Sky Gold Q2 FY27 Profit Rises 93% as QIP Plan Advances

Quarterly earnings lift investor attention

Shares of Sky Gold and Diamonds Ltd gained on October 27 after the jewellery company reported a sharp improvement in its September-quarter consolidated earnings. Consolidated net profit rose to ₹129.35 crore in the second quarter of FY27, compared with ₹66.99 crore in the corresponding quarter a year earlier. That represents year-on-year growth of 93.1%, while the figure was also up 23.3% sequentially. Revenue from operations increased 61% year-on-year to ₹2,390.65 crore from ₹1,484.4 crore. The company’s board approved the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. The results combined strong revenue growth with a wider operating margin, even as the quarter included an exceptional loss linked to an alleged deepfake-enabled fraud at a subsidiary.

Revenue growth supported the profit increase

Sky Gold’s consolidated revenue rose by ₹906.25 crore from the year-earlier September quarter. On a sequential basis, revenue grew 18.8% from the preceding quarter. The growth in the group-level figure is important because it includes the contribution of wholly owned subsidiaries. The company’s standalone, or parent-only, revenue was ₹1,824.55 crore during the quarter. Standalone profit after tax stood at ₹85.37 crore, lower than the consolidated number because group subsidiaries are included only in consolidated reporting. The disclosed group entities include the UAE trading arm Sky Souk Jewellery and studded-jewellery units.

Operating profitability improves in Q2 FY27

Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 89.6% year-on-year to ₹189.4 crore from ₹100 crore. EBITDA margin expanded to 7.9% from 6.7% in the corresponding quarter last year. The margin improvement indicates that operating profitability grew faster than revenue during the period. Consolidated net margin rose to 5.41% from 4.49% a year ago. It was also higher than the 5.19% reported in the previous quarter. Basic earnings per share increased to ₹8.26 from ₹4.38 in the year-earlier quarter.

Key Q2 FY27 financial numbers

Board clears up to ₹1,800 crore fundraise

Alongside the earnings announcement, Sky Gold’s board approved a proposal to raise up to ₹1,800 crore. The company said it may use a qualified institutions placement, other permissible routes, or a combination of these options. The proposed fundraising remains subject to shareholder approval and other required regulatory approvals. The issue price has not yet been determined. The board has called an extraordinary general meeting on November 18, 2026, to seek shareholder approval for the proposal. The company has not specified the final structure or timing of the issue beyond the approved fundraising limit.

Subsidiary fraud creates an exceptional loss

Sky Gold disclosed an alleged fraud incident at its wholly owned subsidiary, Starmangalsutra Private Limited, during the September quarter. The incident involved unauthorised fund transfers of ₹10.70 crore. According to the company, the transfers were allegedly carried out through deepfake methods and coercion using an employee’s company-issued mobile phone and laptop. The company recovered ₹3.35 crore of the amount. The unrecovered ₹7.35 crore was recognised as an exceptional loss in the consolidated financial results. A complaint has been filed with the cyber police to seek recovery of the outstanding amount from the bank accounts of suspects and beneficiaries.

Reported profit included the one-off charge

The exceptional loss reduced reported consolidated profit for the quarter. Based on the disclosed numbers, the reported profit growth of 93.1% included the ₹7.35 crore net exceptional charge. The company’s results therefore reflect both the operating improvement and the financial impact of the incident in the same reporting period. The fraud disclosure also places attention on the company’s recovery process through the cyber police complaint. No further recovery amount or timeline was disclosed in the available results information. Investors will have to track future company disclosures for any update on the complaint or recovery of the outstanding funds.

Acquisition completed after quarter-end

Separately, Sky Gold said it completed the acquisition of 100% of the issued, subscribed and paid-up equity capital of Purvi Gems & Jewellery (India) Private Limited. The acquisition was completed on October 7, after the close of the September quarter. As a result, the transaction occurred after the period covered by the Q2 FY27 financial results. The company did not provide financial details of the acquired business in the information available with the quarterly announcement. The completion adds another corporate development to the company’s disclosures following the September-quarter results. Its effect, if any, on consolidated operations would be reflected in subsequent reporting periods.

What the update means for shareholders

The October 27 update centres on three disclosed developments: stronger consolidated earnings, a proposed ₹1,800 crore capital raise, and the subsidiary fraud-related exceptional loss. Revenue and EBITDA rose at double-digit rates, while both EBITDA and net margins improved from the year-earlier period. At the same time, the proposed QIP or other fundraising route will require shareholder approval at the November 18 extraordinary general meeting. The company has also initiated a cyber police complaint regarding the ₹7.35 crore still unrecovered from the alleged fraud. Future disclosures on the fundraising terms, shareholder vote, regulatory approvals, and recovery proceedings will be the next confirmed events for investors to monitor.