Sky Gold & Diamonds Ltd (SKYGOLD) Q2 FY27 Results Analysis: PAT Surges 91%, Net Debt Rises

Sky Gold & Diamonds Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 2,390.66 Cr (+61.00% YoY) and PAT growth of +93.10% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q2 FY27 delivered 61.0% YoY revenue growth with re-acceleration to +18.8% QoQ, and EBITDA margin of 7.94% is tracking above the guided 7.0-7.5% band, while PAT to owners grew 90.9% YoY. The offset is balance-sheet: derived net debt rose to Rs.874.33 Cr against the >50% FY27 reduction guide, and the approved Rs.1,800 Cr QIP reverses the prior no-dilution commitment. H1 CFO of +Rs.136.66 Cr turned positive ahead of schedule, but cash conversion (CFO/PAT 0.58x) still lags reported profit growth.

Key Investment Insights

Key Positives

• Consolidated revenue grew 61.0% YoY to Rs.2,390.66 Cr and re-accelerated to +18.8% QoQ after +5.3% in Q1
• PAT to owners grew 90.9% YoY to Rs.127.87 Cr, outpacing revenue growth
• EBITDA margin (company basis) of 7.94% is above the guided 7.0-7.5% band, up ~120 bps YoY
• Gross margin improved to 9.58% from 9.32% in Q1 and 8.25% in Q2 FY26
• Exports grew 183.9% YoY to Rs.434.89 Cr, at 18.2% of revenue within the guided 15-20% band
• H1 CFO turned positive at +Rs.136.66 Cr vs -Rs.100.87 Cr in H1 FY26, ahead of the 'OCF positive after March 2027' commitment
• Standalone PAT grew 40.9% QoQ, reversing Q1's -5.78% QoQ decline
• Q2 annualized revenue run-rate of Rs.9,562.62 Cr is ~18% above the FY27 guidance of Rs.8,100 Cr

Risk Factors

• Derived net debt rose to Rs.874.33 Cr from Rs.612.43 Cr, moving away from the >50% FY27 net-debt-reduction guidance (below ~Rs.270 Cr)
• Board approved up to Rs.1,800 Cr QIP, contradicting the prior 'not planning for any dilution' statement
• Rs.7.35 Cr net cyber-fraud loss booked as exceptional (Rs.10.70 Cr gross, Rs.3.35 Cr recovered)
• H1 CFO/PAT of 0.58x and CFO/EBITDA of 0.39x remain below flagged thresholds; working capital build funded by Rs.345.28 Cr payable expansion
• Post-quarter 25 bps repo hike (7 Oct) is a Q3 finance-cost pass-through risk