Sky Gold Shares Drop 5% Despite Strong Q3 Results

Why It Matters

The move underscores how market sentiment can outweigh earnings strength, signaling caution for investors and highlighting the importance of dividend‑linked governance in capital‑intensive sectors.

Key Takeaways

• Q3 revenue rose 77% to ₹1,768 crore
• PAT surged 120% to ₹80.53 crore
• Shares dropped 5.25% amid heavy sell pressure
• 73% of trades were sell‑side, indicating profit‑booking
• Opened Dubai office, acquired 51% of Shri Rishab Gold

Pulse Analysis

Sky Gold’s Q3 performance showcases the resilience of India’s B2B gold jewellery segment. Revenue accelerated 77% year‑on‑year, driven by robust domestic demand and steady export orders despite elevated gold prices. The company’s profit after tax more than doubled, and EBITDA margins nudged higher, reflecting operational efficiencies. Yet the market reacted negatively, with a 5.25% share price dip as investors opted to lock in gains after a near‑ten‑fold three‑year rally. The heavy sell‑side bias—73% of trades—signals profit‑taking rather than fundamental weakness.

Strategic moves further shape Sky Gold’s outlook. The inauguration of a Dubai office expands its foothold in the Middle East, a region that values high‑purity gold jewellery and offers higher margins. Acquiring a 51% stake in Shri Rishab Gold diversifies its product portfolio and strengthens supply chain control. Additionally, the decision for promoters to draw compensation exclusively through dividends from FY27 aligns leadership incentives with cash‑flow generation, potentially enhancing shareholder confidence and supporting a more sustainable payout policy.

For the broader industry, Sky Gold’s episode illustrates the delicate balance between earnings momentum and market psychology. While a P/E of 23.6 suggests a premium valuation relative to peers, the recent pull‑back hints at caution among investors wary of over‑extension. Analysts will monitor whether the Middle East expansion and dividend strategy translate into consistent cash returns, which could justify the premium and stabilize the stock. In a sector sensitive to gold price volatility, firms that couple strong top‑line growth with transparent governance are likely to attract long‑term capital despite short‑term price swings.

Sky Gold shares drop 5% despite strong Q3 results

Market participants appear cautious despite the strong numbers, with selling pressure dominating · 73 per cent of trades were on the sell side versus 27 per cent buys · Updated · February 10, 2026 at 01:22 PM

Sky Gold and Diamonds shares fell 5.25 per cent to ₹331.30 on Tuesday afternoon, despite the company posting robust third‑quarter earnings that beat analyst expectations. The stock traded in a range between ₹325.20 and ₹354.40, with over 16 lakh shares changing hands by early afternoon.

The Mumbai‑based B2B gold jewellery manufacturer reported a 77 per cent year‑on‑year revenue jump to ₹1,768 crore for Q3 FY26 ended December 31, 2025. Profit after tax more than doubled to ₹80.53 crore, up 120 per cent from the same period last year, with EBITDA margins expanding to 7.34 per cent.

The company’s nine‑month performance showed similar momentum, with revenues rising 76 per cent to ₹4,383 crore and PAT surging 102 per cent to ₹191 crore. Managing Director Mangesh Chauhan attributed the growth to sustained demand across domestic and export markets, despite elevated gold prices and periodic volatility.

Market participants appear cautious despite the strong numbers, with selling pressure dominating—73 per cent of trades were on the sell side versus 27 per cent buys. Deliverable volumes stood at about 51 per cent of total traded quantity, suggesting some genuine shareholder exits rather than purely speculative trading.

The stock has climbed 967 per cent over three years but remains about 17 per cent below its 52‑week high of ₹400.95 reached in May 2025. Year‑to‑date, shares are marginally down 0.63 per cent.

Sky Gold recently expanded its Middle East presence with a Dubai office inauguration and acquired a 51 per cent stake in Shri Rishab Gold through its subsidiary. The company also announced that promoters will draw compensation solely through dividends from FY27, aligning their interests with cash‑flow generation.

With a market capitalization of ₹5,131 crore and trading at a P/E ratio of 23.62, the stock’s afternoon decline suggests profit‑booking after recent gains.

Published on February 10, 2026