Sky Gold and Diamonds shares rally 10% after Q1 profit soars 141% YoY, revenue rises 78%

Sky Gold and Diamonds reported a 77.9% year-on-year (YoY) increase in revenue to Rs 2,012.8 crore in Q1FY27, compared with Rs 1,132 crore in the corresponding quarter last year.

The company's bottom line witnessed an even sharper improvement. Net profit surged 140.7% YoY to Rs 104.9 crore against Rs 43.6 crore in Q1FY26, marking nearly a 2.4-fold jump in profitability.

Operating performance was also strong, with EBITDA rising 119.6% YoY to Rs 156.7 crore, against Rs 71.4 crore in the year-ago quarter.

The strong quarterly numbers indicate continued operating leverage as the company scales its manufacturing and expands its presence across the organised jewellery segment.

Management commentary

Commenting on the Q1FY27 performance, Mangesh Chauhan, Managing Director, Sky Gold and Diamonds, said the jewellery industry is increasingly shifting towards organised players, design-led consumption and more capital-efficient growth.The company further said its asset-light manufacturing model, rising contribution from its advanced-gold business and shorter export receivable cycles are improving capital efficiency and cash generation. Sky Gold said it has achieved positive operating cash flow for the business.

Looking ahead, the company remains focused on its FY27 revenue target of Rs 8,100 crore-plus, while balancing revenue growth, profitability and cash-flow generation.

FIIs and mutual funds increase stake

Foreign Institutional Investors (FIIs) increased their stake in Sky Gold and Diamonds from 1.20% to 2.79% during the quarter. Meanwhile, Mutual Funds also raised their holding from 10.33% to 11.03%.The increase in institutional participation comes alongside strong earnings growth and could add to investor interest in the stock.

Sky Gold and Diamonds stock performance

The strong quarterly results come at a time when the stock has already been witnessing significant buying interest. Sky Gold and Diamonds shares have gained around 25% in the past one month, while the stock has risen approximately 45% over the last three months. Over the past year, the stock has delivered a staggering 152% return.Following Monday's rally, the company commands a market capitalisation of around Rs 11,141 crore.

Technical view

From a technical perspective, the stock remains in a strong uptrend. The 14-day Relative Strength Index (RSI) stands at around 71.2. An RSI above 70 is generally considered to indicate an overbought zone, suggesting that the stock could witness some profit booking or a short-term pullback after its sharp rally.At the same time, the broader trend remains bullish, with Sky Gold and Diamonds trading above all 8 key Simple Moving Averages (SMAs), indicating strong underlying momentum.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times.)

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