Nityas sourced 55.11% of FY26 purchases from one supplier

Nityas sourced 55.11% of Fiscal 2026 purchases from its largest supplier, while gold accounted for 72.33% of Rs 181.422 crore of standalone raw-material purchases. The combination makes supplier continuity and prevailing gold prices material inputs to the cost structure for Nityas’s lab-grown diamond studded gold jewellery.

How concentrated are Nityas’s FY26 purchases?

Nityas relied on one supplier for Rs 98.973 crore of purchases in Fiscal 2026, equal to 55.11% of total purchases on a restated consolidated basis. Its top five suppliers supplied Rs 140.929 crore, or 78.47%, while the top 10 supplied Rs 154.732 crore, or 86.16%. Nityas did not disclose supplier names, saying the information was commercially sensitive and that it had not received consent from all suppliers.

The largest-supplier share increased across the three fiscal years disclosed. Supplier 1 represented 40.25% of purchases in Fiscal 2024, 49.45% in Fiscal 2025 and 55.11% in Fiscal 2026. In value terms, purchases from Supplier 1 rose from Rs 18.229 crore in Fiscal 2024 to Rs 49.045 crore in Fiscal 2025 and Rs 98.973 crore in Fiscal 2026, increasing the proportion of procurement represented by one counterparty.

Nityas’s top-10 supplier concentration declined from 94.31% in Fiscal 2025 to 86.16% in Fiscal 2026, but the decline did not extend to the largest supplier. The top-five share fell by 7.98 percentage points during that period, while the largest supplier’s share rose by 5.66 percentage points. Continuity of procurement therefore depends in particular on Supplier 1 continuing to meet Nityas’s requirements.

Why do gold costs matter to Nityas’s procurement profile?

Gold was Nityas’s largest purchased input in Fiscal 2026 at Rs 131.229 crore, or 72.33% of total standalone purchases. Lab-grown diamonds, or LGD, accounted for Rs 33.456 crore, or 18.44%, while other materials accounted for Rs 16.737 crore, or 9.23%. The other-material category includes alloys and other gold consumables.

Gold’s share of purchases rose from 60.35% in Fiscal 2024 and 60.56% in Fiscal 2025 to 72.33% in Fiscal 2026. Gold purchases increased from Rs 27.249 crore in Fiscal 2024 to Rs 60.154 crore in Fiscal 2025 and Rs 131.229 crore in Fiscal 2026. LGD’s share, in contrast, fell from 34.79% in Fiscal 2024 to 27.82% in Fiscal 2025 and 18.44% in Fiscal 2026, although LGD purchases increased in rupee terms to Rs 33.456 crore.

Nityas states that prevailing market prices of gold and LGDs directly affect product pricing because both are key raw materials. In its business-to-business, or B2B, operations, Nityas generally fixes gold prices contemporaneously when an order is executed and prices LGDs at prevailing market rates. This mechanism can align order pricing with input costs at execution, but the disclosure does not specify order duration, inventory holdings, supplier credit terms or whether Nityas uses gold-price hedging.

How do purchases feed into Nityas’s manufacturing operations?

Nityas procures gold, LGDs and other materials from permitted dealers under its procurement framework, then physically verifies and records quantity, purity, source and procurement date in stock and accounting records. Gold is cast into jewellery components after approved designs are converted into prototypes, master moulds and wax models. Raw-material procurement therefore begins the production cycle for Nityas’s jewellery manufacturing operations.

Nityas manufactured 162.77 kilograms of lab-grown diamond studded gold jewellery in Fiscal 2026, compared with 115.20 kilograms in Fiscal 2025 and 72.49 kilograms in Fiscal 2024. Installed annual capacity was unchanged at 360 kilograms in all three years, causing capacity utilisation to rise to 45.21% in Fiscal 2026 from 32.00% in Fiscal 2025 and 20.14% in Fiscal 2024. The increase in output and utilisation occurred as gold’s share of standalone procurement costs reached 72.33%.

Nityas operates a manufacturing facility of about 7,000 square feet in Surat, Gujarat, and reported 122 in-house karigars, or skilled jewellery craftsmen, supporting manufacturing and handcrafting. As of August 31, 2026, Nityas also had 29 full-time in-house design employees and a portfolio of more than 32,000 designs. These in-house functions cover design, casting, setting, polishing and quality checks, while gold and LGDs remain externally procured inputs.

What procurement and inventory controls does Nityas disclose?

Nityas uses multi-stage quality control from inward raw-material checks through design validation, in-process inspection and final packaging. At receipt, supplier documentation and identification markings accompany gold and LGDs, and Nityas checks quantities and specifications against purchase requirements. Its raw-material testing framework includes fire assay, design observation and element-level quality inspection.

Nityas manages inventory across gold, LGDs, work in progress and finished jewellery through internal monitoring and software named Gati. Each jewellery product receives a unique identification code or barcode to track movement across manufacturing, storage and retail operations. Nityas says procurement and production planning are based on targeted sales volumes, inventory turnover, anticipated demand, seasonal trends, regional preferences and customer-specific orders.

A portion of production, particularly customised jewellery, is undertaken after customer-order confirmation, while some designs are manufactured in advance based on historical demand and B2B order trends. Nityas says proximity-based LGD sourcing and its gold-procurement practices help align raw-material buying with production needs and reduce lead times. The disclosure does not quantify inventory days, supplier alternatives, minimum purchase commitments or the time required to replace the largest supplier.

Conclusion

Nityas’s Fiscal 2026 procurement profile combined two measurable dependencies: Rs 98.973 crore of purchases from one supplier and Rs 131.229 crore spent on gold. Gold’s 72.33% share of standalone procurement costs makes its market price a larger component of the purchase mix than LGD prices, while Supplier 1’s 55.11% contribution makes supply continuity a separate operational consideration.

The next disclosure to watch is whether Nityas reduces reliance on Supplier 1 or provides evidence of alternative sourcing, because it has not disclosed supplier names, replacement arrangements or hedging. Nityas’s stated approach is to align procurement with production requirements through inventory monitoring and proximity-based LGD sourcing; its execution will be relevant as capacity utilisation stood at 45.21% in Fiscal 2026.