📉 The Financial Deep Dive
Sky Gold and Diamonds Limited has posted exceptionally strong financial results for the third quarter and nine months ended December 31, 2025. The company demonstrated remarkable year-on-year growth across both standalone and consolidated operations.
The Numbers:
- Standalone Q3 FY26: Revenue from operations reached ₹1,37,570.95 lakhs, an impressive 88.5% increase from ₹72,972.67 lakhs in Q3 FY25. Net profit saw an even more substantial surge of 121.2% YoY, climbing to ₹6,106.34 lakhs from ₹2,760.57 lakhs.
- Consolidated Q3 FY26: Revenue grew by 77.1% YoY to ₹1,76,768.30 lakhs, up from ₹99,796.92 lakhs. Consolidated net profit surged by 120.4% YoY to ₹8,053.54 lakhs, compared to ₹3,653.98 lakhs in the prior year.
- Nine Months Ended Dec 31, 2025: Standalone revenue rose 53.7% YoY to ₹3,33,593.53 lakhs, with net profit up 75.3% YoY to ₹14,848.19 lakhs. Consolidated revenue increased 76.1% YoY to ₹4,38,337.87 lakhs, and net profit grew 102.3% YoY to ₹19,111.56 lakhs.
The Quality & Key Drivers:
- Depreciation Method Change: A significant factor contributing to the amplified profit growth was the change in the depreciation method for property, plant, and equipment from Written Down Value (WDV) to the Straight Line Method (SLM), effective April 1, 2025. This change, accounted for prospectively, resulted in lower depreciation expenses. The standalone Q3 FY26 saw ₹80.40 lakhs less depreciation, and consolidated figures experienced ₹233.32 lakhs less depreciation due to a net reversal of prior period excess charges. This directly boosted reported profits.
- Subsidiary Acquisition: On December 11, 2025, wholly-owned subsidiary Starmangalsutra Private Limited acquired a 51% partnership interest in Shri Rishab Gold, potentially expanding the group's operational footprint.
- EPS Growth: Basic Earnings Per Share (EPS) improved significantly. Standalone Q3 FY26 Basic EPS stood at ₹3.94 (vs ₹1.91 YoY), and consolidated Basic EPS was ₹5.20 (vs ₹2.52 YoY), reflecting the strong profit growth.
Risks & Outlook:
- Lack of Guidance: The company did not provide any specific forward-looking guidance or outlook statements in this announcement, leaving the Street to infer future performance based on historical trends and current market conditions.
- Accounting Impact: While the depreciation method change is permissible and accounted for prospectively, investors should be aware that a portion of the profit growth is an outcome of this accounting adjustment, rather than purely operational performance. The actual operational drivers behind the revenue surge warrant further investigation.
- New Labour Codes: The company assessed the impact of new Labour Codes and concluded it to be not material for the current period, indicating no immediate significant impact on operational costs or structure.