This article first appeared on GuruFocus .
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Quarterly Revenue:INR1,484 crores, a growth of 93.1% year-on-year.
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Quarterly PAT:INR67 crores, an increase of 82% year-on-year.
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Volume Growth:544 kgs per month, a 20% increase versus Q1 FY '26.
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Gross Margin:8.2% compared to 6.5% in Q2 FY '25.
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EBITDA:INR99 crores, a growth of 157% year-on-year.
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EBITDA Margin:6.7% compared to 5.1% in Q2 FY '25.
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Half-Year Revenue:INR2,615 crores, a growth of 75% year-on-year.
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Half-Year Gross Margin:8.1% compared to 6.4% in H1 FY '25.
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Half-Year EBITDA:INR171 crores, a growth of 125% year-on-year.
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Half-Year EBITDA Margin:6.5% compared to 5.1% in H1 FY '25.
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Half-Year PAT:INR110 crores compared to INR57 crores in H1 FY '25.
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Half-Year PAT Margin:4.2% compared to 3.9% in H1 FY '25.
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Exports:Doubled to INR150 crores this quarter.
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Store Presence:Products available in over 2,000 showrooms across India.
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Warning! GuruFocus has detected 3 Warning Signs with BOM:541967.
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Release Date: November 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Sky Gold and Diamonds Ltd ( BOM:541967 ) recorded its highest ever quarterly revenues and PAT, with revenue growing by 93.1% year-on-year to INR1,484 crores and PAT increasing by 82% to INR67 crores.
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The company achieved a 20% growth in volumes, reaching 544 kgs per month for the quarter.
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The company has successfully expanded its international footprint by establishing a new B2B sales office in Dubai, UAE, which has already doubled exports to INR150 crores.
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Sky Gold and Diamonds Ltd ( BOM:541967 ) improved its working capital cycle by 7 days due to better inventory management.
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The acquisition of a majority stake in Shri Rishab Gold is expected to enhance market penetration in the high-growth traditional jewelry segment.
Negative Points
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Despite strong performance, the company's PAT margins slightly decreased from 4.8% in Q2 FY '25 to 4.5% in Q2 FY '26.
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The implementation of the Gold Metal Loan (GML) program is taking longer than anticipated due to documentation and supply constraints.
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The company's operating cash flow remains negative, with expectations to become cash flow positive only after March 2027.
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There are concerns about the sustainability of margin expansion, as some benefits from the GML program have yet to be realized.
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The transition to advanced gold business and changes in depreciation policy have impacted financial metrics, requiring careful management to maintain profitability.
Q & A Highlights
Q: How much did the acquisition of Ganna Gold contribute to the revenues this quarter? A: Mangesh Chauhan, Managing Director: We renamed it as Speed Bangle and completed the acquisition in mid-August, allowing us 25-30 days of operations. We achieved sales of 41 kg this quarter, and expect 50 kg per month in the next quarter.
Q: What is the current volume of export orders after establishing the UAE office? A: Mangesh Chauhan, Managing Director: The Dubai office officially opened in early November. This quarter, we achieved INR150 crores in export sales, and expect full-fledged sales in the upcoming quarter.
Q: Can you provide guidance on revenue and margins for FY '26 and '27? A: Mangesh Chauhan, Managing Director: We have given guidance of INR5,400 crores for FY '26 and INR7,600 crores for FY '27, with a PAT margin of 4.25% to 4.5%.
Q: What drove the margin expansion this quarter, and is it sustainable? A: Mangesh Chauhan, Managing Director: Our gross margin improved due to an increase in advanced gold business from 5% to 7% and a doubling of our studded diamond jewelry sales from 0.7% to 1.5%.
Q: How will the gold metal loan (GML) impact your financials? A: Mangesh Chauhan, Managing Director: GML offers a lower interest cost compared to traditional working capital facilities. We have already shifted 8% to 10% of our loans to GML, which will help improve our PAT margins. We aim to increase GML utilization to 75%-80%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
