Sky Gold and Diamonds reported a massive surge in FY26, with revenue climbing to Rs 6,294.89 crore and net profit reaching Rs 281.83 crore. The company is pivoting to an 'asset-light' manufacturing model to boost efficiency and has reduced its working capital cycle to under 60 days. In a major governance move, promoters have opted for a zero-fixed-salary model starting FY27, linking their income directly to dividends and shareholder value.
Sky Gold Reports FY26 Revenue of Rs 6,295 Crore
Profit Surges to Rs 281.83 Crore as Strategic Shift Begins
Reader Takeaway: Strong revenue and profit growth underpinned by an asset-light model shift and proactive promoter governance changes.
What just happened
Sky Gold and Diamonds has posted strong financial results for FY 2026. The company reported a significant jump in revenue from operations to Rs 6,294.89 crore, up from Rs 3,548.02 crore in the previous fiscal. Profit After Tax (PAT) also saw a sharp increase, reaching Rs 281.83 crore compared to Rs 132.66 crore in FY 2025. EBITDA followed the upward trend, climbing to Rs 470.74 crore.
Why this matters
The company is aggressively moving into 'Sky Gold 3.0', a strategic phase centered on an asset-light manufacturing model. By shifting to leased facilities, the firm aims to improve balance sheet flexibility. Additionally, the company has successfully reduced its working capital cycle to under 60 days through its 'advance gold' business model, where clients supply the raw gold, lowering the firm's capital burden.
Governance Update
In a notable signal to shareholders, promoters Mangesh, Darshan, and Mahendra Chauhan have committed to a zero-fixed-salary compensation model effective from FY 2027. All future promoter income will be derived solely from dividends, ensuring their financial outcomes are fully aligned with the company's dividend-paying capacity and cash flows.
Strategic Developments
The company has expanded its international footprint by opening 'Sky Souk' in Dubai to penetrate the GCC market. Exports have climbed to roughly 9% of total revenue as of Q3 FY 2026. Furthermore, the firm has consolidated its market position through the acquisitions of Speed Bangle, Sparkling Chains, Starmangalsutra, and a 51% stake in Shri Rishabh Gold.
Risks to watch
Investors should monitor the integration risks associated with the recent string of acquisitions. While the asset-light model is designed to improve capital efficiency, its success depends on the company's ability to maintain high manufacturing standards without direct ownership of all facilities. Continued reduction of net debt and actual contribution of the Dubai operations to the bottom line will remain key performance indicators.
Context metrics
India Ratings & Research has upgraded the company's credit rating to IND A/Stable/IND A1, reflecting the improved financial health and liquidity observed throughout the year.