Experienced management and long track record of operations
B N Jewellers, was established as a proprietorship firm in 1989 by Mr. Babulal Rawal. It was reconstituted as a partnership firm in the year 2004. Further, the partnership firm was converted into a private limited company on May 21, 2021. The company has an operational track record of over 3 decades in the industry. Mr. Babulal Rawal possesses extensive industry experience of around four decades. He is well supported by his son Mr. Nirmal Rawal who has been involved in the business for over two decades. The company deals with reputed jewellery retailers like Tanishq, Joyalukkas, Kalyan Jewellers, Titan, PNG, Malabar Gold, Senco Gold, Tribhovandas Bhimji Zaveri, Tara Jewels and others. The extensive experience coupled with long track record of operations has enabled the company to forge long term relations with customers and suppliers. Acuité believes that the experience of the management in the industry is likely to favourably impact the business risk profile of the company over the near to medium term.

Improvement in Scale of Operation:
BNJIPL reported revenue growth of approximately 20.55% in FY25, with total revenues increasing to Rs.747.56 crore from Rs.620.10 crore in FY24, driven by increased realizations for gold jewelleries and increased demand for platinum and gold jewellery. Platinum jewellery remained the key contributor, accounting for around 68.72% of total revenue. During the nine months ended FY26, the Company recorded revenues of Rs.487.12 crore compared to Rs.519.99 crore in 9MFY25, reflecting a marginal decline due to sector-wide price volatility that has moderated demand. Despite an increase in revenue, the Company’s operating profit margin fell to 7.95% in FY25 from 8.88% in FY24 due to GST payments related to earlier years and undervaluation of their closing inventory. PAT margin of the Company stood at 4.23% in FY 25 as against 4.41% in FY 24. Acuite believes that operating performance of the company will be broadly in line with FY 25 performance supported by a steady flow of regular orders and additional orders of approximately Rs.45 crore arising from the jewellery exhibition conducted in Goregaon.

Comfortable Financial Risk Profile:
The Company’s financial risk profile is characterized by moderate net worth, low gearing, and comfortable debt protection metrics. Net worth rose to Rs.131.49 crore in FY25 from Rs.99.86 crore in FY24, supported by accretion to reserves and including Rs.35 crore of quasi equity subordinated to debt. Gearing improved to 0.78 times in FY25 from 1.02 times in FY24, while debt protection indicators remained strong with ICR at 5.15 times and DSCR at 3.58 times in FY 25. with TOL/TNW and Debt/EBITDA at 1.09 times and 1.70 times respectively in FY25. Although the Company availed a Rs.24.86-crore term loan for plot purchase during the year likely causing a marginal moderation in the risk profile Acuite believes overall financial strength to remain comfortable over the medium term.

Moderate Working capital Management:
BNJIPL’s working capital cycle remains moderate, with GCA days at 114 day as of March 31, 2025, compared to 117 day in the previous year, primarily driven by high inventory levels, which is typical for the industry. Inventory days stood at 82 day in FY25 versus 79 day in FY24, with 80–85% order- backed stock, though buffer inventory is also maintained. Processing timelines vary, with handmade gold jewellery requiring 10–15 days, platinum jewellery 30–40 days, and customized pieces taking longer. Debtor days improved to 25 day in FY25 from 27 day in FY24, with payment terms ranging from ~15 days for large players to advance/partial payments depending on client relationships. Other current assets also stood at Rs.21.43 crore due to balances with revenue authorities, contributing to higher GCA days. Accounts payable days stood at 10 day in FY25 from 8 day in FY24, with most procurement on immediate payment basis and imports backed by bank guarantees. Acuite believes the company’s working capital management to remain moderate over the medium term, aligned with the nature of its operations.

­Moderate Working capital Management:
BNJIPL’s working capital cycle remains moderate, with GCA days at 114 day as of March 31, 2025, compared to 117 day in the previous year, primarily driven by high inventory levels, which is typical for the industry. Inventory days stood at 82 day in FY25 versus 79 day in FY24, with 80–85% order-backed stock, though buffer inventory is also maintained. Processing timelines vary, with handmade gold jewellery requiring 10–15 days, platinum jewellery 30–40 days, and customized pieces taking longer. Debtor days improved to 25 day in FY25 from 27 day in FY24, with payment terms ranging from ~15 days for large players to advance/partial payments depending on client relationships. Other current assets were also stood at Rs.21.43 crore due to balances with revenue authorities, contributing to higher GCA days. Accounts payable days increased slightly to 10 days in FY25 from 8 days in FY24, with most procurement on immediate payment basis and imports backed by bank guarantees. Acuite believes the company’s working capital management to remain moderate over the medium term, aligned with the nature of its operations.

Exposed to regulatory risks and seasonality in demand
The domestic jewellery sector continues to remain exposed to the regulatory risks, which could have an adverse impact on the business. Restrictions on bullion imports, mandatory, imposition of GST and demonetisation are some regulatory developments that have impacted demand and supply in the past. Revenues and cash flows of the jewellery players are also exposed to seasonality in demand, based on the numbers of auspicious days, festivals, crop harvest etc. Acuite believes that changes in customer demand and regulations which may affect the gems and jewellery industry directly or indirectly will remain a key monitorable.