Sky Gold & Diamonds reported a robust 61% year-on-year revenue growth for the second quarter of FY27, reaching INR2,391 crore. The company also saw a 93% increase in reported PAT to INR129 crore. This performance reflects improvements in gross margins and operational efficiency. Management highlighted strong execution and a positive outlook for future growth, supported by strategic initiatives and market shifts.
Sky Gold & Diamonds Reports Strong Q2 FY27 Performance
Sky Gold & Diamonds Limited announced its financial results for the second quarter and first half of FY27, showcasing significant growth across key metrics. The company reported a consolidated revenue of INR2,391 crore for Q2 FY27, marking a substantial 61% increase compared to the same period in the previous year. This growth also represents an 18.8% sequential increase over Q1 FY27.
Profitability and Margin Expansion
The gross profit for the quarter stood at INR229 crore, an impressive 87% jump year-on-year. Gross margin saw an expansion of 133 basis points, reaching 9.6% compared to Q2 FY26. EBITDA grew by 90% to INR189.8 crore, with a margin of 7.9%. Reported Profit After Tax (PAT) increased by 93% to INR129 crore. Excluding an exceptional charge of INR7.35 crore related to a fraud incident, the operational PAT was INR135 crore, up 101% year-on-year.
First Half Performance
For the first half of FY27, revenue surged by 68% to INR4,403 crore. EBITDA for H1 FY27 was INR346 crore, and PAT reached INR234 crore, an increase of 112%. Notably, the company generated INR136 crore of operating cash flow in H1, a significant turnaround from an outflow of INR101 crore in H1 FY26.
Strategic Initiatives and Outlook
Management attributed the improved performance to enhanced processes and controls implemented over the last 18-24 months. Key drivers include a better product mix, increased contribution from advance gold and studded jewelry, and improved working capital management. The company emphasized its focus on strengthening systems, enhancing manufacturing efficiency, and maintaining disciplined capital allocation.
Sky Gold & Diamonds reiterated its commitment to a growth strategy that emphasizes capital efficiency and strong returns. The company highlighted its successful expansion into new product categories and international markets, driven by strong customer relationships and a focus on value-added products. The firm continues to leverage its one-stop-shop model and technological advancements to drive future growth.
Capital Raise and Future Plans
The company is also undertaking a significant fund raise, aiming to fuel its ambitious growth plans. Management expressed confidence in reinvesting capital at high returns, drawing parallels with successful business models like Walmart’s early expansion phase. The strategy is to continue growing organically and through strategic acquisitions, focusing on market consolidation and expanding capacity to meet evolving customer demands.
Source: BSE
