Sky Gold Q1 profit jumps 141 per cent to Rs 105 crore

MUMBAI: Gold may glitter, but Sky Gold and Diamonds’ latest numbers are doing plenty of shining of their own. The B2B jewellery manufacturer has opened FY27 with a sharp jump in revenue and profitability, helped by demand for lightweight and value-added jewellery and stronger business from organised retailers.

Sky Gold reported consolidated revenue of Rs 2,012.8 crore for the quarter ended 30 June 2026, up 77.9 per cent from Rs 1,131.2 crore in Q1 FY26. Revenue was also 5.3 per cent higher than the Rs 1,911.5 crore recorded in Q4 FY26.

The stronger topline translated into an even bigger jump in earnings. EBITDA rose 119.6 per cent year on year to Rs 156.7 crore, from Rs 71.4 crore, while the EBITDA margin widened to 7.8 per cent from 6.3 per cent, an improvement of 148 basis points. Sequentially, EBITDA grew 11.4 per cent from Rs 140.7 crore and the margin expanded by 43 basis points from 7.4 per cent.

Reported PBT more than doubled, climbing 129 per cent to Rs 134.8 crore from Rs 58.9 crore a year earlier. The PBT margin increased to 6.7 per cent, compared with 5.2 per cent in Q1 FY26, a 149-basis-point improvement. On a quarter-on-quarter basis, PBT rose 6.8 per cent from Rs 126.2 crore.

The bottom line was brighter still. Reported PAT surged 140.7 per cent to Rs 104.9 crore, against Rs 43.6 crore in Q1 FY26. PAT margin improved to 5.2 per cent from 3.9 per cent, up 136 basis points. Compared with Q4 FY26, PAT increased 15.6 per cent from Rs 90.7 crore.

On an operational basis, PBT rose 130.1 per cent to Rs 134.8 crore, while operational PAT jumped 142.3 per cent to Rs 104.9 crore. Operational PAT margin stood at 5.2 per cent, up from 3.8 per cent a year earlier and 4.6 per cent in Q4 FY26.

The company attributed the performance to sustained demand from organised jewellery retailers, growing interest in lightweight and value-added products and execution across its manufacturing platform. It is also pushing further into diamond-studded, lightweight and fine jewellery to improve its product mix and margins.

The shift towards higher-value categories is being accompanied by a focus on capital efficiency. Sky Gold said its asset-light manufacturing model, growing contribution from its advance-gold business and shorter export receivable cycles are helping improve working-capital efficiency and have resulted in positive operating cash flow.

Exports are also becoming a bigger part of the growth story. The company showcased its portfolio at the Asiana UK-India Jewellery Expo in London, where it said it generated strong buyer interest across the UK and Europe and built an order book of Rs 30-45 crore.

Sky Gold is now targeting FY27 revenue of Rs 8,100 crore-plus, with management positioning exports as a longer-term growth avenue. The company sees India’s manufacturing capabilities, craftsmanship and expanding free-trade-agreement access as potential advantages in building an international jewellery business.

The quarter also brought a change at the top, with Akash Talesara appointed Chief Executive Officer. The company also introduced an employee stock ownership plan for eligible employees, making it one of the few companies in the sector, according to its disclosure, to offer ESOPs as part of its employee-retention and engagement strategy.

The company’s full-year numbers provide some perspective on the acceleration. FY26 revenue stood at Rs 6,294.9 crore, up 77.4 per cent from Rs 3,548 crore in FY25. EBITDA rose 121.1 per cent to Rs 434.3 crore, while reported PBT increased 117.6 per cent to Rs 379.1 crore.

Reported PAT for FY26 stood at Rs 281.8 crore, up 112.4 per cent from Rs 132.7 crore. Operational PBT increased 142.3 per cent to Rs 375.4 crore, while operational PAT rose 145.2 per cent to Rs 278.1 crore.

With Q1 already contributing more than Rs 2,000 crore in revenue, Sky Gold’s challenge for the rest of FY27 is less about finding growth and more about sustaining the pace without losing sight of margins and cash flow.