Sky Gold & Diamonds announced stellar financial results for Q3 and the nine months ended December 31, 2025. Revenue from Operations surged by 77.1% YoY in Q3 FY26 to ₹1767.7 Crore. Profit After Tax (PAT) saw even sharper growth, increasing by 120.4% YoY in Q3 to ₹80.5 Crore. The company highlighted strategic momentum, operational excellence leading to lower gold loss, and an ambitious ‘Vision 2030’ plan focusing on governance and cash generation.
Q3 and 9MFY26 Financial Scorecard Highlights
Sky Gold & Diamonds has delivered robust performance for the quarter ending December 31, 2025, demonstrating substantial year-over-year growth across key metrics. Revenue from Operations for Q3 FY26 reached ₹1767.7 Crore, marking a +77.1% YoY increase. For the 9MFY26 period, consolidated revenue grew to ₹4383.4 Crore (+76.1% YoY).
Profitability metrics showed significant expansion:
- Gross Profit (Q3 FY26): ₹150.8 Crore (+106.8% YoY). GP Margin improved to 8.5% from 7.3% YoY.
- EBITDA (Q3 FY26): ₹122.4 Crore (+113.6% YoY). EBITDA Margin rose to 6.9%.
- PAT (Q3 FY26): ₹80.5 Crore (+120.4% YoY). PAT Margin reached 4.6%, an expansion of 89 basis points YoY.
Volume consistency is noted, with sales volume in Q3 FY26 reaching 631 Kg/Month, up from 544 Kg/Month in Q2 FY26. The revenue split remains dominated by the domestic segment at 90% in Q3 FY26, with exports at 9%.
Company and Industry Updates Driving Performance
The company highlighted several strategic achievements during the period:
Completed Acquisition of Shri Rishab Gold: Sky Gold acquired a 51% partnership interest in Shri Rishab Gold through its subsidiary, expanding manufacturing capabilities and customer base.
Key Customer Additions: Export portfolio strengthened with the addition of DAMAS UAE and KANZ UAE. Domestic growth saw the onboarding of major brands like GIVA, C. Krishniah Chetty (CKC) Group, and PMJ Jewels.
Inauguration of Dubai Office: This office is positioned as a strategic hub to penetrate markets beyond the Indian diaspora, reinforced by experienced talent.
Policy Tailwinds: Favorable sector support includes stable Customs Duty & GST rates, simplified Customs Reforms, and the potential benefit from the UK & EU Free Trade Agreement, unlocking zero-tariff export opportunities.
Promoters’ Vision: SkyGold 3.0
In the management comments, promoters emphasized placing governance and professionalisation at the core of the ‘SkyGold 3.0’ journey. A key commitment is that promoters will not draw salaries from FY27; all promoter payouts will be solely through dividends generated from operating cash flows, aligning outcomes with cash generation and balance-sheet strength.
The company plans to onboard one of the larger global accounting firms following Q4 FY26 results to enhance financial reporting credibility.
Competitive Moat and Vision 2030 Milestones
Sky Gold & Diamonds emphasizes its competitive advantages built on technological innovation, creative scalability, and industry-leading manufacturing cycles. Key achievements include:
- Doubling design talent to ~150 professionals over three years.
- Value-Added share of business surging from <10% in FY23 to ~50-55% in FY26, driving margin expansion.
- Operational Excellence achieved via ERP implementation, reducing gold loss from 1.5% to 0.5%.
Vision 2030 Guidance
The company is realizing its ambitious targets, revising guidance upwards:
- FY26/FY27 Revenue Projected: ~₹6,100 / ₹8,100 crore.
- EBITDA Margin Guided: Range of ~7.0-7.5%.
- PAT Margin Guided: 4.25%+.
The long-term FY30 Guidance targets revenue between ~₹18,000-₹19,000 crore, with a PAT margin projected at ~5.25%+, aggregating to ₹945 crores, and a target ROCE of 27%+.
Growth Blueprint: Operational Levers
The growth strategy focuses on strengthening foundations for long-term value, shifting to a Growth-Led, Cash-Focused model in the third phase (Sky Gold 3.0).
A critical lever is the ‘Advance Gold’ model, where customers supply gold upfront. This model requires zero working capital investment for inventory. By FY30, advance gold is expected to contribute ~20% of volumes (up from ~7% in FY26). This, combined with high-growth categories, guides for 10-20 bps PAT margin improvement YoY.
Market Context
The presentation notes the positive market environment, with the Indian Domestic Jewellery Market projected to reach USD 145 billion by FY 2028. Furthermore, the organized sector’s share is expected to grow to 43.0% by FY28P, indicating a significant structural shift towards organized players like Sky Gold.
Historical Financial Review (FY23-FY25)
Historical data confirms significant top-line acceleration:
- Revenue grew from ₹1,153.8 Crore (FY23) to ₹3,548.0 Crore (FY25).
- PAT grew from ₹18.6 Crore (FY23) to ₹132.7 Crore (FY25).
- PAT Margin improved from 1.6% (FY23) to 3.7% (FY25).
The company shows improving leverage, with Debt to Equity dropping to 0.9x in FY25 (from 3.7x in FY22). Return Ratios also improved, with ROCE reaching 30%* in FY25, driven by better operational management and capital allocation.
Source: BSE
