Advit Jewels Limited IPO

The company derives 54.17%, 43.06% and 75.47% of its revenue from the company's top 10 customers for the financial years ended on March 31, 2025, March 31, 2024 and March 31, 2023 respectively. The loss of one or more such customers, deterioration of their financial condition, any cancellation or delay of orders or its inability to meet their expectations could adversely affect the company's business, results of operations and financial condition.

The company relys on limited number of suppliers and procure 76.55%, 73.15% and 82.93% of its Raw Materials for the Fiscal Year 2025, 2024 and 2023 respectively from the company's Top 5 suppliers and 86.96%, 79.98% and 88.36% of its Raw Material from the company's top 10 suppliers for the Fiscal Years 2025, 2024 and 2023 respectively. Any delay or disruption in supply from these suppliers or any failures of the company to maintain good business relations and continued arrangements with such suppliers may adversely affect its results of operations and financial condition.

The company's revenue from operations has significantly increased from Rs. 4,660.41 lakhs in Fiscal 2023 to Rs.6,944.26 lakhs in Fiscal 2024 and Rs.12,493.73 lakhs in Fiscal 2025 with compound annual growth rate (CAGR) of 38.92% in revenue from Fiscal 2023 to Fiscal 2025. If the company is unable to manage its growth rate the company's business operations and results of operations may be adversely affected and this rate of growth may not be achievable in the future.

The company's inventory holding is 85.07%, 68.99% and 36.38% of total current assets for the Fiscal 2025, 2024 and 2023 respectively. The company maintains high levels of inventory, which result in significant holding costs and may adversely affect its working capital, profitability, and financial condition.

The company's business is subject to seasonal fluctuations and any decline in sales during peak seasons may disproportionately impact its results of operations.

The company depends on Karigars for manufacturing of its Kundan Polki jewellery. As of September 12, 2025, the company had 20 Karigars employed in the company's manufacturing facility. If the company fails to retain or engage such Karigars, it may adversely impact its business, results of operations and financial condition.

Prices of products manufactured by the company are highly dependent on the prices of gold, diamond polki and precious & semi- precious stones and cost of these raw materials comprises 99.66%, 99.95%, 99.76% of total cost of material consumed in production of product for the financial year ending on March 31, 2025, March 31, 2024 and March 31, 2023 respectively. Any non-availability or significant increase in the cost of gold, diamonds, and other precious or semi-precious stones and absence of long-term contracts with the company's suppliers could adversely affect its business, results of operations, financial condition, and prospects.

The company's inventory holding is 85.83%, 64.68% and 22.35% of its revenue and the company's inventory turnover days are 199 days, 158 days and 91 days for the financial years ending on March 31, 2025, March 31, 2024 and March 31, 2023 respectively. the company'sTbusiness is heavily dependent on effective inventory management, and any inefficiencies or disruptions in this area, including supply chain volatility, inventory valuation challenges, or system-level shortcomings, could materially and adversely impact its financial performance, cash flows, and operational stability.

The company has significant working capital requirements which have historically been funded through borrowings. 53.38%, 38.21% and 24.56% of the working capital requirements have been funded through short-term borrowings for the fiscal years ending on March 31, 2025, 2024 and 2023. Any inability to access adequate working capital loans on commercially reasonable terms may adversely effect its business, financial condition and results of operations.

In the past, the company has obtained the approvals required under environmental laws in relation to the company's manufacturing unis with certain delay. Any such failures to comply with environmental laws and/or the terms and conditions of approvals issued under such environmental laws and regulations could subject us to penalties and other regulatory actions, impact the company's ability to obtain or renew such approvals in a timely manner/ at all and may also adversely affect our ability to operate its units and consequently affect the company's results of operations.