Sky Gold and Diamonds (541967) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue reached INR 1,131.2 crore, up 56.5% year-over-year, with strong Akshaya Tritiya sales, major new clients onboarded, and a strategic focus on lightweight, design-led jewelry.

• EBITDA grew 91.5% YoY to INR 71.4 crore, and PAT surged 105.3% YoY to INR 43.6 crore, with gross margin improving to 8% from 6.4% YoY.

• Expansion into new markets included onboarding Reliance Jewels, PMJ Jewels, Kalamandir Jewellers, and Aditya Birla, and acquiring a Dubai subsidiary to strengthen Middle East exports.

• The company completed the sale of its stake in Sitaare Gold & Diamonds Limited and approved the acquisition of Sky Souk Jewellery Trading LLC.

• Promoter stake sale of 4.3% aimed at broadening institutional participation.

Financial highlights

• Consolidated Q1 revenue was INR 1,131.2 crore, up 56.5% YoY, with EBITDA margin at 6.3% and PAT margin at 3.9%.

• Subsidiaries Sparkling Chains and Star Mangalsutra posted Q1 FY26 revenues of INR 166 crore and INR 155 crore, respectively.

• Export sales contributed INR 131 crore, about 12% of total revenue.

• Five-year revenue CAGR stands at 45.3%, EBITDA CAGR at 107.7%, and net profit CAGR at 129.2%.

• Basic and diluted EPS for Q1 FY26 were ₹2.97, up from ₹1.60 in Q1 FY25.

Outlook and guidance

• Targeting FY26 revenue of INR 5,400 crore and FY27 revenue of INR 7,600 crore, with capacity utilization of 900 kg/month post-acquisition.

• Projected working capital cycle to moderate to 52-55 days by FY27.

• PAT margin guidance of 4.25-4.5% and EBITDA margin of 6.2-6.3% by FY27, with ROCE above 30-35%.

• Export revenue share targeted at 17-20% for FY26 and 25% by FY27.

• Continued focus on advanced gold contracts and international expansion, especially in the Middle East.