Sky Gold & Diamonds posted a sharp jump in earnings for the June quarter, driven by strong revenue growth and improved operating margins, while raising its revenue guidance for FY27 and outlining an ambitious expansion plan through FY30.
Revenue, Profit And Ebitda Rise
The jewellery manufacturer reported a net profit of Rs 103 crore for the first quarter of FY27, more than double the Rs 44 crore posted a year earlier. Revenue rose 78% year-on-year to Rs 2,013 crore, compared with Rs 1,131 crore in the corresponding quarter last year.
Operating performance also improved during the quarter. Ebitda climbed to Rs 157 crore from Rs 71 crore a year ago, while the Ebitda margin expanded to 7.8% from 6.3%, reflecting better operating leverage.
The company attributed the performance to sustained demand for lightweight and value-added jewellery, supported by a broader product portfolio spanning lower-carat and diamond-studded collections.
"We continue to see healthy demand for lightweight, versatile and value-added jewellery. Our early focus on ultra-lightweight products, together with our expanding portfolio across lower-carat and diamond-studded categories, enables us to respond quickly to changing consumer preferences and strengthen our position in the organised jewellery manufacturing segment," Managing Director Mangesh Chauhan said.
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FY27 outlook raised
Sky Gold has raised its FY27 revenue guidance to around Rs 8,100 crore. It expects an Ebitda margin of 7-7.5% and a PAT margin of 4.5-4.75% for the year.
The company said it is looking to accelerate growth through acquisitions, a wider product portfolio and capacity expansion. It has expanded its manufacturing footprint to 1,35,000 sq ft, opened an office in Dubai and strengthened its leadership team and board.
FY30 targets
Looking ahead, Sky Gold expects revenue to reach Rs 18,000-19,000 crore by FY30, with a PAT margin of more than 5.25%, translating into an estimated profit of around Rs 945 crore.
The company is targeting a return on capital employed (ROCE) of over 27% and aims to improve its working capital cycle to move to a net cash position.
It also expects exports to contribute a larger share of revenue while increasing its focus on higher-value jewellery, including 18kt, 9kt and diamond-studded products. Advance Gold is projected to account for around 30% of volumes by FY30, up from 11.5% in FY26.
Also read: Sky Gold Wants To Triple Revenue And Eliminate Debt. Is The Stock Pricing In Too Much?
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