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

Executive summary

• Achieved strong Q3 and nine-month FY 2026 performance, with consolidated Q3 FY26 revenue of ₹1,767.7 crore, up 77.1% YoY, and nine-month revenue at ₹4,383.4 crore, up 76.1% YoY.

• Q3 FY26 PAT rose 120.4% YoY to ₹80.5 crore; nine-month PAT at ₹191.1 crore, up 102.3% YoY.

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

• Expansion into new product categories and geographies, including a Dubai office and onboarding major clients, plus acquisition of 51% stake in Shri Rishab Gold.

• Change in depreciation method to SLM from WDV effective April 1, 2025, increased Q3 FY25-26 profit before tax by ₹233.32 lakhs.

Financial highlights

• Gross margin improved to 8.27% YTD FY 2026 from 5.97% in FY 2024, driven by gold loss reduction and value-added products.

• Q3 FY26 gross profit at ₹150.8 crore (+106.8% YoY); 9MFY26 gross profit at ₹362.4 crore (+114.7% YoY).

• 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%.

• Export revenue share at 91% in Q3 FY26 and 90% in 9MFY26, highlighting strong international growth.

Outlook and guidance

• Revenue CAGR guidance of 30%-35% through FY 2030, targeting ₹18,000–19,000 crore revenue and ₹945 crore PAT by 2030.

• FY26/FY27 revenue guidance revised upwards to ₹6,100 crore/₹8,100 crore; PAT margin guided at 4.25%+.

• Net debt-free position expected by 2030, with OCF to EBITDA targeted at 20%.

• Working capital cycle expected to drop below 60 days, with cash flow neutrality by March 2026 and positive cash flow thereafter.

• Advance gold model to contribute ~20% of volumes by FY30, improving capital efficiency.