Sky Gold and Diamonds Limited – Investor Presentation Summary

Key Operational Highlights

  • Gold loss reduced from 1.5% to 0.5% through ERP implementation and operational efficiency improvements
  • Design talent pool doubled to ~150 professionals over the last three years
  • Manufacturing footprint expanded to 1,35,000 sq. ft.
  • Dubai office opened to enhance Middle East and Southeast Asia presence
  • Value-Added share of business surged from <10% in FY23 to ~50-55% in FY26

Key drivers of operational performance:

  • Technological innovation and creative scalability with industry-leading manufacturing cycles
  • Implementation of ERP to monitor operational KPIs
  • Strategic acquisitions expanding TAM and product depth
  • Onboarding of experienced team in Dubai for international expansion

Segment-wise Performance

Not Specified

Financial Highlights

Revenue: Rs. 6,294.9 crore (FY26)

EBITDA: Rs. 434.3 crore

PAT: Rs. 281.8 crore

EPS: Not Specified

Margins: EBITDA Margin 6.9%, PAT Margin 4.5%, Gross Profit Margin 8.5%

YoY/QoQ comparison: Q4 FY26 Revenue grew 80.6% YoY to ₹1,911.5 crore; PAT grew 137.4% YoY to ₹90.7 crore; FY26 Revenue grew 77.4% YoY; PAT grew 112.4% YoY

Drivers of financial performance: Higher revenue growth, margin expansion through value-added business, operational efficiencies

Comparison to market estimates: Not Specified

Key Risks: Raw material price fluctuations, receivable risk (mitigated through advance gold model)

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Regional Breakdown: Presence across UAE, Malaysia and Singapore mentioned; Middle East expansion through Dubai office

Balance Sheet Snapshot

Net Debt/Equity: Not Specified (Net leverage guided below 1.75x)

Reserves: Other equity of ₹1,043.6 crore (Mar-26)

Current Assets/Liabilities: Current Assets ₹1,636.1 crore vs Current Liabilities ₹923.5 crore (Mar-26)

Working Capital/Leverage Metrics: Working capital days expected to improve through scale benefits, higher export mix, and advance gold volumes

Financial Health Insights: Credit rating upgraded to IND A/Stable/IND A1; adequate liquidity maintained; focus on cash generation and balance sheet strength

Capex & Cash Flow Health

Capital Expenditure: Not Specified

Free Cash Flow: Not Specified

Operating Cash Flow: Net cash from operating activities was negative ₹44.9 crore (FY26)

Net Debt Movement: Not Specified

Investment Rationale: Shift to asset-light expansion model through leased manufacturing facilities; sale of land asset expected to reduce net borrowings by ~20%

Strategic & R&D Initiatives

Investments in Innovation: High-precision 3D technology replication across multiple manufacturing forms (casting, electro-forming, stamping); ERP implementation for operational control

Expected impact on growth: Advance gold expected to contribute ~30% of volumes by FY30 (11.5% in FY26); PAT margin expansion of 10-20 bps YoY

Strategic Rationale: Expanding into high-growth markets (Middle East, Southeast Asia); reducing operational costs through technology; focusing on high-value categories (18kt, 9kt, diamond-studded jewellery)

Industry Trends & Business Environment

Macro/Industry Trends: Indian jewellery retail market projected to reach USD 145 billion by FY28; organized sector expected to grow from USD 19.2 billion in FY20 to USD 82.65 billion by FY28 (20% CAGR); shift from unorganized to organized sector; growing preference for lightweight jewellery among younger consumers

Impact on Company: Demographic dividend with over 65% of India's population under 35 creates significant opportunity; company positioned to capture organized sector growth through B2B manufacturing capabilities

Management Commentary & Growth Outlook

Strategic Outlook: Focus on governance and professionalisation; growth-led, cash-focused strategy; parallel pursuit of disciplined growth and cash generation

FY Guidance: FY27 Revenue projected at ~₹8,100 crore; EBITDA margin expected 7.0-7.5%; PAT margin guided at 4.5%-4.75%; FY30 Revenue expected ~₹18,000-19,000 crore; PAT margin projected ~5.25%+ (₹945 crore); ROCE target 27%+; CFO/PAT target ~20%+; Net debt positive by FY30

Market Share Targets: Not Specified

Risks and Opportunities: Expansion into large unorganized players and smaller brands through dedicated vertical; focus on advance gold or spot payment terms for new customer segments

ESG Updates

  • ESOP program introduced for eligible employees to enhance motivation and long-term value creation
  • Appointment of M S K A & Associates LLP (BDO International member firm) as Statutory Auditors to strengthen corporate governance
  • Promoters voluntarily waived salaries from 1st April 2026, with future payouts only through dividends from operating cash flows

#CompanyName: Sky Gold and Diamonds Limited