Sky Gold Ltd (NSE: SKYGOLD) Q4 2025 Earnings Call dated May. 29, 2025
Corporate Participants:
Mangesh Chauhan — Managing Director & Chief Financial Officer
Darshan Chauhan — Wholetime Director
Unidentified Speaker
Analysts:
Unidentified Participant
Nilesh Jain — Analyst
Bharat Gianani — Analyst
Palash Kawale — Analyst
Presentation:
Operator
And please wait while you are joined to the conference. The conference is now being recorded ladies and gentlemen, thank you for patiently holding. The conference is expected to start shortly. Please continue to hold Ladies and gentlemen, good day and welcome to Sky Golden Diamonds Limited Q4 FY ’25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Vidiwasa. Thank you, and over to you, ma’am.
Unidentified Participant
Thank you. On behalf of NUFG Eng time, I welcome you all to Sky Gold and Diamonds Limited Quarter Four and FY ’25 Earnings conference Call. On the management side, we have Mr Mangesh Shahan, Managing Director and Chief Financial Officer; Mr Darshan Johan, Whole-Time Director; Mr Siddharth Sapani, Group Finance Controller; and Mrs Jain, Company Secretary. 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 and expectations as of today. These statements are not a guarantee of our future performance and unfortune risks and uncertainties. With this, now I hand over the call to Mr Mangesh Chauman. Over to you, sir.
Mangesh Chauhan — Managing Director & Chief Financial Officer
Thank you. Good morning, everyone. Welcome to the Q4 FY ’25 conference call. Just to give a recap of our business model, we are a design-led B2B jewelry manufacturer, meaning design is central to what we do. We collaborate with large corporations to co-create products while leveraging our strong understanding of end-customer needs with various micro markets to foster strong consumer relationships. We differentiate ourselves from a typical B2B converter through this collaborative design approach. At present, we are in the growth and scaling phase.
We were among the first organized Indian jewelry manufacturer to directly target the corporate market. A departure from the distributor-led strategy of the market-leader at the time, allowing us to build stronger customer relationships. While this corporate focus was initially questioned 15 years ago, the strong growth in this sector has proven to be right approach. Particularly with the ongoing shift from unorganized to organized players in retail jewelry. Large corporations increasingly prefer to partner with organized manufacturers like us, as we assure them consistency quality, positive working conditions and innovative design.
Our strategic strength lies in lightweight jewelry, which is highly relevant to today’s gold prices. For example, we manufacture our products at 15% to 20% lower weight compared to our competitions. We are also supporting a major retailer’s 18-karat gold growth. Our manufacturing capabilities ranges from 9 to 24 karat gold, including unique colors like rose gold, white gold, yellow gold. Our consistent approach is customer to co-creation and aiming for preferred partner status. Our planned forex expansion will make us India’s largest jewelry manufacturer. Why do we have right to win in this space?
Our addressable market is substantial both domestically in India and international. So as a B2B design leader, our strength lies is not — is not being limited to a single geographic region, allowing for a high scalable and asset-light business model. First, we currently partner with the majority of Indian corporations and are expanding our global presence by establishing overseas offices. Chawan will elaborate on the strategic implication on this international growth. The largest competitor in India produces four to five, six times more than a operating at 2 to 3 ton per month and hold a leading position with advanced gold making 90% of their manufactured volumes. This is largely because of their scale and extensive design portfolio.
We respect our leader in this space. What is the structural advantage we have? How does scale help in our industry? Is 50% more frugal compared to our competitors. So our employee cost and other expenditures add-up only to 1.5% across of sales, which our competitor appreciates at 2 times higher-cost. However, our PAT margins are superior despite operating at a lower markup compared to the leaders. The turnaround time for the competitor is 30 days to 45 days, while our turnaround time is 15 to 25 days. So as a result, we have been growing at two to three times more than the organized players. Until 2023, we had a manufacturing capacity of 200 kgs per month and this quantity was manufactured across multiple locations.
So our cost structure was not favorable and we experienced a gold loss of more than 1.5%. So now our gold loss has dropped to 0.5% and we see further room for improvement. We feel that Sky Gold is at an inflection point to gain market-share from the large unorganized base and organized player in the space. So this is one of the primary reason why we went to expedite our plants to increasing our capacity from one ton per month-to four ton per month. And on the design bank front, we have been silently strengthening our design team over the last three years, which has led to this growth.
In industry — in addition — in addition, we have recently opened our design studio in Anderi. Like BKC in the financial space, is a heart of jewelry design. High-profile designers find it hard to travel to our Novembi facility. Also, the work ignorment required for our designer is totally different from the manufacturing facility. Just to elaborate on the importance of the design facility, until a few years back, our designers were not complex. Designs were not complex. We were working on co-creation projects with one of the public active listed companies in the retail space on lifestyle design.
These designs were exclusity for the customer and lock as well., our business model has shifted from selling generic design to more complex design. As a result, we can command superior gross margin and payment terms from our customers. Our design team of 110 employee plus freelancers have been split into 10 to 12 verticals where each designers focus on a particular category. As a direct result of these initiatives, we have been able to build close relationship with the founders of large retailers a contrast to our prior limited access.
Let’s now discuss our organization structure. A crucial element for scaling is our capacity to attract and compensate top tire talent. However, as the founder, we have learned the importance of being — willing to invest more for exceptional individuals. We have brought on-board some highly experienced professionals with 15 20 years in the industries and strong networks. We are providing invaluable in the — invaluable in attracting further talent of our higher-end of our recent hires, I would like to highlight a few key individuals.
First, Akash will lead our sales efforts. He has been crucial in our transition to a customer-specific project business model and conceived the design studio. Previously associated with major brands like star, GoldStar and Industries. Akas will now focus on shifting a significant portion of our revenue towards advanced good. His prior experience includes high mark — high markup gold categories, diamond jewelry and exports. Sandeep Roy heads our Operations and overseas our 18 gold segment with over a decade of experience in the Chinese jewelry industry, he possesses a strong understanding of advancement in this field. Since his arrival, we have seen a notable improvement in the The finish of our products. Tiru brings nearly three decades of experience to our team, including 13 years at Titan and eight years at. He is responsible for EMRA ERP implementation, gold loss reduction and productivity has — goal reduction and productivity improvement. Since his arrival, our gold loss has and employee productivity has increased by 20% 25%. Previously, he led Cariga Trading and the continues and continues to emphasize the training at. We are implementing a modern ERP system, a significant improvement over our previous ones. Despite the complex implementation in the jewelry industry due to numerous SKUs, the long-term benefits are substantial. The new system will allow for close monitoring of employee productivity, gold loss, inventory positions and customer receivables. We began this in the second-half of the previous financial year and currently trading and we plan to have this operation by this year. Will head our finance focus — finance functions, bringing over two decades of experience, including time with big four firms. We will instrumental — he will be instrumental in transforming our auditing practices and possesses deep understanding for regulation and for international office operations. Additionally as the operational CFO, he will work closely with operations and sales to reduce working capital. Recognizing the need for improved corporate governance in the gold industry, will lead initiative for best-in-class audit practices. Important updates will follow. Thank you now I will hand over to Dhashan to give a small speech now.
Darshan Chauhan — Wholetime Director
Thanks,. Let’s begin by discussing our advanced gold strategy, which is specially designed to sharply decrease our capital employed. In this model, the customer procurs and provides the gold, thereby reducing our need for capital investment. Our revenue will only reflect the value of manufacturing work we perform. This will optically enhance our profitability margins. Crucially, it also eliminates the need for us to hold inventory and manage receivables related to gold itself.
A key performance indicator of our new Head of Sales, Mr Akash is to increase the proportion of advanced gold in our total production. Our recent 200 kg monthly export order exemplifies this. With a gradual increase in shipment starting with 70 kg in Q1 FY ’26. Similarly to the auto ancillary industry, the scaling of this will depend on customer timelines. We are optimistic about our success in the export market and anticipate significant growth over next 12 to 16 months.
In Q1 FY ’26, Advanced gold made-up about 5% of our total volume, a level we expect to maintain through FY ’26, a substantial increase from its minimal presence in FY ’25. We project this to contribute 10% of our total revenues by FY ’27, growing to 30% by FY ’29-30 with endeavor to focus new customers onboarding on advanced gold terms due to competitive sensitivity — sensitivities, we cannot disclose the specific financial details of Advanced gold. However, we do see opportunities for premium pricing when we utilize our own gold, particularly during periods of high market prices.
Now coming to diamonds. Our name Sky Golden Diamonds reflect the significant potential we see in the diamond category. Through our Sky Nine Diamond brand, we are offering lightweight contemporary jewelry that merges international designs with the Indian craftsmanship. While diamonds provide high gross margins, they typically have longer receivable cycles. However, their return on capital is superior to that of plain gold. Our strategy includes both natural and diamonds. To enhance our capabilities in this area, we have bought on-board Mr Shukumar Gangadar, a seasoned professional who was a senior purchase manager at Jos Alukas for many years.
We have noted that rising gold prices are encouraging customers to buy streaded jewelry, often with lower gold content. Currently, diamonds contribute about 1% to our revenue and we anticipate this increasing to 4% by FY ’27. And for the exports, FY ’25 marked a turning point for SkyGold with our export revenue tripling from approximately INR100 crore in FY ’24 to INR300 crore in FY ’25. Exports now contribute about 8% of our total revenue. To further leverage the substantial Indian dispora in the Middle-East and Malaysia, we are establishing local offices in Dubai to enhance our market presence.
We have identified key team members for our Dubai office who have collectively handled sales of 600 cages per month. We foresee significant contributions from Dubai and Malaysia aiming for exports to represent 20% of our volume by FY ’27. Strategically, this expansion into exports also help us to reduce our capital employed due to the shorter receivable cycles compared to our domestic operations. The total receivable days in our export operations is less than 15 days. Finally, we are implementing a new strategy to target the significant unorganized retail sector, which still accounts for over half of the industry. These retailers typically source through large distributors who in-turn work with smaller jewelry manufacturers.
Our approach will be to introduce fresh designs to this market, focusing excessively on advanced gold due to the importance of collection. We anticipate this new vertical will significantly accelerate our growth. Our primary efforts will be directed towards scaling advanced gold and decreasing working capital associated with customers. I will be heavily involved in improving collections and accelerating our receivable cycle. Consequently, managing the receivable cycle is a key KRA for all our key sales team members.
Now will take-over to explain the unit economics of the business.
Mangesh Chauhan — Managing Director & Chief Financial Officer
Thank you. As we move into Q1 FY ’26, our primary focus will be on working capital management as previously communicated despite achieving growth, improved gross margin and profit growth, we recognized the critical need to optimize our working capital levels and reduce interest cost. Our working capital cycle peaked at 72 days in Q4 FY ’25 due to preparation, but has since decreased to approximately 60 days to achieve a neutral operating cash-flow by FY ’27. We aim for a working capital cycle of 50 to 55 days, achieving through inventory days of 30 to 33 days and LCBL of 20 to 22 days.
This improvement will be driven by enhanced inventory control via our new ERP system and more disciplined approach to receivable collection led by. Our long-term goals include reducing working capital below 50 days and increasing PAT margins to 5% from our current existing margin of 3.7%. Key drivers for PAT margin expansion are advanced gold, gold metal loans and our high-margin diamond business, along with operating leverages from scale. A significant part of my responsibilities in the first-half of FY ’26 is procuring gold metal loans to strengthen our capabilities in this area and lower interest expenses. We have brought on Sifani who has specific expertise in gold metal loans.
As you all know, the gold metal loan interest rates have been volatile and terms were not favorable to us. We have now received proposals which are favorable to us. Has handled gold metal loans of more than INR500 crores across India, U.A and US markets. And finally, regarding corporate governance, a key priority for us, we are committed to further strengthening our audit processes and we will share updates on this soon. Thank you very much. Now we can start our question-and-answer session.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press on your touchstone telephone. If you wish to remove yourself from the question queue, you may press R and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Nilesh Jain from Astur Investment Management. Please go-ahead.
Nilesh Jain
Hi, thank you for the opportunity and congratulations on a good set of numbers. My first question is on the working capital. Like you mentioned. So I wanted to understand largely for this financial year or for the last quarter, what has led to a massive increase in the receivable days from 21 days to almost 47 days. So for this financial year, if we can talk about?
Mangesh Chauhan
Sure, sure, sir. So our inventory day shot up in March because of the was on 30th April and many orders of delivery was getting postponed in the first week because March rates where gold rates had gone up. So we pushed up the delivery in March only to achieve our targets also . And we given the comfort to the that they can pay in seven days — take a credit of 70 days more or 10 days more. So to achieve the target of March and to push up the deliveries of Akshay as gold rates were very-high all-time high. But now the receivables at 30 has already gone down to 60 days. So this was a short-term comfort given to the corporates.
Nilesh Jain
Okay. So we expect this to normalize.
Mangesh Chauhan
So already we have normalized on an average of 60 days and we are targeting hire for 50 to 50 to 55 days. So again in the last March ’24, we were short of — inventory were short-up because city was in the my end, so deliveries were in first week of April. So — inventories were high. In this March datas were high because we pushed the delivery. Actually TV was earlier and payments we’ve given a comfort of 17 days to the corporates because of the rates upsell out, but now it’s all regular and business are on a regular. Now receivable has come below 300 in the absolute term.
Nilesh Jain
Okay. Okay, sure. In your initial comments, you mentioned that advanced gold has been about certain percentage of volume. Can you help me with the number? What has been — what is that number? So about a percentage of advanced gold business yes of overall volume, how much percentage is?
Mangesh Chauhan
Yeah. Already we have closed with 5% to 6% in last year and now we are targeting for 7%, 5%, 7.5% in this year. So last year we achieved 5% of gold — this is advanced gold business. So this year, we are expecting good gold business because already came up at the rate of 10 15 kg per month from 2KG and Aditya and Reliance we onboarded already last quarter onboarded and given a samples to them and they are about to start the business. And Reliance, we started the agreement phase — already agreement phase has done and we are expecting from them also advanced gold business.
So this year advanced gold business, conservatively, we will be at 7.5%.
Nilesh Jain
Okay. My last question is we want to increase our capacity from one ton to almost 4.5 ton. And you mentioned that we are looking at INR100 crores of investment to set-up the plant, the capacity. What would be your working capital investment apart from the INR100 crores for the fixed asset?
Mangesh Chauhan
So again, we have just record a land and building, keeping in mind the future demand, the corporates that are onboarding like, Aditya Villa and and we onboard it. And again, some more will be onboarded. So this will lead to — our capacity will be utilized by ’27 end or starting of 2028 start. So we will need some new facilities that time and we are in a plan mode. We will come up with all these details after June quarter and what will do our capex plan and how will we will be executing it. Right now, we have just purchased a plant and a land and building and which we are replacing with the bank, with our, which are with the — just we are replaced with the bank for the. So again, we will come up with the plan of going by 2028, we’ll open this facility and we are in the phase of making the plan and we’ll come up with after June quarter and how much capex will be done and how the working capital will be recovered?
Nilesh Jain
And just lastly on the guidance you’ve given of INR7,200 crores by FY ’27, what is our assumption on the realization of the gold price, like how much appreciation we are expecting?
Mangesh Chauhan
Yeah. So we have conservatively taken a gold rate of INR90,000 per diagram because we cannot predict two years because it has gone up by 30% this year. So expect it to consolidate for two years. So we have conservatively taken a 90,000 rate, which is very conservative rate because it can be stability also or it can go up or so, but we have taken a conservative rate. So we have given a guidance of INR5,400 crore and INR7,600 crores in the new PPT.
Nilesh Jain
Okay, sir. Thank you so much. All the best. I’ll join back-in queue.
Operator
Thank you. Thank you very much. The next question is from the line of Bharat Yanani from Money Control Pro. Please go-ahead.
Bharat Gianani
Good morning, sir and congratulations for a great set of numbers. Sir, I have two questions. First, coming back to the guidance side, we have seen in the press release that FY ’27 revenue guidance is INR7,200 crores. So sir, just wanted to check on the margin front, what would be the EBITDA margin and the PAT margin guidance till FY ’27 considering that you have highlighted a lot of efforts to increase the exports, to increase the share of advanced gold, to increase the share of diamonds. So just wanted to get a flavor of what is the margin guidance for FY ’27 on EBITDA and PAT?
Mangesh Chauhan
So we are at current 3.7% PAT and we are expecting to go to 4.5% conservatively by FY ’27 March. EBITDA, we are now 5.7% approximately 5.67% and we will go up to 6.2%, 6.3% of EBITDA. Conservative 6.2%, 6.8%.
Bharat Gianani
Okay. So operate. And sir, a second considering on this GML part. So basically, I guess GML rates were volatile as you rightly pointed out. But now you gave the comment that we have started receiving the favorable rates. So can you elaborate like what is the GML rate that we are currently getting and what is the proportion in of inventory that is funded by GML now and what is what is your target to take it up to?
Mangesh Chauhan
So already we were using 15%, approximately 15% 20% earlier, we surrendered that GML last before tariff and all because the availability was dried up and also the rate has gone up in the last quarter to 8%, 9% and 10% is also gone up. So we start — we stopped using last quarter and this quarter we are seeing it has stabilized to 5%. Now today’s rate 4.75% and they are telling that in one month time, it will go down to 3% or 3.5%. So availability has also in normal pace now. Earlier quarter availability was not there for two, three days. So now we are planning — also joined us who has a good experience in GML. So he has done a good meeting with all the bankers and we are planning to use from July next quarter. This quarter has already came up to-end up with 30 days of spending.
But in second-quarter, we will start using it and rates will be approximately 3.5% to 3.7% I — as per my assumption, it will not come down to 3% as earlier with the — in a short-time, but in a longer time in the 3rd-quarter or 4th-quarter, it will come up to 3%. So we’ll be slowly starting using it second-quarter?
Bharat Gianani
Okay, okay. And sir, what proportion of inventory do you plan to fund via GML? So earlier, as you said like in-quarter four, it was 15% 20% so what will be the proportion that you’re now targeting for?
Mangesh Chauhan
80%, 85%, 80% because bank also give up to 90%, there is a cap of 10%, but we plan to go to 80%, 85% in three, four quarters from here. So first-quarter we are targeting is 20% and again second-quarter we are targeting 35% 40%
Bharat Gianani
Because congratulations and all the best.
Mangesh Chauhan
Thank you,. Thank you.
Operator
Thank you very much. The next question is from the line of Dave from CEO Capital. Please go-ahead.
Unidentified Participant
Am I clearly audible?
Operator
Yes, sir. Yes, okay.
Unidentified Participant
Sir, thank you very much for the opportunity and providing such an extensive commentary at the start of the call. Many of the questions got addressed there. I had a question about the expansion and when it will get operational, but I guess I’ll have to wait till Q1.
Mangesh Chauhan
So are they just start of facility making a facility by 2022 opening and to conclude it by 2028 opening. So we are on it already said that joint last month only, we are preparing all these plants and all. And in next quarter — by June quarter, we’ll be with all this plan going to 4x from here. So we have a plan of 4, I the turnover of INR20,000 crores. So we will INR27,000 crores. So we will be giving this plan after June quarter surely.
Unidentified Participant
Right, sir. I’ll wait for that, sir and I’ll keep my questions till that point. Sir, my question was on the export order that you have gotten. That’s a single very large order for you. What is the scope with the customer going-forward? I mean after you reach the 200 kg mark, can you like can that customer give you a bigger — I mean, can you have a bigger wallet size — a wallet share with that customer? And also the — what is the overall addressable market here, how much can you do in exports and how many such opportunities are there which you can easily capture going-forward? And let’s take — let’s take 10 — let’s say probably next over the next two to three years, how many such opportunities can come your way
Unidentified Participant
?
Mangesh Chauhan
Yeah, sure. So this is a — just this is a strategic relationship with a customer in Malaysia and he came to our facility and given a confirmation of all the 200 KG per month. So we have already delivered 60 KGs. So this is on the basis of advanced USD he is providing to us and we are making again, sales is created. This is not like a job of gold cannot be send it by advanced gold, there is some process in that. So he is sending US dollar advance and we are sending only one tonch of 60 kg has gone up and they are into QC model and all. So this is a — this run-rate will come by into three to four months from here.
And he is a distributor — we have appointed him a distributor for Malaysia, totally Malaysia country, we have given a whole and sold distributor to him. So again, exports is there is a huge opportunity because we are opening — that’s why opening office in Dubai because the reason beyon opening is that there is a reference of a dollar rate here. When we get export metal in India from bank, we have to pay some $4, $5 premium here and we same charge to the customer. Against where in Dubai, gold is cheaper by $10 approximately after 365 days we need a standalone shippers because gold come from every country in Dubai.
So they want the rate for going-in Dubai. So we will becoming gold in Dubai and selling gear for job work and giving the — passing this rate to customers, this difference of the $15 rate, which is very hard for going through more exports if we want to do, we have to give the comfort of this dollar to that. So we’ll get the gold in Dubai and give — send here for job work and this will give a comfort to the customer, they are getting the same rate of goods as in Dubai. So this will scale our business. Many customers will be added in this. So exports has a good potential. We are targeting 20% from here in this year from the Dubai, Singapore and Malaysia already saying to Malaysia, we have appointed the distributors the whole time.
And I think for exports, can also give a commit comment on this.
Unidentified Speaker
Yeah. While looking the demand of Indian jewelry in the export market, it is going quite fantastic. Last year also, you can see it was very good performance in export market for us. So going-forward, Dubai market, GCC countries like Bayra and Oma and Qatar, Saudi, all are growing at a large-scale. So we are getting good demands from the clients over there. So especially, we have started — we are going to start the office in Dubai for to serve them more, better, to give them more better services and to give the comfortability of logistics and everything.
So Dubai, Malaysia and Singapore, these areas are pure — core market for our jewelry, wherein Indian is mean at purchasing our jewelry. So we are focusing main on increasing our export share in this. Again, the corporates in this international market like how we are conducting business in Indian market with the corporates, the international corporates also we are planning to make a co-creation and tie-up with them to give them the new designs and multiple Indian design which are in very huge demand right now in the international market.
Mangesh Chauhan
Thank you very much.
Unidentified Participant
Understood, sir. Sir, so my understanding on this matter is slightly, I mean, non-existent basically. But when you will import from a gold from Dubai and send like the manufactured piece from India, there will not be any duties, any taxation on you.
Mangesh Chauhan
Already duties are not here also. We get the — without duty from Indian banks also, but here there is a premium of INR45, which is very nominal, 0.10. But in Dubai, gold rates are discounted by INR10. So we — we have a subsidiary there and our funds will be there. They will purchase gold from Dubai and do send our Sky Gold Mumbai for a job one and we can say deliver from that shareholders. So that will be —
Unidentified Participant
That will not attract any taxation from Indian government.
Mangesh Chauhan
No, no, no. The taxation with — we are charging a making charge from here only. So we are big — we will be paying tax here in India. Yeah. So that tax be paying here. But on gold itself, normally big company practices this type of model. Understood, understood. So then the market can be very large for you, if you can do it in it because some way you have seen so the big distributor — there is a hurdle of rate of Indian premium of $4, $5 and they are getting discount at $10 in Dubai for the gold rate. So we are not — we are not — so we will be able to touch that customer also.
Unidentified Participant
Understood, sir. Understood. Sir, one last question again on the exports. So what kind of marketing you described that you are bringing in people to take care of the marketing and sales specifically. But on this export opportunity, what kind of presence do you have in terms of elective team members? How many people are like catering to export markets exclusively and how are you going to build that team?
Unidentified Speaker
Yeah. So I will elaborate on this. We are taking an experienced sales team from the Dubai market who are having experience of the Dubai market for last 30 years — last 20 years. So two persons we have selected for our office who are having collectively experience of selling 500 to 600 cages of gold. So one is experience in the local GCC markets and the Dubai market and the local GCC countries and the other one is having expertise in the international market like East Asian markets or their African markets or their Australia, Canada, everywhere. So we are having a mix of good salespeople. They will give good marketing services to the international market and everywhere. And we are doing co-creation with them and the local retailers there in Dubai, Saudi,, they are looking for co-creation, so we will provide them the design, they are looking for their market. Yeah.
Unidentified Participant
Excellent, sir. Thank you very much for the opportunity, sir, and all the best. You have some wonderful plants. I hope you are successful. Thank you,
Mangesh Chauhan
Thank you for listen, sir. Yeah
Unidentified Participant
Thank you, sir.
Operator
Thank you very much. The next question is from the line of Palash Pale from Nuvama Wealth. Please go-ahead.
Palash Kawale
Hi, sir. Thank you for the opportunity and congratulations on very good set of results. Sir, my first question is that — is it safe to assume that in FY ’26, you will be doing around 4% of PAT margins?
Mangesh Chauhan
Okay. So again, yeah, again, we are — because of GML, we will be saving 0.3, 0.4% conservatively. So we can reach 4%, I think it’s reachable in 2026.
Palash Kawale
And sir, any new customer additions for this quarter are planning — are planned or you have added in last quarter.
Mangesh Chauhan
Yeah, already in — in March quarter, we added Aditya Birla and this quarter we added reliance, added we have already done the agreement phase and we are going to order in one or two months, the process is of two, three months of onboarding and all. So we added this one. Again, PMJ jewelry, we added PMJ jelly who is — who has 50 stores in Hyderabad in Andhra. We are launching 24 jewelry with them. We have made a 24-Kat exclusive journey, which is made in China majorly. In India is very rare. So we have a metro expert in our in our production team. He has made it possible. So we have made rings also, necklaces also gearing also, which is very difficult in 24. So India has allowed 995 gold to Harmark and he will be putting his journey in all the 50 stores in August month — from August month and he has done a tie-up with us for 24 July.
So we have added PMD like Murray jewelry in Hyderabad, who has 12 planning to go up to 30 stores. So we have concept — in large corporate, we have majorly all kinds of also, we don’t have. But again, we are concentrating right now on 10 15 stores, those who are concentrating in a region like Kerala, those who have 10 to 15 stores, we have onboarded them. Andra, those who have 10 to 15 and they are — have expansion plan seeing this corporate going. They are also going to 30 stores, stores, 46, 50 stores. So we have concentrated this also in last quarter.
Mid-corporate segment also, we have considered much because seeing the opportunities, they are also availing the bank loans and facilities and expanding the stores. So again, large corporates, we have already stored, we two quarters before last quarter in this quarter we were in. So mid-corporate and small corporates are going — adding every quarter. Those were two to three stores also we are adding because they are also going to have seven to 10 stores in two tiers or something. So all the blended business we are getting from them.
Palash Kawale
Okay. Okay. That’s really helpful, sir. Sir, again, on your guidance of INR7,600 crore by FY ’27 with 4.5% margins, that comes out at INR340 crores of PAT from your guidance of INR250 crores, which was there. So does it also include the revenue and PAT numbers from the recently-acquired entity?
Mangesh Chauhan
No, we have not driven the guidance of this one. After June quarter acquisition will be over and we will add the guidance of this in this — this will add-up to our gross margins also and EBITDA also will be improved because this company operates on advanced gold business.
Palash Kawale
Okay, okay. And sir, you plan to be operating cash-flow positive on this FY ‘2 — on — in FY ’27, right?
Mangesh Chauhan
Yeah, yeah. We are — we will be cash-flow positive in FY ’27 March. But after March.
Palash Kawale
Okay. Okay. That’s really helpful, sir. Thank you. That’s It from my side. All the questions have been answered. Yeah. Thank you. Thank you. Thank you.
Operator
Thank you very much. Participants who wish to ask questions may press star in one at this time. I repeat, participants who wish to ask questions may press star and one at this time. The next question is from the line of Vijay Johan from RHBMS. Please go-ahead.
Unidentified Participant
Yeah, thanks for the opportunity and congrats on excellent set of numbers and good execution. So looking at the commentary, it is wonderful. So what — is it fair to assume like going ahead, let’s say, if we go for the expansion that we are already targeting. So exports will contribute significantly more than the domestic player in the incremental volume share. Is it fair to assume?
Mangesh Chauhan
No, we mostly rely on Indian market because it is a huge market, INR140 crore of population, there is a huge potential in India. But export again has a different potential. So it will not be like we are going for 60% 70% export. But again, there can be a 70-30 ratio. So going ahead, we can be — India, we can be 70%, 75% and export can be 20% 25% or 30%. So India is a huge capacity and we are very small for it because we are at now INR3,500 crore turnover and India has a INR5 lakh crore of market in India available — organized market.
Again, unorganized market is INR9 lak crores. So there will be a ratio of 25 I think going ahead is shifting to organized, which is INR lakh crores unorganized markets available. So that will be the ratio. This capacity expansions, our sales will come from India also export also again from mid-corporate, we are expecting a good sales because many 10, 12 stores which are not in the market names are in the market, but they are growing very fastly. And again, from organized manufacturer, we can expect a good advanced gold business, which can help us to achieve this 4.5 ton advanced gold business will help us to achieve this, which will lead a lesser working capital in this huge facility.
So this facility will show our strength of manufacturing, which will be standalone number-one of the largest in India. In, it is one of the largest in India IS-5 lakh square feet store and we will be standalone one of the largest in India if we build-up this facility and go in this. So we have a aim to become a 4.5 ton — at least in India, you can see 800 ton of gold is imported and 600 ton of jewelry is made, 200 ton of Boolean and coins are made. So out of 600 tonnes, we have — we want to be somewhere about 7%, 8%, 9% of the market-share somewhere in this market-share. So this will drive from existing large corporate also and mid-corporate also from export also advanced gold was the business also.
Unidentified Participant
Excellent. And is it fair to assume like this year’s exit run-rate per month will be more than 650 odd FY ’26.
Mangesh Chauhan
April was very good quarter for us. Was there. And then as we have given the we’ll be a run-rate of INR200 INR1,300 crores per quarter.
Unidentified Participant
Okay, okay. Okay. Okay. And the FY ’26 exit run-rate can be — I’m asking per month, it will be like 600 plus 650 KG per month when we complete the FY ’26?
Mangesh Chauhan
Yeah, 6 days, because we are per month, say 50 to 70 days.
Unidentified Participant
Yeah. Okay, okay. And lastly on the — when it comes to exports, so can you elaborate like the design differences or the preferences they have versus the domestic preference and how we are building like if there is a substantial difference in terms of designs on jewelry side. So are we building some differentiated design portfolio for export market or there is no much difference?
Mangesh Chauhan
No, no. We’ll speak on this one. I’ll elaborate on the design aspect of the international market. Moreover, we are specialized in the South Indian jewelry market like we have a very good deep knowledge of the South Indian jewelry market. So that jewelry is going on very good in the international market. Apart from that, there are some concepts and some regional specific and country-specific designs that we are also building on with them, we are doing co-creation with them. We have developed a design studio in Andrei for specially developing the export-oriented design, which are special and new in the international market.
So yes, some of the designs from the existing portfolio and some of the new designs with co-creation from the international clients we are developing. So as in all, we are a design-based company, we are a co-creation company. So we have to provide best designs to the customers.
Unidentified Participant
Right. And those designs will be, let’s say, whatever we create new designs. So those will be exclusive to export players or we will be also able to launch in Indian market.
Mangesh Chauhan
So no, Rugo, I can add-up to, we have a 150 designer team, every 10 15 batch of designer head and designer team works over for the corporate segment. So two verticals are working for Dubai and Singapore, Malaysia region and we keep a locking for the design. Like for one of the public digital company, we started lifetime jewelry segment for them and we made a specialty design for them 500 design and we keep a locking for them. So we don’t use the design for Indian market because there should be some specialty and a monopoly should be given to them.
So we specially design for these countries and make for them and take the orders from them only. So out of 10, 15 verticals, one or two vertical was for the exports, three, four, five verticals for the major corporate, then mid-corporate and all mix.
Unidentified Participant
It sounds very clear. Sounds very clear. So thank you for all the clarifications and good luck for the future. Thank you.
Mangesh Chauhan
Thank you. Thank you.
Operator
Thank you. Thank you very much. The next question is from the line of H, an Individual Investor. Please go-ahead.
Unidentified Participant
Am I audible?
Operator
Yes, sir.
Unidentified Participant
So recently gold prices hit its record-high. So do you facing any decline in your client side and in the end-customer side or any changes?
Mangesh Chauhan
So there are inventory changes going on. You can see with our tick — our inventory falls below — we are into lightweight jewelry segment where the impact is very lesser. Heavy jewelry 3 lakh 4 lakh 5 lakh, 10 lakh impacts is there 20%. So our lightweight jewelry is below 1 lakh, 80% and 2 lakhs 20% below 2 lakhs. So there is an inventorship, the customer going for 10 grams are going for nine grams. We are — we have brought in 8 to 9 3D printers last year only when we came into this capacity. So we are able to reduce our weight by 15% 20% in the inventory.
So inventory shift is there. Ticket size shift is there, but number of PCs are gaining. So our average ticket size was 55,000 60,000. Earlier it got up to 45,000, 50,000 and number of pieces are increasing. So likewise jewelry is very lesser impact because of the rates and all. But again 18 karat, we are expanding very much. 18 kat, we were at 3.7% last to last year and now this year we at 6.6% this quarter we closed. So 18 market-share is going up with the gold rate. So again, this is helping to accelerate our volumes and all. So yeah.
Unidentified Participant
Okay. So are you looking for 14 in your portfolio?
Mangesh Chauhan
Already we have started a sample for two customers in diamond. We had added one customer in diamond last year of. Again, two customer — I will not take the name because we have not done an agreement already. We are in the phase for that, but we have developed a 14-K sample for them and they are for us. Both are in the abnon diamond jewelry in the channel stores and both want in — so we have developed 14-K for diamond jewelry. And I think some market-share will gain for protein carat also in India because of the rate and coming modern youngsters like teenagers of 18 years, 20 years, 25 years, nowadays, 15 years, 16 years boys and girls are wearing 18 and 14 kids. Earlier our parents used to not used to allow them to wear, but nowadays lightweight jewelry and white gold and colors are there.
So they are able to purchase and they have a purchasing power right now and they are also shifting to 18 and 14 cred. So we see some market of 14 going here.
Unidentified Participant
Okay, sir. Thank you. That’s all from my side. Thank you so much. Thank you.
Operator
Thank you very much. The next question is from the line of Bhat Yanani from Money Control Pro. Please go-ahead.
Bharat Gianani
Yes, sir. Thanks for the opportunity once again. Just one clarification. We had about — I mean, current investments, it was a tune of about INR100 crore. I’m not aware of the number in FY ’25. But then for GML, I guess you have to keep that as a collateral if you want to increase the GML. So just wanted to get a sense that if we keep that for the GML thing, for the new plant, the capex that we are going to do INR100 crore that could come from — I mean, I just wanted to check if the security deposit is — we’ll be using for GML, then how will we do the capex for the new plant? So that was just my question.
Mangesh Chauhan
It’s charge,. So already we have acquired a building here, which will be placed to the bank and we can take a INR300 crore GML from them, which will be at 300 — 3% or 3.5%. This is really beneficial for the company. Again, for the capex part, only I mentioned it into plan and our total detail will come with the June PBT, what will be the capex and how much years we’ll do? It will — from internal accruals, mostly it will be done. And per year how much it will done from the profit. Assuming 2027, we are at INR25 INR300 crore PAT. So we’ll be using from that also from internal core. But we have not strongly made the plan. We have already acquired and we will be making this facility 100%, but we will come up with all this capex plan and the 2030 plant with in June quarter, we will give a glance of 2030, how will we reach coat and capacity, a turnaround forex from here? And what will be for-profit margin, who will drive the sales, how we will achieve this after 2027, how will we go to 1.5 ton or 1.7 ton and again 2.5 ton and three tonne and four ton. So a plan is totally in-process and we will be giving up in June quarter with.
Unidentified Speaker
Okay, wait for the same. Thanks and all the best, sir.
Operator
Thank you. Thank you very much. The next question is from the line of Palash Kawale from Nuvawa Mealth. Please go-ahead.
Palash Kawale
Yes, sir. Thank you for the opportunity again. Sir, when can we expect this 200 kg per export order to like go to 200 kg per month-by which quarter?
Mangesh Chauhan
Only we are at a run-rate of 60 KG — every month we start get the order, it will be gradually increasing. This month also we got 60 — we are getting 60 kg advanced USD from there. Gradually by — in 12 months, we will be at 200, 1,800. I think in 1/4, we will be at 100 and 150 KG in July quarter on 800 KG run-rate. And again December quarter we will be at 150 KG run-rate and March quarter will be 200 kg. And sir, any other player in India who does similar kind of exports to distributors. Like you mentioned, one of the competitors who is very big competitor, but do they also need such kind of orders or jewelry who is very big than a CEC in exports also in domestic also and he is also exporting. And again, we are second-largest in costing jewelry or we are also trying to achieve this export market and keep the capture of this one.
Palash Kawale
Okay, okay. That’s helpful, sir. Thank you. Thank you so much.
Operator
Thank you very much. Due to time constraint, that was the last question. On behalf of Sky Gold and Diamonds Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.
Mangesh Chauhan
Thank you, sir. Thank you, all of you