Sky Gold and Diamonds, a multibagger stock with an extraordinary return of over 2,200 percent in two years, was locked in its 5 percent lower circuit at ₹308.75 on Wednesday, July 24, despite reporting strong earnings for the June quarter of FY26. The selling pressure came in even as the company delivered significant growth in revenue, profit, and operational efficiency.
For the quarter ended June 2025 (Q1FY26), the company’s net profit more than doubled to ₹43 crore, up from ₹21 crore in the same quarter last year. Consolidated revenue jumped 56.5 percent year-on-year to ₹1,131 crore from ₹723 crore. EBITDA rose 91.6 percent to ₹71.1 crore, with margins improving to 6.3 percent from 5.1 percent in the previous year.
Commenting on the performance, Mangesh Chauhan, Managing Director of Sky Gold and Diamonds, said the results align with the company’s vision of becoming a ₹7,600 crore enterprise by FY27. He added that robust export momentum, strategic product innovation, and increasing client acquisitions are expected to drive further growth. “Our Dubai expansion will position us among the top integrated gold jewellery manufacturers from India,” Chauhan said.
Sky Gold and Diamonds continues to outpace its peers in the organized jewellery manufacturing segment. The company has maintained a lean cost structure, nearly 50 percent lower than the industry average, while also expanding strategically.
Several growth drivers marked Q1FY26:
Product Innovation: The company introduced 18KT lightweight jewellery, which has gained traction among customers looking for more affordable alternatives amid high gold prices.
New Client Additions: The company secured several prominent B2B clients such as Aditya Birla’s Indriya, Reliance Retail, CaratLane, PN Gadgil, and PM Jewellers, significantly expanding its presence in regional markets.
Exports and Dubai Expansion: Exports rose to 12 percent of total revenues in Q1FY26, up from 8 percent in FY25. The company aims to push this to 25 percent in the next 18–24 months. Its entry into the Middle East, particularly Dubai, through a newly incorporated sales and distribution entity, is expected to support this ambition.
Working Capital Optimization: The addition of clients using the advanced gold model is expected to enhance PAT and ROCE, while also tightening working capital cycles.
Looking Ahead: Ambitious FY27 Goals
Sky Gold and Diamonds has laid out a detailed roadmap for FY27, targeting a consolidated revenue of ₹7,600 crore. It plans to double monthly volumes, backed by capacity expansion, a 540,000 sq. ft. integrated jewellery park, and deeper international market penetration.
The company expects to improve its profitability further, targeting a PAT margin of 4.5 percent by FY27. This will be driven by operational efficiency, reduced gold loss, and enhanced product mix with design-led offerings. Additionally, Sky Gold is implementing ERP systems to track inventory, receivables, and gold flow more effectively, aiming for a working capital cycle of 52–55 days and sustainable ROCE above 30 percent.
Stock Price Performance
Despite the robust financials, the stock hit a lower circuit on July 24. It has declined about 2 percent in July after a 20 percent correction in June. However, the stock rallied 26 percent in May and has shown exceptional long-term performance.
Sky Gold and Diamonds has surged over 51 percent in the last one year, more than 2,200 percent over two years, and a staggering 5,000 percent over the past three years. It touched a 52-week high of ₹488.95 in December 2024 and a 52-week low of ₹186.41 in August 2024.
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