Motisons Jewellers Ltd Management Discussions

INDUSTRY OVERVIEW

The Gems and Jewellery (G & J) industry continues to be one of the most important sectors of the Indian economy, owing to its significant contribution to exports, employment generation, manufacturing output and foreign exchange earnings. The industry comprises a diversified value chain encompassing the manufacture, wholesale, retail and export of gold jewellery (24 kt, 22 kt, 18 kt and 14 kt), diamond and coloured gemstone- studded jewellery, platinum jewellery, silver jewellery, laboratory-grown diamond jewellery, as well as the processing of rough diamonds into cut and polished diamonds. Traditional jewellery varieties such as Polki, Kundan, Jadau, Temple Jewellery, Meenakari and other regional handcrafted designs continue to enjoy sustained demand, particularly during weddings, festivals and other ceremonial occasions.

India continues to maintain its leadership position in the global gems and jewellery industry, supported by its vast pool of skilled artisans, established manufacturing ecosystem, competitive cost structure and strong export infrastructure. The country remains the worlds largest centre for cutting and polishing of diamonds by volume and is internationally recognised for its expertise in handcrafted gold jewellery. The increasing adoption of advanced technologies such as Computer-Aided Design (CAD), Computer-Aided Manufacturing (CAM), laser technology, robotic casting, 3D printing and automated diamond processing has further enhanced manufacturing efficiency, product quality and design capabilities.

The Indian gems and jewellery industry provides direct and indirect employment to over five million people across the value chain, including artisans, manufacturers, wholesalers, exporters, retailers, designers and logistics providers. The Government of India continues to accord high priority to the sector through export promotion initiatives, infrastructure development, skill enhancement programmes, regulatory reforms and trade agreements aimed at improving global competitiveness. India also permits 100% Foreign Direct Investment (FDI) under the automatic route in the gems and jewellery sector, subject to applicable regulations.

The domestic jewellery market remained resilient during FY 2025-26 despite elevated gold prices and global macroeconomic uncertainties. Indias jewellery market is estimated at approximately USD 85 billion , supported by favourable demographics, rising disposable incomes, increasing urbanisation, growing financial inclusion and sustained consumer preference for jewellery as both an adornment and a store of value. Gold jewellery continues to account for the largest share of the market, while diamond jewellery, platinum jewellery, silver jewellery and laboratory-grown diamond jewellery are witnessing increasing consumer acceptance, particularly among younger consumers seeking lightweight, contemporary and daily- wear designs.

The industry continues to undergo structural transformation with increasing formalisation and consolidation. Organised jewellery retailers have continued to expand their market presence through enhanced customer trust, transparent pricing, BIS hallmarking, wider product offerings, omnichannel retailing and superior customer experience. Although the unorganised sector continues to account for a significant portion of the market, particularly across Tier II, Tier III and rural markets, organised retailers are steadily gaining market share through aggressive store expansion and franchise-led growth models.

India is estimated to have over 500,000 jewellery retail outlets , making it one of the largest jewellery retail markets globally. While the majority of these outlets continue to operate in the unorganised sector, organised players are increasingly adopting asset-light franchise models to expand into new geographies while optimising capital deployment. The rapid penetration of digital platforms, virtual try-on technologies, online catalogues and omnichannel retail strategies has further transformed consumer buying behaviour and enhanced accessibility across customer segments.

Silver jewellery has emerged as one of the fastest-growing product categories during recent years, supported by affordability, evolving fashion trends and increasing demand from younger consumers. At the same time,

laboratory-grown diamond jewellery continues to gain traction owing to its attractive pricing, sustainability considerations and growing consumer awareness, creating new opportunities for organised retailers and manufacturers.

On the export front, Indias gems and jewellery sector continued to demonstrate resilience despite geopolitical tensions, changing global trade dynamics, inflationary pressures and volatility in precious metal prices. During FY 2025-26, exports were supported by steady demand from key international markets including the United States, the United Arab Emirates, Hong Kong, the United Kingdom and Canada, although certain traditional export segments experienced moderation due to global economic uncertainties. Industry participants have increasingly focused on product diversification, value-added jewellery, new market development and strengthening global supply chain relationships.

The implementation of favourable trade agreements, including the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and the India-UK Free Trade Agreement, is expected to improve market access, enhance export competitiveness and provide long-term growth opportunities for Indian jewellery exporters. These developments are expected to strengthen Indias position as a preferred global sourcing destination for gems and jewellery products.

Looking ahead, the long-term outlook for the Indian gems and jewellery industry remains positive. Increasing consumer preference for branded jewellery, rising disposable incomes, favourable demographics, wider adoption of hallmarking and quality certification, expansion of organised retail, technological advancements, growth in e-commerce and supportive government policies are expected to drive sustainable growth in domestic consumption as well as exports. The industrys continued emphasis on innovation, design excellence, digital transformation and international market expansion is expected to further strengthen its competitiveness and support long-term value creation.

DEVELOPMENTS

Cumulative Foreign Direct Investment (FDI) equity inflows into the Diamond and Gold Ornaments sector stood at ^9,962.85 crore (US$1,547.66 million) during the period from January 2000 to March 2026, reflecting sustained foreign investor interest in Indias gems and jewellery industry.

Some of the Key Developments in the Gems and Jewellery Industry during FY 2025-26

> Indias Gems & Jewellery Market Continues to Expand

Indias gems and jewellery market is estimated at approximately US$85 billion and is projected to reach US$130 billion by 2030, driven by rising disposable incomes, urbanisation, growing preference for branded jewellery, and increasing organised retail penetration.

> Exports Demonstrated Resilience Despite Global Headwinds

Indias gems and jewellery exports stood at US$27.72 billion (^2.45 lakh crore) during FY 2025-26. Although exports declined by 3.32% in US dollar terms due to geopolitical uncertainties, weaker global demand and tariff-related challenges, exports recorded 0.93% growth in rupee terms, reflecting the sectors resilience and diversification efforts.

> Shift Towards Organised and Branded Jewellery Retail

The domestic jewellery industry continued to witness increasing formalisation, supported by mandatory BIS hallmarking, greater consumer preference for trusted brands, transparent pricing, digital payments and organised retail expansion into Tier II and Tier III cities. Organised retailers continued to gain market share through company-owned stores and franchise-led expansion.

> Growth in Lab-Grown Diamond (LGD) Segment

Laboratory-grown diamonds continued to gain acceptance among consumers owing to their affordability, sustainability and evolving consumer preferences. India further strengthened its position as a major

manufacturing hub for laboratory-grown diamonds through investments in production capacity and technology.

> Technology and Digital Transformation

Jewellery manufacturers and retailers increasingly adopted digital technologies including Computer-Aided Design (CAD), 3D printing, artificial intelligence, automated manufacturing, virtual try-on solutions and omnichannel retailing to improve customer experience, operational efficiency and product innovation.

> Government Focus on Export Growth

The Government of India reiterated its objective of increasing gems and jewellery exports to US$75 billion by 2030 through policy support, trade facilitation and market diversification initiatives.

> India-UK Free Trade Agreement

The India-UK Free Trade Agreement is expected to provide duty-free access for Indian jewellery exports to the United Kingdom, significantly improving the competitiveness of Indian exporters and opening new opportunities in one of the key international markets.

> Market Diversification

The industry continued to reduce dependence on traditional export markets by expanding its presence across the Middle East, Europe, Southeast Asia and other emerging markets. The growing contribution from the GCC region and implementation of free trade agreements are expected to support long-term export growth.

> Silver Jewellery Emerged as a Fast-Growing Segment

Silver jewellery continued to witness robust demand owing to its affordability, contemporary designs and increasing popularity among younger consumers. This segment has emerged as one of the fastest-growing categories within the domestic jewellery market.

> Increasing Foreign Investment

The sector continued to attract foreign investment. As of March 2026, cumulative FDI equity inflows into the Diamond and Gold Ornaments sector stood at ^9,962.85 crore (US$1.55 billion), reflecting sustained investor confidence in the Indian gems and jewellery industry. (Source: DPIIT, Government of India)

These developments reflect the industrys continued transformation through formalisation, technological advancement, export diversification and growing consumer demand, positioning it for sustained long-term growth.

Government Initiatives

The Government of India continues to support the growth and global competitiveness of the gems and jewellery sector through a range of policy initiatives, regulatory reforms and trade facilitation measures. Some of the key initiatives undertaken are as follows:

> 100% Foreign Direct Investment (FDI) under the Automatic Route

The Government permits 100% Foreign Direct Investment (FDI) under the automatic route in the gems and jewellery sector, including gold and diamond processing, manufacturing and trading, thereby encouraging foreign investment and technology transfer.

> Reduction in Customs Duty under Union Budget 2025-26

To promote domestic demand and improve affordability, the Government reduced the customs tariff on jewellery (HSN Code 7113) from 25% to 20% and on platinum findings from 25% to 5% under the Union

Budget 2025-26. The reduced customs duty on gold and silver announced in the previous budget continues to support the industry.

> Mandatory BIS Hallmarking

The Government has progressively expanded the mandatory BIS Hallmarking framework for gold jewellery and artefacts to improve quality assurance, enhance consumer confidence and promote transparency across the jewellery value chain.

> Promotion of Exports through Free Trade Agreements (FTAs)

The implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and the India-UK Comprehensive Economic and Trade Agreement (CETA) is expected to enhance the competitiveness of Indian gems and jewellery exports by providing preferential market access and reducing import duties in key overseas markets. Additionally, tariff elimination under the India-Australia ECTA is expected to further boost exports from January 2026.

> Authorised Economic Operator (AEO) Status

The sector has been accorded Authorised Economic Operator (AEO) status, facilitating faster customs clearance, simplified export-import procedures and reduced bank guarantee requirements, thereby improving ease of doing business for exporters.

> Support for the Lab-Grown Diamond Industry

Recognising the growth potential of the lab-grown diamond segment, the Government has extended support for research and development by providing financial assistance to premier institutions for technology development and innovation, thereby strengthening Indias position in the global laboratory-grown diamond market.

> Infrastructure Development and Common Facility Centres

Under various export promotion schemes, the Government provides financial assistance for establishing common production centres, design centres, testing laboratories, plug-and-play facilities, and exhibition- cum-marketing centres to improve the competitiveness of the industry, particularly for MSMEs.

> Financial Support to MSMEs

To facilitate easier access to finance, eligible MSMEs in the gems and jewellery sector continue to benefit from collateral-free loans and credit guarantee support under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) , thereby strengthening the sectors growth and employment potential.

> Export Promotion Roadmap

The Government, in collaboration with the Gem & Jewellery Export Promotion Council (GJEPC), continues to implement initiatives aimed at increasing Indias gems and jewellery exports through market diversification, trade facilitation, infrastructure development and policy reforms, with a long-term objective of significantly enhancing Indias share in global jewellery trade.

MARKET DATA

> Indias overall gems and jewellery exports stood at US$27.72 billion (approximately ^2.45 lakh crore) during FY 2025-26 , registering a decline of 3.32% in US dollar terms compared to US$28.67 billion in FY 2024-25 . In rupee terms, however, exports recorded a marginal growth of 0.93% , increasing from ^2.43 lakh crore in FY 2024-25 to ^2.45 lakh crore in FY 2025-26. The decline in dollar terms was primarily attributable to global geopolitical uncertainties, evolving tariff regimes, subdued demand in certain key markets, inventory corrections and volatility in precious metal prices. Despite these challenges, the industry demonstrated resilience through export diversification, strengthening of value-added product segments and expansion into newer markets.

> Exports of cut and polished diamonds remained the largest component of Indias gems and jewellery exports, accounting for approximately 43.9% of total exports during FY 2025-26. However, exports of cut and polished diamonds declined by 8.52% to US$12.16 billion (approximately ^1.07 lakh crore) compared to the previous year The decline was driven by weaker demand in key markets, global inventory adjustments, tariff-related uncertainties and continued pressure on diamond prices.

> Gold jewellery exports , including plain and studded gold j ewellery, remained largely stable during FY 202526 at US$11.36 billion (approximately ^1.00 lakh crore) , registering a marginal decline of 0.03% compared to the previous year Within this segment, plain gold jewellery exports declined by 7.42% due to elevated gold prices impacting demand in price-sensitive markets. However, studded gold jewellery exports witnessed growth of 6.27% , supported by increasing preference for value-added, design-oriented jewellery products.

> Exports of silver jewellery witnessed significant growth during FY 2025-26, increasing by 52.21% to US$1.47 billion (approximately ^13,014 crore) , supported by rising global demand, affordability advantages and increasing acceptance of silver jewellery among younger consumers. Platinum jewellery exports also recorded strong growth of 39.32% , reaching US$254.60 million (approximately ^2,257 crore) , reflecting growing consumer interest in premium and niche jewellery segments.

> Exports of polished laboratory-grown diamonds declined by 10.55% to US$1.13 billion during FY 202526 due to continued price corrections in the global lab-grown diamond market. However, jewellery studded with lab-grown diamonds witnessed strong growth of 31.30% , indicating changing consumer preferences and increasing acceptance of alternative diamond jewellery categories.

> Exports of coloured gemstones remained broadly stable at US$437.31 million , registering a marginal decline of 0.71% during FY 2025-26. The segment continued to face subdued global demand but benefited from Indias established expertise in gemstone processing and jewellery manufacturing.

> From a geographical perspective, exporters continued to diversify their markets amid challenges in traditional export destinations. The United Arab Emirates (UAE) emerged as a key growth market, with exports increasing to US$8.70 billion , while markets such as Hong Kong, Australia and Canada also witnessed healthy growth. The United States remained an important market; however, exports to the region declined due to tariff-related uncertainties and changing trade dynamics.

> Overall, FY 2025-26 represented a period of transition for Indias gems and jewellery export sector, marked by global uncertainties but also by structural improvements through market diversification, growth in value- added jewellery categories, increased adoption of technology and strengthening of Indias position as a global jewellery manufacturing and processing hub.

OPPORTUNITIES AND THREATS OPPORTUNITIES

The Indian Gems and Jewellery industry presents significant growth opportunities driven by favourable demographics, increasing consumer aspirations, rising disposable incomes, rapid formalisation, technological advancements and expanding global demand. The industrys long-standing craftsmanship, manufacturing capabilities and established supply chain position India favourably to capture emerging opportunities in both domestic and international markets.

> Growth in Domestic Consumption and Rising Aspirational Demand

Indias large and young population, rising middle class, increasing urbanisation and improving household incomes are expected to support sustained growth in jewellery consumption. Jewellery continues to hold strong cultural significance in India, particularly for weddings, festivals and social occasions. At the same time, changing consumer preferences are driving demand for lightweight, contemporary and everyday-wear jewellery, especially among younger consumers.

> Expansion of Organised Jewellery Retail

The jewellery retail sector continues to witness increasing formalisation, with consumers increasingly preferring established brands offering quality assurance, transparent pricing, certified products and superior customer experience. Organised jewellers have significant opportunities to expand their footprint across Tier II, Tier III cities and rural markets through company-owned stores, franchise models and omnichannel retail strategies. The shift from unorganised to organised retail is expected to provide long-term growth opportunities for branded jewellery players.

> Growth of Digital and Omnichannel Jewellery Retail

Increasing internet penetration, digital payments, social media influence and evolving shopping behaviour are transforming the jewellery retail landscape. Technologies such as virtual try-on, digital catalogues, artificial intelligence-based recommendations and online customisation tools are creating opportunities for retailers to engage customers and provide a seamless online-to-offline shopping experience.

> Rising Demand for Diamond, Silver and Contemporary Jewellery

While gold jewellery continues to dominate the Indian market, changing consumer preferences are creating opportunities in diamond jewellery, silver jewellery, platinum jewellery, coloured gemstone jewellery and laboratory-grown diamond jewellery. Younger consumers are increasingly seeking affordable luxury, innovative designs and personalised jewellery, providing opportunities for companies to diversify product portfolios and develop new categories.

> Global Export Opportunities and Market Diversification

Indias established manufacturing ecosystem, skilled artisans, competitive cost structure and expertise in diamond processing provide significant export opportunities. Free trade agreements, including Indias trade agreements with the UAE, Australia and the United Kingdom, are expected to improve market access and enhance the competitiveness of Indian jewellery exporters. Expanding presence in international markets, particularly the Middle East, North America, Europe and Southeast Asia, provides further growth opportunities.

> Increasing Demand for Sustainable and Ethical Jewellery

Growing consumer awareness regarding sustainability, responsible sourcing and ethical practices is creating opportunities for jewellers to develop environmentally responsible products and strengthen supply chain transparency. The increasing acceptance of laboratory-grown diamonds and responsibly sourced gemstones reflects the evolving preferences of global consumers.

> Technology-led Manufacturing and Design Innovation

The adoption of advanced manufacturing technologies such as Computer-Aided Design (CAD), Computer- Aided Manufacturing (CAM), 3D printing, laser technology and automation is enabling manufacturers to improve productivity, reduce wastage, enhance design capabilities and offer customised jewellery solutions. Technology adoption provides significant opportunities for manufacturers to improve operational efficiency and cater to changing consumer preferences.

> Franchise-led Expansion Opportunities

The franchise model is emerging as an effective strategy for jewellery brands to expand their retail presence with relatively lower capital requirements. Established brands can leverage franchise partnerships to penetrate new geographies, strengthen customer reach and accelerate store expansion while maintaining operational efficiency.

> Growth in Wedding and Occasion-based Jewellery Market

Indias large wedding market continues to remain a key demand driver for jewellery consumption. Rising expenditure on weddings, increasing preference for designer collections and demand for customised bridal jewellery create significant opportunities for jewellers to develop specialised collections and strengthen customer relationships.

> Government Support and Industry Formalisation

Government initiatives such as mandatory BIS hallmarking, export promotion measures, infrastructure development, skill enhancement programmes and policies supporting ease of doing business are expected to improve transparency, consumer confidence and global competitiveness. These initiatives provide a favourable environment for the organised growth of the gems and jewellery sector.

Overall, the Indian Gems and Jewellery industry is well positioned for long-term growth, supported by increasing formalisation, evolving consumer preferences, technological transformation, expanding organised retail and Indias strong position as a global jewellery manufacturing and processing hub.

THREATS

Despite its strong growth potential, the Indian Gems and Jewellery industry continues to face several challenges arising from global economic conditions, commodity price volatility, changing consumer preferences, regulatory requirements and competitive pressures. The key threats and challenges impacting the industry are as follows:

> Volatility in Precious Metal Prices

The industry remains highly sensitive to fluctuations in gold, silver, platinum and diamond prices. Sharp movements in precious metal prices can impact consumer demand, working capital requirements, inventory valuations and profit margins of manufacturers and retailers. Sustained increases in gold prices may also affect jewellery affordability, particularly in price-sensitive markets.

> Global Economic Uncertainty and Geopolitical Risks

The industry is exposed to global economic conditions as India is a major exporter of gems and jewellery. Geopolitical tensions, inflationary pressures, interest rate movements, currency fluctuations and slowdown in key export markets such as the United States, China and Europe can adversely impact international demand and export performance.

> Declining Demand in Key Export Markets

A significant portion of Indias gems and jewellery exports is dependent on international markets. Any slowdown in consumer spending, inventory rationalisation by overseas retailers or changes in trade policies in major markets can affect export growth. The continued moderation in demand from certain traditional markets remains a challenge for exporters.

> Diamond Industry Challenges

The natural diamond industry continues to face structural challenges, including changing consumer preferences, competition from laboratory-grown diamonds, price volatility, excess inventory levels and subdued global demand. Declining rough and polished diamond prices can impact the profitability of manufacturers, traders and exporters.

> Increasing Competition from Laboratory-Grown Diamonds

The rapid growth of laboratory-grown diamonds presents both an opportunity and a challenge for the industry. While the segment is gaining consumer acceptance due to affordability and sustainability considerations, increased supply and price competition may impact demand and pricing dynamics in the natural diamond segment.

> High Dependence on Imported Raw Materials

India imports a substantial portion of its raw materials, including rough diamonds, gold and precious gemstones. Dependence on imports exposes the industry to risks arising from global supply chain disruptions, changes in import duties, currency fluctuations and geopolitical developments affecting major sourcing countries.

> Regulatory and Compliance Challenges

The gems and jewellery sector is subject to extensive regulations relating to hallmarking, import-export procedures, anti-money laundering (AML) requirements, taxation and responsible sourcing practices. Increasing compliance requirements may raise operational costs, particularly for smaller players in the unorganised segment.

> Fragmented Market Structure and Unorganised Competition

Although the organised jewellery sector continues to expand, a significant portion of the domestic market remains fragmented and dominated by smaller unorganised retailers. Intense competition from local jewellers, price-based competition and challenges in customer acquisition may impact margins and growth opportunities for organised players.

> Changing Consumer Preferences

Consumer preferences are evolving rapidly, with increasing demand for lightweight jewellery, customised designs, fashion jewellery and affordable luxury products. Jewellers need to continuously invest in design innovation, technology and customer engagement strategies to remain competitive.

> Skilled Labour Availability and Rising Manufacturing Costs

The industry continues to depend heavily on skilled artisans and craftsmen. Migration of skilled labour, rising wage costs, limited availability of trained artisans and increasing adoption of technology may pose challenges for maintaining traditional craftsmanship while achieving manufacturing efficiency.

> Cybersecurity and Digital Retail Risks

With increasing adoption of e-commerce and omnichannel retail models, jewellery companies face growing risks related to cybersecurity, data privacy, online fraud and digital payment security. Strengthening digital infrastructure and customer data protection remains essential for sustainable growth.

> Sustainability and Responsible Sourcing Requirements

Global consumers and international markets are increasingly focusing on ethical sourcing, traceability and environmental responsibility. Jewellery companies may face challenges in meeting evolving sustainability standards and ensuring transparency across their supply chains.

Overall, while the Indian Gems and Jewellery industry benefits from strong domestic demand, skilled craftsmanship and global manufacturing capabilities, companies need to effectively manage risks related to commodity price volatility, global uncertainties, regulatory changes, technological disruption and evolving consumer behaviour to sustain long-term growth.

SEGMENT WISE PERFORMANCE

The Company is one of the leading organised jewellery retailers in India, engaged in the trading, manufacturing, and sale of a wide range of jewellery products, including gold jewellery, diamond jewellery, precious stone jewellery, gold and diamond-studded jewellery, and silver articles. The Company offers an extensive collection of gold, diamond, and silver jewellery, with a special focus on certified diamond jewellery, catering to diverse customer requirements, including wedding jewellery, party wear, and everyday wear segments.

During the year, the Company operated through two geographical segments, namely domestic sales and export sales. The Company generated revenue of ^48,954.45 lakhs during the year.

OUTLOOK

India continues to remain one of the worlds largest consumers of gold and silver and is a key participant in the global precious metals and jewellery ecosystem. The country is also among the worlds leading importers of silver and continues to maintain its position as the worlds largest centre for diamond cutting and polishing by volume. Indias well-established manufacturing ecosystem, skilled artisan base and strong craftsmanship capabilities have enabled the country to emerge as a global hub for gems and jewellery manufacturing and exports.

Gold continues to hold a significant position in Indian culture and remains deeply associated with wealth, prosperity, tradition and social occasions. Jewellery plays an integral role in weddings, festivals and celebrations, while also being considered a store of value and an investment avenue by households. Despite fluctuations in gold prices, consumer demand for gold jewellery remains resilient due to its cultural importance and long-term value proposition.

The Indian jewellery market is witnessing a gradual transformation driven by changing consumer preferences, rising disposable incomes, increasing urbanisation and growing acceptance of branded jewellery. While traditional gold jewellery continues to dominate the market, demand for lightweight, contemporary and design-led jewellery has increased significantly, particularly among younger consumers. Diamond jewellery has gained wider acceptance across consumer segments due to its suitability for daily wear, office wear and social occasions. Similarly, silver jewellery has witnessed renewed demand owing to its affordability, innovative designs, ethnic appeal and increasing popularity among younger consumers.

Coloured gemstones and designer jewellery are also gaining traction, particularly among premium and affluent consumers, as customers increasingly seek unique designs, personalisation and differentiated jewellery experiences. The growing preference for affordable luxury, customised products and fashion- oriented jewellery is encouraging manufacturers and retailers to diversify their product portfolios.

The Indian jewellery market is expected to maintain a healthy growth trajectory during the coming years, supported by favourable demographics, expansion of the middle class, increasing participation of women in the workforce, rising disposable incomes, rapid formalisation of the retail sector and increasing consumer preference for trusted jewellery brands. The global jewellery market continues to witness steady growth, while India remains one of the largest and fastest-growing jewellery markets globally.

Key factors supporting the growth of the Indian jewellery industry include:

• Government Initiatives: Measures such as mandatory BIS hallmarking of gold jewellery, promotion of transparency and consumer protection, export promotion initiatives, infrastructure development and reforms aimed at improving ease of doing business continue to support the organised growth of the sector.

• Growing Middle-Class Population: Rising income levels and increasing aspirations among Indias expanding middle class are driving jewellery consumption beyond traditional occasions towards lifestyle and fashion-oriented purchases.

• Increasing Women Workforce Participation: Greater financial independence among women and changing lifestyle preferences are contributing to increased demand for jewellery as both a fashion accessory and a personal asset.

• Growth of Branded Jewellery: Consumers are increasingly shifting towards organised and branded jewellers due to greater trust, certified products, transparent pricing, wider product choices and enhanced buying experiences.

• Demand for Traditional and Contemporary Designs: Strong cultural affinity towards traditional gold jewellery, combined with growing demand for modern designs, lightweight jewellery and gemstone-studded collections, is creating new opportunities across consumer segments.

Overall, the Indian jewellery industry is expected to witness sustained growth in FY 2025-26 and beyond, supported by strong domestic consumption, evolving consumer preferences, increasing organised retail penetration, technological adoption and Indias continued leadership in global jewellery manufacturing.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Company has put in place adequate internal control systems commensurate with its size of operations. Companys internal control systems include policies and procedures, IT systems, delegation of authority, segregation of duties, internal audit and review framework, etc. Company has laid down internal financial controls and systems with regard to adherence to Companys policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable financial information.

RISKS AND CONCERNS

Following can be some of the risks and concerns the Company needs to be wary of:

• The largely unorganized structure of the market can affect the systematic functioning of theCompany.

• Political instability, which has a tremendous impact on the capital markets.

• Likely opening up of the economy, which can be a double-edge sword.

• The Diamond market in India is heavily influenced by the US Markets.

• The major income component of the Company being exports, changes in economies or government policies of the countries to which the Company is exporting may also affect the operations of the Company.

• Increasing competition among the Indian Exporters in this industry

Quality Control: Maintaining consistent quality standards is essential in the jewelry industry.Ensuring the authenticity of materials and the quality of craftsmanship is crucial for maintaining consumer trust.

Compliance risk: Those risks associated with the need to comply with Government Laws and regulations. They also apply to the need to act in a manner which stakeholders and customersexpect. The Company being into Trade and manufacturing is clouded with much compliance for its operations and has been meticulous in its compliance regime.

Financial risk: Company is in the Gems and Jewellery business and fluctuation in price of commodity in international markets as well as fluctuation of dollar price may impact the entire industry and these are associated with financial structure of the company, its transactions and the financial system in place. Being in jewellery line, the risks of theft and loss is always looming large.

Bullion Risk: The volatility in the gold prices exposes the Company to bullion risk as gold forms approximately 30% to 50% of the cost of the finished product.

OPERATIONAL PERFORMANCE & FINANCIAL PERFORMANCE

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with the relevant rules issued thereunder, as amended from time to time, and other applicable provisions of the Act.

Motisons Jewellers Limited is one of the well-established and reputed jewellery brands, with a strong presence in Jaipur and across India. Under the Motisons brand, the Company operates four showrooms in Jaipur and is engaged in the business of designing, manufacturing, trading, and retailing a diverse range of jewellery products.

The Company offers an extensive portfolio comprising gold, diamond, and kundan jewellery, along with jewellery crafted from silver, platinum, precious and semi-precious stones, and other metals. In addition, the Company deals in gold and silver coins, utensils, and various artefacts. With a wide product range consisting of over 300,000 jewellery designs and product variants across different categories and price segments, the Company caters to a broad spectrum of customer preferences.

The Companys focus on design excellence, innovation, and understanding of evolving consumer preferences enables it to create products aligned with changing market trends. The Companys key strengths include intricate craftsmanship, superior design quality, and a diverse product offering that addresses the requirements of customers across various occasions and segments.

During the year under review, the revenue from operations of the Company on standalone basis increased by 5.94% from Rs. 48,954.45 lakhs to Rs. 46,211.15 lakhs as compared to previous year, despite various adversities.

The financial performance of the Company for the Financial Year 2025-26 and 2024-25 are summarised below:

Particulars	31st March, 2026	31st March, 2025
Revenue from Operation/Turnover	48,954.45	46,211.15
Other Income	629.24	73.91
Less : Expenses during the year excluding depreciation	40,859.44	40,145.26
Profit before tax and depreciation	8,724.25	6,139.80
Less : Depreciation	185.27	199.52
Profit/(Loss) before tax after depreciation	8,538.98	5,940.28
Less: Extra Ordinary Item	30.25	-
Less: Prior Period Items	(67.66)	65.92
Add/Less: Provision of Income tax including deferred tax	2,205.62	(1,557.25)
Profit/(Loss) after tax and depreciation	6,370.77	4,317.11

KEY FINANCIAL RATIOS

Key financial ratios of the Company, changes therein as compared to previous financial year along with explanations for those ratios where change is 25% or more are as under:

Key Ratios	Units		2025-26		2024-25		% Change		Explanation
Debtors Turnover	Times		344.01		309.92		11.00%		Trade Receivables turnover ratio has been Increased due to increase in average trade receivables.
InventoryT urnover	Times		0.75		0.84		-10.68%		Inventory Turnover ratio decreased due to increase in average inventory.
Key Ratios		Units		2025-26		2024-25		% Change		Explanation
Interest CoverageRatio		Times		134.92		109.42		23.30%		Debt Service Coverage Ratio increased due to increase in earning available for debt service in FY 2025-26 as compare to previous year.
Current Ratio		Times		8.67		5.77		50.31%		Current Ratio increased from 5.77 to 8.67 due to i ncrease in current assets an d decrease in current lia bilities in F.Y. 202526 as compared to previous y ear.
Debt Equity Ratio		Times		0.08		0.17		-56.15%		Debt- Equity Ratio decreased from 0.17 to 0.08 due to decrease in total debt and increase in shareholders equity in F.Y. 2025-26 as compared to previous year.
Operating ProfitMargin		%		17.77%		14.80%		20.06%		Operating profit margin ratio increased due to increase in operating profit.
Net Profit Margin		%		13.01%		9.34%		39.30%		Net Profit Ratio increased from 9.34% to 13.01% due to increase in net profit during F.Y. 2025-26 while revenue from operations increased at a lower rate as compared to the increase i n profitability.
Return on Net Worth		%		18.01%		16.18%		11.33%		In the Current FinancialYear Return on NetWorth Increased due to increase in Profit.

INDUSTRIAL RELATIONS AND HUMAN RESOURCES:

The Company considers that its relationship with its employees is vital and ensures that employees feel valued and is endeavoring to create an environment and culture within which every employee can put his best efforts and maximize his contribution.

The Company ensures that all its employees remain competent through education, skills, training and experience as necessary. The Company has had cordial relations between the management and employees and an atmosphere of harmonious working to achieve the business objectives of the Company throughout the year. The Company is poised to motivateeach of its employees to perform to the fullest extent possible and to appropriately reward their excellence. As on March 31, 2026 the total employee strength of the Company was 179.The industrial relations within the Company have remained harmonious throughout the year.

References - Various industry reports and websites including GJEPC, IBEF etc.