Sky Gold & Diamonds Ltd Announces Strategic Shift in Capacity Expansion Plan Under Sky Gold 3.0 Vision

Sky Gold & Diamonds Ltd (BSE: 541967 | NSE: SKYGOLD) one of India's fastest-growing B2B jewellery manufacturers today announced a strategic update to its capacity expansion roadmap under its Sky Gold 3.0 vision, reinforcing its commitment to capital-efficient growth, stronger cash flows, and long-term financial resilience.

As part of its earlier growth strategy, the company had acquired land at approximately INR 105 crore to establish a large-scale greenfield manufacturing facility aimed at expanding capacity fourfold. Following a comprehensive internal review, the company has decided to monetise the land and transition to a more agile, asset-light expansion model.

Going forward, Sky Gold will scale capacity through leased manufacturing facilities. This approach is expected to enable faster execution and improved capital efficiency.

The company confirmed that this strategic shift will not delay its expansion plans, with execution of the leasing strategy already underway.

The proposed land sale is targeted for completion within six months. As an added assurance, in the unlikely event the transaction is not concluded within this period, the promoter family has committed to acquiring the land, ensuring that the company remains compensated for any opportunity cost.

With proceeds from the land monetization and improved operating cash flows anticipated in FY27, the company expects borrowings to reduce by over 20%. Additionally, the increased use of Gold Metal Loans (GML) and other structured financing products is expected to further optimize funding costs.

Commenting on the development, Mangesh Chauhan, Managing Director, Sky Gold & Diamonds Ltd, said: "As we move into the next chapter of Sky Gold 3.0, our focus is on building a structurally stronger and more agile organisation. The capital released will be strategically redeployed to strengthen operations and support the company's next phase of growth.

This decision reflects our intent to remain adaptive in a dynamic operating environment while sharpening our execution framework. By adopting a more flexible expansion approach, we are positioning ourselves to respond faster to customer demand, optimize resource deployment and enhance operational productivity.

We are laying the foundation for the next phase of growth with greater discipline, sharper execution and long-term value creation at the core."

Reaffirming its financial discipline, Sky Gold remains committed to ensuring that growth and cash flow progress in tandem. As guided during its recent investor interaction, the company continues to target becoming net debt free by FY30, strengthening its foundation for sustained, profitable growth.

Shares of Sky Gold and Diamonds Ltd was last trading in BSE at Rs. 360.05 as compared to the previous close of Rs. 362.00. The total number of shares traded during the day was 23285 in over 681 trades.

The stock hit an intraday high of Rs. 368.40 and intraday low of 356.50. The net turnover during the day was Rs. 8415309.00.

Source : Equity Bulls

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