Sky Gold pays ₹9 crore for Purvi Gems to add studded jewellery and chase ₹1,600-1,800 crore sales

Sky Gold & Diamonds, think of it as the factory behind the gold jewellery you see in large chain stores, designs and makes gold jewellery for retailers and distributors from its 1,50,000 sq. ft. facility in Navi Mumbai capable of processing 14.4 tonne of gold per year , and on 7 October 2026 it completed the acquisition of 100% equity shares of Purvi Gems & Jewellery (India) Private Limited for cash consideration of ₹9 crore , a deal that gives immediate entry into lightweight uncut and precia jewellery with potential of about 100 kg of monthly sales and business expected to generate over ₹1,600-1,800 crore of annual revenue over the next two to three years , extending a small-ticket acquisition playbook that has already taken consolidated revenue from operations to ₹6,294.89 crore in FY26 from ₹3,548.02 crore in FY25 while shifting mix toward higher-margin studded and export sales.

What was bought and on what terms

The board approved buying 100% of Purvi Gems shares from its old owners on 18 September 2026 . The deal closed on 7 October 2026, earlier than the 30 November 2026 last date . Sky Gold paid ₹9 crore in cash, which is 1.5 times book value as of 31 March 2026 . Book value here means net worth after paying all debts. It was not a related-party deal, which means not a deal with its own promoters or family, and neither the promoter nor the promoter group has any interest in Purvi Gems . The management of Purvi Gems will continue to oversee the business going forward to ensure continuity and support integration .

Purvi Gems is engaged in manufacturing of uncut and precia jewellery and related products . Sky Gold says it will leverage Purvi Gems expertise in lightweight and studded jewellery to accelerate growth, enhance product diversification and strengthen presence across key domestic and export markets .

Why Purvi Gems fits the mix shift

Sky Gold has been moving from plain 22-karat gold to value-added, lower-karat and studded pieces where making charges are higher. Value-added share of business has surged from less than 10% in FY23 to about 50-55% in FY26 as the primary driver for gross margin expansion . Natural diamonds currently account for about 2%, providing significant headroom with the objective to double this contribution in the coming years while continuing to scale in the rapidly growing lab-grown diamond segment .

In Q1 FY27, that shift showed in margins. Consolidated revenue from operations was ₹2,012.8 crore in Q1 FY27, up 77.9% year-on-year from ₹1,131.2 crore in Q1 FY26 and up 5.3% quarter-on-quarter from ₹1,911.5 crore in Q4 FY26 . Gross profit was ₹187.5 crore in Q1 FY27, up 105.3% year-on-year from ₹91.3 crore in Q1 FY26 . Gross margin, which is gross profit divided by revenue, was 9.3% in Q1 FY27 versus 8.1% in Q1 FY26 . EBITDA, which is earnings before interest, tax, depreciation and amortisation, was ₹156.7 crore in Q1 FY27 at 7.8% margin versus 6.3% in Q1 FY26 . PAT, which is profit after tax, was ₹104.9 crore in Q1 FY27, up 140.7% from ₹43.6 crore in Q1 FY26, at PAT margin of 5.2% versus 3.9% .

Management links this to karatage and studded mix. The share of non-22KT jewellery increased from 10.5% in Q4 FY26 to 14% in Q1 FY27 on structural shift toward lower karatage as gold prices appreciated . The share of studded jewellery increased from 1.65% in Q4 FY26 to 2.1% in Q1 FY27 on focus on better-margin products . In the Q1 FY27 margin breakup, Advance Gold contributed close to 90 to 100 bps in revenue and gross margin, lower-karat 18KT, 14KT, 9KT at close to 14% of volume contributed close to 1.4% to 1.5%, and natural and lab-grown studded at 2% of revenues contributed close to 0.3%, with 22KT gross margins at close to 6% to 6.5% . Growth in natural and lab-grown diamond studded jewellery sales will strengthen the premium product mix and support higher gross margins .

Lightweight technology supports that willingness to pay. The company can replicate high-precision 3D technology across casting, electro-forming and stamping to deliver products with 10-20% lower weight and superior finish . Gold loss has been reduced from 1.5% to a lean 0.5% through ERP monitoring .

Exports are the other lever for Purvi Gems specialised products. Exports were close to 18% in Q1 FY27 versus close to 14.5% in the previous quarter . The Q1 FY27 spread was 6% from the UAE, 2% from Singapore and 2% from Malaysia . Damas is described as its largest customer in Dubai . The Dubai office has been bolstered with an experienced team to serve the Middle East and Southeast Asia , and the merchandising team successfully onboarded one of the Middle East largest retail chains in record time . In London, the Asiana UK-India Jewellery Expo built a prospective order pipeline of approximately ₹30 crore to ₹45 crore across the UK and European markets with a first initial order of 25 to 30 kg , with management guiding it will go to 20% exports in coming years . Purvi Gems is positioned to enhance export opportunity through specialised products with strong demand across key international markets, particularly the Middle East , and to cater to growing demand across South India and the export market .

Track record Sky Gold points to

Sky Gold calls this a proven acquisition approach which has historically contributed to enhanced scale and improved market positioning . The press release discloses pre and post scale for four earlier buys :

Acquisitions	Pre-acquisition scale	Post-acquisition progress
Sparkling Chains Pvt. Ltd., entry into fast-moving chains	Turnover ₹201 crore as on 31 March 2024, PAT ₹0.1 crore	Turnover ₹760 crore as on 31 March 2026, PAT ₹22.3 crore
Starmangalsutra Pvt. Ltd., entry into mangalsutra	Turnover ₹171 crore as on 31 March 2024, PAT ₹0.07 crore	Turnover ₹622 crore as on 31 March 2026, PAT ₹22.9 crore
Speed Bangle Pvt. Ltd., entry into specialised lightweight bangle manufacturing, revenues mainly on job work basis	Turnover ₹0.87 crore as on 31 March 2025, PAT ₹0.07 crore	Turnover ₹42 crore as on 31 March 2026, PAT ₹16.6 crore, acquired in August 2025
Shri Rishab Gold, strengthen capabilities and expand customer base, revenues mainly on job work basis	Turnover ₹49 crore as on 31 March 2025, PAT ₹1.60 crore	Turnover ₹175 crore as on 31 March 2026, PAT ₹18.8 crore, acquired in December 2025

The milestones trace the same build: acquisition of Star Mangalsutra and Sparkling Chains in 2024, acquisition of Speed Bangle Pvt. Ltd. entry into lightweight bangles in 2025 and acquisition of 51% partnership interest in Shri Rishab Gold through Starmangalsutra in 2025 . Portfolio strengthened through strategic acquisitions, expanding TAM and product depth is listed as a key growth lever for FY26 . Managing Director Mangesh Chauhan said strategic acquisitions have been an important driver of growth and value creation, helping expand capabilities, diversify portfolio, improve operating efficiencies and strengthen profitability .

On the Q1 FY27 call on 10 August 2026, management said it had done with product and client acquisition and had 4 facilities to utilise, with nothing on the table for acquisition as of that date , which frames Purvi Gems as coming after a pause to sweat existing capacity.

How numbers looked going into the deal

On a consolidated basis, FY26 was a step change over FY25 :

Consolidated annual (₹ crore)	FY25	FY26
Revenue from operations	3,548.02	6,294.89
EBITDA	229.33	470.74
EBITDA margin	6.5%	7.5%
Profit before tax	174.22	379.06
Net profit (PAT)	132.66	281.83
Net margin	3.7%	4.5%

Revenue growth year-on-year was 77.4% in FY26, PAT growth was 112.4% and EBITDA growth was 105.3% . Standalone revenue was ₹4,708.38 crore in FY26 versus consolidated ₹6,294.89 crore, and standalone PAT was ₹212.79 crore versus consolidated ₹281.83 crore, showing the inorganic lift from subsidiaries .

The quarterly run shows back-loaded growth to the exit quarter :

Consolidated quarterly (₹ crore)	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue from operations	1,058.17	1,131.24	1,484.46	1,767.68	1,911.51	2,012.79
Net profit (PAT)	38.17	43.59	66.99	80.54	90.72	104.9
EBITDA	67.89	75.71	107.89	129.83	157.32	164.68

Q1 FY27 revenue growth was 77.9% year-on-year and 5.3% quarter-on-quarter, PAT growth was 140.7% year-on-year and 15.6% quarter-on-quarter, and EBITDA growth was 117.5% year-on-year . Q4 FY26 revenue growth was 80.6% year-on-year and PAT growth was 137.7% year-on-year . Total income was ₹6,331.28 crore in FY26 versus ₹3,580.98 crore in FY25, and ₹2,020.75 crore in Q1 FY27 versus ₹1,928.13 crore in Q4 FY26 . The longer series in the presentation shows revenue of ₹786 crore in FY22, ₹1,154 crore in FY23, ₹1,746 crore in FY24, ₹3,548 crore in FY25 and ₹6,295 crore in FY26 with 4-year CAGR of 68.2% .

Capacity, volumes and what is guided

The Navi Mumbai base is described as manufacturing facility of 1,50,000 sqft with manufacturing capacity of 14.4 tonne per year , elsewhere noted as footprint expanded to 1,35,000 sq. ft. by FY26 . Monthly processing capacity is 1.2 tons with about 60% utilisation in Q1 FY27 and room of 40%, good till 2028 . Utilisation was close to 55%-57% in Q1 FY27 and close to 60% on a blended rate, with standalone at 55% to 65% . Volumes grew 7% to 9% in Q1 FY27 . In Q4 FY26 the company did around 650 kgs per month at about 55% utilisation .

Advance Gold, where the customer provides gold upfront and the company bills only making charges, was 17% of sales in Q1 FY27 ahead of the 15% expectation for FY27 , versus 11.5% in FY26 and 5.7% in FY25 , with targets of average 15% in FY27, 20% next year, 25% in the third year and 30% of volumes by 2030 . Net working capital cycle closed at approximately 60 days in Q1 FY27 versus 59 days as of March , with inventory days of 46 in June 2026 versus 37 in March 2026 .

Guidance carried into the deal is FY27 revenue projected at about ₹8,100 crore with EBITDA margin (excluding other income) in the range of about 7.0-7.5% and PAT margin guided at 4.5%-4.75% , against FY26 revenue of ₹6,295 crore with EBITDA of ₹434 crore at margin about 6.9% and PAT of ₹282 crore at margin about 4.5% . Q1 FY27 annualised run rate of approximately ₹8,050 crore was already very close to FY27 guidance of ₹8,100 crore . For FY30, revenue is expected to be about ₹18,000-19,000 crore with PAT margin projected to be about 5.25% plus, aggregating to ₹945 crore, alongside ROCE of 27% plus and CFO to PAT of about 20% plus . Management said it will revise its target after Diwali after analysing one more quarter and will upgrade revenue guidance only if it gets a greater share of studded and Advance Gold business .

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