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 and significant growth despite gold price volatility.

• EBITDA grew 91.5% YoY to INR 71.4 crore, and PAT surged 105.3% YoY to INR 43.6 crore.

• Major new clients onboarded, including Reliance Retail, PMJ Jewels, Kalamandir Jewellers, and Aditya Birla Novel Jewels, expanding market reach.

• Acquisition of a Dubai subsidiary (Sky Souk Jewellery Trading LLC) to strengthen Middle East exports.

• The company completed the sale of its stake in Sitaare Gold & Diamonds Limited and converted share warrants into equity shares.

Financial highlights

• Consolidated Q1 FY26 revenue was INR 1,131.2 crore, up 56.5% YoY, with EBITDA margin at 6.3% and PAT margin at 3.9%.

• Gross margin improved to 8% from 6.4% YoY, driven by higher advanced gold volumes and increased 18 karat sales.

• Average monthly production volume increased 30% YoY to 456 kg.

• Exports contributed 12% of total revenue, with subsidiaries Sparkling Chains and Star Mangalsutra posting Q1 FY26 revenues of INR 166 crore and INR 155 crore, respectively.

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

Outlook and guidance

• FY26 revenue guidance is INR 5,400 crore, targeting INR 7,600 crore in FY27, with capacity utilization of 900 kg/month post-acquisition.

• PAT margin expected to reach 4.25-4.5% and EBITDA margin 6.2-6.3% by FY27.

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

• Working capital cycle expected to moderate to 52-55 days by FY27.

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