Established operational track record and experienced management
The firm is operating in gems and jewellery industry for around a decade. The partners, Mr. Pravinbhai Jasoliya, Mr. Hareshbhai Jasoliya, Mr. Hiteshbhai Jasoliya, Mr. Keshavbhai Jasoliya and Mr. Hardik Jasoliya, have experience of more than a decade in the diamond industry. The extensive experiences of the partners have helped the firm to secure orders from existing and new customers. Acuite believes that the firm will continue to benefit from the promoters' extensive experience and established presence in the diamond industry in improving its business risk profile over the medium term.

Recovery in operating performance albeit low profitability margins
The firm’s revenue stood at Rs. 344.24 Cr. in FY2026(Prov.) from Rs. 301.03 Cr. in FY2025 and Rs. 355.78 Cr. in FY2024. The recovery in revenue during FY2026 (Prov.) was primarily driven by higher sales volume of cut and polished diamonds, coupled with a significant increase in realization from rough diamond sales. The company's focus on a higher value product mix further supported overall revenue growth and improved realizations during the year. The firms EBITDA margin has marginally improved to 1.96 percent in FY2026(Prov.) against 1.73 times of previous year, indicating a stable recovery in operational efficiency. The firm has reported sales of ~Rs. 86.00 Cr. till June 2026 and expected to register revenue of ~Rs. 360.00 Cr. by the end of FY2027. The PAT margin of the firm improved and stood at 1.52 per cent in FY2026(Prov.) against 1.42 percent in FY2025. Acuite believes that the firm’s operating performance would improve steadily on the back of stable demand.

Above average financial risk profile
The firm's financial risk profile remained above average marked by modest net worth, low gearing and comfortable coverage indicators. The firm's net worth increased to Rs. 38.99 crore as on March 31, 2026 (Prov.) from Rs. 35.02 crore as on March 31, 2025, aided by the accretion of profits. The total debt stood at Rs. 18.41 Cr. as on March 31, 2026(Prov.) as against Rs. 17.39 Cr. as on March 31, 2025, primarily on account of higher short-term borrowings availed to meet the increased working capital requirements. Despite the increase in debt levels, the gearing remained low at 0.47 times as on March 31, 2026 (Prov.) from 0.50 times as on March 31, 2025. Further, the TOL/TNW ratio improved to 1.81 times as on March 31, 2026 (Prov.) from 2.96 times as on March 31, 2025. 
The firm's debt protection metrics remained comfortable with interest coverage ratio (ICR) improved marginally to 5.12 times from 5.04 times in FY2025, aided by a modest increase in operating profits and adequate coverage of interest obligations.  The debt service coverage ratio (DSCR) stood at 5.12 times as on March 31, 2026 (Prov.), compared to  5.04 times, as on March 31, 2025. Additionally, the Debt-to-EBITDA ratio improved to 2.72 times as against 3.13 times in the previous year, as the growth in EBITDA, supported by improved operating performance. Acuite believes, the firm's financial risk profile is expected to remain above average, supported by healthy internal accrual generation, a comfortable capital structure, and the absence of any major debt-funded capital expenditure plans.

Moderately intensive nature of working capital operations
The firm's working capital operations remained moderately intensive, although a notable improvement was witnessed during FY2026 (Prov.). The Gross Current Assets (GCA) improved to 99 days in FY2026 (Prov.) from 149 days in FY2025, primarily driven by a significant reduction in inventory holding levels. Inventory days improved to 50 days in FY2026 (Prov.) from 99 days in FY2025, reflecting improved inventory management and faster stock rotation. The receivable days stood at 49 days in FY26 (Prov.) as against 46 days during the same period. Further, creditor days decreased to 61 days from 113 days in FY2025, primarily due to a higher proportion of purchases being undertaken on shorter credit terms and cash against-delivery basis, resulting in lower reliance on supplier credit. The average utilization of fund-based working capital limits remained moderate at around ~54.44% during the eight months ended June 2026. Acuite believes that working capital requirements are expected to remain moderately intensive over the near to medium term.
 

Susceptibility of profitability to volatility in diamond prices and fluctuation in forex rates

The firm's profitability remains susceptible to fluctuations in rough and polished diamond prices, given the inherently volatile nature of the diamond industry. The firm operates in a highly competitive and fragmented market, characterized by the presence of numerous organized and unorganized players, which limits pricing flexibility and exerts pressure on margins. Further, the firm's inventory-intensive operations expose it to inventory valuation risks arising from adverse movements in diamond prices. Additionally, the company remains exposed to foreign exchange fluctuation risk in the absence of hedging mechanism, as around 70-80% of its raw material requirements, primarily rough diamonds, are sourced through imports, while exports contribute around 5-10% of its total sales, thus it provides natural hedge to an extent.

Risk of capital withdrawal
The firm is exposed to the risk of capital withdrawal considering its partnership constitution. Any significant withdrawal from the partner’s capital will have a negative bearing on the financial risk profile of the firm.