Shringar House of Mangalsutra Ltd Management Discussions

A. Industry Landscape and Progression

1. Overview

1.1 Global Economy

The global economy demonstrated unexpected resilience throughout 2025, achieving a growth rate of 3.4%, which significant ly outperformed earlier conservative estimates. This performance was underpinned by a nal quarter surge where global annualized growth reached 3.9%, driven by robust technology-related investment and the rapid integration of arti cial intelligence (AI) across key sectors. While the year was initially clouded by heightening trade barriers and policy uncertainty, these headwinds were effectively mitigated by private sector adaptability and strategic front-loading of goods in anticipation of tariff shifts.

However, the close of the 2025-26 financial year has been marked by a transition into a more fragile landscape, termed the Shadow of War. The outbreak of conflict in the Middle East in February 2026 has introduced a severe counterforce, disrupting maritime trade and commodity markets. Consequently, while 2025 remained strong, the global economy enters the new scal period facing a decelerated growth trajectory of 3.1%, as the inflationary floor remains elevated due to persistent geopolitical tensions and structural shifts toward strategic autonomy.

1.1.1 Impact Of War

The global economic landscape in 2026 is characterized by a polycrisis where geoeconomic confrontation has emerged as the most severe short-term threat to stability. This environment is defined by the strategic weaponization of economic tools including trade restrictions, investment controls, and technology bans as major powers prioritize national interests over collective global cooperation. With the traditional multilateral order under significant stress, the resulting fragmentation is dismantling long-standing supply chains and fostering a multipolarity without multilateralism that increases the risk of systemic economic shocks.

A critical focal point of this instability is the functional impairment of major maritime chokepoints, particularly the Strait of Hormuz. As a primary artery for 15% of global oil and lique ed natural gas (LNG), disruptions there have propelled Brent crude prices toward $120 per barrel and beyond. This energy shock is radiating through global industrial systems, significant ly increasing the cost of production for critical inputs such as fertilizers, semiconductors, and steel. The ripple effects are imposing a global surcharge on trade through surging insurance premiums and freight costs, disproportionately burdening import-dependent economies.

In response to these persistent risks, the global trade architecture is undergoing a structural shift from Just-inTime efficiency toward Strategic Autonomy and friend-shoring. Nations and corporations are increasingly moving production facilities and critical resource sourcing to politically aligned or domestic markets to insulate themselves from geopolitical volatility. While this shift aims to build long-term resilience, it simultaneously fuels inflationary pressures and complicates the global green transition, as higher costs for industrial inputs and energy supply chain disruptions narrow the fiscal margin for error across both developed and emerging markets.

Beyond these immediate maritime disruptions, the global landscape is further strained by the persistent scarring effects of the protracted conflict in Ukraine and the escalation of the U.S. tariff war. The major con icts like the one in Ukraine result in a significant collapse of regional productivity and a permanent 4% decline in capital stock, creating a global inflationary floor for critical raw materials and food staples. Simultaneously, the intensification of trade barriers specifically the strategic use of reciprocal tariffs has introduced a structural drag on growth. These tariffs have not only accelerated the dismantling of multilateral trade rules but have also shifted the fiscal burden onto domestic consumers and importers, further anchoring high core inflation. Consequently, the transition toward Strategic Autonomy is being fueled by necessity, as nations re-allocate fiscal buffers away from green transitions and social investments toward defense and domestic industrial security, cementing a regime of high costs and restricted global cooperation.

1.1.2 Jewellery Market

As of late March 2026, the jewellery sector particularly in India is facing a critical crossroads due to the escalating conflict in West Asia. The impact is being felt across three main pillars: exports, supply chain logistics, & consumer demand.

The conflict has put an estimated $1.5 billion to $2 billion of Indian gem and jewellery exports at risk over the short term. Key shopping destinations and trade hubs like Dubai are facing unprecedented disruptions. To counter this, the industry is pivoting toward a 10 15% increase in domestic sales for 2026. Exporters are also being forced to bypass traditional Middle Eastern hubs and target markets like Singapore, Australia, and the U.S. directly.

While air cargo has not been entirely halted, the closure of airspaces in the Middle East has created significant friction in the physical delivery of bullion and diamonds.

If we speak about the gold jewellery market, the metal has once again asserted its role as the ultimate financial anchor. While international bullion prices initially spiked due to global instability, a formidable U.S. dollar and aggressive Federal Reserve policies eventually triggered a market correction. However, for Indian jewellers, this global dip has been largely offset by a weakening rupee, which has kept domestic prices hovering at near-record levels. This persistent price floor is creating a fractured, two-tiered market; on one side, there is a surge in gold ETF in flows and investment-grade buying as people prioritize capital preservation. On the other, traditional retail demand is cooling rapidly, particularly for high-margin, daily-wear jewellery, as the average consumer nds themselves priced out of the luxury segment. Ultimately, gold is increasingly being treated as a hard asset to be held for security rather than a decorative commodity for frequent purchase.

1.2 Indian Economy Outlook

1.2.1 GDP Growth and Outlook

The Indian economy demonstrated exceptional resilience during the financial year 2025-26, actualizing a Real GDP growth rate of 7.6%. This performance reinforces Indias position as a global growth leader and follows the landmark transition to the New Series of National Accounts (Base Year 2022-23). This rebasing, introduced by the NSO in early 2026, has significant ly enhanced structural transparency by integrating comprehensive GST data and MCA digital lings, providing a more precise measurement of the economys formalization and private sector contribution.

A defining feature of this reporting period was the successful implementation of the Double Defilation methodology for the manufacturing sector, which helped the industry record a robust surge. On the services front, the economy achieved a double-digit momentum of 10.1%, bolstered by a rebound in domestic demand and stable consumer sentiment. For our Company, this improved statistical clarity and the underlying strength of the macroeconomic environment provide a highly stable benchmark for strategic planning as we navigate the evolving global landscape in the coming financial year.

1.2.2 Economic Overview & Demographic Drivers (FY 2025-26)

Macroeconomic Trajectory

Indias macroeconomic trajectory in financial year 2025-26 transitioned into a high-stability phase, characterized by a decisive pivot toward investment-led expansion and deepened digital formalization. The year saw a structural realignment of the national accounts, which replaced legacy projections with high- delity data, effectively insulating the domestic market from global energy and trade volatility. This path was secured by a disciplined scal consolidation and a record-low in ation environment, fostering a Goldilocks climate for long-term corporate credit and capital expenditure. Ultimately, the financial year solidi ed Indias resilience, moving beyond post-pandemic recovery to establish a transparent, predictable, and robust foundation for the Viksit Bharat roadmap.

Demographic Dividend and Consumption

Indias economic growth is intrinsically linked to its unique demographic pro le, which is now the most populous in the world, having surpassed 1.42 billion in 2022. For the year 2025-26, the economy is benefit ing from a declining age-dependency ratio, which has reduced from 77.8% in 1980 to 46.1% in 2025, indicating an improving share of the income-generating working-age population.

Urbanization and Disposable Income

Urbanization continues to act as a primary catalyst for economic activity, with Indias urban population reaching a milestone 37.6% and driving a significant expansion across Tier-2 and Tier-3 consumer markets. This demographic shift is validated by a steady rise in Per Capita Gross National Disposable Income (GNDI), which has translated directly into enhanced household purchasing power as reported by MoSPI. According to the NSOs latest actuals, Real Private Final Consumption Expenditure (PFCE) maintained a robust growth rate of 7.0%, solidifying its role as the stable bedrock of the domestic economy. This sustained consumption trajectory, supported by a moderated in ation environment, continues to provide a fertile and predictable landscape for the Companys market expansion strategies.

1.3 Overview of the Jewellery Industry in India

1.3.1 Indian Jewellery Industry Market Size & Trends

In India, jewellery holds substantial cultural and traditional importance, crucial in various customs, festivals, and life events, particularly weddings. Gold jewellery, deeply embedded in Indian culture, is often seen as a mark of prosperity and success. It is a family investment for religious ceremonies, gifting, and future security. This deep-rooted cultural connection ensures a persistent demand for jewellery, even amid economic fluctuation s.

With Indias economy experiencing significant growth over recent decades, disposable incomes have increased, especially among the middle and upper classes. This rise in purchasing power has enabled people to spend more on luxuries and non-essentials, including high-end and designer jewellery. As earnings continue to grow, so does the appetite for owning and displaying jewellery, further fueling market expansion. Traditionally, the Indian Gems and Jewellery (G&J) industry has been fragmented, with consumers predominantly buying from family jewellers.

The fragmented nature of this sector makes it dif cult to quantify the number of jewellers in India. However, the industry has seen structural transformation in the recent decade with more G&J players moving up the value chain with a greater focus on branded jewellery. Jewellery retailing is not only pro table and high-margin but also an underpenetrated industry in India, which means there is a lot of room for growth. Moreover, consumers are more predisposed to branded jewellery particularly in metro & tier I cities, given the rising media and Western in uences and willingness to pay a premium.

According to the 2025 26 analysis by IMARC Group, the Indian gems and jewellery market has reached a significant valuation of $105.8 billion. The sector is poised for sustained expansion, with projections estimating it will reach $231.9 billion by 2034, growing at a compound annual growth rate (CAGR) of 8.83%. Gold continues to be the dominant material, commanding a 49% market share due to its deep-rooted cultural and investment value.

A transformative trend identified by IMARC Group in the 2025 26 financial year is the accelerated migration toward organized retail, which is gaining market share through enhanced transparency and trust-building initiatives. This shift was significant ly bolstered by the July 2025 Bureau of Indian Standards (BIS) mandate, which extended mandatory hallmarking to include 9-carat gold. This regulation has made hallmark-certi ed jewellery more accessible to budget-conscious consumers amidst high gold prices. Furthermore, A notable shift identified in their analysis is the rise of gender-inclusive and mens costume jewellery, driven by evolving grooming standards and the influence of male celebrities. IMARC highlights that while the market was historically dominated by female buyers, it is expanding to include masculine accessories like bracelets, chains, and rings designed speci cally for men.

1.3.2 Shift From Unorganised To Organised Segment

The Indian gold jewellery market is undergoing a structural metamorphosis, rapidly shifting from a fragmented, unorganized landscape toward one defined by transparency, formalization, and consumer trust. While gold remains a spiritual and emotional anchor for Indian households, it has evolved into a sophisticated financial asset class, supported by a growing preference for symbolic and high-purity ornaments like the Mangalsutra. Indias wholesale gold jewellery market reached 3,109 billion in CY 2025, with the organised segment contributing 345 billion.

In terms of material composition, gold maintains its dominance as the primary choice for Mangalsutras, commanding a 52.3% market share. However, the landscape is diversifying as silver and diamond variants now make significant contributions, holding 31.3% and 12.3% of the market respectively. Within this evolving space, the traditional Mangalsutra segment remains the categorys strongest anchor; it is projected to expand at a compound annual growth rate (CAGR) of 5.4%, ultimately reaching a valuation of 182 billion by the end of 2032.

Additional Demand Drivers for Organised Jewellery Retail:

Transparency in Pricing and Product Quality

The modern Indian jewellery buyer has become increasingly brand-conscious, benefit ing from exposure to both national and international premium standards. This shift has created a strong demand for absolute transparency regarding both cost and composition. Unlike traditional unorganized setups, organized retailers provide a clear pricing approach that explicitly separates the market value of raw materials like gold and silver from the specific making charges. This professional framework ensures customers feel con dent in the end products quality, as organized players maintain the highest industry standards and provide veri able transparency in every offering.

Retail Store Experience

Todays organized jewellery retail environment is defined by a comprehensive showroom experience that caters to the sophisticated expectations of the contemporary consumer. By offering a vast array of ready-made designs, these retailers significant ly reduce the waiting time typically associated with custom pieces. Furthermore, because jewellery is viewed as both a lifelong asset and a strategic investment, organized players go beyond the initial sale to provide essential after-sales services. These include fair-market-value buyback programs, precise billing, and professional customization, positioning organized stores as service-oriented destinations rather than just point-of-sale locations.

Exposure to Gold-Savings Schemes

A significant driver for the organized sector is the rise of monthly gold-saving schemes, which serve as a structured investment avenue for Indian consumers. Under these arrangements, a customer deposits a set amount of money for 11 months, after which the jeweller pays a 12th installment as a bonus or interest. At the end of the year, the accumulated savings can be used to purchase jewellery or minted gold products. These schemes make luxury purchases more manageable by allowing for staggered payments over time rather than a single large expense, often providing the added benefit of reduced making charges upon redemption.

1.3.3 Weddings and Festivals Drive Domestic Demand:

Seasonality in jewellery buying is a key factor that in uences demand heterogeneity in India. Weddings, festivals, and harvests in rural regions are the main drivers of the category, and the seasonal nature of each of these drivers assures that demand for jewellery is tied to the different months and seasons.

Demand for jewellery rises in the months of the wedding season such as May-June, September-November, and January. During November and December, rural households invest their crop money in gold jewellery. Moreover, gold demand in Tier II and Tier III towns is in uenced by agricultural output and monsoon. During auspicious religious events like Diwali/Dhanteras in October and November, and Akshaya Tritiya in April and May, demand for gold and silver jewellery increases.

Increase in Income and Savings Levels

Rising income is the most powerful long-term driver of Indian gold demand because the economy is complimented by a high demographic dividend. The middle-income group in India has the highest level of gold consumption. The wealthy consume the most per capita, but the middle class consumes the most total volume.

Although there is a growing propensity to consume gold as income rises, the proportion of gold in ones portfolio does not rise at the same rate. A fall in household savings rates, availability of different investment avenues, and agricultural earnings could constrain the Indian demand.

Preference of Branded Jewellery

In the competitive Indian market, branded jewellery has found a significant place. The most significant aspect of branded jewellery, however, is the perception of its excellence because a brand is synonymous with quality.

Furthermore, customers are more knowledgeable. As a result, shopping has moved to a new level, not only in terms of perspective but also in terms of method. Besides, with the rise of supermarket culture, sales and marketing of gems and jewellery have changed significant ly. Todays youth have more discretionary income and are ready to spend on their preferred indulgences. Branded jewellery has a higher level of satisfaction among people than non-branded jewellery due to its prestige value, trusted quality and pricing transparency, thus making branded jewellery more popular.

The 2025 2026 financial year began with a robust recovery, as documented in the GJEPC H1 Report, which saw plain gold jewellery exports surge by 46.74% to $2.80 billion, driven by aggressive restocking for the wedding and festive seasons. This momentum was sustained through January 2026, with the IIJS Bharat Signature show generating an estimated 75,000 crore in business orders to meet domestic bridal demand. However, by March 2026, the GJEPC reported that the conflict in West Asia placed nearly $2 billion in exports at risk, speci cally impacting the billions of Dubai corridor where chunky gold wedding jewellery is a primary export. To counter this, GJEPC leadership announced a strategic pivot toward the domestic market, targeting a 10 15% growth in local sales. Despite record-high gold prices reaching historic peaks, the council noted that the inelastic nature of Indian weddings ensured market resilience, as consumers increasingly turned to recycled gold and investment-heavy purchases to maintain traditional wedding scales.

Total Number of Weddings in India

The number of weddings in India is rapidly increasing, driving a significant boom in the wedding sector and the jewellery market. This growth is fueled by the expanding middle class, which is increasingly willing to spend lavishly on wedding celebrations, including destination weddings in picturesque locations.

This surge directly impacts the jewellery market, as weddings traditionally involve substantial jewellery purchases. Gold jewellery hold cultural and sentimental value in Indian weddings, leading to higher demand for bridal jewellery, including engagement rings, wedding bands, and elaborate sets. Consequently, jewellers are expanding their collections and services to meet the diverse and growing demands of wedding customers, driving robust growth in Indias jewellery market.

The India wedding services market is experiencing massive growth, valued at approximately USD 32.98 billion in 2025 and projected to reach USD 92.67 billion by 2034, expanding at a compound annual growth rate (CAGR) of 12.16%. This surge is primarily driven by deeply rooted cultural traditions where weddings are seen as major social and economic milestones.

The report also highlights several key trends and regional insights, noting that West India (led by cities like Mumbai and Pune) holds the largest market share at 36.2%. There is a notable shift toward destination weddings, supported by government initiatives like the Wed in India campaign, and a rising interest in eco-friendly or sustainable wedding practices among younger generations.

Wedding Expenditures

The 2025 2026 wedding season has emerged as a monumental driver for the Indian economy, generating an unprecedented 6.5 lakh crore in business. According to the CAIT Research report, this surge comes from approximately 46 lakh weddings held during the peak winter cycle. While the total number of ceremonies is slightly lower than previous record highs, the spend-per-wedding has escalated significant ly.

In the realm of jewellery, this season has solidi ed its position as a non-negotiable luxury, commanding a steady 15% share of the total wedding budget. This translates to an estimated 97,500 crore owing directly into the jewellery sector during the 2025 2026 period. Even as gold prices hit historic peaks in early 2026, the CAIT data indicates that consumer sentiment remains robust.

1.3.4 Increasing Number of Working Women

The dawn of 2026 has brought a sparkle to the Indian workforce that goes far beyond simple numbers. According to the February 2026 MoSPI Bulletin, the Female Labour Force Participation Rate (LFPR) has hit a con dent 35.3%, with a formidable 40.0% in rural areas while urban participation stayed around 25.5%. This isnt just a record on a spreadsheet; it represents millions of women stepping into the economy with their own financial agency. As the female Worker Population Ratio (WPR) climbs to 33.4%, we are witnessing the birth of a new consumer class the Self-Purchaser.

1.3.5 Hallmarking Of Jewellery In India

Indias jewellery sector has fully transitioned into a digital- first ecosystem governed by the Bureau of Indian Standards (BIS). The core of this system is the Hallmark Unique Identi cation (HUID), a six-digit alphanumeric code laser-etched onto every piece of jewellery. This digital DNA ensures complete traceability, linking each item to its specific manufacturer and the licensed Assaying and Hallmarking Centre (AHC) that veri ed its purity.

1.3.6 Analysis of the Impact of Demographics on Mangalsutra

Purchases

The Mangalsutra is more than a piece of jewellery in India; it embodies personal identity, cultural heritage, and marital commitment. Preferences for Mangalsutra designs vary significant ly across different age groups, reflect ing the evolving interests, lifestyles, and values of Indian women. Every demographic has different needs and perspectives, from senior women who value traditional motifs to young brides who choose modern patterns.

Furthermore, according to a report by the World Gold Council, there is a significant increase in demand for lightweight jewellery, especially in the daily wear segment. For instance, it is now common to nd chains or Mangalsutras weighing just 5-8 grams, a development that would have been unlikely ve years ago. This surge in demand can be attributed to the rising per capita income, increased expenditure on jewellery, a higher number of weddings in India, and the influence of social media. These demographic shifts have significant ly impacted Mangalsutra purchases in recent years.

Regional Demographics play a crucial role in in uencing purchase decisions. In South India, the tradition of investing heavily in gold jewellery, including the Mangalsutra, is deeply ingrained, with families often prioritizing substantial, intricate designs that reflect both wealth and cultural heritage. The emphasis on gold as an investment also drives higher expenditure in this region.

In contrast, Maharashtra sees continuous spending on jewellery, driven by strong replacement demand. Women in this region often buy new pieces or upgrade existing ones, reflect ing both cultural practices and evolving fashion trends.

In North India, the preference for heavy gold jewellery remains strong, but theres a growing trend towards more versatile, lightweight designs that cater to modern lifestyles. Meanwhile, in Eastern India, especially Bengal, traditional motifs inspired by nature dominate Mangalsutra designs, reflect ing the regions rich cultural heritage.

Age-Wise Preferences:

18-25 Age Group: Young women aged 18-25 are drawn to Mangalsutras that merge traditional and contemporary styles. They prefer affordable, versatile designs that can transition from special occasions to everyday wear. In uenced by social media and celebrity trends, they favour minimalist designs and often personalize their Mangalsutras with initials or unique symbols. Online shopping is popular in this group due to its convenience and variety.

26-35 Age Group: Women in the 26-35 age range seek a balance between traditional values and modern practicality. They value craftsmanship and quality, opting for Mangalsutras that combine classic elements with modern aesthetics. While they conduct thorough online research, they prefer to visit physical stores to verify the authenticity and quality of their purchases. This group is willing to invest in high-quality, durable items and appreciates personalized service.

36-45 Age Group: Women aged 36-45 have a strong af nity for intricate and traditional Mangalsutra designs that honor marital vows and cultural heritage. They are willing to spend more on elaborate pieces that signify wealth and prestige, often buying from high-end jewellers known for their superior quality. This demographic prefers in-store shopping to personally assess the authenticity and craftsmanship of their jewellery and may be in uenced by family traditions and advice from elders.

46-60 Age Group: Women aged 46-60 favor traditional Mangalsutra designs that emphasize spiritual and cultural values. They seek heavy, durable designs that offer lasting quality and often prefer to shop in-store for personalized customer service. This age group values the symbolic significance of the jewellery and tends to build relationships with a few trusted jewellers.

Above 60 Age Group: Older women, aged 60 and above, often look for Mangalsutras with deep historical and cultural significance . They prefer classic designs that symbolize enduring marriage and can be passed down as heirlooms. This group prioritizes authenticity and quality, buying from established, reputable jewellers and usually preferring in-store purchases to ensure they receive personalized attention and verify the value of their investment.

2. Developing Scenario

The Indian jewellery landscape is undergoing a profound transformation, shedding its long-standing image as a fragmented, traditional trade to emerge as a sophisticated and transparent powerhouse. For generations, purchasing gold was an act of commodity buying, often conducted in the shadows of the unorganized market where value was determined by a handshake and a verbal promise of purity. However, this era of ambiguity is rapidly ending, replaced by a new paradigm of brand trusting. This shift is being propelled by a trifecta of critical regulatory catalysts, most notably the mandatory Hallmark Unique Identi cation (HUID) and stringent GST compliance, which have effectively turned every piece of jewellery into a traceable, tax-compliant asset. As the trust de cit of the unorganized sector grows, the market is witnessing a massive migration toward organized manufacturing partners who prioritize precision and legal transparency over backroom deals.

This evolution is further accelerated by a fundamental change in consumer behavior and the rise of the modern, informed buyer. Todays customers are moving away from heavy, locker-bound traditional sets in favor of minimalistic jewellery designed for daily wear and professional settings. They demand a seamless, omni-channel retail experience browsing digital catalogs at night and verifying certified purity standards in-store the next day.

3. Our Strategy

The cornerstone of our strategic roadmap is a decisive, full-scale entry into the Gold Bridal Jewellery segment, transforming our positioning from a niche category specialist into a comprehensive, high-value partner across the Indian Bridal Jewellery ecosystem. This strategic diversi cation targets a massive macroeconomic opportunity; bridal wear stands as the second-largest expense in Indian weddings, with bridal jewellery commanding the highest wallet share at 23% to 25% of total wedding costs. Across India, an average marriage consumes between 30 to 250 grams of gold spanning essential items like gold bangles, mangalsutras, nose rings, and necklaces, with average costs ranging from INR 0.15 million to INR 1.3 million per wedding. With the domestic bridal jewellery market growing at a steady rate of 5.6% per annum moving from a valuation of INR 3,059 billion in 2023 and projected to surge to INR 4,200 billion by 2028, Shringar House of Mangalsutra is perfectly positioned to capture a highly lucrative share of this expanding market.

To capitalize on this transition, our Go-to-Market approach relies heavily on our established B2B institutional framework. We currently serve 34 corporate clients including industry leaders like Tanishq (Titan), Malabar Gold, Reliance Retail, Joyalukkas, and P N Gadgil Jewellers because contemporary retail consumers heavily favor trusted corporate brands for bridal purchases.

Our deep legacy partnerships give the Company an immediate competitive advantage in securing high-volume manufacturing orders in the bridal space. Furthermore, our proven design expertise in mangalsutra components like chains, bracelets, and rings allows for a seamless operational expansion into complete bridal suites. This creative momentum is sustained by our formidable in-house design team and a large, deeply skilled karigar base that continuously drives trend-led innovation.

By backing these creative strengths with our newly transitioned corporate manufacturing hub in Kandivali, we have established a fully integrated, end-to-end production model stretching from raw motif design to nal production that guarantees uncompromised quality control and unparalleled speed-to-market across both our traditional mangalsutra segment and newly introduced bridal range. Concurrently, the Company operates regional branch of ces in Pune and Delhi to cater Marathwada, Vidarbha and other nearby regions.

4. Market Potential

The Indian Mangalsutra market was valued at 178 billion in 2024 and is surge-bound to 303 billion by CY32. Within this, traditional designs still command a lions share of 62.3%, proving that the cultural anchor of the sacred thread remains steadfast.

On its trajectory toward 303 billion by CY32, the industry is witnessing a rapid formalization, with organized players now capturing a 35% market share. Despite record-high gold prices in 2025-26, traditional designs continue to command a 62.3% lions share, af rming that the sacred thread remains a steadfast cultural anchor even as it evolves through lightweight technology and modern aesthetics. Traditional Mangalsutras hold 62.3% share, while customized and modern categories contribute 37.7%, highlighting evolving consumer sophistication. Geographically, demand remains heavily concentrated in the southern and western corridors, with South India leading the nation at 39.7%, followed by West and Central India which contributes a robust 26.9% to the total demand. The northern region accounts for 19.7% of the market, while East India represents a smaller yet distinct 13.7% share. These gures underscore a market that is no longer monolithic; rather, it is a diverse ecosystem where regional preferences and modern aesthetics are redefining the jewellery industrys most symbolic accessory.

5. Growth Catalysts

The Indian wholesale gold jewellery market is undergoing a significant transformation, with its valuation projected to rise from 3,109 billion in CY25 to 4,252 billion by CY29. This growth is heavily supported by increasing formalization and the standardisation of hallmarking norms, which provide a distinct advantage to organized suppliers like Shringar House of Mangalsutra. Furthermore, the consistent rise in gold prices has reinforced the metals status as a preferred investment asset, effectively driving sustained B2B order volumes. This economic landscape is further bolstered by massive corporate expansion, as leading retail brands prepare to launch 400 440 new outlets in the mid-term, directly scaling the demand for specialized B2B manufacturing services.

To navigate Indias vast cultural diversity, a sophisticated hyperlocal strategy is essential. This approach is demonstrated through a portfolio of over 10,000 active SKUs designed to cater to the specific regional nuances found across 24 states and 4 union territories. Because mangalsutra preferences vary drastically by region, both organized and unorganized players are increasingly offering localized designs and material options to capture broader market opportunities. This regional focus is heavily amplified by the impact of social media influencers and celebrities who shape fashion trends. Consumers are frequently drawn to figures with strong regional connections, making them more likely to adopt the specific style preferences and cultural aesthetics promoted by these public figures.

A notable shift in consumer behavior is the emergence of the urban-regional hybrid, characterized by a rising demand for minimalistic, lightweight mangalsutras tailored for the modern working woman. This trend reflect s a move toward functional elegance that balances traditional significance with a contemporary lifestyle. By aligning manufacturing capabilities with these evolving tastes and the physical expansion of retail footprints, the industry is well-positioned to meet the multifaceted needs of a diversifying domestic market.

B) Annual Performance

Built on a foundation of years of heritage and craftsman-ship, Shringar House of Mangalsutra has consistently strengthened its market position as a premier B2B manufacturer. A series of strategic design and distribution initiatives to connect with institutional buyers through powerful product value propositions has provided for a stronger business foundation for the future. The work of expanding our network and user base, across markets, continued with capturing new institutional counters and expanding our Pan-India presence across 24 states and 4 UTs. Growth in quality products played a pivotal role and enabled deeper shop-shares in existing critical and competitive marquee institutional clientele, such as Titan and Malabar Gold. This strong operational momentum and market recognition ultimately culminated in a landmark corporate milestone, as the Company successfully got listed on both NSE and BSE.

To ensure comprehensive offerings to consumers, the Company focused on launching innovative products across markets, backed by a dedicated team of 25 designers and 292 karigars maintaining an extensive portfolio. This commitment to design architecture led to key operational milestones during our journey, including becoming the first in India to manufacture and launch a 24K gold mangalsutra. This momentum was further accelerated by our formal entry into the Bridal Jewellery Segment and the strategic inauguration of our Pune branch of ce, directly enhancing our market coverage in the Vidarbha & Marathwada regions to drive our next phase of sustainable growth.

C) Opportunities and Threats

1) Strengths:

Established Brand and Market Trust

As an established name in our specialized segment, we have built deep consumer and institutional loyalty through a legacy of transparency, reliability, and quality.

Quality Assurance and Certi ed Products

We offer certified products ensuring strict purity and quality, backed by a robust internal quality management framework and 100% BIS hallmarking to maintain strong customer con dence.

Diverse Product Portfolio and Design Innovation

Continuous innovation in product design, featuring a diversi ed portfolio of 18k, 22k, and pioneering 24k HUID-hallmarked gold jewellery tailored to regional aesthetics.

Extensive Retail and Corporate Network

A robust institutional network serving premier corporate clients like Malabar Gold and PN Gadgil Jewellers, alongside a nationwide and international footprint spanning the UK, USA, UAE, New Zealand, and Fiji.

2) Challenges:

High Operational Costs: Organized manufacturing players face significant working capital intensity and ongoing liquidity demands, which can lead to higher operational costs to support continuous production cycles and business expansion.

Limited Reach in Rural Areas: While the Company has established a strong presence in urban markets, its penetration in rural and semi-urban regions remains limited. Due to geographical and operational concentration, expansion into broader regional and rural markets is still evolving, where unorganized players continue to hold a significant market share.

Dependency on Gold Prices: Fluctuations in gold prices directly impact our working capital availability and can cause retail B2B partners to adopt a cautious ordering approach. These price movements are driven not only by sudden shifts in customs duties (such as the duty moving from 15% to 6% and back to 15%), but also by macro factors like global price increases, rupee depreciation, and strong underlying market demand.

Regulatory Compliance:

As a listed entity, the Company is required to comply with evolving regulatory, corporate governance, and disclosure requirements, which involve continuous monitoring and dedicated compliance resources. Robust internal controls and governance frameworks enable the Company to effectively manage these obligations.

3) Opportunities:

Growing Middle-Class A uence: Increasing disposable incomes of the growing middle class and changing consumer preferences provide opportunities for expansion in both our traditional and contemporary specialized gold jewellery segments. Digital Transformation: The adoption of advanced manufacturing technologies like Computer-Aided Design (CAD) and high-precision 3D printing enables rapid prototyping, unparalleled design precision, and significant reductions in material wastage. Rising Demand for Branded Jewellery: The industry-wide transition toward organized manufacturing, driven by regulatory compliance and mandatory HUID hallmarking, allows established compliant players to capture market share from unorganized competitors.

Expansion in Tier 2 and 3 Cities: Rising disposable incomes and evolving consumer aspirations in semi-urban and rural India present a significant untapped market opportunity. By deepening its distribution network and introducing localized, tailored product offerings, the Company is strategically positioning itself to capture demand across these emerging markets and drive sustainable long-term revenue growth.

4) Threats:

Economic Downturns: Macroeconomic slowdowns or recessions can significant ly dampen discretionary luxury spending across India. While gold exchange programs can partially cushion retail demand, severe economic downturns directly compress overall volumes and lead consumer buying behaviors to turn cautious.

Intense Industry Competition: The Indian jewellery market remains highly fragmented. We face intense competition from both large, organized national chains and local unorganized regional players who compete aggressively on wholesale pricing, manufacturing lead times, and design variation. Gold Price Volatility: Frequent and sharp fluctuation s in global bullion prices driven by macro factors and currency variations directly impact inventory valuation and corporate working capital requirements. This volatility can cause our retail B2B partners to delay purchasing decisions or minimize bulk ordering. Regulatory Changes: Any adverse changes in government policies regarding gold imports, customs duties, taxation frameworks, or mandatory hallmarking norms can rapidly alter operational compliance requirements and escalate manufacturing costs.

D) Performance by Product Category

& Operational Excellence

1) Expanding the Guild: Branch Strategy

While we are B2B, our Customer Experience is measured by the success of our partners. We recently inaugurated a new branch office in Pune, strategically expanding in January 2026 to strengthen our on-ground presence in the Marathwada and Vidarbha regions. We also maintain a branch in Delhi to coordinate operations across North India. Growth for us has never been just about expanding a balance sheet; it is about strengthening the hands of the partners who carry our name to the end consumer. Weve always believed that our success is a direct reflect ion of theirs, which is why weve moved toward a more localized, on-the-ground presence. This vision took a significant step forward in January 2026 with the inauguration of our new branch office in Pune. By establishing this hub, weve bridged the gap to the Marathwada and Vidarbha regions, ensuring that our partners there have the immediate support and design access they need to thrive. Coupled with our established Delhi branch, which serves as the nerve center for our North Indian operations, we are no longer just a distant manufacturer, but a local ally present in the markets that matter most.

2) The Alchemy of Design:

From Motif to Masterpiece

In our workshop, the creation of a piece of jewellery is never a linear process; it is an evolution. It begins with our team of twenty- ve design specialists, who act as the keepers of heritage, scouring traditional motifs for a spark of inspiration. But we recognized that todays woman con dent, expressive, and deeply proud of her roots requires something more than just a nod to the past. She needs a bridge between the tradition she inherits and the contemporary world she navigates.

This realization became the heartbeat of our creative process. We started blending high-precision 3D wax sculpting with the soulful, steady hands of our master artisans. One technique provides the architectural perfection required for modern aesthetics, while the other breathes life into the gold through intricate hand- nishing. The evolution of our craftsmanship has always been a journey of steady, intentional growth, leading to the creation of Ziya as our specialized home for refined, curated collections. Under the Ziya umbrella, we continue to merge tradition with contemporary design while pushing the boundaries of true value.

Recognizing a tremendous growth in the perceived value of gold and a rising demand for its purest form, we set out on a new mission to bridge cultural heritage with contemporary consumer value, giving the new-age consumer a way to buy gold in its purest form without sacrificing daily usability. Through months of effort and cutting-edge technology, pure gold is transformed into strong yet lightweight designs, achieving a breakthrough once thought impossible: creating a product with 995 neness purity that remarkably maintains the hardness and durability required for everyday wear. We gave a name to this innovation:

The 24K SHUDDH COLLECTION.

We have curated a category- first in the premium jewellery segment. 24K SHUDDH proudly offers one of Indias first retail-ready, 24 Karat wearable Mangalsutra collections, where every piece is crafted in 995 neness gold and certified with BIS HUID hallmarking for 100% trust, con dence, and compliance. With 24K SHUDDH, we have redefined what a sacred symbol can stand for a rare blend of emotion and wealth crafted to be emotionally powerful as a symbol of deep relationships, and financially smart as a reliable, asset-worthy long-term investment. It stands as a monumental step forward, celebrating the strength of eternal bonds and the softness of love.

By leveraging our strong foundational strengths and the creative energy of our designers, we have officially made a strategic entry into the Gold Bridal Jewellery segment. This expansion wasnt just a business move; it was a natural progression of our Alchemy of Design. We have already celebrated the successful generation of our first invoice in this new category for one of our valued clients a moment that underscores our confidence in scaling toward high-value, adjacent jewellery segments.

3) The Karigar Initiative: Preserving the

Sacred Frame

We are committed to preserving the sacred craft. Our workforce includes skilled Karigars whose expertise is amplified by high-precision technology like XRF machines and laser cutting. At the heart of our operations lies a profound respect for heritage, rooted in the belief that true value is created where the wisdom of the past meets the precision of the future. A dedicated effort to sustain the traditional craftsmanship within a modern industrial context. Our workforce is anchored by 292 Karigars who possess an intuitive understanding of materials an expertise passed down through generations that no machine can truly replicate. Their skilled hands ensure that every piece retains the authentic soul of the craft. To honor and amplify this dedication, we provide our artisans with world-class technology, integrating XRF machines for metallurgical purity and laser-cutting systems for microscopic accuracy. By marrying these foundational skills with high-precision tools, we ensure that the company scales with integrity, delivering artisanal quality with the consistency and technical excellence required of a listed global leader.

4) Forging the Future

The evolution of our operational infrastructure is more than just a physical expansion; it is the deliberate construction of a future where industrial scale and artisanal excellence coexist. In February 2026, we reached a de ning milestone by relocating our core manufacturing hub from Lower Parel to a state-of-the-art, 16,260 sq. ft. facility in Kandivali West, Mumbai. This represents a significant leap forward, effectively raising our annual production capacity to 4,000 kg and providing the specialized environment necessary to serve our 34 corporate partners with unprecedented agility.

By centralizing our integrated value chain within this larger footprint, we have optimized the flow from raw material to finished masterpiece. Our performance throughout the current financial year producing jewellery serves as a testament to the ef ciency of this new ecosystem. Every gram produced passes through a rigorous three-stage quality protocol, ensuring that as we scale to meet the demands of a modern, organized market, the durability and soul of our craft remain uncompromised. We are not just expanding our walls; we are forging a new standard for the industry.

E) Business Outlook

The Indian jewellery sector is currently traversing a Golden Decade of transformation, fueled by a favorable demographic dividend and a decisive acceleration in the formalization of the domestic economy. Shringar House of Mangalsutra is strategically positioned at the forefront of this shift, evolving from a specialized manufacturer into a national-scale integrated powerhouse. Our outlook is anchored by the successful deployment of capital from our recent public listing, which has fundamentally redefined our financial agility and institutional credibility. This transition to a public entity provides the robust balance sheet required to navigate market volatility and aggressively pursue a Category Leadership strategy.

As organized retail penetration deepens across Tier-II and Tier-III cities, we are scaling our hub-and-spoke distribution network to ensure seamless delivery to national retail giants, cementing our role as the indispensable manufacturing backbone of the industry. This scaling is further bolstered by our strategic entry into the high-margin gold bridal jewellery segment, a move that diversi es our revenue streams and enables the Company to capture a larger share of the total wedding ecosystem. By focusing on design-led differentiation and speed-to-market, Shringar House of Mangalsutra is prepared to lead the consumer transition toward branded, certified jewellery. Our commitment for the upcoming financial years remains focused on achieving hyper-growth in market share, maintaining a disciplined zero-debt service pro le, and delivering sustainable long-term value to our shareholders.

F) Uncertainties and Risk Landscape

Volatile Bullion Prices & Import Policies

Fluctuations in global gold prices, sudden adjustments in customs import duties, and currency volatility directly affect working capital availability. These sharp shifts disrupt input cost predictability and can prompt retail B2B partners to adopt a cautious, delayed ordering approach.

The Company protects its margins and ensures smooth production cycles through a structured inventory management strategy. A key operational strength is our Advanced Gold Model (AGM), which accounts for approximately 30% of our bullion requirements by having corporate clients supply their own gold for processing on a job-work basis, thereby completely eliminating price risk. For the remaining production needs, we utilize Gold Metal Loans (GML) from private banks to secure upfront gold, supporting steady working capital and uninterrupted operations. Additionally, backed by long-term relationships with trusted bullion suppliers, we maintain a disciplined stock replenishment policy aimed at hedging against gold price volatility by purchasing an equivalent quantity of gold at a similar price immediately upon fulfilling client orders.

Geographical Presence and Growth Strategy

A substantial majority of our corporate revenue is generated exclusively within a single state (Maharashtra), and all manufacturing operations are centralized at production facility in Mumbai. Also, a significant proportion of its key retail customers have their corporate headquarters in Maharashtra, enabling efficient customer servicing and supply chain coordination. To strengthen its market presence beyond Maharashtra, the Company has established of ces in Delhi and Pune to support customer acquisition and business development across other regions of India. As part of its long-term growth strategy, the Company also intends to expand its presence in international markets by introducing new jewellery product categories, particularly in the bridal segment. This strategic initiative is expected to diversify the Companys customer base and reduce its dependence on a single geography over the medium to long term.

Rapid Design Obsolescence & Evolving Consumer Patterns

Shifting consumer preferences toward minimalist, lightweight patterns driven by fast-moving social media trends create a risk of rapid design obsolescence. We at Shringar, maintain a highly diversi ed product catalog that bridges traditional bridal jewellery with modern daily-wear segments, such as our dedicated Hand Mangalsutra lines, Ziya Premium Collection, and 24K Shuddh Collection. This structural flexibility allows us to swiftly scale production up or down based on emerging trends, ensuring our B2B retail partners receive a continuous flow of highly relevant collections without absorbing the burden of outdated inventory.

G) Internal Control Systems and Adequacy

Shringar House of Mangalsutra maintains a robust and comprehensive Internal Financial Control (IFC) framework, engineered to ensure the orderly and efficient conduct of its business, the safeguarding of its assets, and the absolute reliability of financial reporting. In alignment with the requirements of the Companies Act, 2013, and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, the Company has established an internal control environment that is strictly commensurate with the scale, complexity, and high-value nature of the jewellery retail and wholesale industry. These control criteria are meticulously aligned with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the ICAI, ensuring that the Companys financial integrity is anchored by global best practices.

The Companys control environment is built upon the strategic pillars of asset safeguarding, operational ef ciency, and fraud prevention. Given the inherent risks associated with high-value gold and jewellery inventory, we employ stringent physical security protocols and real-time tracking systems to prevent unauthorized use or loss. These operational controls are bolstered by a strict adherence to Standard Operating Procedures (SOPs) and a Maker-Checker protocol for all data entries and financial records. By ensuring that every transaction initiated by a team member is independently veri ed by another, the Company eliminates the risk of unilateral error and ensures the functional adequacy of its financial reporting.

To mitigate the specific risks of physical transit in the B2B jewellery trade, the Company has institutionalized a No Hand-Delivery policy, requiring all stock movements to be managed through certified third-party logistics providers and backed by comprehensive insurance. This systematic approach replaces informal handling with a trackable, insured audit trail. Furthermore, financial integrity is secured through centralized banking controls, where the authority to execute high-value transactions is reserved exclusively for the Board-authorized signatories. This structure prevents unauthorized out flows of capital and ensures that liquidity management remains under the direct oversight of the highest level of leadership.

Governance and independent oversight remain at the heart of our listed-entity obligations. The internal audit function is managed through a sophisticated hybrid model of in-house expertise and external specialized rms, reporting directly to the Audit Committee of the Board. This independence ensures that all findings and recommended control improvements are reviewed with total transparency.

H) Financial Performance vis-a-vis Operations:

Operational Performance

The Company delivered strong operational execution during the financial year, driven by higher capacity utilization and a flexible manufacturing model. Within our in-house production capacity, actual production volumes scaled to 2,286 kg against a blended full-year installed capacity of 2,625 kg, achieving an actual capacity utilization rate of 87%. To effectively manage rising market demand beyond our internal limits, the Company strategically complemented its in-house manufacturing footprint with outsourced production channels, ensuring consistent volume availability and product delivery.

While these measures maximized output from our existing setup, our long-term manufacturing framework was upgraded with new capacity added in February 2026, bringing our total potential installed capacity up to 4,000 kg. Given its late-February addition, the operational benefit s and expanded commercial volume outcomes of this capacity increase will begin reflect ing strictly in the upcoming financial year.

Financial Performance

Summary Profit and Loss

Profit & Loss statement (All Amounts are in Millions unless otherwise stated)	FY26	FY25	YoY Change
Revenue from Operation	22,458.17	14,298.15	57.1%
Gross Pro t	2120.68	1148.07	84.7%
Gross Margin %	9.4%	8.0%	141 bps
EBITDA	1587.45	923.13	72.0%
EBITDA %	7.1%	6.5%	61 bps
Other Income	46.07	3.01
Depreciation	35.81	26.16
Finance cost	75.20	82.00
Profit Before Tax (PBT)	1522.51	817.96	86.1%
PBT Margin %	6.8%	5.7%	106 bps
Tax Expense	367.59	206.82
Profit After Tax (PAT)	1154.92	611.14	89.0%
PAT Margin %	5.1%	4.3%	87 bps

ASSETS

Particulars	FY26	FY25
Non-current assets	735.12	509.78
Current Assets	8182.26	3247.70
Assets held-for-sale
Total	8917.38	3757.48

LIABILITIES & EQUITY

Particulars	FY26	FY25
Equity Share Capital	964.32	721.32
Other Equity	5813.62	1287.13
Non-controlling Interests
Non-current Liabilities	93.07	46.34
Current Liabilities	2046.35	1702.69
Total	8917.38	3757.48

CEOs Perspective:

It is a privilege to connect with you through this Annual Report as we reflect on another year of meaningful progress, strategic expansion, and value creation for Shringar House of Mangalsutra Limited.

Our singular focus on the Mangalsutra category has enabled us to develop deep manufacturing expertise, strong design capabilities, and trusted relationships with leading jewellery retailers across India. Today, as Indias organized jewellery market continues to expand, this focused approach has positioned us strongly for our next phase of growth. During the year, we significant ly expanded our manufacturing infrastructure by relocating our primary production facility from Lower Parel to a modern 16,260 sq. ft. manufacturing unit in Kandivali, Mumbai. This strategic investment of 15 crore, funded entirely through internal accruals, nearly doubled our operational footprint and increased our annual production capacity from 2,500 kilograms to approximately 4,000 kilograms.

Our manufacturing philosophy blends traditional crafts-manship with modern engineering by integrating advanced 3D printing, precision CNC machinery, automated laser soldering systems, and the expertise of over 250+ master karigars. This has enhanced production efficiency, improved consistency, and reduced turnaround times while preserving the intricate detailing of our products. During the year, we further strengthened our presence through deeper engagement with retailers, wholesalers, and organized jewellery chains. Today, our network spans 24 states and 4 Union Territories, supported by a portfolio of more than 10,000 active SKUs across over fteen specialized collections. A key milestone during the year was our strategic expansion into the broader bridal jewellery segment, leveraging our decades of expertise in Mangalsutras to offer complete bridal jewellery collections. This initiative enables us to deepen relationships with retail partners, enhance wallet share, and tap into a significant ly larger addressable market. Our partnerships with leading jewellery retailers, including Tanishq, Malabar Gold & Diamonds, Joyalukkas, Reliance Retails, and Indriya, continued to strengthen, alongside sustained growth across regional chains and independent retailers. Further advancing our digital transformation, we launched a proprietary B2B catalog and ordering platform during FY 2025 26, enabling seamless product discovery, efficient order placement, and enhanced procurement experience for our retail partners. Internationally, we continued strengthening our presence across key overseas markets including the United States, the United Arab Emirates, the United Kingdom, New Zealand, and Fiji, where growing Indian diaspora communities continue to create strong demand for authentic Indian bridal jewellery.

These initiatives reinforce our vision of creating a globally recognized manufacturing platform built on Indian craftsmanship.

The Indian jewellery industry is entering a period of structural transformation driven by increasing formalization, greater consumer preference for trusted and hallmarked products, and the rapid expansion of organized retail. We believe Shringar is exceptionally well positioned to capitalize on these opportunities.

I would like to express my sincere gratitude to our shareholders for their continued con dence and trust in our vision and our team of 250+ master karigars, whose dedication, skill, and passion continue to define the Shringar legacy.

I also thank our customers and retail partners for their enduring relationships and unwavering support.

I) Our People: Material Developments

in Human Resources

The financial year 2025 26 marked a transformative era for our workforce, characterized by professionalization, artisan empowerment, and a strategic expansion of our physical footprint. At Shringar House of Mangalsutra Limited, our human resources strategy is anchored in fostering a Culture of Listening for our internal staff and ensuring Long-term Artisan Wellness for our skilled karigars. As we transitioned to a listed entity, we successfully integrated these people-centric values with the operational demands of a high-growth jewellery enterprise.

The Success of the IPO and Employee Ownership

A defining milestone of this period was the successful completion of our Initial Public Offering (IPO), which was met with overwhelming investor enthusiasm. Beyond capital infusion, the IPO served as a powerful tool for internal engagement through the Employee Reservation Portion. By offering shares at a strategic discount to eligible employees, we have effectively transitioned our workforce from employees to stakeholders. This initiative has fostered a deep sense of ownership and aligned the personal growth of our people with the long-term value creation of the Company.

Strategic Expansion and Job Creation

A significant portion of the IPO proceeds has been deployed toward the professionalization of our manufacturing and administrative capabilities. Most notably, the establishment of our new 16,260 sq. ft. manufacturing unit in Kandivali, Mumbai represents a quantum leap in our operational scale. This state-of-the-art facility is not merely a production hub but a catalyst for regional economic growth, creating a wealth of new job opportunities across specialized jewellery crafting, quality control, and shop- floor management. This expansion, coupled with our recent branch openings in Delhi and Pune, has enabled us to tap into localized talent pools, further diversifying our workforce.

Workforce Composition and Capability Building

Our workforce has grown into a dedicated team of full-time employees, supported by a specialized in-house design team of professionals focused on trend-led SKU development. To stabilize our production supply chain, we have successfully transitioned Karigars into formal arrangements, ensuring they benefit from structured HR policies.

Governance and Welfare Policies

Our HR framework is reinforced by a structured set of policies that ensure a safe, ethical, and growth-oriented environment. We prioritize the holistic well-being of our workforce through a robust Health, Safety, and Environment (HSE) framework, which focuses on the prevention of occupational illness through regular medical check-ups and specialized safety training. This commitment to a secure workplace is further reinforced by our strict adherence to POSH Compliance, ensuring a respectful and protected environment for all female employees across all our locations.

To maintain the highest standards of integrity, our Vigil Mechanism & Whistle Blower Policy provides a secure, direct channel to the Audit Committee, allowing for the reporting of unethical behavior or fraud without fear of retaliation. Supporting this culture of accountability is our Nomination and Remuneration strategy; by utilizing performance-linked compensation models, we ensure that talent is effectively recognized and rewarded, keeping our leadership and staff aligned and motivated toward achieving the Companys long-term strategic objectives.

J) Insights into Significant Ratios (FY25-26)

Ratios	For the year ended 31st March, 2026	For the year ended 31st March, 2025
Debtor turnover ratio1	13.88	19.29
Inventory turnover ratio	6.09	7.07
Interest coverage ratio2	9.37	6.21
Current ratio3	4	1.91
Debt equity ratio4	0.28	0.61
Operating profit margin (%)	7.27%	6.48%
Net profit margin (%)	5.14%	4.27%
Return On Networth5	17.05%	30.43%

NOTES:

1. Decrease in debtor turnover ratio is on account increase in business growth.

2. Increase on account of additional borrowing for overall business growth and expansion.

3. Variance is on account of increased Inventory, Trade receivable and Bank balances and led by business growth in FY 25-26.

4. Variance is on account of public offer by the company during the year.

5. Decrease in Return on Net Worth is due to an increase in Equity Share Capital and Reserves & Surplus, primarily driven by the IPO and retained earnings.

K) Disclosure of Accounting Treatment

The Companys financial statements comply with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time.

Cautionary Statement: Statements describing objectives and expectations are forward-looking. Actual results could differ materially due to gold price volatility, tax laws, and general economic conditions.