Sky Gold and Diamonds reported a strong Q2 FY27 performance with revenue climbing 61% to Rs 2,391 crore and net profit rising 93% to Rs 129 crore. The company saw a major cash flow turnaround, generating Rs 136 crore in H1 compared to an outflow last year. While the business benefited from higher-margin Advance Gold models, management also addressed a recent fraud incident at a subsidiary and provided updates on ongoing land monetization efforts.
Sky Gold Q2 Profit Hits Rs 129 Crore, Up 93% YoY
Revenue grew 61% to Rs 2,391 crore in Q2 FY27, while operating cash flow swung to a Rs 136 crore inflow.
Reader Takeaway: Improved product mix and working capital efficiency are driving growth, despite minor drag from subsidiary fraud charges.
What just happened
Sky Gold and Diamonds delivered robust Q2 FY27 results. Revenue reached Rs 2,391 crore, a 61% year-on-year increase. Reported profit (PAT) stood at Rs 129 crore, which would have been Rs 135 crore (up 101% YoY) if not for a Rs 7.35 crore exceptional charge related to a fraud incident at its subsidiary, Star Mangalsutra. Gross margins improved by 133 basis points to 9.6%.
Why this matters
The company has successfully transitioned to a more efficient cash-flow model. H1 FY27 operating cash flow reached Rs 136 crore, a significant improvement from the Rs 101 crore outflow during the same period last year. Management also reduced net debt by 20% compared to FY26 levels, reflecting stronger balance sheet management.
The backstory
Governance has been a focus following a previously disclosed Rs 10.70 crore fraud incident at the subsidiary level. The company has since appointed MSKA & Associates LLP (BDO International) as its new statutory auditor. Management clarified that Rs 3.35 crore of the defrauded amount has been recovered, with the remainder fully provided for in the current quarterly financials.
What changes now
Sky Gold is scaling its 'Advance Gold' model, which now accounts for 16% of volumes. This segment is favorable as it requires minimal working capital. Additionally, the company is pushing into higher-margin studded and diamond jewelry, which contributed 2.6% of revenue this quarter.
Risks to watch
Regulatory constraints remain a key hurdle; management cannot provide forward-looking guidance due to SEBI restrictions. Investors should also watch the Rs 1,800 crore capital raise, as specific utilization plans remain unclear. Furthermore, the ongoing land monetization is at an advanced stage, with promoters ready to purchase the asset if no external buyer is found within 30 days to avoid related-party issues.
Context metrics (as of September 2026)
- Working Capital Days: 55 days (down from 63 days in September 2025).
- EBITDA Margin: 7.9%.