Synopsis: A leading B2B gold jewellery manufacturer is scaling rapidly, with 50 percent revenue CAGR, margin expansion from a richer 18-kt mix, and strategic acquisitions, targeting Rs 8,100 crore revenue in FY27.
This article covers a high-growth B2B gold jewellery manufacturer, highlighting its rapid production and revenue expansion, margin improvement through a richer 18-kt product mix, strategic acquisitions, and guidance toward Rs 8,100 crore revenue in FY27.
With a market capitalization of Rs 4,878crore, Sky Gold and Diamond’s shares on Monday closed at Rs 315, down by 3.90 percent from its previous day’s close price. The share of this company has given a return of 1,303 percent since its listing in January 2023.
Brokerage’s View
BOB Capital sees Sky Gold as a high-growth, asset-light B2B gold jewellery leader, with production doubling and revenue scaling rapidly. Margin expansion is supported by a richer 18-kt product mix, disciplined costs, and strategic acquisitions, offering 56.8 percent upside to Rs 494.
Rationale
Sky Gold’s Asset-Light B2B Jewellery Model: It is India’s largest and fastest-growing B2B fine gold jewellery manufacturer, supplying 35+ marquee retail chains, including PNG Jewellers, Joyalukkas, Malabar Gold, and Reliance Jewels. Operating an asset-light, high-velocity B2B model, it has no retail stores, focusing on studded and plain gold jewellery manufactured in Mumbai.
Doubling Production and Strong Revenue Growth: Production capacity has more than doubled from 270 kg/month in Q3’24 to 631 kg/month in FY26, catering entirely to orders from national and regional chains. Revenue grew over 50 percent CAGR to Rs 35.5 bn in FY25, with forecasts of 37 percent CAGR to Rs 90.6 bn by FY28E, driven by volume expansion and higher gold realisations.
Product Strategy Driving Margin Expansion: Sky Gold is rapidly increasing its share of 18-kt studded and diamond-set jewellery from roughly 2 percent historically to 25 percent currently. These higher-value pieces deliver better per-unit realisations and improved gross margins, as making charges on value-added jewellery are proportionally higher.
EBITDA Growth Supported by Richer Mix and Cost Discipline: EBITDA margins have expanded from around 2.6 percent in FY22 to 5.5 percent in FY25. Brokerage model further growth to 6.5 percent over FY26-28E, driven by operating leverage, a richer product mix, and disciplined cost management, supporting sustainable margin expansion alongside the ramp-up in premium jewellery production.
Outlook and Valuation: Sky Gold has strengthened its capabilities through acquisitions of Sparkling Chains and Starmangalsutra, expanding its product range and manufacturing depth. With 30 percent of revenue from top three customers, diversification remains key. At Rs 324, the stock trades at 18x FY26E earnings, offering 56.8 percent upside to a Rs 494 target.
Guidance: Sky Gold expects revenue of around Rs 6,100 crore in FY26 and Rs 8,100 crore in FY27, with EBITDA margins guided at 7 to 7.5 percent and PAT margins above 4.25 percent. The company remains focused on capital efficiency and sustaining margin expansion through operational discipline and a richer product mix.
About the Company
Sky Gold Limited is engaged in the business of designing, manufacturing, and marketing gold jewellery. The co. follows a B2B model where the products are mainly sold to mid-range jewellers and boutique stores that sell these products through online platforms and retail stores.
Financial highlights: The revenue grew by 77 percent to Rs 1,768 crore in Q3 FY26 from Rs 998 crore in Q3 FY25. Core Operating Profit grew by 114 percent to Rs 122 crore in Q3 FY26 from Rs 57.3 crore in Q3 FY25. Accompanied by a net profit growth of 120 percent to Rs 80.5 crore in Q3 FY26 from Rs 36.5 crore in Q3 FY25, resulting in an EPS growth of 109 percent to Rs 5.20 per share in Q3 FY26.
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