1. At a Glance
Sky Gold just clocked ₹1,131 Cr in Q1 FY26 revenue (+56.5%) and doubled PAT to ₹44 Cr. They’re now eyeing Dubai like it’s the next gold mine. But behind the glitter lies debt, falling promoter faith, and cash flows shakier than a fake diamond.
2. Introduction with Hook
Picture a jeweller walking into Shark Tank saying:
“I float 2,500 new gold designs monthly, but my cash flow’s more negative than your ex’s energy.”
Sky Gold is that pitch. Massive growth, killer margins, and an expansion roadmap glossier than a bridal lehenga — but backed by working capital stress and equity dilution.
Two stats that sparkle:
- 3-Year PAT CAGR: 145%
- ROE: 28.6% in FY25
So… why’s the stock down 5% post-results?
3. Business Model (WTF Do They Even Do?)
Basically, Sky Gold designs, manufactures, and sells 22K gold jewellery to other jewellers. No flashy showrooms. No celeb endorsements.
It’s strictly B2B. Think wholesale gold supplier meets Pinterest influencer.
- ~2,500 designs/month
- 3 lakh SKUs
- ₹50,000 avg ticket size
- 80-member in-house design army
- Focused on high-speed, high-volume retail chains
They sell dreams, in grams.
4. Financials Overview
| Metric | Q1 FY25 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Revenue | ₹723 Cr | ₹1,131 Cr | +56.5% |
| EBITDA | ₹37 Cr | ₹71 Cr | +92% |
| Net Profit | ₹21 Cr | ₹44 Cr | +105% |
| OPM | 5.1% | 6.3% | +120 bps |
Margins are up, profits are up, and revenue looks like it’s on protein powder.
But then comes the twist:
Cash from Ops: -₹273 Cr in FY25
Clearly, someone’s financing this party on credit cards.
5. Valuation
Method 1: P/E-Based
- EPS (TTM): ₹10.75
- Let’s assume 25x P/E for a fast-growing gold B2B player
- Fair Value = ₹270
Method 2: EV/EBITDA
- EBITDA (TTM): ₹230 Cr
- Assume EV/EBITDA = 15x
- EV = ₹3,450 Cr → With Net Debt ~₹550 Cr
- Fair Value = ₹320–₹350
EduFair™ Value Range = ₹270 – ₹350
At ₹324, you’re basically buying gold at MRP. Not overvalued, but the upside ain’t 24K either.
6. What’s Cooking – News, Triggers, Drama
- Dubai Subsidiary announced — let’s hope this isn’t Nirav 2.0.
- Concall Hype: Scheduled for July 25. Expect fireworks (or another design drop).
- FII + DII creeping in — combined institutional stake now 10.3%, up from 0% a year ago.
- Promoters shedding stake like a snake — down from 73.55% to 53.86% in 1 year.
More drama than a K-drama finale. We’re just missing a hostile takeover.
7. Balance Sheet
| FY | Borrowings | Reserves | Net Worth | Total Assets |
|---|---|---|---|---|
| FY22 | ₹92 Cr | ₹71 Cr | ₹76 Cr | ₹175 Cr |
| FY23 | ₹146 Cr | ₹87 Cr | ₹98 Cr | ₹252 Cr |
| FY24 | ₹310 Cr | ₹231 Cr | ₹244 Cr | ₹586 Cr |
| FY25 | ₹630 Cr | ₹537 Cr | ₹684 Cr | ₹1,357 Cr |
The gold’s shiny, but the debt is shinier.
Debt up 6.8x in 3 years.
Net worth growing, sure. But so is leverage — like gold on steroids.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY22 | -₹7 Cr | -₹2 Cr | ₹10 Cr | ₹1 Cr |
| FY23 | -₹6 Cr | -₹20 Cr | ₹43 Cr | ₹17 Cr |
| FY24 | -₹138 Cr | -₹106 Cr | ₹239 Cr | -₹5 Cr |
| FY25 | -₹273 Cr | -₹157 Cr | ₹427 Cr | -₹3 Cr |
Cash flow looks like your crypto portfolio — all hype, no liquidity.
Funding operations via equity + debt = Red flag disguised in gold foil.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 28.6% |
| ROCE | 23.4% |
| P/E | 30.6x |
| D/E | 0.92 |
| OPM | 6% |
“ROE sexier than your Insta DM game. D/E? Slightly concerning.”
ROE of 28.6% is brilliant… until you realize it’s mostly on borrowed cash.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY22 | ₹786 Cr | ₹20 Cr | ₹17 Cr |
| FY23 | ₹1,154 Cr | ₹37 Cr | ₹19 Cr |
| FY24 | ₹1,745 Cr | ₹78 Cr | ₹40 Cr |
| FY25 | ₹3,548 Cr | ₹196 Cr | ₹133 Cr |
They 4x’ed profits in 2 years. But also tripled debt.
So yes, they’re printing money. Just not keeping it.
11. Peer Comparison
| Company | Revenue (Cr) | PAT (Cr) | P/E | ROE |
|---|---|---|---|---|
| Titan | ₹60,456 | ₹3,336 | 92x | 31.8% |
| Kalyan | ₹25,045 | ₹714 | 88x | 15.9% |
| PNG Jewellers | ₹7,693 | ₹218 | 37x | 20.9% |
| Sky Gold | ₹3,956 | ₹155 | 30.6x | 28.6% |
“Sky Gold: Looks like the young cousin outperforming all the uncles.”
Best ROE in the pack, lowest P/E after PC Jeweller (but that’s a horror story).
12. Miscellaneous – Shareholding, Promoters
| Quarter | Promoter | FII | DII | Public |
|---|---|---|---|---|
| Sep ’22 | 73.55% | 0% | 0% | 26.45% |
| Jun ’25 | 53.86% | 0.87% | 9.4% | 35.86% |
Promoter holding is melting faster than a gold bar in a furnace.
Retail is rising, institutions are nibbling. But let’s be honest — they want growth, not just glitter.
13. EduInvesting Verdict™
Sky Gold has all the makings of a 24K story: insane growth, huge design moat, great ROE.
But its balance sheet is shouting “CAUTION” like a GIA warning label.
A diamond in the rough. But maybe hold off till it polishes up that cash flow.
Metadata:
Written by EduInvesting Team | 23 July 2025
Tags: Sky Gold & Diamonds, Jewellery Stocks, Q1 FY26 Results, EduInvesting Premium
