Sky Gold and Diamonds: From Zaveri Bazar to ₹6,300 Crore

June 23, 2026· 15 min read

You’ve heard of Malabar Gold. You’ve shopped at CaratLane. You’ve never heard of the company that made what you bought. No stores. No ads. Not a consumer brand. Probably the only listed pure-play B2B jewellery manufacturer in India at this scale.

That company is Sky Gold and Diamonds. ₹785 crore in FY22. ₹6,295 crore in FY26. That kind of compounding in B2B manufacturing is what made me look. I am not a SEBI registered analyst. This is me learning in public. Take everything here as a learning exercise, not advice.

Why I’m Looking at This

India’s jewellery industry is a $94 billion market heading to $153 billion by 2033. Organised retail has grown from 22% of the market in FY19 to 36-38% in FY25. As the big chains open more stores, they need manufacturers who can keep up. Sky Gold is positioning itself to be that supplier.

What makes it more interesting is what’s happening now. They are in the middle of a deliberate pivot, trading top-line speed for margin quality and cashflow health. Most investors see a slowdown. I think they’re watching a transition.

What Sky Gold Actually Does

Sky Gold is a B2B, design-led manufacturer that makes lightweight casting gold jewellery and sells it to large organised retailers.

Its asset-light, design-led model has fostered sticky partnerships with leading jewellers: Malabar Gold, Kalyan Jewellers, GRT, and Senco as anchor relationships, with Indriya (Aditya Birla Group), CaratLane (Tata Group), and Reliance added in Q1 FY26 fuelling further momentum. Revenue is concentrated among the top clients, which is both a strength and a risk.

They operate from a single 1,30,000 sq ft integrated facility in Navi Mumbai with an annual capacity of 14.4 tonnes (~1,050 kg/month), a design library of over 9 lakh designs, and reach across 2,000+ showrooms in India and 500+ stores internationally. Design-to-finish cycles run 7-20 days, enabled by 3D printing technology sourced from Germany, Italy, and the US. Under the asset-light leasing model, the target is to roughly double capacity to 2 tonnes per month by FY30.

Their products span a wide price range, from ₹5,000 for lightweight everyday pieces to around ₹1 lakh for premium studded jewellery. The moat is not the factory — it’s speed, scale, and 9 lakh designs that large chains can’t easily replicate elsewhere.

The Journey: Year by Year

2000: Mangesh Chauhan co-founds Sky Gold at Zaveri Bazar as a partnership firm.

2008: Incorporated as Sky Gold Private Limited.

2018: Converts to Public Limited. The listed company story begins.

FY22-23: Revenue at ₹1,153 crore. Organic growth, still a pure casting jewellery business.

June 2024: Two acquisitions happen in the same month. This is the inflection point.

July 2025: Third acquisition, Speed Bangle, expands into a completely new product category.

January 2025: Company is renamed Sky Gold and Diamonds Limited, signalling the expansion beyond just gold.

June 2026: New CEO Akash Talesara is appointed. First professional CEO from outside the founding family.

The Acquisitions

This is where it gets interesting. Three acquisitions, each with a clear strategic logic.

Starmangalsutra Pvt. Ltd. and Sparkling Chains Pvt. Ltd. (June 2024)

Both were promoter-owned companies the Chauhan family brought into the listed entity.

Starmangalsutra made mangalsutras — a high-demand, steady subcategory Sky Gold didn’t have. Sparkling Chains made chains, necklaces, and bracelets. Before these two, Sky Gold’s retail market reach was 35%. Combined, it went to 65%.

FY24 turnover: ₹171 crore (Starmangalsutra) + ₹200 crore (Sparkling Chains) = ₹371 crore in incremental revenue. Acquired for ₹23.98 crore and ₹26 crore respectively, via share swap, not cash.

The deal also added 300 kg/month in production capacity, taking total capacity to 1,050 kg/month.

Speed Bangle Pvt. Ltd. (July 2025)

This one is different. Acquired for ₹224.91 crore (paid via 60.95 lakh equity shares at ₹369 per share). Sky Gold enters the Italian bangles segment: machine-made and handmade, very few manufacturers in India do this.

Speed Bangle operates on a 100% advance-gold model — customers provide the gold upfront, so Sky Gold carries no gold price risk on this segment. The concern is the price: ₹224.91 crore is significant relative to the earlier acquisitions.

The Industry and Competitors

Who are the Actual Peers?

This is important. Sky Gold is B2B. Comparing them to Titan or Kalyan Jewellers is wrong. Those are retailers with very different economics.

The most direct comparable is Emerald Jewel Industries, the largest casting jewellery manufacturer in India. Sky Gold is number two. But Emerald is unlisted, so there’s no public price to anchor against.

The honest assessment: there is no perfect listed peer. Sky Gold is somewhat unique at its scale in B2B domestic gold manufacturing. That makes valuation harder to anchor, but it also means the market doesn’t have an obvious reference point to reprice it down.

The Numbers

FY26 EBITDA: ₹434 crore (+121% YoY) at 6.9%, with Q4 FY26 already at 7.4%. The exit rate is ahead of the full-year average. In manufacturing, every 1% of margin improvement goes directly to the bottom line.

Gold loss is down. From 1.5% to 0.5%. In a business where the raw material is gold, cutting wastage directly impacts profitability.

Value-added products now cross 50% of revenue. This means Sky Gold is not just making plain casting jewellery. They are doing more complex, higher-margin work.

Operating cashflow has been negative. -₹272 crore in FY25. This is the stat bears point to. But FY26 came in at -₹45 crore, a massive improvement. More on why this is actually the point in the next section.

The Strategic Pivot: The Most Important Part of This Story

Sky Gold was growing revenue at 50% per year. In FY26, management deliberately slowed that to 30%. The reaction from most investors: concern. But if you understand why they slowed, it’s the opposite of a red flag.

The Cash Machine Problem

When a jewellery manufacturer grows at 50% annually, here is what happens:

• Every new order requires more gold upfront as working capital
• Customers (large retailers like Malabar) take 45-60 days to pay
• So as revenue doubles, the cash tied up in receivables doubles too
• You fund this gap with debt, which means rising interest costs

Sky Gold’s operating cashflow was -₹272 crore in FY25. The company was profitable on paper but burning cash to fund its own growth. This is not unusual for a fast-growing manufacturer, but it has a ceiling.

Management’s response: pull back on growth to 30%, use that breathing room to restructure the working capital cycle, and then accelerate again from a healthier base. It worked. FY26 operating cashflow came in at -₹45 crore, down from -₹272 crore in a single year.

The Advance Gold Model

The key operational lever is the advance gold model. In this structure, clients provide the gold upfront before manufacturing begins. Sky Gold takes no gold price risk, ties up no capital in raw material, and the working capital cycle compresses dramatically.

Speed Bangle, the July 2025 acquisition, already operates 100% on this model. Sky Gold has been expanding it across the rest of the business, and it’s working. The working capital cycle is already below 60 days as of FY26, confirmed in the Q4 results. That’s the advance gold model delivering, not just being promised.

Advance gold currently accounts for 11.5% of volumes in FY26. The target is 30% by FY30. One thing worth understanding: this model is margin accretive, not topline accretive. Because the client provides the gold, Sky Gold’s reported revenue doesn’t include the gold value on those orders. So as the advance gold mix grows, margins improve but headline revenue growth looks optically slower. That’s a feature, not a bug.

This is the mechanism that turns a working-capital-hungry manufacturer into a cash machine.

Operating Cashflow Trajectory

If this trajectory holds, and FY26’s improvement suggests it’s on track, the business will generate substantial free cash flow by FY27. That changes the fundamental character of the investment.

Debt Reduction Plan and Sky Gold 3.0

Sky Gold originally planned to build a new greenfield manufacturing facility. They scrapped that under the “Sky Gold 3.0” vision. Instead of owning, they will lease manufacturing capacity. This frees up the ₹105 crore land they had acquired, which they are now selling.

The ₹105 crore land sale, combined with improving cashflow, is expected to reduce net borrowings by 50%+ in FY27. The promoter family has personally committed to buying the land if the sale doesn’t close within 6 months — an unusually strong backstop for minority shareholders. Longer-term target: net debt-free by FY30.

Exports and Diamonds: Two New Growth Engines

Exports

India signed a trade deal with the UK in July 2025, eliminating import duties of 2.5-4% on plain gold and diamond jewellery. This is a direct tailwind for B2B manufacturers like Sky Gold.

Exports already contributed 11-12% of revenue in FY26, and management is targeting a stable 20% by FY30. Notably, the export model runs on traditional terms, not the advance gold model, so exports will be topline accretive as they scale. To support this, Sky Gold has already opened an office in Dubai and is targeting the UK, Malaysia, and Singapore as priority markets.

On the ground: they exhibited at Birmingham (June 2026), Jeddah (September 2025), and Bahrain (November 2025), with Singapore next in July 2026. In April 2025, they secured a 200 kg/month recurring export order with advance payment. Early-stage, but actively being built.

Diamonds

The company’s January 2025 name change to “Sky Gold and Diamonds” was not just branding. Diamonds is a new vertical with different economics: higher margins, more international customers, and a different working capital profile (customers often provide the diamonds, similar to the advance gold model).

Revenue contribution from diamonds is still small but growing. Watch for it to become a meaningful segment over the next two years.

Management Guidance: FY27 and Vision 2030

Near-term: FY27

• Revenue target: ₹8,100 crore (roughly 30% growth over FY26)
• EBITDA margin: 7-7.5%
• PAT margin: 4.5-4.75%
• Q4 FY26 exit run rate: ~₹7,650 crore annualised, meaning they ended FY26 already close to the FY27 run rate

Vision 2030

• 30-35% revenue CAGR through 2030, targeting ₹18,000-19,000 crore
• Net debt-free by 2030
• No equity dilution planned through 2030
• Promoters moving to zero salary from FY27, compensation only through dividends, which aligns their interests directly with minority shareholders

A professional CEO, Akash Talesara, was appointed in June 2026, the first from outside the founding family. This usually signals the founders recognise that scaling past a certain point requires a different kind of management.

Getting from ₹6,295 crore to ₹18,000 crore in four years at 30-35% CAGR is ambitious. Achievable mathematically with execution.

Valuations

Sky Gold trades at approximately 28x trailing PE on FY26 PAT of ₹281.8 crore (market cap roughly ₹7,750 crore at the time of writing, share price ~₹500).

On forward earnings, the picture gets more interesting. FY27 guidance implies PAT of ₹364-385 crore (at 4.5-4.75% margin on ₹8,100 crore revenue). At current market cap, that’s roughly 20-21x forward PE. For a business targeting 30%+ revenue growth with a cashflow inflection ahead, that’s a reasonable multiple if execution holds.

If FY27 PAT is delivered (~₹375 crore midpoint), here is what the stock looks like at different PE multiples, assuming ~15.5 crore shares outstanding:

Break-even is around 20x. Holding the current trailing multiple of 28x gives +35% purely from earnings growth, no re-rating needed. The 52-week high of ₹590 implied ~33x on FY26 earnings. A re-rating above 32x is possible if the growth story stays intact, CFO turns positive as guided, and broader markets are supportive. In that case the upside goes beyond what the table shows.

Price-to-sales on FY26 revenue (₹6,295 Cr) at ₹7,750 Cr market cap is roughly 1.2x.

Shareholding: Who’s Been Buying In

The ownership shift over 8 quarters is one of the cleanest signals in this story.

DII holding went from 1.9% → 13.1% in seven quarters. That’s institutional money consistently accumulating. Promoter dropped from 62.5% to 51.7%, but this is from share-based acquisitions diluting the %, not selling. FII is still at just 1.2%. If global funds start entering, that becomes an additional catalyst. Public holding has stayed range-bound, suggesting retail isn’t driving the move.

Management Scorecard: Guidance vs Reality

The best thing about watching a company over multiple quarters is you start to see whether management says what they do or does what they say. Here’s the track record.

Sky Gold has consistently beaten its own guidance on revenue and margins. For a mid-cap manufacturer, that kind of execution consistency is not common. It’s one of the reasons I find the management credible.

Bull Case vs Risks

Why This Could Work

• Organised jewellery retail in India is growing structurally and needs B2B manufacturers at scale
• Sky Gold has the design library, capacity, and client relationships to be the default choice for large chains
• The operating cashflow turnaround (-₹272Cr to -₹45Cr to target +₹225Cr) is the central thesis and it’s tracking
• Advance gold model reduces working capital intensity and turns the business self-sustaining
• Exports via India-UK trade deal opens a new addressable market
• Debt reduction roadmap is credible given land sale proceeds
• Management skin in the game: zero salary from FY27, dividends only
• ESOP pool introduced (ESOP 2024), probably the first in B2B jewellery manufacturing to do this. Giving employees skin in the game means the people building this business are also invested in where it goes
• Mutual funds are steadily building positions, DII holding has gone from 1.9% to 13.1% over seven quarters (see shareholding section above)
• FY27 guidance raised and already being run-rated: management originally guided ₹7,600 Cr for FY27, then raised it to ₹8,100 Cr after FY26 results. The Q4 FY26 annualised exit run rate was ~₹7,650 Cr, meaning they ended the year already close to the original target. The raised guidance isn’t a stretch, it’s a continuation of what’s already happening

What Could Go Wrong

• Customer concentration: a handful of large clients drive the bulk of revenue. If Malabar Gold or Kalyan Jewellers slow expansion or switch supplier, it hurts directly
• Cashflow execution: CFO improved from -₹272Cr to -₹45Cr in FY26, but the final leg to +₹225Cr still requires the advance gold model to scale further across the client base. If clients resist it, the timeline slips
• Debt: rising interest costs in a working-capital-heavy business. Management is targeting 50%+ net debt reduction in FY27 via land sale proceeds and positive CFO. Execution risk remains until the land sale closes
• Acquisitions: buying promoter-owned companies into the listed entity is a governance flag, even if the economics look fair
• Gold price risk: a sharp rise in gold prices can soften demand, though evidence suggests Indian consumers are resilient: they pivot to lighter designs, 9kt/14kt options, or diamond pieces rather than stop buying altogether. Sky Gold’s design breadth across categories and karats positions it to capture this shift rather than lose to it
• Government demand advisory: In May 2026, PM Modi appealed to Indians to stop buying gold for a year due to forex pressure from rising oil costs and the Iran conflict. It’s voluntary, not a ban, but if large chains pull back orders, it flows through to Sky Gold directly
• High volatility: Beta of 1.23, annualised volatility of 44%. This stock moves a lot

My Take

The main thesis here is not “revenue will keep growing fast.” It’s that the business is transitioning from cash-burning growth to self-sustaining compounding. The CFO move from -₹272 Cr to -₹45 Cr in one year is not a coincidence. The working capital cycle is already below 60 days. If FY27 delivers +₹180-225 Cr positive CFO as guided, the character of this business changes completely — and exports and diamonds are optionality on top.

The stock has corrected from its highs. Mutual funds are starting to enter. The cashflow story is still ahead of us. The next 12-18 months will tell you whether the thesis was right.

I hold this stock. The thesis is the cashflow inflection. If FY27 delivers positive CFO as guided, this becomes a very different business. That’s what I’m tracking quarter by quarter.

None of this is investment advice. I am learning out loud.

This post was researched and written with the help of AI. All figures have been cross-checked against public sources, but do your own verification before making any decisions.

Sources I used to write this:

• Sky Gold: The B2B Backbone
• Shankar Nath on Sky Gold
• Congruence Advisers Analysis
• Screener.in
• Q3 FY26 Earnings Call
• Sky Gold Acquires Starmangalsutra
• Vision 2030 coverage
• FY26 Results