Golkunda Diamonds FY26: ₹282 Crore of Jewellery, ₹87 Crore Still Waiting in Receivables

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1 — At a Glance

Golkunda Diamonds closed FY26 with sales of ₹281.5 crore, up from ₹252.4 crore, and net profit of ₹13.69 crore against ₹11.82 crore the year before. EPS came in at ₹19.66. On the surface, a small Mumbai jeweller compounding quietly: profit has grown from ₹2.69 crore in FY21 to ₹13.69 crore in FY26.

Then you reach the balance sheet. Trade receivables stand at ₹87.13 crore — roughly 57% of the company’s entire ₹152 crore asset base, and just under half its ₹189 crore market cap. This is a company that ships diamond-studded gold jewellery to the Middle East and then waits about 113 days to get paid.

Two more facts frame the year. Infomerics reaffirmed the credit rating in April 2026 but placed it on Rating Watch with Negative Implications, flagging that roughly 85–90% of revenue comes from one region. And in June, the board allotted 12.4 lakh convertible warrants to a list of non-promoter investors at ₹214 each.

A profitable exporter with most of its money tied up in transit and most of its revenue tied to one map. The rest of this entry follows both threads.

2 — Introduction

Golkunda Diamonds & Jewellery Ltd was incorporated in 1990 and manufactures diamond-studded gold jewellery from a single facility in the SEEPZ Special Economic Zone in Andheri, Mumbai. The Dadha family runs it; Kanti Kumar Dadha is Chairman & Managing Director, Arvind Dadha signs results as Managing Director, and Ashish Dadha is CFO. Neverloose Properties & Investment Pvt Ltd, the holding company, owns 53.74%.

The business is export-oriented — near its entire revenue comes from foreign sales, historically 96–98% of the total. Its customers sit primarily in Saudi Arabia, Kuwait, the UAE, Qatar and Bahrain, markets Infomerics describes as offering higher disposable incomes and premium pricing for branded jewellery than the domestic market.

Two structural moves defined the recent stretch. First, the company approved a preferential issue of convertible warrants, with 12.4 lakh of them allotted on 27 June 2026 at ₹214 each. Second, per the rating report, it is setting up a new ~5,500 sq. ft. manufacturing unit in Mumbai outside the SEZ, funded largely by a ₹7 crore term loan, to enter the domestic market — targeting about ₹14 crore of domestic revenue in FY27. After three-and-a-half decades of exporting, the company is building a door that faces inward.

3 — Business Model: WTF Do They Even Do?

They buy diamonds and gold, set one into the other, and export the result. That’s the whole engine, and the numbers show it plainly: FY25 raw-material consumption ran to roughly ₹127 crore of gold and ₹62 crore of diamonds. Sales of products account for ~98% of revenue; the rest is foreign-exchange rate difference. There is no retail chain, no brand you’d recognise at a mall, no domestic showroom — just a SEEPZ unit turning metal and stones into rings, pendants, bracelets, earrings, necklaces and bangles, and then onto a plane.

The interesting part is where the plane lands. Per Infomerics, ~85–90% of revenue comes from the Middle East, chosen because those markets pay premium prices for Arabic-inspired diamond and gold work and are less price-sensitive than Indian buyers. It’s a genuine edge — the margins reflect it — and a genuine dependency in the same breath. A jeweller with one factory, one product category and one region is efficient right up until the region has a bad year.

The company churns roughly 150 new designs a month against a stated Mumbai capacity of about 300 kg per annum at ~77% utilisation as of Feb 2026. Design volume is high; physical scale is small. This is a workshop with an export licence, not a manufacturing giant.

Reader question: does deriving near-100% of revenue from exports make a company an exporter, or a bet on five specific countries’ appetite for gold?

4 — Financials Overview

Figures are standalone, in ₹ crore.

Revenue rose 10.9% year-on-year and 9.5% over the prior quarter. PAT jumped