Sky Gold & Diamonds Shines Bright in Q2 FY26, Fuels Global Expansion

Sky Gold & Diamonds Limited, a prominent B2B gold jewellery manufacturer, has reported an exceptional performance for the second quarter and first half of fiscal year 2026. The Mumbai-headquartered company, listed on both BSE (541967) and NSE (SKYGOLD), announced its Q2 FY26 consolidated results, showcasing robust growth momentum driven by strategic initiatives, rising exports, and enhanced retail partnerships across India, the Middle East, and Southeast Asia.

For Q2 FY26, Sky Gold & Diamonds achieved its highest-ever quarterly revenues and Profit After Tax (PAT). Revenue from operations surged by an impressive 93.1% year-on-year to INR 1,484.5 crore. This strong top-line growth translated into a significant increase in profitability, with EBITDA climbing by 157.5% to INR 99.9 crore and PAT rising by 82.6% to INR 67.0 crore. The EBITDA margin improved to 6.7% from 5.1% in Q2 FY25, while the PAT margin stood at 4.5%. For the first half of FY26, consolidated revenue reached INR 2,615.7 crore, marking a 75.3% year-on-year growth, with EBITDA at INR 171.3 crore (up 125.2%) and PAT at INR 110.6 crore (up 90.9%).

Strategic Growth Drivers and Market Adaptation

Mr. Mangesh Chauhan, Managing Director, highlighted that the stellar Q2 FY26 results reflect the continued acceleration of strategic growth levers implemented earlier in the year. The company has successfully adapted to evolving consumer preferences, noting a strong demand for lightweight designs and lower-carat gold (9Kt, 14Kt) amidst elevated gold prices. The 18Kt business now contributes 7% to total revenue, and studded jewellery has doubled its contribution to 1.5%, reflecting a shift in consumer mindset towards wearable, stylish pieces.

Sky Gold & Diamonds is also making significant strides in expanding its market reach. A strategic collaboration with SENCO Gold and Diamonds was initiated to launch a 9kt gold jewellery line, targeting value-conscious and style-driven Gen Z consumers. This partnership is expected to broaden the company's market penetration and connect with a new demographic. The company's B2B business model, serving over 2,000 showrooms across India, continues to be a cornerstone of its success.

Global Expansion and Operational Excellence

International expansion is a key focus for Sky Gold & Diamonds. The company successfully opened a new B2B sales office, Sky Souk Jewellery Trading LLC, in Dubai (UAE) in October 2025. This move aims to strengthen its presence in the Middle East, a region identified for its robust demand for premium jewellery. The early success of this initiative is evident, with exports doubling this quarter to INR 150 crore. Management expects exports to contribute 15-20% of total sales by March 2027, further solidifying its global footprint across UAE, Malaysia, and Singapore.

Operational efficiency remains a core strength. The company's frugal cost structure, reported to be 50% leaner than peers, allows it to operate with lower gross margins while still outperforming competitors. This efficiency, combined with a superior understanding of micro-markets, has driven significant market share gains. To further enhance its financial structure, Sky Gold & Diamonds reinitiated its Gold Metal Loan (GML) program, securing limits with three private banks. While facing initial delays in documentation and supply, the GML is expected to provide lower-cost financing, reducing interest costs and improving PAT margins by 20 basis points.

Strategic Acquisitions and Future Outlook

The company's growth strategy also includes strategic acquisitions. The completion of the Speed Bangle Pvt. Ltd. (erstwhile Ganna N Gold) acquisition provides an entry into the specialized lightweight Italian bangles segment, operating on a 100% advance gold model. Furthermore, Sky Gold & Diamonds entered a non-binding term sheet to acquire a majority stake in Shri Rishab Gold, a Mumbai-based firm known for its mangalsutra segment. This acquisition is poised to establish the company as a dominant player in the mangalsutra market, leveraging Rishab Gold's strong client base.

Sky Gold & Diamonds has also strengthened its management team with key appointments. Mr. Siddharth Sipani, formerly the group finance controller, has been promoted to Chief Financial Officer, bringing over 20 years of experience in finance and strategic business management. Mr. Virupakshi Kolla, former Gems & Jewellery Segment Head for Kotak Mahindra Bank, was onboarded as an independent director, adding 36 years of banking expertise to the board.

Looking ahead, the company has set ambitious targets, aiming for a revenue of INR 5,400 crore by FY26 and INR 7,600 crore by FY27. It also plans to reduce working capital intensity to 55-57 days by FY27 and expects to be cash flow positive after March 2027. A new manufacturing facility is planned to open by 2028, with construction commencing in April 2026, further supporting its vision to achieve 4.5 tons in 2031-2032. The company's proactive approach to market trends, disciplined capital allocation, and strategic expansions position it for sustained growth and leadership in the Indian and global jewellery markets.

Sustained Momentum and Investor Confidence

Sky Gold & Diamonds' Q2 FY26 performance underscores its ability to sustain growth momentum through strategic execution and market responsiveness. The company's focus on design-led manufacturing, advanced gold contracts, and optimizing working capital ensures that growth is not just rapid but also quality-accretive. The management's commitment to prudent financial management and operational agility, coupled with a clear vision for global expansion, reinforces investor confidence in its long-term trajectory. The recent upgrade of its bank loans to 'IND A- /Stable' by India Ratings further validates its strengthening financial position.