PNGS Reva’s IPO Journey: Can It Build Momentum Beyond Maharashtra?

Maharashtra’s homegrown, PNGS Reva Diamond Jewellery’s ₹380-crore initial public offering (IPO), opening February 24–26, will test whether a strong statewide franchise can evolve into a scalable national diamond jewellery brand.

Demerged from P. N. Gadgil & Sons in January 2025, Reva reported FY25 revenue of ₹258.2 crore, up 32 per cent year-on-year, while net profit rose 40 per cent to ₹59.5 crore. Its 23 per cent margin stands out in a sector where most listed jewellery retailers operate at significantly lower levels.

Yet that performance is geographically narrow. Between FY23 and the end of H1 FY26 (September 30, 2025), 96.7–97.5 percent of revenue came from Maharashtra.

While the State helped propel the parent into the ₹7,660-crore organised jewellery industry, such concentration leaves Reva exposed to regional demand swings, local competition from national chains such as Tanishq and Kalyan Jewellers, and any State-level economic or regulatory disruption.

Yet that performance is geographically narrow. Between FY23 and the end of H1 FY26 (September 30, 2025), 96.7–97.5 percent of revenue came from Maharashtra.

While the State helped propel the parent into the ₹7,660-crore organised jewellery industry, such concentration leaves Reva exposed to regional demand swings, local competition from national chains such as Tanishq and Kalyan Jewellers, and any State-level economic or regulatory disruption.

In an interview with Hindu Business Line, Amit Modak, the CEO of PNGS Reva Diamond Jewellery Limited and Director of P.N. Gadgil and Sons Limited, stated, “Future expansion will focus approximately 60 percent in Maharashtra, with the remaining in other northern Indian states for the 15 outlets planned from the IPO proceeds.” However, he noted that it was too early to determine the exact distribution of these outlets.

Management argues the strategy is aligned with structural shifts in consumer demand. “We have seen a shift from plain gold jewellery to studded diamond jewellery, and that shift is happening at a faster rate,” Modak said. “The market for studded jewellery is growing, and we have created a separate company and brand to concentrate on that segment.” he further added.

P. N. Gadgil & Sons Ltd continues as the unlisted group flagship. The group had earlier diversified into fashion jewellery through PNGS Gargi Fashion Jewellery Ltd, listed on the BSE SME platform. Reva represents its sharper pivot toward the studded diamond segment, a bet management believes reflects shifting consumer preferences towards diamond-studded jewellery, a segment it plans to target considering the afforability of such jewellery in the wake of sky rocketing gold prices.

At the upper end of the ₹367–386 price band, the IPO values Reva at around ₹1,224 crore, implying a price-earnings multiple of about 21 times FY25 earnings.

That places it between lower-multiple regional gold-focused retailers and higher-valued national chains. Peers trade in a wide 7x–47x band, reflecting differences in scale, balance sheet strength, and market positioning.

Expansion, but still regional

Of the ₹380 crore issue, ₹286.5 crore will fund 15 new exclusive stores across Tier-1 and Tier-2 cities, while ₹35.4 crore is earmarked for marketing and corporate purposes as Reva builds its standalone brand beyond PNGS shop-in-shop formats.

That raises the core question: can geographic diversification truly reduce concentration risk if a majority of new capital still flows into the home market?

Scale remains critical in jewellery retail. Listed peers such as Tribhovandas Bhimji Zaveri, Senco Gold and Thangamayil Jewellers generate ₹3,500–5,500 crore in annual revenue, supported by wider geographic reach and stronger sourcing leverage. Reva’s ₹258-crore FY25 revenue underscores its relatively small operating base.

Early signs suggest growth may already be testing profitability. In H1 FY26, revenue rose to ₹156.7 crore across 34 stores in 25 cities. However, margins fell sharply to 12.8 per cent, reflecting higher expansion and operating costs.

Larger competitors typically operate at single-digit margins but offset this with higher volumes and deeper geographic diversification.

India’s jewellery market is currently benefiting from structural tailwinds, such as the formalisation driven by GST, mandatory hallmarking, and a shift toward organized retail, which have bolstered established brands.

Urban demand for diamond-studded jewellery is growing faster than for plain gold, as consumers increasingly seek lighter, design-focused pieces.

To manage capital expenditure, Reva is pursuing a franchise model. While asset-light growth can improve return ratios, it introduces execution risks, including inventory discipline, pricing consistency, and brand control, particularly in markets where brand recall remains limited.

But the business remains capital-intensive and cyclical, influenced by gold and diamond prices, seasonal wedding demand, and working capital intensity, which questions the brand'’ reliance on one key market and gradual diversification to other regions.

Published on February 23, 2026