Sky Gold and Diamonds (541967) Q2 25/26 earnings summary

Executive summary

• Achieved record Q2 FY26 revenue of INR 1,484.5 crore, up 93.1% year-on-year, and H1 FY26 revenue of INR 2,615.7 crore, up 75.3% year-on-year, with PAT of INR 67 crore for Q2 and INR 110 crore for H1.

• Q2 FY26 EBITDA rose 157.5% year-on-year to INR 99.9 crore, with margin expansion and strong PAT growth.

• Export sales doubled to INR 150 crore in Q2, with exports comprising 90% of Q2 revenue, driven by the new Dubai B2B office.

• Completed acquisitions of Speed Bangle Private Limited and Sky Souk Jewellery Trading LLC, and acquired a majority stake in Shri Rishabh Gold.

• Outperformed organized competitors with a growth rate three times higher and a leaner cost structure.

Financial highlights

• Gross margin improved to 8.2% in Q2 FY26 from 6.5% in Q2 FY25; H1 FY26 gross margin at 8.1% vs 6.4% in H1 FY25.

• H1 FY26 EBITDA reached INR 171.3 crore (+125.2% YoY), with an EBITDA margin of 6.5% (up 145 bps YoY).

• PAT margin for Q2 FY26 was 4.5% (down slightly from 4.8% YoY); H1 FY26 PAT margin at 4.2% (up from 3.9% YoY).

• EPS growth was muted due to equity dilution and bonus shares, despite strong PAT growth.

• Total assets as of September 30, 2025, stood at INR 1,941.1 crore.

Outlook and guidance

• Targeting revenue of INR 7,600 crore, capacity utilization of 900 kg/month, and PAT margin of 4.25%-4.5% by FY27.

• Export sales expected to reach 15%-20% of total revenue by FY27, leveraging Dubai office and new client acquisitions.

• Advance gold business projected to reach 10%-12% of volumes by FY27.

• ROCE expected to exceed 25% by FY27.

• The group expects to complete the acquisition of a 51% partnership interest in Shri Rishabh Gold within 12 months, pending statutory approvals.