Can Augmont Enterprises IPO deliver long-term growth for high-risk investors?

ET Intelligence Group: Augmont Enterprises, an integrated gold and silver platform, plans to raise ₹620 crore through a fresh issue to fund working capital requirements. It will also raise ₹205 crore through an offer for sale. The promoter group's stake will fall to 81.9% after the IPO from 92.7%. Its business is operated through the Augmont SPOT platform for enterprise and international sales and Augmont gold for all consumer-focused offerings, supported by online and offline distribution channels. Over 90% of the revenue comes from Augmont SPOT platform, reflecting revenue concentration. More than 63% of the revenue comes from Maharashtra. Despite strong reported profits, Augmont had operating cash flow deficit of ₹42 crore in FY26, highlighting the sensitivity of the business to working-capital movements. However, the company has strong growth in financials. Given these factors, investors with high-risk appetite may consider the IPO.

Business

Incorporated in 2012, Augmont Enterprises undertakes gold and silver procurement and refining, bullion trading, digital gold and silver, jewellery manufacturing, international sales and gold-backed financial services. It also offers digital gold and silver, gold SIPs, gold FDs, gold loans and gold recycling. It operates two refineries with a combined capacity of 284 tonnes annually. The company manufactures products at its unit located in Sitapur SEZ, Rajasthan, with an installed capacity of 13.8 MTPA as of March 2026 and sells them in international markets.

Financials

Revenue from operations jumped 64.2% annually to ₹94,186.2 crore and net profit grew 114.1% annually to ₹348.3 crore between FY24 and FY26. Operating profit before interest, tax, depreciation and amortization (EBITDA) increased 92.7% to ₹386 crore during the period. The company's EBITDA margin remains low at under 1% as its high-volume, low-spread bullion business leaves limited room after operating expenses. The large value of gold and silver transacted also inflates the revenue base, keeping reported margins thin. The company faced a cash deficit from operations of ₹42 crore in FY26 as against positive cash flow of ₹105 crore in FY25 and ₹96.7 crore in FY24. This was due to an increase in trade receivables, a decrease in other current financial liability and an increase in taxes paid.


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Valuation

The company does not have any listed comparable peers in India. Considering the post-IPO equity and net profit for FY26, it demands a price-earnings (P/E) multiple of 21 and price to sales multiple of 0.1.