R.K.Fashion
What they do: Designs and sells imitation jewellery through wholesale, retail and dealer channels, uses contract manufacturers for production, trades branded cosmetics, and earns rental income from leased hotels.
By IPO Milega Research · Published · Updated
Analysis score 5.4 +1 for 14.11x QIB subscription
Revenue grew from 1328.49 million INR in FY24 to 3035.71 million INR in FY26, with PAT rising to 628.69 million INR.
- Listing gain
- -2.44%
- Listed at ₹80
- Subscribed
- 2.49x
- Total
- Retail odds
- 36%
- 1 in 2.8
GMP is an unofficial grey market indication. GMP updated 12 Oct, 11:05 IST.
- Price band
- ₹77-82
- Lot size
- 3200 shares
- Min. investment
- ₹2,62,400
- Issue size
- Approx 34.99 Crores
- Open5 Oct 2026
- Close7 Oct 2026
- Allotment8 Oct 2026
- Listing12 Oct 2026
Overview
Estimated from the current subscription figures. Tap a category to work it out for your application size.
- QIB
- 14.11x
- NII
- 1.71x
- Retail
- 2.79x
₹84 (+2.43%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹34.99 Cr
- Fresh issue
- To selling shareholders
- ₹0 Cr
- No offer for sale
- Funding to meet working capital requirements₹5.21 Cr15%
- Establish new plating facility in Baruipur, Kolkata₹8.8 Cr25%
- Establish proposed new B2B showroom in Kolkata₹5.37 Cr15%
- Complete interiors and furnishings of B2C stores in Kolkata₹2.48 Cr7%
- Fund inventory costs for proposed new showroom and stores₹5.6 Cr16%
- General Corporate Purposes₹7.53 Cr22%
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials6.0
- Performance7.0
- Flexibility6.0
- Timing4.0
- Risk4.0
Revenue and profit have grown sharply, margins are healthy, leverage is low, and the business has shown good execution through SIS expansion and repeat orders. The upside is tempered by concentration in Eastern India and West Bengal, dependence on B2B and related parties, working-capital strain, and negative operating cash flow in recent periods. The fundamentals support moderate listing-day appreciation rather than aggressive gains.
Strengths5
- FY 2026 operating EBITDA of ₹733.51 lakhs with 24.16% margin
- FY 2026 PAT of ₹628.69 lakhs with 20.71% margin
- SIS counters expanded from 105 in FY 2025 to 120 in FY 2026
- Client retention rate above 90%
- Multi-platform e-commerce execution with 63,665 orders in FY 2026 and 14,107 orders in Apr-Jun 2026
Concerns5
- Revenue is concentrated in Eastern India, with Bihar, Jharkhand, Odisha and West Bengal contributing 76% to 92% of revenue.
- West Bengal contributed 61.67% of revenue in the stub period, increasing dependence on one state.
- Related party transactions were high at Rs. 882.10 lakhs in FY24 and 66.40% of revenue, with continued material levels in later periods.
- Outstanding demand totals Rs. 800, including TDS defaults of Rs. 360 and Rs. 440.
- Operating cash flows were negative in FY26 and the stub period, despite improved net working capital.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum2,62,4002 lots, 3200 shares
- Retail Maximum2,62,4002 lots, 3200 shares
- S-HNI Minimum3,93,6003 lots, 4800 shares
- S-HNI Maximum9,18,4007 lots, 11200 shares
- B-HNI Minimum10,49,6008 lots, 12800 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 3200 | 2,62,400 |
| Retail Maximum | 2 | 3200 | 2,62,400 |
| S-HNI Minimum | 3 | 4800 | 3,93,600 |
| S-HNI Maximum | 7 | 11200 | 9,18,400 |
| B-HNI Minimum | 8 | 12800 | 10,49,600 |
Timing
4.0/10The issue appears timed to fund a business at an early corporate stage and to use the SME platform for a modest capital raise. That can suit a company seeking market access and visibility, but it also means the offer comes without a long operating track record as a public entity. The strategic fit is moderate, while the broader timing strength looks average at best.
- Time to market
- The company seems to be coming to market soon after conversion into a public company, which can support a fresh-growth narrative. At the same time, the structure suggests limited seasoning and a small issue size, so the market window looks functional rather than strongly favorable.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 4.0
- Listing on
- NSE SME
Key milestones
- 5 Oct 2026IPO Opens
- 7 Oct 2026IPO Closes
- 8 Oct 2026Basis of Allotment
- 9 Oct 2026Refunds Initiated
- 9 Oct 2026Credit to Demat Account
- 12 Oct 2026Listing Date
Financials
6.0/10- Revenue
- ₹31.54 Cr
- +77.0%
- Profit after tax
- ₹6.29 Cr
- +214.5%
- Net margin
- 19.9%
- +8.7 pts
- Assets
- ₹23.88 Cr
- +41.5%
- Return on equity
- 48.40%
- Debt to equity
- 0.11
- Current ratio
- null
- Revenue CAGR
- 53.78%
- ROCE
- 57.74%
- Return on net worth
- 38.90%
- NAV per share (₹)
- 14.37
Financial performance trend
Amount ₹ in croresRevenue grew from 1328.49 million INR in FY24 to 3035.71 million INR in FY26, with PAT rising to 628.69 million INR. Margins improved and the business is profitable, but it is still a small company with modest leverage and a concentrated operating profile.
Total borrowings are low at about 1.70 crore INR, entirely long term borrowings. The issue proceeds are for a fresh issue and no debt repayment is stated, so borrowings are not a major concern.
Fresh issue goes to the company. OFS goes to the selling shareholders.
None. No offer for sale is stated and promoters are not participating in the offer.
The company is raising capital through a fresh issue. Promoters and promoter group will not receive any proceeds, so this is capital raising rather than an exit by existing holders.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks4
- Market risks4
- Operational risks4
- Regulatory risks4
Business faces revenue concentration, related party dependence, working-capital pressure, negative cash flow, competition, and an outstanding tax demand with possible litigation escalation.
How the company offsets these
No outstanding material litigation is disclosed against the company or promoters; debt is low and working capital improved, while customer concentration is moderate.
Financial risks4
- Outstanding demand of Rs. 800, including TDS defaults, may increase liabilities and expenses if adverse.
- Negative operating cash flows in FY26 and the stub period indicate cash generation pressure.
- Working capital remains a risk despite improvement, given dependence on business cash conversion.
- Related party transactions have been material relative to revenue, especially in FY24.
Market risks4
- Revenue concentration in Eastern India exposes the company to regional slowdown or disruption.
- West Bengal dependence in the stub period increases state-level demand concentration risk.
- Intense competition from unorganized jewellery players may reduce pricing power and margins.
- SIS revenue depends on retail-partner footfall and in-store competition.
Operational risks4
- High dependence on related party transactions may affect operating flexibility.
- Customer concentration exists, with top 10 customers contributing up to 21.61% of sales.
- Any increase in litigation or provisions could raise current liabilities and costs.
- Revenue stability depends on maintaining retail placements and partner relationships.
Regulatory risks4
- Outstanding TDS defaults can attract tax action and penalties.
- Ongoing or future litigation could lead to higher provisions if courts or authorities rule against the company.
- Additional consumer, regulatory, or employment-related actions may arise.
- Any adverse legal development could affect financial position and reputation.
Performance
7.0/10RK Fashion Accessories Ltd. has shown sharp revenue growth, strong margins, and healthy short-term execution in imitation jewellery. FY 2026 revenue rose 70.81% to ₹3,035.71 lakhs, EBITDA margin was 24.16%, and PAT margin was 20.71%. Growth came mainly from imitation jewellery and expansion of SIS counters, while B2B remained the core channel. The business is still small, customer and geography concentration is visible, and receivables and borrowings rose materially in FY 2026.
- Historical growth
- Revenue increased from ₹1,777.19 lakhs in FY 2024 to ₹3,035.71 lakhs in FY 2026, a rise of 70.81%. Imitation jewellery drove most of the increase, contributing 93.92% of incremental revenue. Revenue mix shifted further toward imitation jewellery, which rose to 81.88% of total revenue in FY 2026 from 72.13% in FY 2025., Strong growth, with revenue up 70.81% over two years and profit margins remaining high.
- Market comparison
- Within imitation jewellery and fashion accessories, the company appears positioned as a small but fast-growing player with a B2B-led model, SIS presence, and online order generation. Its margins are strong for a wholesale-led accessories business. Compared with larger organised peers, scale is modest and dependence on imitation jewellery and West Bengal is higher, while execution metrics such as retention and counter expansion compare well.
- Future potential
- Growth potential is favorable if SIS expansion, repeat orders, and e-commerce traction continue. Demand conditions in India remain supportive for discretionary fashion accessories, wedding jewellery, and branded cosmetics.
- Operational consistency
- Operational consistency is supported by repeat customer retention above 90%, counter expansion, and rising order volumes. The rise in receivables and borrowings shows working capital pressure, so execution quality is good but not yet fully de-risked.
- Experience
- Promoter and management experience is not stated in the available text. The company has operated since 2010 and has moved into a manufacturer-through-contractors and wholesaler model with retail and e-commerce presence.
- Track record
- Operational execution appears sound, with strong revenue growth, high profitability, SIS expansion, and high repeat business. Working capital metrics need monitoring because trade receivables rose 119.37% in FY 2026.
Key achievements
- 01FY 2026 operating EBITDA of ₹733.51 lakhs with 24.16% margin
- 02FY 2026 PAT of ₹628.69 lakhs with 20.71% margin
- 03SIS counters expanded from 105 in FY 2025 to 120 in FY 2026
- 04Client retention rate above 90%
- 05Multi-platform e-commerce execution with 63,665 orders in FY 2026 and 14,107 orders in Apr-Jun 2026
- 06B2B business contributed 95.16% of FY 2026 revenue
Flexibility
6.0/10The company adapts to demand through multiple channels, regional state reach, trend-based product updates every 6 to 8 weeks, and a portfolio spanning wedding, daily-wear, and CZ or AD jewellery plus cosmetics. It is also expanding B2C presence and using online marketplaces and its own websites to respond to consumer behavior changes.
Revenue rose from ₹1,328.49 lakhs in FY24 to ₹3,035.71 lakhs in FY26, while operating EBITDA margin improved to 24.16% and PAT margin to 20.71%. Working capital needs are high and projected to rise, inventory has increased sharply, and the business remains dependent on fresh issue proceeds for working capital and expansion.
Operations are reasonably agile because design, production, quality checks, packaging, dispatch, and after-sales are organized through a contract manufacturing and centralized order workflow. The company can source from multiple contract manufacturers, manage online and offline orders, and adjust credit terms by client type. Agility is moderated by dependence on external fabricators and a concentrated operating base.
The business shows moderate flexibility through a mix of B2B wholesale, SIS counters, e-commerce, direct retail plans, cosmetics trading, and a newly added rental segment. Adaptability is supported by frequent product refreshes, region-specific designs, and expansion into B2C and new channels. Flexibility is limited by heavy dependence on West Bengal, especially Kolkata, and a high reliance on B2B revenue and contract manufacturing.
- Product diversification
- The portfolio covers imitation jewellery across wedding, regular wear, daily wear, men’s jewellery, and CZ or AD pieces, along with branded cosmetics, rental income, and commission income. Revenue is still led by imitation jewellery, so diversification exists across categories and channels, while product dependence remains material.
- Future adaptability
- Future adaptability looks moderate to good because proceeds are planned for working capital, a new plating facility, a new B2B showroom, and completion of B2C stores. The company has shown it can adjust sourcing, channel mix, and product cadence. Execution risk remains from working capital intensity, geographic concentration, and reliance on a few operating formats.
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