1. At a Glance – Old Money, Thin Margins, Shiny Balance Sheet
Golkunda Diamonds & Jewellery Ltd is that quiet uncle at a family wedding who doesn’t dance, doesn’t talk much, but owns half the real estate in the area. Incorporated in 1960, sitting in a SEZ, exporting diamond-studded gold jewellery across the globe, and currently valued at ₹144 Cr market cap, the stock trades at ₹207, down from its high of ₹265.
Latest numbers?
- TTM Revenue: ₹275 Cr
- TTM PAT: ₹12.2 Cr
- ROE / ROCE: ~20% (solid, no drama)
- Debt: ₹36 Cr (manageable, not scary)
- P/E: 11.8x (cheap by jewellery industry standards)
But before you scream “undervalued gem 💎”, remember:
- Q3 FY26 sales fell 15% YoY
- Q3 FY26 profit fell 28% YoY
This is not a growth rocket. This is a steady, old-school exporter trying to look cool in a Titan-dominated world. Curious? You should be.
2. Introduction – A 1960s Jeweller Surviving 2025 Volatility
Golkunda Diamonds is not trying to be Titan. It’s not chasing mall footfalls, celebrity endorsements, or Instagram reels. This company lives in export invoices, working capital cycles, and design banks.
For over six decades, Golkunda has stuck to a simple model:
- Manufacture diamond-studded gold jewellery
- Export it
- Repeat
No retail chain headaches. No franchise drama. No festive inventory dump stories.
And yet, despite all this experience, growth has been… underwhelming.
- 3-year sales CAGR: ~2%
- TTM profit growth: negative
So what’s happening?
Is the jewellery export business structurally low growth?
Or is Golkunda just comfortable sipping old whisky instead of chasing tequila shots?
Let’s open the vault.
3. Business Model – WTF Do They Even Do?
If Titan is a jewellery mall, Golkunda is a jewellery factory with a passport.
Core Business
- Manufactures diamond-studded gold jewellery
- Exports to international customers
- Operates from a Special Economic Zone (SEZ) – tax efficiency, export focus
Product Portfolio
- Rings
- Pendants
- Bracelets
- Earrings
- Necklaces
- Bangles
From heavy necklaces to small stud earrings – basically everything that sparkles and survives airport security.
Manufacturing Strength
- Capacity: 15,000 units per month
- Design Bank: 25,000+ designs
- New designs added: ~500 every month
This is not a lazy factory. This is a design churn machine.
But here’s the catch:
👉 Jewellery exports are price-takers, not price-makers.
Gold prices move. Diamond prices move. Customers negotiate hard. Margins stay thin.
That explains the 7–8% operating margin ceiling.
Would you rather run this business or own a jewellery showroom chain? Exactly.
4. Financials Overview – The Quarter That Ruined the Party
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Q3 FY26 | Q3 FY25 | Q2 FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 62.6 | 73.8 | 80.9 | -15.2% | -22.6% |
| EBITDA | 6.04 | 7.73 | 5.20 | -21.8% | +16.2% |
| PAT | 3.54 | 4.93 | 3.18 | -28.2% | +11.3% |
| EPS (₹) | 5.08 | 7.08 | 4.57 | -28.2% | +11.2% |
Commentary
- Revenue dropped because exports don’t care about your emotions
- QoQ recovery exists, but YoY is ugly
- Margins held better than revenue → cost discipline is alive
Annualised EPS (Q3 rule):
Average of Q1–Q3 FY26 EPS × 4 ≈ ₹17.5, which matches TTM.
Question: Is this a one-off bad quarter or a structural slowdown? Comment
