Sky Gold Q2FY25 Revenue Surges 94.2%, PAT Soars 405.2%

Sky Gold (SGL), a leading Mumbai-based jewellery company, disclosed its financial results for the quarter ending September 30, 2024, showcasing growth across all key metrics.

Sky Gold  delivered a remarkable financial performance in Q2FY25, with revenue from operations surging by 94.2 per cent year-on-year to Rs 768.8 crore. EBITDA witnessed an impressive growth of 154.3 per cent, reaching Rs 38.8 crore, reflecting strong operational efficiency. Profit After Tax (PAT) soared by an astounding 405.2 per cent to Rs 36.7 crore, while PAT margin improved significantly by 294 basis points, standing at 4.8 per cent.

Sky Gold  achieved significant operational milestones in Q2FY25, with consolidated revenues rising 94.2 per cent year-on-year and 6.3 per cent quarter-on-quarter, showcasing consistent growth momentum. Ebitda margins improved to 5.0 per cent, underlining enhanced operational efficiency.

The company fortified its financial position by raising Rs 270 crore through Qualified Institutional Placement (QIP), strengthening working capital and supporting expansion initiatives. It successfully integrated its recent acquisitions, Sparkling Chains and Starmangalsutra, aiming to achieve Rs 500 crore in sales by Q4FY25. Additionally, Sky Gold expanded its client portfolio by onboarding prominent names like CaratLane and P.N. Gadgil Jewellers, reinforcing its industry presence.

Growth Drivers and Strategic Initiatives:
Speaking on the results, Mangesh Chauhan, Managing Director and CFO, attributed the record-breaking performance to product innovation, capacity utilisation, and synergies from acquisitions.

“Our targeted strategies have increased our addressable market share from 35 per cent to 70 per cent, while consistent volume growth, competitive delivery timelines, and rising demand for lightweight, high-quality jewellery are fueling our success,” said Chauhan.

Key initiatives include expanding the 18-carat gold jewellery line, scaling operations for acquired brands, and increasing wallet share among existing clients.

Internationally, Sky Gold’s growing presence in the Middle East has been validated by rising revenues, driven by demand for traditional Indian designs. Domestically, festive and wedding seasons are set to sustain robust sales growth, with expectations of 25-30 per cent retail-level growth in the December quarter.

Market and Industry Outlook:
India's jewellery sector is undergoing rapid transformation, with consumers gravitating toward branded and quality-driven options. Coupled with favourable market dynamics, including duty cuts and rising disposable incomes, Sky Gold is well-positioned to capitalise on these trends.

Chauhan expressed confidence in achieving the company’s FY27 revenue target of Rs 6,300 crore, emphasising continued investment in digital automation and cost optimization to sustain growth.

Founded in 2008, Sky Gold  specialises in lightweight 18- and 22-carat gold jewellery, offering diverse designs across rings, bangles, pendants, earrings, and more. Operating on a B2B model, its clients include top jewellery retailers like Malabar Gold, Kalyan Jewellers, and Senco Gold.

The company’s state-of-the-art manufacturing facility in Navi Mumbai processes 750 kg of gold monthly, backed by a design library of over 500,000 styles. Listed on the BSE and NSE, Sky Gold is a trusted name in India’s evolving jewellery market.

Sky Gold’s Q2FY25 performance underscores its strategic acumen and operational excellence, paving the way for sustained growth in the dynamic jewellery sector.