With a 540,000 sq. ft. facility and strategic acquisitions, Sky Gold targets 5% market share and positive operating cash flow by FY27
Cash Flow to Turn Positive by FY27
Sky Gold and Diamonds, one of India’s fast-growing jewellery manufacturers, is set to become cash flow positive by March 2027 (FY27), according to Managing Director Mangesh Chauhan.
- Despite strong revenue and profit growth, the company has posted negative operating cash flows for the last five years due to its rapid expansion.
- “We are in hyper growth mode,” Chauhan said, noting annual revenue growth of 40–50%.
Receivables Cycle Tightening Despite Volume Surge
Sky Gold has made strides in improving working capital efficiency, with its receivables cycle reduced from 73 to 65 days.
- The company plans to bring this further down to 50 days by FY27.
- The absolute rise in receivables is attributed to a 20% increase in volumes and 30% revenue growth, reflecting scale rather than inefficiency.
Expansion into Middle East and Advanced Gold Model
A key part of Sky Gold’s cash flow strategy includes its new Dubai office, which serves as a gateway to the Middle East market.
- The company is also betting big on its advanced gold business, which reduces working capital needs.
- Chauhan said these initiatives will help eliminate 100% of receivables in the next 6–8 quarters, drastically improving cash flow.
Strategic Acquisition Boosts Capital Efficiency
Sky Gold recently acquired a company specialising in Italian-style bangle manufacturing, a niche segment in India that works exclusively on an advanced gold model.
- This model requires no upfront capital, enabling high return on equity.
- Chauhan expects profits of ₹40 crore in FY26 and ₹80 crore by FY28 from this unit, with zero drag on Sky Gold’s bottom line.
Target: 5% Market Share by 2032
Looking ahead, Sky Gold has set an ambitious target of capturing 4–5% of India’s jewellery manufacturing market.
- The company aims to become India’s largest jewellery manufacturer by 2031–32.
- As part of this roadmap, it will open a 540,000 sq. ft. facility—the largest standard jewellery manufacturing plant in India—by 2028.
Sky Gold expects to turn cash flow positive by FY27, driven by receivables efficiency, Middle East expansion, and its asset-light advanced gold model. With a 540,000 sq. ft. mega facility planned and a niche acquisition, the company targets a 4–5% share of India’s jewellery manufacturing market by 2032.
