Sky Gold Ltd. has outlined ambitious plans to triple its revenue to ₹18,000-19,000 crore by FY30 from ₹6,295 crore in FY26, while increasing profit after tax by 3.4 times to approximately ₹945 crore over the same period. The jewellery manufacturer, which supplies readymade jewellery to major brands including Malabar Gold, Kalyan Jewellers, Senco Gold, Reliance Jewels and Titan Gold, is shifting towards an asset-light manufacturing model and expanding its presence in export markets. According to reports from NDTV Profit, management expects revenue to grow at a compound annual rate of 30-35% through FY30. At a share price of around ₹624, Sky Gold trades at approximately 35 times FY26 earnings, which is in line with its historical valuation but remains below peers such as Titan Company at around 79x earnings and Thangamayil Jewellery at around 57x earnings.
Sky Gold reported revenue from operations of ₹6,295 crore in FY26, up 77.4% from the previous year, supported by festive demand and deeper strategic partnerships. As reported by NDTV Profit, gross margin rose 140 basis points to 8.5%, attributed to operational efficiencies, growth in the Advance Gold business and higher contribution from 18-karat, 9-karat and diamond-studded jewellery. EBITDA increased 121% to ₹434 crore with the margin expanding 140 basis points to 6.9%, while net profit rose 112% to ₹282 crore. Return on equity improved to 23% from 19% in FY25, and return on capital employed increased to 36% from 30%. For FY27, management has guided continued expansion of higher-margin jewellery and expects to generate positive operating cash flows.
Export revenue contributed 11% of sales in FY26, compared with 6% in the previous year, and the company plans to increase this share to 20% by FY30 by expanding in the Middle East and Southeast Asia. According to management reported by NDTV Profit, export operations generally have shorter credit periods, which could improve working capital efficiency. Domestically, the company plans to increase business with existing corporate customers while launching a dedicated vertical for large unorganised jewellers and smaller retail brands, with these transactions conducted only through Advance Gold or spot-payment arrangements. The company's share of higher-margin businesses has increased from 10% in FY23 to about 50-55% in FY26.
Under its traditional business model, Sky Gold procures gold, manufactures jewellery and records the full value of finished jewellery, including gold cost and making charges, as revenue. The company sources gold through banks, nominated agencies and the local market, requiring significant investment in inventory and working capital. As reported by NDTV Profit, the Advance Gold business accounted for 11.5% of total volumes in FY26, compared with 5.7% a year earlier, reducing the net working capital cycle to 59 days from 71 days. The company plans to increase the Advance Gold business to 30% of total business by FY30 from 11.5% in FY26, with management expecting this transition to help increase profit-after-tax margin to at least 5.3% by FY30 from 4.5% in FY26. Under the Advance Gold model, the company only manufactures the jewellery and generates revenue through making charges rather than gold sales, significantly reducing inventory requirements and improving cash flow.
Sky Gold reported net debt of ₹549 crore at the end of FY26 and paid ₹79 crore in interest during the year. According to management reported by NDTV Profit, the company plans to cut net debt by more than half in FY27 through stronger cash generation and land monetisation before becoming net debt-free by FY30. Management expects lower interest costs could improve margins by about 125 basis points, while the focus on higher-margin products and Advance Gold model could increase gross margins by another 60-90 basis points. The company's share of higher-margin businesses has increased from 10% in FY23 to about 50-55% in FY26. Additionally, promoters would forgo salaries from FY27 and would be paid through dividends funded by operating cash flows.
