Sky Gold and Diamonds (541967) Q3 25/26 earnings summary

Executive summary

• Achieved strong Q3 and nine-month FY 2026 performance, with consolidated Q3 revenue of ₹1,767.7 crore, up 77.1% YoY, and Q3 PAT of ₹80.5 crore, up 120.4% YoY, exceeding previous guidance despite challenging gold prices.

• Strategic focus on internal cash generation, disciplined growth, and robust free cash flow, with promoters adopting a zero-salary, dividend-only compensation model from FY 2027.

• Emphasis on creativity, technology, and manufacturing excellence, with significant investments in talent, digital transformation, and international expansion, including the Dubai office and acquisition of Shri Rishab Gold.

• Change in depreciation method to Straight Line Method from April 2025 increased Q3 FY25-26 profit before tax by ₹233.32 lakhs.

Financial highlights

• Q3 FY26 gross profit at ₹150.8 crore (+106.8% YoY); 9MFY26 gross profit at ₹362.4 crore (+114.7% YoY), with consolidated gross margin improving to 8.27% YTD FY 2026 from 5.97% in FY 2024.

• Q3 FY26 EBITDA at ₹122.4 crore (+113.6% YoY); 9MFY26 EBITDA at ₹293.7 crore (+120.2% YoY).

• PAT margin for nine months FY 2026 reached 4.4%, above the conservative FY 2027 guidance of 4.25%.

• Working capital days reduced from 66 in September to 63 in December, targeting below 60 days by year-end.

• CapEx for nine months was INR 35-40 crore, excluding land.

Outlook and guidance

• FY 2027 revenue guidance at INR 8,100 crore, with average monthly volume expected at 750 kg; FY30 revenue expected at ₹18,000–19,000 crore with PAT margin projected at 5.25%+ and ROCE of 27%+.

• Revenue CAGR guidance of 30%-35% through FY 2030, with PAT target of INR 945 crore and net debt-free status by 2030.

• Export share expected to rise from 9-10% to 20% and eventually 30% of revenue, with advance gold model to contribute ~20% of volumes by FY30.

• OCF to EBITDA targeted at 20% by FY 2030.

• No plans for equity dilution or external fundraise through 2030; growth to be funded by internal accruals.