Established Track Record of Promoters
Parth Group is promoted by the Mumbai-based Jariwala family, which possesses nearly two decades of experience in the gems and jewellery industry. The group is engaged in the manufacturing of gold and diamond-studded jewellery and has built long-standing relationships with reputed clients, including Titan Company Limited and Reliance Retail. The promoters’ deep industry knowledge and credibility have enabled the company to maintain a strong business profile. Acuité expects Parth group to sustain its business risk profile, supported by its experienced leadership and established market presence.

Improvement in Revenue albeit subdued profitability
Parth Group is engaged in the manufacturing of studded gold and diamond jewellery. The group reported a revenue of Rs. 81.08 crore in FY25 (Prov.) as against Rs. 77.75 crore in FY24. The increase in revenue was primarily driven by healthy order inflows from key clients such as Reliance Retail Limited, Shivbhumi Infrastructures Private Limited, and Titan Company Limited. In H1FY26, the group recorded a revenue of Rs. 31.52 crore and is expected to close the fiscal year with revenue in the range of Rs. 80–85 crore. The EBITDA margin stood at 3.32 per cent in FY25 (Prov.) compared to 3.84 per cent in FY24, with the marginal decline attributed to rising raw material costs. However, the PAT margin improved to 1.35 per cent in FY25 (Prov.) from 0.97 per cent in FY24.

Moderate financial risk profile
The group’s financial risk profile remained moderate marked by its moderate net worth, comfortable gearing and debt protection metrics. The tangible net worth of the group stood at Rs. 15.71 crore as on March 31, 2025 (Prov.) as against Rs. 14.67 crore as on March 31, 2024. The group’s gearing stood low at 0.76 times as on March 31, 2025 (Prov.) as against 0.83 times in the March 31, 2024. The total debt of Rs.11.97 crore as on March 31, 2025 (Prov.) which consists of long-term borrowings of Rs. 0.29 crore, unsecured loan of Rs. 0.59 crore, short-term debt of Rs. 10.72 crore and maturing debt repayment obligation of Rs 0.38 crore. The interest coverage ratio (ICR) stood at 1.61 times in FY25 (Prov.) as against 1.56 times in the previous year. The debt service coverage ratio (DSCR) stood at 1.15 times in FY25 (Prov.) as against 1.12 times in FY24. Acuite believes that, the financial risk profile of the group would remain moderate owing to modest net worth base.

Working Capital Intensive operations
Parth Fine Jewels Private Limited operates with moderately intensive working capital requirements, as reflected in its Gross Current Assets (GCA) which stood at 183 days as on March 31, FY25 (Prov.) compared to 189 days as on March 31, FY24. Inventory days improved to 111 days in FY25 (Prov.) from 117 days in FY24, although they remain relatively high due to the need to maintain a wide variety of jewellery samples across designs. Debtor days stood at 66 days in FY25 (Prov.) as against 64 days in FY24, while creditor days were at 82 days in FY25 (Prov.) compared to 81 days in FY24. The working capital requirements are primarily funded through bank limits, with average utilisation of facilities remaining high at around 92–93 per cent for the six months ended August 2025. The company also avails ad-hoc limits during the festive season (September to March), when jewellery demand typically peaks. Acuite believes, the operations of the group would remain working capital intensive due to its nature of business.

Presence in a Highly Competitive and Fragmented Industry with Regulatory Exposure
The gems and jewellery sector in India is highly fragmented, particularly in the retail and manufacturing segments. The retail segment is dominated by unorganised players, who account for nearly 70 per cent of the market share, while the manufacturing segment sees even higher dominance at around 90 per cent. This intense competition limits pricing flexibility and margins for organised players like Parth Fine Jewels Private Limited. Additionally, the industry is subject to evolving regulatory requirements such as mandatory gold hallmarking and PAN disclosures, which can influence demand patterns and operational compliance. Fluctuations in gold prices also impact consumer sentiment and purchasing behaviour, adding to the sector’s inherent volatility.