our recent milestone of being listed on the NSE Emerge in February, 2026 evident our growth and perseverance toward our mission of being a leader in the jewellery manufacturing and wholesale industry, expanding our reach while maintaining highest standard of excellence and customer satisfaction.

We majorly serve an inclusive ambit of B2B clientele from renowned jewellery houses to retail clients across PAN India. The Company offers an extensive product mix consisting of machine chains, , studded jewellery, light weight jewellery, AD & Zircons products. The Company has launched its App Grover Jewells Limited to enhance its growth, occupancy and visibility in market through digital media and as an initiative to automate the order booking process of its clientele.

Opportunities & Threats Opportunities:

Market Expansion: With major revenue production from Northern India. Now, the company is well positioned to expand and set its footprints in Southern regions of India. Also, the Company intends to gradually expand its presence in international markets, building upon its existing export relationships in Australia and the UAE. Management continues to explore opportunities for customer acquisition in new geographies where there is demand for high-quality gold jewellery its pivotal

Business Model: The Company plans to diversify its operations by entering the retail segment of the jewellery industry through a Direct to Customer (D2C) model in addition, to its current Business to Business (B2B) model. This segment presents a transformative opportunity to build stronger consumer relationships, enhance brand visibility, and capture higher margins by bypassing traditional intermediaries.

E-Commerce Growth: The Companys App and other potential e-commerce initiatives offer avenues to serve among digitally active consumers and increase brand awareness & visibility in market.

Threats:

Operational & Security: We deal in high price and portable goods which certainly associated with security risk in various manner such as theft, shop-lifting, loss or damage during the transit, delivery, customer presentation or fraud by employee or vendor. Any such incident could negatively impact the Company financially non -financially resulting into financial loss, loss of trust, reputation and customer confidence.

Regulatory Risk: Regulatory changes in hallmarking, gold duties, international treaties or trade policies, statutes (taxes etc). Any adverse change in these regulatory norms can affect consumer demand, margins, and sourcing costs. organized players are particularly impacted due to their high compliance standards and formal operating structures.

Working Capital and Inventory Management:

The jewellery industry is inherently working of capital-intensive, with significant investment required in gold metal and precious metal inventory. Managing inventory turnover while maintaining adequate variety and stock levels across multiple formats and locations is a constant challenge. Any misalignment between demand forecasting and inventory planning may lead to liquidity stress.

Geopolitical and Global Economic Uncertainties:

The gold sector directly or indirectly always remains exposed to global constraints such as geopolitical conflicts, currency fluctuations, and changes in international gold demand-supply dynamics. These factors may impact costs, consumer sentiment, and export opportunities.

Risk Management:

Implementation of Security System: The company has taken adequate measures like installation of CCTV cameras, Security guard including Gunman and insurance to mitigate the risk of loss or damage, theft, fraud and shoplifting arise from the high value product. or

Compliance Management: The adopted a compliance management practice to curb the regulatory risk and ensures adherence to statutory requirements, regularly monitors policy updates, and maintains strong internal audit processes.

Financial Management: The Company follows a prudent financial planning to strengthen the working capital and inventory estimates. We maintain long standing banking relationships, prudent inventory rotation, customer advance schemes, and disciplined capital allocation to ensure healthy liquidity levels

Financial and Operational Performance Revenue from Operations

Revenue from operations for FY26 stood at 82,420.98 lakh as compared to 46,080.29 lakh in FY25, reflecting a growth of approximately 79% year-on-year. This strong performance was driven by increased brand visibility and customer engagement through participation in various jewellery exhibitions, the positive impact of the showroom established in Chandni Chowk, Delhi during FY25, and a favorable product mix with a higher contribution from premium and high-value jewellery products. These factors collectively contributed to the significant growth in revenue during the year.

Other Income

Other Income increased from 14.40 lakh in FY25 to 64.01 lakh in FY26, reflecting a growth of approximately 344% year-on-year. The increase was primarily driven by higher foreign exchange gains arising from business transactions and increased interest income.

Cost of Goods Sold

Cost of Goods Sold increased during FY26 as compared to FY25, primarily in line with the significant growth in revenue during the year.

Employee Expenses

Employee Benefit Expenses increased from 244.15 lakh in FY25 to 502.47 lakh in FY26, primarily due to the expansion of business operations and strengthening of the workforce to support increased sales activities. The increase was driven by employee additions and other operational functions, along with annual salary revisions and performance-based increment.

Finance Cost

Finance Costs increased from 87.38 lakh in FY25 to 243.50 lakh in FY26. The increase was primarily attributable to higher utilization of working capital borrowings and other credit facilities to support the significant growth in business inventory levels, and expansion activities during the year.

Depreciation

Depreciation expenses increased by 66.61%, from 120.12 lakh in FY25 to 200.14 lakh in FY26, in line with the addition of Capex of the company towards the expansion of Business operations.

Other Expenses

Other Expenses increased from 257.40 lakh in FY25 to 546.54 lakh in FY26, reflecting a growth of approximately 112.33%. The increase was primarily driven by higher consumable expenses in line with the significant growth in increased advertisement and business promotion expenditure to enhance brand visibility and customer reach, and higher rent, repairs, and maintenance expenses arising from the expansion of business operations. These expenditures were necessary to support the Companys growth initiatives and expanding business activities during the year.

EBITDA

EBITDA for FY26 stood at 2,955.48 lakh from 1,125.57 lakh in FY25. The EBITDA margin improved to 3.59%, compared to 2.44% in FY25, on account of improved product mix including addition of casting jewellery, efficient cost absorption and operational leverage, operations, increased improved customer reach through jewellery exhibitions, network expansion.

Net Profit

Profit after tax (PAT) for FY26 stood at 2,116.88 lakh from 751.60 lakh in FY25. The PAT margin improved to

2.57%, compared to 1.63% in FY25, reflectingadoption of advanced Italian & German machinery, Strategic Expansion into high-margin wholesale market and strong bottom-line performance.

Outlook

The companys future outlook focuses on expanding its network and physical presence across India including Tier-1 & Tier-2 cities. The Company will strategically cover retail consumers through D2C (Direct-to-Consumer) segment. The Company is moving towards strengthening its digital presence by its mobile application, social media ad campaigns to enhance its customer convenience and reach. The Company also intends to expand its global presence through participation in international jewellery exhibitions and by developing relationships with overseas customers.

Human Resources

The company nurtures a collaborative and growth-the year, oriented environment, underpinned by a legacy of trust and transparency. The employees are satisfied and have a good relationship with management. Moreover, the company keeps developing its organizational structure consistently over time and efforts are made to follow excellent Human Resource practices.

At March 31, 2026 we have a strength of around 76 employees other than directors. The objective of company is to create a workplace where every person can achieve his or her potential. The employees are encouraged to put in their best. Lots of hard work is put in to ensure that new and innovative ideas are given due consideration to achieve the short- and long-term objectives of your company

Internal Control Systems and Their Adequacy:

The Company has in place adequate internal control systems commensurate with the size of its operations. The adequate controls, procedures and policies, ensures orderly and efficient conduct of its business, including adherence to the Companys policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information. Based on the framework of internal financial controls and compliance systems established and maintained by the Company, the work performed by the internal auditors and the reviews performed by management and the Audit Committee, the Board is of the opinion that the Companys internal financial controls were adequate and effective during the Financial Year 2025-2026.

Details of Significant changes in key financial ratios, along with detailed explanations thereof:

Particulars	March 31, 2026	March 31, 2025	Change in %	Remarks
(a) Current Ratio	4.39	3.43	28%	The increase is mainly attributable to higher working capital deployment towards inventory and receivables in line with business expansion, while maintaining controlled short-term obligations.
(b) Debt-Equity Ratio	0.39	0.56	-30%	The decrease in the debt-equity ratio during the year is primarily attributable to increase in shareholders\u2019 equity. This reflects an improved capital structure and strengthened financial position of the Company.
(c) Inventory turnover ratio	19.12	33.67	-43%	The decrease in the inventory turnover ratio is mainly due to significant turnover and maintenance of higher inventory levels to support increased business operations and ensure smooth supply of goods
(d) Trade receivables turnover ratio	174.42	578.21	-70%	The Trade Receivables Turnover Ratio decreased due to higher average receivables arising from increased business volumes and expansion of customer relationships. The increase in receivables was in line with growth initiatives undertaken during the year.
(e) Net profit ratio	2.57%	1.63%	57%	PAT increased due to expansion of product portfolio, growth in customer base through continuous participation in national-level exhibitions, and positive outcomes of promoters\u2019 sales strategies, resulting in improved business performance and profitability.
(f) Interest Coverage Ratio	11.32	11.37	-0.44%
(g) Gross Profit Ratio	4.43%	2.83%	57%	Profit increased due to expansion of product portfolio, growth in customer base through continuous participation in national-level exhibitions, and positive outcomes of promoters\u2019 sales strategies, resulting in improved business performance and profitability.
(h) Return on Networth	30.47%	45%	-32%	The decrease in Return on Net worth during the year is mainly attributable to increase in shareholder\u2019s equity due to expansion in business operations

Details of Change in Return on Net Worth as compared to immediatelypreviousfinancialyear along with a detailed explanation thereof.

The return on net worth of company is decreased by 32% as compared to immediate previous financial year from 45% to 30.47% this year. The decrease in Return on Net worth during the year is mainly attributable to increase in shareholders equity due to expansion in business operations.

For, GROVER JEWELLS LIMITED

(Formerly, known as Grover Chain Private Limited)

Sd/-	Sd/-
Deepak Kumar Grover	Lavkesh Kumar Grover
Managing Director	Director
DIN- 09357414	DIN: 09357415

Date: 25.08.2026
Place: Delhi