Thank you. On behalf of MUFG InTime, I welcome you all to Sky Gold and Diamonds Limited Q3 and 9 months FY26 earnings conference call.

On the management side, we have Mr. Mangesh Chauhan, Managing Director; Mr.

Siddharth Sipani, Chief Financial Officer; and Mr. Akash Talesara, President, Sales and Business Development.

I hope everyone had an opportunity to go through our investor deck that we have uploaded on exchange and the company's website. I would like to mention a short disclaimer before we begin the call.

This call may contain some of the forward-looking statements, which are completely based upon our belief, opinion, expectations as of today. These statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties.

With this, now I hand over the call to Mr. Mangesh Chauhan.

Over to you, sir.

Good afternoon, Mangesh Chauhan here, Managing Director of Sky Gold and Diamonds. First, I want to thank my team.

They delivered a strong performance despite a tough market. I will assume you have reviewed our latest results and presentation.

Sky Gold's journey has unfolded in three phases. In the beginning, our goal was to build a basic product portfolio and establish credibility by securing our first corporate client.

We anticipated the shift from unorganized to organized retail very early, and that paid off. Similar shift is happening in jewelry manufacturing.

Jewelry manufacturing is getting more organized. With IPO proceeds and internal cash generation, we were able to penetrate multiple clients and lease a large facility in Navi Mumbai.

Once we raised preferential capital, we had guided our revenue, PAT, and ROCE of ₹5,000 crore, 3.5%, and 25% respectively by FY27. Since then, we have increased our guidance multiple times.

We would be exceeding even our recent guidance also. In the third phase, Sky Gold's strategic focus shift to internal cash generation.

Top-line growth, including volume expansion, remains central. We are equally committed to disciplined growth and robust free cash flow generation.

The two phases were fueled—the first two phases were fueled by the mix of internal and external capital. Sky Gold 3.0, however, will be driven entirely by internal generated capital.

Our guidance calls for a 30 to 35% CAGR in revenue alongside strong cash flow generation. By 2030, we expect to deliver INR 945 crore PAT and achieve a net debt-free position.

The revenue growth will be capped at 30, 35% since we would like to be net debt-free by FY30. There are not many businesses in India which can grow revenue at 30, 35% CAGR and convert 20, 25% of PAT to OCF.

This also underscored the lean growth engine we have built. Considering the large addressable opportunity, we can easily grow at the twice the pace, but we would not be in a position to generate operating cash flows.

The dual commitment to growth and cash generation discipline underscores our ability to scale while creating long-term shareholder value. When it comes to the jewelry industry, corporate governance is always a question mark.

We would like to follow highest corporate governance. From 1st April, 2026, global audit firm will be put in place.

Kudos to Siddharth for leading this change. As promoter, we have agreed for zero salary compensation model from FY27.

We will follow dividend-only compensation. Promoters would draw compensation exclusively through dividends, ensuring the rewards rise only when shareholder benefits.

This structure fully aligns promoter with minority shareholders, as payout depends on shared ownership outcomes. Dividend would be distributed strictly from operating cash flows, reinforcing financial discipline and long-term value creations.

There are three main pillars in the company: creativity, technology, and manufacturing excellence. Now let me request our President, Sales, Business Development, Akash Talesara, to explain our efforts in the merchandising space.

Over to Akash. Hi.

Thank you, Mangesh bhai. Hi, this is Akash Talesara, President, Sales and Business Development at Sky Gold and Diamonds.

I come with more than 23 years of experience in jewelry industry, with the past experience of working with domestic and export market with all the jewelry categories like gold, diamond, lab-grown, silver. When I joined Sky Gold and Diamonds, my first goal was to find the USPs and build on the company's existing strengths.

Sky Gold is especially strong in making lightweight casted jewelry. We are a young company with modern 3D technology, laser cutting, stamping, that helps us produce high quality, lightweight design efficiently.

At that time, gold prices were rising fast and gold was becoming expensive, and the customer preferred lightweight jewelry. This trend worked in our favor, and Sky Gold was in the right position to meet this demand.

The company also had access to growth capital, which helped us focus onto the right product categories and grow quickly in the market. This created a perfect ecosystem to make it as a one-stop shop for all the jewelry requirements.

In the jewelry manufacturing, labor, raw material, machine and are important. Co-creation and merchandising skill makes the real difference.

Designing plain gold jewelry is very different from designing diamond jewelry, and both needs special expertise. Over the last three years, we doubled our merchandising and design team to around 150 people and built strength in many categories.

We have now more than 25 different jewelry projects. We also started a diamond design studio in Andheri near to SEEPZ to use the local talent available there.

Another important initiative we took was co-creating with the retailers. We worked closely with the retailers to design products that match market trend.

Our team studied their current portfolio and competitors, then prepare sketches, prototypes, samples as our proposal before they approve for the mass production. We measure success by how many designs gets selected by the retailers.

This database approach has given us one of the best selection rates in the industry and has helped us reduce the unsold inventory as well. Our teams are constantly co-creating with the retailers like Malabar, GRT, PNG, CaratLane, Joyalukkas, Reliance, Aditya Birla, Kalyan, and many more.

Sometimes we create new, well-studied themes on our own and invite the retailers to choose from them. This creates a healthy competition and helps us understand what market really wants.

It also changes our relationship with the retailer right from buying to selling to a true partnership. Generally, whatever is co-created has a better strike rate and sales.

We also have make a custom cell in the organization, probably one of the biggest in India, as many end customers show photos and designs they want, and the retailer asks us to make them. Though the volume is small, but this strengthens the bond between the retailers and the customer, which ultimately benefits us.

One of the major achievement was onboarding Damas, which is one of the biggest retail chain in the GCC, in just 3 months. Their customer is mainly buying 21-karat jewelry, which is very different from the Indian market in terms of design and workmanship.

Our team studied their need carefully and created a special product range for them after studying the market. This shows how flexible and strong our merchandising team is.

Sky Gold has recently received many merchandising awards, including the one from CaratLane and Aditya Birla. De Beers selected us as an exclusive partner for couple of their campaign, which is My First Diamond and the Bestie Bracelets.

Only four, five companies were chosen out of the 45 applicants. We have also partnered with World Gold Council, and our product were highlighted in the TV commercials and the ad campaigns, which further proves our leadership in innovation.

Our product range has gone a lot through in-house effort and acquisition. Value-added products now contributes more than 50% of the revenue, compared to just 4% to 5% three years ago.

The categories like 9-karat, 14-karat, 18-karat, rose gold jewelry are growing well. Even in the basic products like chains, we have added an extra value to improve the margins.

To improve the customer experience, we created a focused CRM team for better sales support. We also launched a digital app where customer can see our design bank in all the categories and place orders directly from the app.

Around 7% to 8% of the orders already are coming through the app, and this will increase further in the upcoming months. Our sales team is also responsible for margins and collection to ensure healthy cash flow.

Another step forward was creating dealership network. Our next growth area is reaching to the smaller retailers through the distributors and dealers.

We are in process of building region-wide dealership network. Also, as South India is one of our key focus area, we opened a sales office in Thrissur to have a better grip on the South India.

Further ahead, we wanted to increase our footprint in exports as well. We opened an office in Dubai Gold Souk, the center of gold global trade.

We hired an experienced professional team who have sold near about 200 kgs per month earlier with their past experience. This is a very important step for our international growth.

Talking about manufacturing strength, I would like to thank Mahendra bhai for improving the factory's efficiency, controlling gold loss. Our delivery time is 30% to 40% faster than many competitors.

The shift to direct casting, 3D printing, laser, hollow, stamping, and other latest techniques and R&D has improved the finish and made our jewelry 20% to 30% lighter. Once again, thank you so much.

Over to Mangesh bhai.

Thanks, Akash. Shayad aapne Morni jewelry collection ka zikr karna bhool gaye.

Niveshakon ne hamari presentation mein Tazim, Zena, Aasma aur dusre brand dekhe honge. Bhale hi yeh brand aam grahak mein zyada mashhoor na ho, lekin hamare clients ke beech inki acchi pehchan hai.

Udaharan ke taur par, Morni mor se inspired ek collection hai jo kai category mein uplabdh hai aur is samay kafi accha bik raha hai. Apart from Akash, we are fortunate to have another silent achiever, Thiru.

Thiru brings over three decades of jewelry manufacturing expertise, including a decade at Titan in product development and a long tenure at India's largest jewelry manufacturer implementing ERP systems. Since joining Sky Gold, he has reduced gold losses from 1.5% to 0.5% and continues to drive further improvements.

Siddharth leads our finance team with dedication and focus. Thiru is leading ERP implementation across the organization.

Thiru has already digitized the backend, monitoring productivity, order flow, and gold loss, while rolling out ERP at the front end is expected to be over in next 6 months. As first-generation entrepreneurs, Darshan bhai, Mahendra bhai, and I have worked tirelessly to build this organization.

We are proud of our achievements, yet recognize that our process are still evolving. To strengthen and scale, we are bringing in external talent from leading organizations to help us implement world-class systems.

Investor will appreciate the transformation as the company becomes fully digitalized. Benefits will be seen across multiple fronts.

Implementation of the jewelry ERP systems is not a simple task. Siddharth has been instrumental in shaping our Vision 2030 or Sky Gold 3.0.

The leading finance team in a fast-paced, working capital intensive business is not so easy task, yet he has exceeded expectations. For the first time, we have gone down to the level of sales type, geography, and product level, an exercise never attempted before.

Special thanks to our finance team for making this possible. When we charted our three-year strategy, our agenda was clear: drive growth while generating cash flow.

I repeat, growth will not be compromised. In the next phase, our focus shift to revenue growth rather than volume growth since gold prices remained beyond our control.

On the contrary, if gold prices falls, the entire jewelry market expands, and as a relatively small player, this works to our advantage. At 30, 35% revenue growth, we will position to generate sufficient PAT as cash flow, enabling us to deleverage our balance sheet and achieve a net debt-free status by 2030.

My finance mentor Siddharth will take you through our vision.

Thanks, Mangesh bhai. Before we walk you through Vision 2030, let me address a common question about the impact of gold prices on our business.

We are fully back-to-back hedged, price movements do not directly benefit us. However, when gold prices rise sharply, end demand tends to soften, and unorganized manufacturers struggle with the additional working capital requirement.

In these periods, we gain an indirect advantage. Capital is not a constraint for an organized player like us.

Another common question is on the gross margin expansion. In the current year-to-date, our consolidated gross margins stood at 8.27% versus 5.97% in FY24, means an increase of 230 bps.

This has been mainly on account of impact of gold reduction by 100 bps, increase in advanced gold business leading to improvement in gross margin by close to 60 bps, and balance is on account of value-added products like 18-karat jewelry, 9-karat jewelry, diamond studded jewelry, and various other co-creation designs. To summarize, our gross margin improvement has been mainly on account of gold loss reduction, increase in advanced gold business, increase in 18-karat studded jewelry business having better margin.

Our revenue growth will be driven by three key levers: increasing share within existing corporate clients, expanding reach through distributor markets, and scaling exports. Strengthening our merchandising capabilities is central to this journey.

We aspire to be a global leader in jewelry manufacturing. To achieve this, we must further build our merchandising team.

In his previous role, Akash worked with leading clients such as Signet, Costco, Walmart, Macy's, and others, bringing valuable experience to our efforts. We are such a tiny player in the market that reaching 18,000 to ₹19,000 crore is not expected to be a challenge.

We would like to pick the right battles so that we don't compromise on the gross margins and working capitals. Our margins are supported by three key levers: advanced gold, a growing share of value-added products, and improved manufacturing efficiency.

In the advanced gold segment, job work is booked directly in top-line with limited costs, which optically results in higher margins. Margin gains from value-added products and efficiency improvements are straightforward, while an additional benefit will come from financial deleveraging.

As cash flow strengthens and debt is repaid, interest cost, currently at close to 1.2% of sales, will reduce to virtually zero. Even though we are optimistic about our PAT margin expansion, we are also cognizant of the opportunities present.

Now let me explain the levers available for working capitals reduction. First, advanced gold carry no capital employed.

Secondly, export and distributor segments also operate on spot payments or receivable under 10 days. As these categories expand, working capital intensity will decline further, enhancing efficiency and resilience across the business.

Directionally, we expect our working capital cycle to drop below 60 days. To summarize, we are looking at revenue of 18,000 to ₹19,000 crores, PAT of 5.2% plus, OCF to EBITDA of close to 20%, and achieving net debt-free position by 2030.

Also, promoters will take salary through dividends starting 2027. Further, our accounts will be audited by global audit firm effective first quarter of upcoming financial year.

Now I request the moderator to open the floor for any Q&A. Thank you.

Hi, sir. Thanks for the opportunity, and congratulation on good set of numbers.

Basically two questions. First is on the demand side.

If I see the festive this time was good, volumes were healthy despite higher gold prices. After the quarter, there were some zigzag moves in the gold prices.

Just wanted to check how's been the behavior at the retailer level, how has been the inventory level, and more importantly, if you can highlight how's been the behavior at the ground level. That's my first question.

Sure, you can say gold prices have risen by I think 60, 70% in a year. We, as a manufacturer, Sky Gold, and already our clients have also started taking step one year, one and a half year back only when gold prices are rising by 15, 20%.

They have moved to 18-karat, 9-karat. Again, 22-karat is the leader in the market because it's a favorite of South Indians and all the Indians market, 22-karat is a leader.

Nowadays, you can say we have produced 19 to 20% of 18-karat in this quarter, December quarter.

20%. Yeah,

20%. They are shifting the karatage, making the inventory lighter.

When Sky Gold you talk about, Sky Gold is making very lighter inventory. We are one our ticket size is 55, 40, or 60,000.

We are below ₹1 lakh, 80% inventory is below ₹1 lakh, and 20% inventory is ₹2 lakh, below ₹2 lakh. There is a higher impact on the higher jewelry, which is Kundan, Polki, and ₹5 lakh, ₹10 lakh, ₹50 lakh inventory.

Coming to the lighter segment, there is very less impact because of the budget of the customer. Again, we have in last before four quarter only we started by 3D printers, started reducing the lightweight.

The inventory we were making in 10 grams, it is 8.5 grams. We have reduced by 15% weight and 20%.

Your question is perfectly in January month it was in 10 days only it rise very much. For 5 to 10 days, it was very latest customer footfall was impacted.

When the gold price decreased in 10 days and it corrected by 15%, now there is a very good rush in the showroom to buy the jewelry because it got cheaper by 15%. Store levels are they are also making the strategy of lightweight 18-karat, 9-karat, and maintaining the sales.

Again, we are into the same boat. We are into lightweight jewelry, we have very lesser impact, and we are on track.

At the retail level also, because faith level of consumer has gone up. You can see consumer has gained 5 to 6 times return in 6 to 7 years.

No product in the world gives a returns of 5 to 6 times in a 6 years or 7 years times. Where the customer faith levels are gone up, anytime jewelry is going to be buyed.

It may be in 9-karat, it may be in 14-karat, it may be 18-karat, some of them are buying 20-karat, 22-karat. Some 50% customer doesn't matter the budget, and 50% customer buys in the budget, we fit there by the inventory lighter and all.

Craze of jewelry in India is numerous, and they will keep on buying. The gold rates have come down, corrected by 15%, it's very attractive rate for the customers, and at the showroom level, customers are good.

Basically what I wanted to check was when there is such zigzag movement, do customers wait for another correction? How does they generally behave?

That trend will impact the retailer?

Yeah.

Those who are buying

bullion or ETF, they see the screen and wait for the correction or wait for more correction out. Coming to the jewelry, this is about the gifting, this is about the occasion, this is about the marriage season, Diwali, Navratri, Akshaya Tritiya, and it's about the buying of the lady buyer.

At the home when the rate is available, jewelry is not about that it will be correct more or whenever there is a need, they have to buy. If there is a gifting occasion, there is many Father's Day, Mother's Day, Valentine's Day comes, and on the occasion they have to buy the jewelry as per their budget.

It's a different market. ETF and bullion are buyed on the under sentiment that it will collect more or if we go rise, whatever they assume.

On the jewelry market side, there is no. They serve.

Yeah.

Got it, sir. Sir, with the very strong wedding pipeline and Akshaya Tritiya also coming in the first quarter, just wanted to check how's been the inventory at the retailer levels?

Are the inventories at normal levels, have they stocked up higher? Just wanted to check that.

Retailer plan their inventory as per the stores, where they are located, how the square feet of the showroom, and they keep on maintaining the same budget of the inventory, same kgs of weight,

and it

is not reduced also or increased also because they have a plan that this showroom should hold 80 kg or 50 kg, whatever the size of the store, and whatever sells they refill that jewelry.

Got it. Sir, last one thing from my side.

When I went through your presentation, I think actually I didn't find much around the gold metal loan, and when we brought Siddharth sir, one of his key agenda was also to increase GML. Just if you can throw some light on how's been the thing.

Already we are using 80 crore of GML, and we have 150 crore of GML limit. Some of the bankers doesn't have limits, they take time to give SBLC limit.

Again, yeah, we agree that there is a slow process going on for GML. Sometimes when we have an order of a customer, when we give the order of GML, they deliver us after 1 days or second 3rd days, and in the market we get at the same day from the banks.

We have to wait for 2 days to start the production. We are going in that churn, and we have to adjust with that GML.

Sometimes there is unavailability of the raw material, sometimes it gives 3rd day. Whenever it is the same day, we are utilizing.

Whenever it is not available, it is available on 3rd day, we have to go again to the normal limit. It's taking time process because some availability issues are there, but we are fitting in that churning and we are trying it harder.

I agree it's very slowly process, yeah.

What will be the target over here next year's FY27 and?

We have a target of ₹350 crore odd something in three, four quarter. We are saying from last two, three quarter, we accept.

Some banks not have that products which bankers hold, they take time to give SBLC to other banker, and all the process are there. Again, we are targeting it to take in 3 to 4 quarters to ₹350 crore, 80% of the limit.

Okay. Thank you so much, sir.

I'll fall back into queue for follow-up.

Thank you for the opportunity, sir, and congratulations on the good set of numbers.

Sir,

what was the contribution from advanced gold in volume and revenue terms? So

12% was for advanced gold in this quarter, and value may be you can Siddharth so.

The advanced gold volume in terms of total sales, it was ₹11 crores. ₹11 crores per se, the total revenue for the advanced gold.

Making charges per se.

Making charges we have got ₹11 crore. Right sir, right.

Got it. So

12% for the volume. Yeah.

Got it, sir. Thank you for that.

Sir, my next question is on the Vision 2030 that you have given. What kind of assumptions you're taking in terms of volume and gold prices?

Are you going to add new product lines and customers, and how would export look like? Some color on these assumptions would be really helpful.

Yeah. Sure, we have taken many step in last four to six quarter.

You can see we have added client Aditya Birla, Reliance, CaratLane, and again in the subsidiary level Tanishq has came. This client were not there one, one and a half year back.

They are all on advanced gold model. We have opened office in Dubai and we have onboarded Damas, which is again a 67% holding of Damas Jewellery and 67% of holding of Titan.

Many clients already we have added. Right now, we are holding every client of India or international major top client of Dubai, Singapore, Malaysia, but we are not into Europe and US market.

Already we have onboarded clients. Again, product level, we have launched 9-karat and 14-karat.

Again, we have launched lab-grown diamond jewelry one year back, one and a half year back, studded jewelry we have already launched. Because of the fundraise we have done two times, we were able to launch every category and growing in that.

We have taken every step for the product also. We are there in each and every product in the jewelry, of gold jewelry or diamond jewelry or lab-grown diamond, and we have each and every customer.

You have to just keep on growing our wallet share. The sales are coming in the existing wallet share is increasing, and new stores are coming.

You can say 2,500 stores new coming of the all the brands in 18 months. We are expanding our sales in that also.

Keeping in mind to 30, 35% growth, we are giving this guidance. From the existing client also and again some new clients are also added.

Our focus is totally on corporates like Malabar Gold, Kalyan, Joyalukkas, those who are coming in listing, Senco, Thangamayil, GRT Jewellers, Lalithaa Jewellery, and again SKD Bima groups and all. Again, this corporate belt, CaratLane, Aditya Birla, Reliance, and all.

We have introduced every product in the customer. First is advanced gold business, we are concentrating much higher on that because now we are in the stage that we can attract much advanced gold from this large client.

Second is on export side. We have opened office in Dubai, and export is going to be at 20% as this quarter it was 10% or something, and we are expecting to go to 30%.

Third is through the distributor level also, where the mom-and-pop store we cannot serve directly, we are appointing a region-wise distributor model also, and that will also help us to achieve the growth.

Sir, does this mean that distributor contribution in overall business could increase going forward?

Right now, it is 65-35. You can see year-on-year we were a totally distributor model 12 years, 15 years back, and corporates business is growing up.

The percentage of corporate is going up. You can see it will be distributor also will be at 30, 35 percentage and corporate will be at 65,

70 percentage. Sir.

Sir, what about the working capital? How is the working capital by the end of 9 months?

The working capital days as of September was 66 days per se. We have improved by 3 to 4% on our overall working capital days.

Sir. That's really helpful.

That's it from my

side.

All the best for upcoming quarters. Thank you.

Yes, hi. Thank you for the opportunity, and congratulations on a great set of numbers, sir.

My question was what has been the 9-month capex?

Capex of 9 months? In this 9 months, what is the capex?

Yes.

Around it is ₹35 to ₹40 crore. Excluding land.

₹35 to?

Excluding land.

Okay,

₹35 to

₹40 crore. My other question was already answered by the previous person, but so in September your working capital days were 56, and you have now improved by 3 to 4%, right?

Can I get the split between receivables and inventory? No.

We were at 66 days, now we are at 60 63 days. 63 days.

3 days we have improved. Yeah.

We are expecting to go below 60 days because in the coming quarter you can see our advanced gold business is rising and we targeting it to go below 60 days. Further

export

business.

By FY26 end, you will be at 50 days of working capital?

What you are asking?

By end of this year, you will be at below 60 days, right, of working capital?

We are expecting to be below 60 days, and we are expecting to be near neutral cash flow getting it to neutral cash flow.

The focus at this point of time is to be cash flow neutral by March '26, and further to be cash flow positive in the upcoming financial year per se.

Understood. Thank you so much.

Hello, sir. Congratulations for the fabulous set of numbers.

Sir,

I have two

questions. First question is regarding the impact of gold prices on our margins.

Recently gold prices rose to ₹1.9 lakh and then it corrected to ₹1.5 lakh kind of number. This type of fall, can this affect our margins in any way, or we are hedged to protect this kind of corrections in the gold prices?

We are already hedged back-to-back, and we are not exposed to any rate risk, we are not affected.

All right, sir.

Sir,

another question will be Vaibhav,

in terms of the gross margin, as I have informed in my earlier speech as well that our gross margin has improved per se, mainly on three factors: one is on the advanced gold business increase, and if we take FY24 as base, we have improved by 2.3%, and this increase is mainly on three counts per se: first is the impact of gold loss reduction by 1%, then increase in the advanced gold business has led to improvement in the gross margin by around 0.6%, and further increase in the value-added products like 18KT business and the studded business, which has got better margins, have led to the overall improvement in the overall gross margin in 9 months of FY26 versus FY24.

Understood, sir. Sir, other question will be regarding the volume growth that we are targeting for FY27.

I think in Q3, we had 631 kg per month kind of rate. How do you see that in FY27, say in Q4 of FY27?

We are now mainly focus on revenue because there are many karatage changes going on: 9-karat, 14-karat, 18-karat, mix of 22. Earlier, we used to sell 22-karat only.

There will be a mix of volume and revenue. Approximately, we are expecting to be 750 kg average, and the revenue guidance we have given ₹8,100 crore for the next year.

And 750 kg on an average, we are expecting mix quarter. Focus is on 30, 35% revenue growth after that.

This 750 kg kind of number is for Q4 of FY27 exit?

On an average, okay, total of all the four quarter we are telling. Exit may be higher, but on the average of total of the year, we are telling.

All right. Sir, last question, small question regarding the guidance for FY27 in the investor PPT.

You have mentioned that PAT margins you have mentioned around 4.25%, but I think in FY26 9 months, we have already clocked 4.4% kind of PAT margin. Are we being conservative, or is there any other reason for 4.25% mentioned for FY27?

That's correct.

We are just being conservative. We have given a guidance of 4.25% plus plus only, but we are just giving a conservative number on the PPT.

20% PAT will be converted to operating cash flow, it will be on I think good part.

All right, understood, sir. Thank you so much, sir, and all the best for the future.

Thank you.

Thank you so much.

Thank you for the opportunity, and congratulations on a great set of numbers. In the presentation, as well as in your opening remarks, there was aspiration to become a global jewelry manufacturer.

That implies that you will be entering into markets other than Middle East and Gulf going forward. As also you have mentioned in the presentation, you are looking for EU, UK, and US.

Are there any plans in place or any time period you are targeting to enter that markets, maybe one year, two year down the line?

We are focusing mostly to Southeast Asia and Middle East because we have opened office and already we are serving from last four years to Middle East, Singapore, Malaysia, and Dubai. Again in future, after one and a half year, one year, because opportunities are opened by our government, UN and Akash is from that background, he has served Signet and on this Costco and Walmart and all.

It is very preparation period for that. We'll prepare one and a half year, one year, and we'll enter after one and a half year to this market because this market needs very focused quality and concentration of the product and all.

I will give a chance to Akash to speak about this. Yeah.

Hi, sir. Just to give you a little bit of gist that right now our groundwork is happening in terms of product development, in terms of merchandising, in terms of creating the correct mix to enter this market, as Mangesh bhai rightly said, that once we are 100% prepared with our product line, with the entire team ready to get into other markets, with my experience in the past with Signet and different other corporates across the globe, we would be certainly looking out for entering those.

Maybe from May 2028, 2029 is what we should be targeting as of now. We have enough opportunity in the domestic market right now, which still has to be catered.

Our first focus is definitely getting into the domestic market and freezing those opportunity first. Once we are done with that, then the next step is certainly what you have mentioned, sir.

To answer you strictly, we will be focused mostly 85 80% on India because India is a huge market of 150 crore population, and 15, 20% we can export to other countries like UAE, Singapore, Malaysia, and future Europe or US. We will be not going as aggressively for 30, 40% or 50% exports because we majorly rely on India market, 80%.

If there is any policy changes, we can hedge that sales to India.

Sure. That was very helpful.

Any new markets as and when we are ready are always beneficiary. Secondly, to whatever guidance which we have taken for FY30 as well as FY27, and for FY26, ₹6,100 crores, what is the base gold rate which we have assumed for that guidance?

We have assumed 1.04 crores as the gold rate on a blended basis per se, because the mix of

18, 9, 22, and all. So 105, 110 is our rate taken approximately.

We are seeing that this quarter also 18-karat is sold much, there will be average mix of rates and all.

This is 1.05 or ₹1.1 lakh per 10 grams rate, which is the base rate taken?

Yeah.

Okay. Thank you.

Are we on track to give the exit rate of 650 kgs for Q4?

Yeah. We already have done 630 kg this quarter, and we are on track on that.

Sure. Thank you.

That's all from my side, and congratulation best of luck for the future.

Sir. Thank you for the opportunity.

Two questions. First is we are targeting 20% of the EBITDA as the operating cash flow.

Is that understanding right from the presentation? Secondly, sir, dividend, we said that we are targeting FY27 to be a cash flow positive year.

What is the kind of dividend yield that you are targeting? What is the dividend payout ratio that you are targeting compared to the earnings for FY27?

That is my first question.

Dividend amount will be very small amount, more from commitment perspective. As we have discontinuing from April to take the salary, dividend amount will be very small in the initial 27 in '27 March year.

We have a lot of opportunity to grow, so that's why dividend will be very smaller part.

Okay. So 20% of the EBITDA is being targeted as the operating cash flow, right?

Yeah.

That would be Sorry, you are asking, sir?

Siddharth, please go ahead. Basically

we would be net debt-free by 2030, and between '26 to 2030, on a sequential basis, we expect that the cash flow generation to increase and we expect to reach 20% of OCF to PAT by 2029 or 2030 maybe.

No, sir. I didn't get that 20%.

Is it EBITDA to OCF or OCF to PAT? Just a bit of clarification on that.

That is the 20% that we are saying is OCF to EBITDA.

Basically, 20% of the EBITDA will be the operating cash flow, that is the right understanding?

That is what is our long-term vision, which we have outlined that as Sky 3.0 vision statement.

That is by FY30, okay. Sir, just a related question, I missed probably, working capital, what it is currently expected in FY26, and by FY30 what is the working capital target that we are planning?

Basically, we are looking at sequential improvement in the working capital cycle, and that would be achieved by improvement in the profitability, and by improvement in the working capital days. We expect that the overall working capital days should be less than 60 days going forward.

Sir, currently, what would be that number as of end of December? I missed, sorry.

As of September, it was around 66 days.

December, it is 63 days.

December, it is 63 days. Sir.

Thanks, and all the best.

Yeah.

Thank you, sir, and congratulation first of all for this great set of numbers. Can you please bifurcate your subsidiary Star Mangalsutra, Sparkling, and recently acquired, I think, Gahan Gold contribution in this 631 kg volume per month?

Basically for the Star and for the newly incorporated SRG, it was around 86 kgs. For Sparkling Sense, it was around 65, and for Speed, it was 51.

51. Sir, guidance for next year utilization out of our existing capacity, and any concrete plan we're having on expansion with fund availability, keeping our 2030 vision in view?

Sorry, can you repeat your question? Not very clear.

Sir, the guidance for next year utilization of our existing capacity, and any concrete plan with fund availability, keeping our 2030 vision in view?

Yeah. After rainy season, Diwali, Navratri, we are into the planning phase, and keeping the cash flow positive.

As we guide for the PAT, we are expecting to create more profits from the every year. We are giving the guidance, and that extra profit we'll take to that factory part of ₹50 crore per year we'll need, and what we have guided, we are expecting this year we have guided for ₹225 crore and already we have done ₹190 crore.

Every year we are expecting some extra profits from all the subsidiaries and all, and that will help us to plan our vision for factory and all, and keeping in mind the vision of 2030. Sir.

With the calculation, sir, you might have done any calculation of achieving 18 to ₹19,000 crore revenue by FY2030, how much working capital we need?

Basically on the overall working capital, the target is to improve it and to move down below 60 days cycle per se, and the focus is to generate the cash flows and to improve on the overall cash flow generation, and to improve on the OCF to EBITDA percentage year on year per se to reach 20% by 2030.

Why I'm asking this question is, sir, are we having any visibility of having further dilution in our equity base or any fundraise you are keeping anything?

We are nicely funded, and we are guiding for cash flow, we are not planning for any dilution. At this point of time.

Till 2030, we're not planning any dilution or any fundraise.

Yeah. Right now, we are nicely funded, and again we are improving our working cycle, the fund needed will be from the internal accruals only for the businesses we are doing right now.

Just confirm me, sir, you have taken this 18 to ₹19,000 crore revenue by keeping 18-karat gold in view at a rate of ₹1,05,000. Am I correct, sir?

It's a mix rate. ₹1,05,000, 10,000 is a mix rate of 22, 18, 9, and 14.

Right now we are having more exposure to 18 18-karat or 22-karat, sir? So

22 is a leader in market. You can see 80% jewelry sold in 22-karat in India.

It was 100% earlier, it get down to 80%, and now we are expecting the 22-karat will come down to 70% or something of India. Now we are at I think

20%

of 18-karat. Earlier, we were at 4, 5%, and 22-karat we were 95%, now it is 80%.

Target will be much to grow 30, 35% revenue growth because karatages like 9, 14, 18, and 22, all the mix way we have to sell to the customers. If the gold price shoots up, then we will lower volume sales, then target will be 35% revenue growth.

If gold prices drop, then volume growth increases, it's a vice versa.

Just the last question if you can please allow me, sir. Sir, this recently concluded FTA with Europe and US, this category will be duty-free, as I

have just

listening by the news. Are we planning to explore those areas in Europe and US to have advantage?

The doors are opened for us, but right now we don't have the design and the product that is needed in Europe and US because from last 15, 20 years, we are focusing on India and 20% on UAE, Singapore, Malaysia, where the clients are Asian customers only, and the end consumer are also Asian. The European customers and US customers, we are not made the product.

Now we have got the news 10 days back only of both the countries, and in growing future, it takes a time of one, one and a half year to plan and execute, and our doors are open for the US and Europe market, but we'll not aggressively go there because we have already opened Dubai office and we have taken orders of Titan, Damas, Kalyan Jewellers, and many clients are onboarded right now in last four quarter. We have to serve them and increase the wallet share in them.

Right now, our focus is to increase the wallet share in the existing customer, large customer we have onboarded in India also, in Dubai, and Singapore, Malaysia also. Main focus is in this country, and going for future when we will see if we are going to penetrate in that country, but we are positive about that.

Sir. Are we, sir, still trying to have Tanishq on board, or?

Already we have onboarded in our subsidiary, Star Mangalsutra, and we are getting 50 kg on an average advanced gold business from Titan, expecting good business in subsidiary from that.

From Tanishq, sir?

Tanishq Jewellery, yeah.

Tata group. Tata, yeah.

Thank you, sir. Thank you.

Thank you very much. Best of luck.

Thank you so much, my shareholders, investors, and my management team, and again my brothers, Darshan bhai and Mahendra bhai, who have supported this in this journey, and hoping to grow more in future. Thank you, all of you, the investors and shareholders of Sky Gold and Diamonds.