Laxmi Goldorna House Ltd Management Discussions

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Laxmi Goldorna House Limited

Ahmedabad

GEMS AND JEWELLERY INDUSTRY

Growing demand:

In April 2026, inflows into Gold ETFs increased by 34% month-on-month to Rs. 3,040 crore (US$ 343.98 million) from Rs. 2,265 crore (US$ 256.29 million) in March, reflecting continued investor preference for gold-backed investment products. During the same period, Silver ETFs recorded net outflows of Rs. 126 crore (US$ 14.26 million), marking the third consecutive month of outflows. According to the World Gold Council, the AUM of Indian gold ETFs increased from US$ 7.2 billion in April 2025 to US$ 18.4 billion in May 2026, while physical gold holdings rose from 65.3 tonnes to 116.7 tonnes, indicating strong growth in investor demand for gold-backed ETFs.

Increasing Investments:

Zeropearl VC led a US$ 0.65 million (Rs. 5.5 crore) pre-seed round in ONYA (Dec 2025 period), funding offline retail expansion and growth in Indias fast-growing lab-grown diamond jewellery segment. BlueStone invested US$ 2.83 million (Rs. 25 crore) in lab-grown diamond brand Ethera in Feb 2026, supporting store expansion, omnichannel growth, and scaling Indias emerging lab-grown jewellery segment. Cumulative FDI inflows in diamond and gold ornaments in India stood at Rs. 9,962.78 crore (US$ 1.55 billion) between April 2000-March 2026.

Policy Support /Government Initiatives

India allows 100% FDI under the automatic route in the gems and jewellery sector, including gold and diamond processing and trading, subject to applicable regulatory conditions. In May 2026, India and the UAE reaffirmed their commitment to strengthen their economic partnership and expand bilateral trade to US$ 200 billion by 2032 under the India-UAE CEPA, with gems and jewellery remaining one of the key sectors driving bilateral trade. Australia will eliminate tariffs on 100% of Indian exports from January 1, 2026, significantly boosting sectors like gems and jewellery under ECTA.

Attractive Opportunities

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.

(Source - https://www.ibef.org/industry/gems-jewellery-india.aspx)

INDIAN REAL ESTATE INDUSTRY

The real estate sector is one of the most globally recognized sectors. It comprises of four sub-sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodation. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. It was also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term. Bengaluru was expected to be the most favored property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

Demand

In 2026 Office leasing activity is projected to remain robust, with net absorption levels expected to record near-about 55 MSF

Housing demand is projected to reach 93 million units by 2036, driven by a strategic shift towards higher value realisation, primarily led by growing buyer preference for high-end, luxury and ultra-luxury housing. In Q1 CY2026, foreign firms leased a record 9.1 million sq. ft. of office space across Indias top nine cities, driven by REIT expansion, rising GCC activity and increasing adoption of flexible workspaces. In December 2025, the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points to 5.25%, improving home loan affordability and supporting residential demand

Opportunities

ICRA expects new project launches across the top seven cities to rise by 6-9% in FY2026, reaching around 620-640 million square feet; Residential property prices increased across all eight major Indian cities during Q1 2026, recording annual growth of 3% 24%, led by Bengaluru (24%), followed by the National Capital Region (20%) and Hyderabad (11%), reflecting sustained housing demand and improving market fundamentals. Private market investor, Blackstone, which has significantly invested in the Indian real estate sector worth Rs. 3.8 lakh crore (US$ 50 billion), is seeking to invest an additional Rs. 1.7 lakh crore (US$ 22 billion) by 2030.

Policy Support

In December 2025, the RBI reduced the repo rate by 25 bps to 5.25%, improving housing affordability and supporting sustained growth in the residential real estate sector. The Union Budget 2026-27 emphasises infrastructure-led growth, with public capital expenditure increased in FY27 (2026 27) to Rs. 12.20 lakh crore (US$ 138.03 billion) from Rs. 11.20 lakh crore (US$ 126.73 billion) in FY26 (2025 26).

Investments

Indias real estate sector reached a milestone in 2025, with institutional investments soaring to US$ 10.50 billion (Rs. 91,96,900 crore) across 78 transactions, led by a 52% surge in domestic capital contribution and sustained demand in office and residential segments, reflecting continued investor confidence despite global uncertainties.

Private equity (PE) and venture capital (VC) investments totalled Rs. 455.73 lakh crore (US$ 49.30 billion) in the first 11 months of 2025, accounting for about 88.00% of the Rs. 519.93 lakh crore (US$ 56.20 billion) deployed in 2024, highlighting sustained investor momentum and faster capital deployment cycles, according to Anarock capital.

Road Ahead

The Securities and Exchange Board of India (SEBI) has given its approval for the Real Estate Investment Trust (REIT) platform, which will allow all kind of investors to invest in the Indian real estate market. It would create an opportunity worth Rs. 1.25 trillion (US$ 19.65 billion) in the Indian market in the coming years. Responding to an increasingly well-informed consumer base and bearing in mind the aspect of globalization, Indian real estate developers have shifted gears and accepted fresh challenges. The most marked change has been the shift from family-owned businesses to that of professionally managed ones. Real estate developers, in meeting the growing need for managing multiple projects across cities, are also investing in centralized processes to source material and organize manpower and hiring qualified professionals in areas like project management, architecture and engineering.

The current shortage of housing in urban areas was estimated to be ~10 million units. An additional 25 million units of affordable housing are required by 2030 to meet the growth in the countrys urban population.

(Source - https://www.ibef.org/industry/real-estate-india.aspx)

SWOT ANALYSIS OF OUR COMPANY

Strengths

Experienced and resourceful promoters having diversified business interest Availability of raw material in the local market or purchasing of old jewels Availability of Low cost and skilled technical and professional Manpower Comfortable capital structure with below unity gearing level High-quality jewellery at competitive prices

Weaknesses

Moderate scale of operations and thin profit margins Weak debt coverage indicators

Highly working capital-intensive nature of operation leading to 90% utilization of working capital bank borrowings. Project funding and execution risk Susceptibility of margins to volatile raw material prices Presence in highly fragmented, nature driven and competitive gems & jewellery industry

Opportunities

Encasing the reputation for development in another area. High and increasing purchasing power of the people Expansion of business in real estate activities

Threats

The injection of fresh, creative designs in a somewhat stagnant industry Fluctuation in Gold prices

High entry cost in the newer markets.

Competition from family-owned business in this sector Competition with big real estates groups.

RISKS AND CONCERNS

The Indian economy is on a high growth trajectory, with several favourable macroeconomic indicators supporting the growth momentum. The jewellery industry is expected to benefit from the recent developments in the economy. Higher income in the hands of farmers and rural population, driven by normal monsoon forecast, will translate into robust spending and consumption, thus fuelling the demand for jewellery. Frequent regulatory changes and fluctuations in gold and commodity prices may pose a challenge to the Companys margins. Presence of unorganised players and expansion of regional players results in intense competition in the jewellery industry.

FINANCIAL PERFORMANCE

The Companys financial performance for the year ended on March 31, 2026 is as below: (Rs.)

Particulars	2025-26	2024-25
Total Revenue	1,04,41,48,471	88,00,85,891
Total Expenditure	98,96,31,041	74,15,61,185
Profit /(Loss) Before Tax	5,81,96,727	13,92,49,012
Less: Current Tax	1,44,48,435	3,31,02,727
Deferred Tax	-1,32,822	3,88,408
Profit /(Loss) after Taxation	4,38,81,114	10,57,57,877
Balance carried to Balance Sheet	4,38,81,114	10,57,57,877
Earnings Per Share(EPS)
Basic	0.88	5.07
Diluted	0.88	5.07

SEGMENT WISE PERFORMANCE

(Rs. In Lacs)

Particulars	Gold and Jewellery	Real Estate
Total Revenue	8340.36	1709.33
Profit /(Loss) Before Tax	502.47	42.70
Assets	6295.11	13402.17
liabilities	3646.68	8984.16
Capital Employed	2648.43	4418.01

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The company has implemented proper system for safeguarding the operations/business of the company, through which the assets are verified and frauds, errors are reduced and accounts, information connected to it are maintained such, so as to timely completion of the statements. The Company has adequate systems of Internal Controls commensurate with its size and operations to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information. The company gets internal audit and verification done at regular intervals. The requirement of having internal auditor compulsory by statue in case of listed and other classes of companies as prescribed shall further strengthen the internal control measures of company.

DETAILS OF SIGNIFICANT IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR. (ANY CHANGE IN KEY FINANCIAL RATIOS WHICH ARE MORE THAN 2 5% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ARE MENTIONED BELOW:

Ratio	As at 31 st March 2026	As at 31 st March 2025	Variation	Remarks / Explanation
Current Ratio	4.63	5.74	-19.34%	Ratio declined mainly due to a proportionately higher increase in current liabilities (short-term borrowings and trade payables) compared with current assets.
Debt-Equity Ratio	1.53	1.25	22.40%	Increased due to additional borrowings during the year while equity increased at a lower rate.
Debt Service Coverage Ratio	0.18	0.28	-35.71%	Declined because EBITDA reduced significantly while finance costs and debt servicing obligations increased. (Principal repayment amount should be verified from loan schedules.)
Return on Equity Ratio	9.1%	16.13%	-44.17%	Declined due to lower profitability during the year despite higher shareholders funds.
Trade Receivables turnover ratio	3.91	3.06	27.78%	Improved because average trade receivables reduced relative to revenue, indicating faster collection.
Net Profit Ratio	4.20%	12.02%	-65.06%	Declined due to a substantial reduction in net profit margin during the year.
Return on investment	6.47%	16.26%	-60.21%	The Return on Equity Ratio decreased mainly due to a significant decline in Profit After Tax during FY 2025-26, while the Companys average shareholders funds increased on account of fresh issue of equity shares.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS FRONT

Your Company has undertaken employees development initiatives, which have very positive impact on the morale and team spirit of the employees. The company has continued to give special attention to human resources and overall development.

DISCLOSURE OF ACCOUNTING TREATMENT

In preparation of the Financial Statements, the Company has followed the applicable Indian Accounting Standards. The Significant Accounting policies applied in the preparation and presentation of financial statements have been set in Notes forming part of the Financial Statements for the Financial Year ended on March 31, 2026.

CAUTIONARY STATEMENT

Certain statements in the reports of the Board of Directors and Managements discussions and analysis may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied since Companys operations are influence by many external and internal factors beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any of these statements on the basis of any subsequent developments, information or events.

By Order of the Board
For Laxmi Goldorna House Limited

Sd/-	Sd/-
Mr. Jayeshkumar Chinulal Shah	Rupalben Jayeshkumar Shah
Managing Director	Whole Time Director
DIN: 02479665	DIN: 02479662

Registered Office : Laxmi House, Opp. Bandharano Khancho, M. G. Haveli Road, Manekchowk, Ahmedabad 380001, Gujarat, India

Date: 07 th September, 2026
Place: Ahmedabad, Gujarat