Sky Gold CFO says Advance Gold model eased working capital strain
Sky Gold and Diamonds CFO Siddharth Sipani told Moody's how the Advance Gold model cuts inventory funding needs and supports higher output as the company grows.
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what happened
Sky Gold and Diamonds, a B2B gold jewellery maker in India, posted positive operating cash flow of about Rs 30 crore in Q1 FY27 while its revenue rose 78%. The year before, operating cash flow had been negative. CFO Siddharth Sipani discussed the shift in an interview published by Moody's.
The company is relying on its Advance Gold model, in which customers supply the gold themselves. That reduces the need to fund inventory, and the freed-up cash goes to serving other clients and raising capacity utilisation. Sipani said the company targets export revenue of around 20% by FY30, supported by its Dubai base and a presence in the UAE, Bahrain, Singapore and Malaysia.
A Rs 270 crore Qualified Institutional Placement in October 2024 was almost fully used for working capital by December that year, helping the company scale production from 250 kg to 750 kg.
why it matters
This is mainly a sector story. It shows how jewellery makers manage gold exposure when metal prices are high: shifting inventory risk to customers reduces how much working capital depends on gold price swings. The company is small and specialised, so its results are unlikely to move the wider market.
tags
instruments
sources
- Advance Gold Helps Optimise Our Working Capital: Sky Gold and Diamonds CFO — Moody's, 31 October 2026 at 08:32 UTC
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