Penny Stock In Focus: Rs 14.50 Crore Order Gives Diamond Business A Fresh Boost

Mini Diamonds (India) Ltd has secured a domestic order worth Rs 14.50 crore from Mumbai-based Aura Diamond for the supply of cut and polished natural diamonds, providing a fresh addition to its core diamond trading business.

The order was received on September 21, 2026, and is to be executed within 60 to 90 days from the order date. Payment is due on or before 150 days from completion of the order, according to the company’s disclosure. Aura Diamond is an existing client and is not related to Mini Diamonds’ promoter, promoter group or group companies. The transaction does not qualify as a related-party transaction.

The order is meaningful relative to Mini Diamonds’ recent operating scale. At Rs 14.50 crore, it is equivalent to around 2.6 per cent of the company’s consolidated revenue from operations of Rs 567.22 crore in FY2025-26. It also represents about 5.4 per cent of the Rs 270.29 crore revenue reported from cut and polished diamonds during the year.

Cut and polished diamonds remained Mini Diamonds’ largest disclosed product category in FY2025-26, ahead of rough diamonds and lab-grown diamonds. The latest order underlines that natural polished diamonds continue to form an important part of the company’s business even as it expands its presence in lab-grown diamonds and diamond-studded jewellery.

Chairman and Managing Director Upendra Shah said the engagement would further strengthen the company’s association with the Mumbai-based client. ‘Our immediate focus will be on efficient execution while upholding the quality and service standards associated with MDIL,’ Shah said.

The company has been attempting to diversify its product mix through lab-grown diamonds and has previously indicated plans to manufacture lab-grown jewellery using silver, gold and other precious metals. Its lab-grown diamond revenue rose sharply to Rs 136.20 crore in FY2025-26 from Rs 23.52 crore a year earlier, although natural diamonds still accounted for a larger share of product sales.

The order also comes against a backdrop of rising turnover but sharply lower profitability. Consolidated revenue from operations increased 39.8 per cent in FY2025-26, while profit after Tax declined 67.8 per cent to Rs 1.06 crore. The company’s low profit margin and working-capital-intensive model make timely execution and collection important considerations for the new order.

As of March 31, 2026, Mini Diamonds had consolidated trade receivables of Rs 197.37 crore and inventory of Rs 87.59 crore. The payment terms on the Aura Diamond order are within the company’s disclosed normal customer credit period of up to 150 days, though they will add to the need for efficient receivables management.

As of 9:31 AM on September 21, 2026, Mini Diamonds shares were trading at Rs 4.65, up 10.71 per cent from the previous close of Rs 4.20. The stock was still about 73.8 per cent below its 52-week high of Rs 17.78 and was down 74.06 per cent over the preceding year, compared with a 3.73 per cent decline in the BSE 500.

For Mini Diamonds, the immediate milestone is fulfilment of the order over the next two to three months while maintaining product quality and meeting the agreed delivery schedule.

Disclaimer: The article is for informational purposes only and not investment advice.