Sky Gold & Diamonds Limited reported a robust performance in Q1 FY27, with consolidated revenue soaring by 78% year-on-year to ₹2,013 crore. The company also achieved a significant improvement in profitability, with consolidated gross margin increasing to 9.3%. This growth is attributed to increased sales from the Advance Gold segment and a higher contribution from value-added products, positioning the company well for its FY27 revenue guidance.
Sky Gold & Diamonds Reports Strong Q1 FY27 Results
Sky Gold & Diamonds Limited has announced its financial results for the first quarter of FY27, showcasing substantial growth and improved profitability. The company’s consolidated revenue for the quarter reached ₹2,013 crore, marking an impressive 78% increase compared to the same period last year. This performance brings the annualized revenue run rate close to ₹8,050 crore, nearing the company’s full-year FY27 guidance of ₹8,100 crore.
Profitability and Margin Expansion
The company also demonstrated a notable improvement in its profit margins. The consolidated gross margin rose to 9.3% in Q1 FY27, up from 9.1% in Q4 FY26. This expansion is primarily driven by a structural shift in customer preference towards lower karatage jewelry, with the share of non-22 KT jewelry increasing to 14%. Additionally, the share of studded jewelry has increased, contributing to better-margin products. EBITDA for the quarter stood at ₹157 crore, reflecting a 7.8% margin.
Strategic Growth Drivers
Key growth drivers identified include the increasing contribution from the Advance Gold segment, which now accounts for 90-100 bps of revenue and gross margin. The company is also focusing on higher-margin products, including natural and lab-grown studded jewelry, which contribute significantly to gross margins. The strategic emphasis on design-led manufacturing and value-added products is expected to further enhance profitability and sustainable growth.
Cash Flow Generation and Outlook
Sky Gold & Diamonds also reported a positive turn in its cash flow generation. Operating cash flows turned positive at approximately ₹30 crore in Q1 FY27, a significant improvement from negative cash flows in the previous fiscal year. The company remains confident in its ability to achieve its revenue targets and further improve its business quality and profitability, supported by disciplined working capital management and deleveraging efforts.
Source: BSE
