Synopsis: Jewellery manufacturer posts 77 percent revenue growth, expands margins, achieves earlier targets ahead of schedule, and outlines an ambitious Rs 19,000 crore FY30 revenue roadmap with improving profitability.
Shares of Sky Gold & Diamonds Ltd are in focus after the company reported robust Q3 FY26 results, delivering strong revenue growth and margin expansion. Backed by improving product mix, export traction, and operational efficiencies, the jewellery manufacturer has outlined an ambitious roadmap targeting Rs 19,000 crore revenue by FY30.
About the Company
Sky Gold Limited is engaged in the business of designing, manufacturing, and marketing gold jewellery. The company 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.
With a market capitalization of Rs. 5,872 Crores on the Day’s Trade, the shares of Sky Gold & Diamonds Ltd down by 1.58 percent, today opened at Rs. 372.30 compared to its previous close of Rs. 378.20. The shares of this company have given 1,582 percent since its listing in 2023.
The stock trades at a P/E of 25.1x, slightly above the industry average of 22.9x, indicating fair valuation given its fundamentals. Strong return ratios, with ROE at 21.2 percent and ROCE at 25.5 percent, alongside a moderate debt-to-equity of 0.78, support sustained earnings visibility and financial stability.
Clientele Overview
The company derives a dominant 91 percent of its revenue from domestic clients, underscoring its strong positioning within India’s organised jewellery retail ecosystem. Its marquee customer base includes PNG, Kalyan Jewellers, Malabar Gold and Diamonds, P. C. Chandra, Senco Gold, Reliance Jewels, and Thanamayil, among others.
International operations contribute the remaining 9 percent of revenue, led by reputed names such as Mustafa Jewellery, Public Gold, and Damas. During Q3, the company strengthened its regional footprint in the UAE by adding Damas and Kanz, while domestically onboarding GIVA, CKC Group, and PMJ Jewels. This expansion highlights a balanced growth strategy, robust client acquisition momentum, and increasing global integration.
Moat: Sky Gold & Diamonds Ltd has significantly deepened its competitive moat by increasing the share of value-added products from below 10 percent in FY23 to nearly 50 to 55 percent in FY26, leading to meaningful gross margin expansion and stronger pricing power within the organised jewellery manufacturing segment.
Its technology-driven capabilities enable 10 to 20 percent lower-weight designs without compromising aesthetics, enhancing retailer economics. Additionally, ERP-led process controls have reduced gold loss from 1.5 percent to 0.5 percent, materially improving operational efficiency, cost management, and overall profitability.
Guidance: By FY30, the company targets revenue of Rs 18,000–19,000 crore with PAT margins exceeding 5.25 percent, translating to nearly Rs 945 crore in profits. ROCE is guided above 27 percent, alongside a CFO/PAT of over 20 percent. Improved working capital efficiency is expected to drive a net positive debt position.
In FY25, the company reported a revenue of Rs 3,548 crore with a PAT of Rs 133 crore, reflecting a margin of about 3.7 percent. Looking ahead to FY30, revenue is expected to jump to Rs 18,000 to19,000 crore, marking a 408 to 435 percent increase, while PAT is projected to rise to around Rs 945 crore, representing a 611 percent growth with margins expanding to over 5.25 percent, highlighting substantial upside potential.
Growth will be supported by a rising export contribution and a richer product mix featuring higher design complexity and value-added jewellery. Expansion into 18kt, 9kt, and diamond-studded segments will enhance differentiation, while advanced gold is projected to contribute around 20 percent of volumes by FY30.
By FY30, the business aims to achieve a balanced domestic and export revenue mix, reinforcing diversification. Improving ROCE through margin expansion and stronger asset turns, coupled with consistent operating cash flows, sound corporate governance, and a resilient balance sheet, underpins its long-term business quality.
The company delivered FY25 revenue of Rs 3,548 crore with steady margin expansion, reflecting disciplined execution, improved product mix, and operational efficiencies. Upward revision of FY26/27 guidance is supported by capacity expansion to 1,35,000 sq. ft., Dubai office launch, strategic acquisitions, leadership strengthening, and enhanced governance, reinforcing confidence in achieving higher revenue and margin targets
Q3 Performance: The revenue from operations grew by 77 percent to Rs 1,768 crore in Q3 FY26 from Rs 998 crore in Q3 FY25, and EBIDT 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.
Gross profit surged 107 percent YoY to Rs 150.8 crore, with margins improving to 8.5 percent, reflecting a richer product mix and higher value-added contribution. EBITDA rose 114 percent to Rs 122.4 crore, expanding margins to 6.9 percent, driven by operating leverage, improved efficiencies, and tighter cost controls.
As of December 2025, promoter holding declined to 51.74 percent from 58.24 percent last year. FII stake marginally reduced to 0.78 percent from 0.86 percent, while DII participation increased significantly to 11.66 percent from 6.63 percent. Public shareholding also rose to 35.81 percent from 34.26 percent, indicating broader investor participation.
Conclusion: Overall, the company has demonstrated strong execution, delivering robust revenue growth, margin expansion, and improved return ratios. Notably, it achieved its earlier FY23 strategic milestones by FY25, reflecting operational outperformance. Given sustained capacity expansion, richer product mix, export traction, and improving capital efficiency, it appears well-positioned to achieve its ambitious FY30 guidance.
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