Lalithaa Jewellery Mart IPO: Strong Stores, Cheap Valuation, Key Risks
Simran Mishra
Lalithaa Jewellery Mart IPO Opens With ₹1,700 Crore Issue Lalithaa Jewellery Mart’s IPO opened on August 17, 2026, with an issue size of up to ₹1,700 crore. The price band was set at ₹190–₹201 per share, with a lot size of 74 shares.
61 Stores Across 51 Cities Lalithaa Jewellery Mart operates 61 physical stores across 51 cities in South India. The company focuses strongly on mass-market and value-conscious jewellery buyers.
Store Productivity Is a Major Strength The company generated around ₹410.23 crore in revenue per store in FY26. This store productivity was significantly higher than that of several listed jewellery peers, making the retail network a key strength.
45 Stores Are In Tier-II, Tier-III Cities Lalithaa has 45 of its 61 stores in Tier-II and Tier-III cities. These markets contributed about 60.25% of FY26 revenue, giving the company strong exposure to smaller-city jewellery demand.
More Than 79% Jewellery Made In-House The company manufactures more than 79% of its products in-house through two facilities in Tamil Nadu. This gives Lalithaa greater control over designs, production, and wastage while supporting its value-focused pricing.
But South India Remains a Major Risk All 61 stores are concentrated in South India, while Tamil Nadu alone contributed 53.98% of FY26 revenue. Its South Indian market share also declined from 6.46% in FY24 to 4.97% in FY26.
Gold Accounts For Over 92% Of Revenue Gold jewellery contributed 92.33% of FY26 operating revenue. The company also does not hedge its gold price exposure. This leaves the business vulnerable to gold price movements and inventory-related risks.
Inventory Risk Needs Attention Inventory increased to ₹9,816.28 crore in FY26, while inventory days rose from 93 days in FY24 to 143 days in FY26. Operating cash flow also turned negative at ₹397.76 crore.
Low Valuation, But Risks Explain The Discount At ₹201 per share, the IPO implies a P/E of about 11.14x based on FY26 profit, below the average valuation of listed jewellery peers. The valuation looks competitive, but regional concentration, gold dependence, inventory pressure, and no online revenue remain key risks.