PNGS Reva Diamond Jewellery's record shows a company transformed by its IPO: revenue rose 70% on a restated basis and the balance sheet carries no promoter pledges. Two things demand attention. Operating cash flow is deeply negative despite rising reported profits, and the annual report itself presents two conflicting versions of last year's profit, a ninefold gap that the auditors have not reconciled.
Key findings
- Operating cash flow is deeply negative despite rising profits
Major- Over the four years to FY26, the company reported cumulative profit after tax of ₹165 crore but cumulative operating cash flow of negative ₹8 crore. In FY26 alone, profit was ₹64.66 crore while operating cash flow was negative ₹105 crore, a cash conversion ratio of -1.62x. The FY26 IPO raised ₹379.52 crore gross, with IPO expenses of ₹29.12 crore adjusted against securities premium, and the company attributed a rise in return on capital employed to interest income from deploying those funds. - Revenue rose 70% on a restated basis; one customer exceeded 10%
Minor- Revenue from operations rose to ₹439.03 crore in FY26, a 70.05% increase over the restated FY25 figure of ₹258.18 crore. Management disclosed that ₹55-60 crore of that total represents the sale of surplus gold received from customers, with the remaining roughly ₹390 crore being business-to-consumer jewellery revenue. Revenue from one customer amounting to ₹47.3 crore accounted for more than 10% of total revenue from operations in FY26, compared to nil in FY25.
Bottom line: This is a disclosed record with a clean pledge position and a genuine revenue expansion, but the numbers that matter most do not yet add up. Reported profit has run far ahead of cash collected for four years, and the company has not clarified which set of FY25 figures investors should rely on. Watch whether the IPO proceeds translate into operating cash flow, and whether the company clarifies which set of FY25 figures investors should rely on.