Sky Gold and Diamonds (541967) Q4 25/26 earnings summary

Executive summary

• Achieved record revenue of ₹6,294.9 crore in FY26, up 77.4% YoY, with Q4 performance outpacing peers, driven by wedding season demand and strategic focus on lightweight and studded jewelry.

• EBITDA for FY26 reached ₹434.3 crore (up 121.1% YoY), with PAT at ₹281.8 crore (up 112.4% YoY); Q4 EBITDA and PAT also saw triple-digit growth.

• Expanded partnerships with major retail chains, grew B2B and export business, and opened a Dubai office to support international growth.

• Announced elevation of Akash Talesara to CEO and recognized employees through ESOPs, reinforcing professional management and governance.

• Audited standalone and consolidated financial results for FY26 were approved with unmodified audit opinions; board approved re-appointment of internal auditor and initiated new statutory auditor appointment.

Financial highlights

• FY26 consolidated revenue from operations: ₹6,29,488.68 lakhs (+77.4% YoY); Q4 FY26: ₹1,911.5 crore (+80.6% YoY).

• FY26 consolidated net profit: ₹28,183.09 lakhs (+112.4% YoY); PAT margin for FY26 at 4.5%, with guidance to reach 5.25% by FY 2030.

• Gross margin improved to 8.5% in FY26 from 7.1% in FY25, driven by reduced gold loss, higher advance gold business, and value-added products.

• Net working capital days reduced from 71 to 59 YoY; operating cash flow improved from INR -272 crore to near neutral at INR -45 crore.

• Net debt reduced by over 50% YoY, with further deleveraging expected.

Outlook and guidance

• FY27 revenue guidance revised upwards to ~₹8,100 crore, with EBITDA margin expected at 7.0–7.5% and PAT margin at 4.5–4.75%.

• Targeting sustainable PAT of INR 945 crore by FY 2030, with revenue CAGR capped at 30%-35% to maintain balance sheet strength.

• Aims for net debt-free status by FY 2030, with 50%+ debt reduction in FY 2027 via land sale and operational improvements.

• Exports expected to rise to 20% of sales by FY 2030, with focus on expanding international presence, especially in the UK, Malaysia, and Singapore.

• Advance gold business expected to contribute ~30% of volumes by FY30 (11.5% in FY26).