Please note that this conference is being recorded. I now hand the conference over to Ms. Vidhi Vasa. Thank you. Over to you, ma'am. Thank you. On behalf of MUFG Intime, I welcome you all to Sky Gold Limited Q1 FY 2026 Earnings Conference Call. On the management side, we have Mr. Mangesh Chauhan, Managing Director and Chief Financial Officer, Mr. Siddharth Sipani, Group Finance Controller, and Mrs. Nikita 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 beliefs, opinion, and expectations as of today. These statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties. With this, now I hand over the call to Mr. Mangesh Chauhan. Over to you, sir. Thank you so much. Good morning, everyone. Thank you for joining us today as we are discussing our Q1 FY 2026 financial performance. We have commenced the quarter on a strong note, despite persistent fluctuation in gold prices. Our Akshaya Tritiya sales performed exceptionally well, demonstrating significant growth. At Sky Gold, we remain steadfast on our vision to become one of the largest B2B gold jewelry manufacturers in our segment. Our specialization in lightweight jewelry serves as a strategic differentiator, especially relevant in today's fluctuating gold market. The Indian fine jewelry sector is seeing accelerated growth, fueled by surging gold rates, the emergence of women as primary buyers, and growing inclination towards sleek design, forward pieces suited for modern lifestyles. We have transited from a volume-based approach focused on generic design to a more design-led model, emphasizing craftsmanship and complexity. This exclusion enabled us to produce jewelry that's both lightweight and structurally robust, perfectly catering to today's customers who seek durability and elegance amid fluctuating gold prices. In response to this market dynamics and to cater to evolving consumer preferences, we are also observing an increasing trend to customers inclination towards 18 karat jewelry. Further, few customers are also open to test 14 karat jewelry due to high gold prices and industries adopting to a new hallmarking rule for 9 karat jewelry. As we progress on our growth journey, the successful onboarding of our new client, large client like Reliance Jewels, demonstrates our capability to manage premium large-scale products with excellence and significantly expand our customer reach. Now, I would like to highlight some of our recent company updates. New client additions. We have successfully onboarded Reliance Retail, PMJ Jewels Hyderabad, and Kalamandir Jewellers, which has strengthened our presence across diversified and fast-growing major jewelry retailers. Additionally, our wallet share is increasing with Aditya Birla, CaratLane, and P. N. Gadgil & Sons, further enhancing our footprints among prominent and rapidly expanding jewelry retail chains. Focus on advance gold customers. We are actively targeting new customers' additions through the advance gold model, and we anticipate a further increase in wallet share from our existing advance gold clients. The model is expected to enhance PAT and improve ROCE. Sky Gold and Diamonds plans to optimize working capital by strategically implementing the advance gold model across its customer base. Acquisition of a wholly owned subsidiary in Dubai, UAE. Sky Gold and Diamonds plans to acquire a newly incorporated entity in Dubai, UAE, for a nominal amount of 12 lakh INR. This is to strengthen its exports to the Middle East, as we identified this region as a strategic growth market and plan to open a sales office there. This is in addition to our recently opened office in Kerala, owing to a strong demand for high-quality jewelry, particularly in Dubai. Focus on Gold Metal Loans. We have successfully secured Gold Metal Loan limits from three existing bankers. Gold Metal Loans provide lower cost financing, thereby substituting high-cost working capital facility and offer gold manufacturers raw material upfront, which improves cash flow and production cycles. From June and early July, GML rates have now started cool off to around sub 4% from the high of couple of quarters back. We are on track to gradually shift our borrowings to GML Loans. Market dynamics during Q1 FY 26. The Indian jewelry market in Q1 FY 26 experienced mixed trends due to gold price volatility, particularly sharp increasing from May to mid-June. Softened customer movement after a strong Akshaya Tritiya period, despite this festival-driven demand and continued expansion effort by organized players, have fueled growth. There is also a noticeable consumer shift towards lightweight, lower karat and studied jewelry, with strong and sustainable growth projected from organized sector. I will discuss our Q1 operational highlights. This quarter, our monthly production volume was average 456 kg per month, up subsequently from 349 kg per month from last year, making a robust 30% growth year-on-year. Exports continue to make healthy contributions, with sales reaching approximately INR 131 crores, which is 12% of total revenue. The consolidated revenue for the quarter stood at INR 1,131 crores versus INR 723 crores in Q1 FY25, thus registering a growth of 56% on year-on-year basis. The gross margins were 8% compared to 6.5% on Q1 25, an improvement of 163 basis point, mainly on account of increase in advanced gold volume from 4%- 5% quarter-on-quarter. Further, our 18 karat volumes has increased from 4%- 7% in current quarter. Further, we launched lightweight, feather light jewelry designs in 22-karat, which has led to improvement in our margins. EBITDA for the quarter was INR 71 crores compared to INR 37 crores in Q1 FY25, showing a growth of 91%. EBITDA margin for the quarter stood 6.3% as compared to 5.2% in Q1 FY25, improved by 115 basis points on a year-on-year basis. PAT for the quarter stood at INR 43 crore as compared to INR 21 crore in Q1 25. PAT margins for the quarter stood at 3.9% as compared to 2.9% in Q1 FY25, improving 92 basis points on year-on-year basis. With our robust profitability strategic move towards advanced gold consumer GML, we are expecting moderation in our working capital cycle in coming quarters on track for working days of 52-55 days in FY27, with target revenues of INR 5,400 crore in current financial year and INR 7,600 crore in FY27. I request the moderator to open the floor for questions. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star 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 comes from the line of Chandan Mishra from Finvesta. Please go ahead. Good morning, sir. First of all, congratulations on posting good day. Good morning. Sir- Hello. first question is regarding export opportunity. As India-UK trade deal is signed and the jewelry sector having 0 tariff, are we eyeing the UK market for opportunity? Again, yes, there's a good news from the government that UK market, UK has done a deal with India, they have done a duty-free export. We can export from India, they have done duty-free. We are right now not in the products of UK and Europe type products, European products. We are into Asian products, which suits to UAE countries or Singapore or Malaysia. Those are stored in Singapore, Malaysia, and UAE. The buyers are like Sri Lankan, Pakistani, Bangladeshi, Indians and all. Those are also modern jewelry, they suit to Asian customers. In future we might be planning, because UK has opened the market, now only the news has came, it will take time also to produce a product like European type style. Sir, my next question is, sir, if you please give me an update on Ghana N Gold acquisition, is it completed? That is in process, and it will be completed. Last seven to eight days, it's pending. Pardon, sir? Pending. Yeah. How much pending? 7-10 days work is pending. Approval we got from the board NSE, BSE, 7-10 days of process is pending. Documentation and all. Sir, my next question is related to volume, sir. What is current volume of export order, which we started at 60 kg per month? Have we increased our volume as that we have targeted for 200 kg per month by year end? Yeah. We are opening an office in UAE for that only because of the rate difference in the US, sorry, UAE and in India, we get a premium rate for the export gold. That's why we are opening office there. We are little bit, 15 days work is pending for the paper works and all. For approximately, 1st August or 10th August, we will open the office and we'll start distributing that order also. Already we have distributed the order of exports, 40 kg, already we have distributed in this quarter. Okay. Sure, sir. One more question, sir. We have planned to exit FY 2026 around 650 to 700 kg per month in volume. Yeah. We are at approx 456 kg after Q1. Are we on track to achieve the target? Yeah, we have done 450 kg per month. Next quarter, we are approximately expecting 580 or something. In the third quarter, 630, and in the last quarter, we'll be at 650 kg last quarter. Earlier quarter also, you can see we grow every quarter gradually, and this way we'll grow in this year also. Sir, I have few more questions. If you permit, I can ask, or I may go in line. I think, again, you can click, somebody you can ask, and again, you can come after with the each if you want. Okay, sure, sir. Yes. I will go into. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your question to two per participant. Should we have a follow-up question, we would request you to rejoin the queue. The next question comes from the line of Angad Katdare from Sameeksha Capital. Please go ahead. Thank you for the opportunity. Good set of numbers. My first question is, can you just provide a breakup of your sales based on carat? Yeah, we have the, 18 karat is, approximately 7%. 7%. Seven percent is eighteen carat, eighty-seven percent is, uh, twenty-two carat, uh, uh- 5%. 5% is job work, and studded is 0.7. We have gained the shares in 18 karat from 4%- 7% year-on-year, and 87% is 22-carat. Job work we have reached 5%, which was 4% earlier, before this quarter. Studded is just 0.7, because we are in between 0.7%-1%. Thank you. My next question is on our gross margin. We in this quarter, we have reported around 8% gross margin on a consolidated basis. How much is due to the gold price increase? We are totally hedged in the inventory base and sale and purchase. There is no gain of the gold price in this. Already, we have gained some, our sale of 18 karat has increased, that's why we have increased our margin also. Instead of that, we have launched lightweight Feather Light, new verticals and designs in this quarter, in 22-carat, this led us to improve our margins. There is no gain in the inventory or loss also we not have, because we are hedged by the inventory and our sale and purchase are also hedged. Great to know that. My final question is on our net asset turnover. I was looking at our FY 2025 numbers. Our net asset turnover is far superior when I compare it to our peers, who have in the range of, I think, 20-30x. We are in north of 90 hundred x. How do you think this trend will sustain going forward for us on a net asset turnover basis? I think I will, can come back to you because I have to check this one. Yeah. So, uh, uh- Sure. can you come back with this? I will. Thank you, Angad sir. May we request you to return to the question queue. Sure. follow-up question? Sure. Thanks. Thank you. The next question comes from the line of Palash Kawale from Nova Wealth. Please go ahead. Yeah, thank you for the opportunity. Congratulations on the good set of results, sir. Thank you. When do you see this CaratLane and Aditya Birla business picking up and contributing well to the overall business? Already CaratLane base, CaratLane business is picking. That's why we are, came at 5%, from 2%- 5%. Aditya Birla and Reliance are about to start the order. This quarter, August and September, we'll be supplying to Aditya Birla and Reliance both. This will also add into job work percentage. Because of CaratLane, we are increasing our job work percentage came to 5%, which where we are at 1% or 2%. Now if the Reliance and Aditya Birla will join, we are targeting 7.5% this year. This means that there's still some scope for margin expansion for this year, right, on gross levels? Yeah, yeah. Contribution to the business. Yeah. What is the limit of the Gold Metal Loan that you have secured from the 3 banks? What is the amount? Already 3 banks we have secured, approximately INR 190 crore or something. On INR 1,890 crore, we have secured the Gold Metal Loan. In from this quarter only, we have started using. I think 20% we will use this quarter, and balance 20% in the next quarter, and we'll be at March quarter, 70% or 75% out. Successfully, we have got the limits from all the bankers and we are starting the use. Okay. The, what is the inventory and receivable days for you after the Q1 quarter end? Again, successfully, we have reduced our debtor days from 38 to 30 days, 32 days, which was shoot up in the last quarter. We have reduced our debtor days successfully. Our inventory days is little bit higher because we have made the orders for Dubai office, which are going to dispatch. Little bit it got later to because of the paperwork of the Dubai office, it got shifted in 1 month, because which was going to shift in June quarter. We'll be shipping right now in 15, 10 days or something. Inventories were that's why little bit higher. Some dispatch of June also happening now in July, because June gold rates were higher. Again, we have successfully reduced our debtor days, and inventory days will be diluted as our Dubai office also will open and July also dispatches are going on. Okay, that's really helpful, sir. My next question is on demand. You said that the gold price increase has affected the demand. The growth which you have guided for this year, will it come from the new client or the wallet share gain and demand gains would also contribute to it for the FY 2025? We are majorly relying on the existing client because we have given the guidance on the major dependency on the existing large corporate, mid corporate, small corporate. Their stores are opening because they have already announced the store of this year coming. This financial year, somebody has opened 80 stores, somebody opening 100 stores. There are mostly 2,500 store coming in 2 years of the corporates only. Based on that, our order is coming from the new stores also and from the existing store also. We are little bit expanding our wallet share also and supplying the inventory in the old and new store also. Again, if we are not expanding our wallet share, we will be supplying to the opening new store and existing stores. From there also, our sales will come. Majorly we are relying on the existing stores only. New clients are giving, what we have onboarded, they are giving advance gold business, though that will expand our volume because of the advanced business. Okay, sir, that's very helpful. Thank you for your answers. Yeah, all the best for the upcoming quarters. I will add that we have opened a Kerala office also, and we are entering into 1 store, 2 store, those who have. We are also planning to multiply the stores. They are regional-based, and we have a very good sales in on the their region, so we are expecting to come the sales from that also. Thank you. Thank you. The next question comes from the line of Bharat Gianani from Moneycontrol Pro. Please go ahead. Yes, sir, good morning. Congratulations for a good set of numbers, thanks for the opportunity. First thing, while we have given the revenue guidance, what would be our EBITDA and PAT margin guidance for FY26 and FY27? We are trying, by FY 2027, we'll be reaching 4.25-4.5% PAT margin because of the GML in 3 quarters. Some below EBITDA will gain, the interest cost will be saved. Again, our gold metal, the advanced gold business will increase by 2027. This year, we are expecting 7.5%. Next year, we are expecting 10%. That will improve our gross margin and EBITDA. Conservatively, we will be at 6.2-6.3% EBITDA and PAT level at 4.25%, by FY 2027, I'm telling. In coming 7 quarters. Great. Sir, on the cash flow side, I understand that we are kind of scaling up the business, the cash flow is not there at this point in time. Given that, whatever strategy you have highlighted, especially of the Advance Gold scheme, wherein the working capital will also get reduced. Will become operating cash flow positive by FY 2027? What is your estimate on that? After March, we will be 100% cash flow positive. In 2026, March will be negative because we'll be short. We'll be creating a INR 200 crore, INR 10 crore PAT, but we'll need INR 350 crore. INR 130 crore short will be there in 2026. Again, 2027, we will be cash flow positive after March. We are sufficiently funded for 2026. Already we have INR 900 crore of inventory and debt levers, which will be, if you see a cycle of 50 days, we are sufficiently funded. We will not need any funds, but, by FY 2027 March after, we will be cash flow positive. Sir, one more question from my side. Can you please explain this scheme of for the export customers buying gold from the Dubai market? I mean, just wanted to understand the nitty-gritties of any regulatory thing involved in that, because, I mean, buying gold and then, you know, can you, I mean, you'll process it in India, and then again, you know, give it back to the export customer. I mean, can you explain the regulatory angle for that? I mean, how is it permissible? I mean, how we are going to do that? Because that will contribute a significant chunk to the revenues. If you can please highlight, you know, how the procedure will work for the Dubai. No problem. India, for the export gold, Indian government is very supportive for the export. We are getting export gold from the banks, but they are charging us $4-$5 premium. Example, today's gold is $3,300, and we are getting it for $3,305. $5 premium is going on. Without duty we get, we have to export that gold. We don't have to use for domestic, we can't use for domestic. There's no problem in there. In UAE and Singapore, Malaysia, when gold is running at the rate of $3,300, discounts are going on for $10, $15, $20, because Dubai is a free port and many mines gold come there. That's why customers are willing to pay the making charges, but they don't want, not willing to pay the $15 premium, $5 premium of India. That discount going in Dubai, they are not getting from us. That's why we are opening a office, sales office there, to provide, to pick out orders perfectly, to give a ground support to the customer. From there, we'll serve Singapore, Malaysia, and UAE, all the states. We'll infuse, example, we infuse INR 20 crore in UAE, Dubai office, and we purchase gold from that. I will get 3,908, not 3,308. I will discount it, and we'll send to India for the job work at the parent company, and we send back the goods to UAE office, and we can sell it. Our gross margins of whatever the gross margin are there, but we'll sell at the same rate, which is going on with the gold rate, Dubai rate. There will be no hit for the gold rates to the customer. That's why they want to increase the quantity with us because they told us their sales. That's why we are opening the office, and we'll secure the gold in Dubai only, and we'll give a drop off to the parent company, and goods will come to the Dubai office, and we can sell by our gross margin. The gold rates will be not different because of this discounting going in Dubai. Okay. But all this is like, is regulatory compliant, like, right? Yeah, yeah. There's no compliance issue. From India also, we can export directly. We are already exporting. A very good support from the Indian government, they are very much improving the export and the paperwork and all. Very, there is no problem in that. There is no problem in the job work also. That's we want to increase our sale and have a good footprint in the UAE center. If we open the office there, our sales person will be able to pick up more orders and show them the samples and pick up more orders, because huge market is there. This our corporates, like Lucas and Kalyan Jewellers and all, have their offices, have their store there also. They are opening more store in UAE and Singapore and Malaysia, so we can serve them. Okay. Great, sir. I have few questions. I'll come back to this. Thanks a lot. Thank you. Thank you. The next question comes from the line of Nirvana Laha from Badrinath Holdings. Please go ahead. Hi, thank you so much for the opportunity. Sir, you mentioned that you plan to scale your volumes from 450 kg this quarter to 580 kg next quarter, if I heard you right. That's a huge increase, 160 kg per month in just one quarter. Which clients or what orders will drive this increase, sir? Again, I told you that already, our Reliance and Aditya Birla are placing the order. For job work point I'm telling, currently is increasing every month. Again, our existing clients, we have diversified ourselves from large corporate, mid corporate, small corporations, all. All will, because again, you can see the Diwali and Navratri season orders comes in August, September, this quarter. We will be order back for September, for Diwali and all. Seasons are coming for Ganesh Chaturthi and Raksha Bandhan. Season starts from August, and in July we get the order for Navratri, Ganesh Chaturthi. Other states have other festivals in August. This is a huge season in the industry in August month, September month, November month, December month. That's why we are expecting this sales volume from this quarter. Again, you can see our back 4 quarter also, we have increased the sale quarterly, gradually, and this year also we'll be seeing this type of sales. We have customers, new also and existing customer also will order us. Already they are ordering. Sure. After the festive quarter, do you think you can sustain this kind of, 600 kg kind of, volume in Q3, Q4? After that, wedding season comes in, you can see February, January is the wedding season. We get the orders in November, December quarter. We are back with the third quarter is back with totally wedding seasons and all again, many festival and occasions and all. Our orders comes on this season only, many marriage happen in the winter seasons and all. We are back with order of marriage season, and again, third quarter we are back with the order of Akshaya Tritiya and again, mix of marriage and many days come. India is about 12 months, 12 season, Father's Day, Mother's Day, Valentine's Day, those are already there. Again, wedding season, Navratri, Diwali. Our manufacturer is order back anytime, except from June month, because it's a monsoon season. Again, all the months we are order back because the customer has to plan their inventory 90 days before they have to order us, give us order 60 days before. We can place the inventory 20-25 days before the store ships, and this inventory should enter into the store before the festivals. Sure. Sure, sir. sir, my next question is on Ganna Gold, the Bangalore company that we have acquired. Can you tell us the FY 25 revenue and EBITDA that this company did? Hello, Mangesh, sir, we are unable to hear you. Yeah. I don't have this data. Can you come back in 15 minutes? I will send you. Yeah. Okay, I will write to you, sir. Yeah. With regards to Ganna Gold, what is the maximum revenue or how do you see the scale up in volume and revenue for Ganna Gold this year and next year? Sir, we are expecting this year 60, 70 kg per month volume from this. This is total, this will operate on a job work basis model. From this we will improve our gross margin EBITDA, because totally This company works on job work basis, so we don't have to increase the money, and total advanced gold will come in this company. Okay. Do you need to do any CapEx? No, not needed. Okay. I'll come back in this. Yes, sir, you may follow further. Thank you. The next question comes from the line of Sagar Jethwani from PhillipCapital PMS. Please go ahead. Yeah, thanks for the opportunity. How much was the revenue from diamond segment and 18 karat gold revenue for the quarter? 18 karat was 7%, 7.25%, and the solid was 0.10%. Solid was almost same quarter-in-quarter, but 18 karat rose from 6.5%- 7.25% quarter-in-quarter, and year-on-year increased from 4%- 7%. Okay. When are we commercializing the business with PMJ and Kalamandir? You mentioned about Reliance. Is it for all products or only gold as of now? This, every customer we enter with gold only because our expertise in gold jewelry from last 18, 20 years. We have started solid jewelry last year only. We enter with gold only, then we place the diamond jewelry also in the same. We are entering, I think, we are entering with lab-grown diamond in Kalamandir, and again, in Reliance with gold only. Karats are different. Aditya Birla is ordering for 18 karats, Reliance is again ordering for 22 and 18 both, and Kalamandir we are entering with lab-grown diamond only. Okay. This line item of changes in finished goods and working capital on PML, PNL, which is, you know, negative INR 142 crores. Can you explain this line item? Was it because of the excess demand that led to inventory utilization, or is it because of the less production seen during the quarter? No, already, yeah, I told that we had orders of exports, some orders are not dispatched because of the Dubai office opening got delayed by 15, 20 days, something. That's why, our inventory was shut up. Now, dispatching is going out of the Kerala office also. We opened the office of Kerala. Their order was also there, so we are dispatching for the Kerala. Dubai office also opening some 15 days, 20 days delay got happened, so that's why inventory was up. Again, June month's delivery, little bit was, dispatches happened in July. No, actually, I was talking about the line item of changes in finished goods and WIP on PNL. Okay. It is because of increase in stock. QIG, you are telling our work in progress and finished goods. Okay. Right. That is -INR 142 crores. It's increased. Stock has increased from March to June. Stock has increased from March to June, no? Yeah. Yeah. Okay, I'll send back to this one. Yeah. Okay. Yeah. Can you answer? Just again, the CFO is there. Hi. Sure. Yeah. Our stock, which, show this negative of INR 1.2 crore is because of the increase in stock in June, 2025 versus March quarter. The increased reasons have already been explained by Mangesh, sir, sometime back. Okay. What's the production capacity, organic and including subsidiaries? Can you break it down for subsidiaries? Yeah, yeah. Per month, sir. Per month. What the capacity we have? You want what the capacity we have? The organic production capacity and breakdown of the subsidiary production capacity per month. Okay. 750 is the parent company, and subsidiary is 150 kg. 1,050 kg per month. Okay, Ganna Gold would be how much? I know it's not complete. 150 kg. Yeah. 150 kg per month, that will be added. Okay, okay. Thanks. Thanks for your... Yeah, all the best. Thank you. The next question comes from the line of Diya Brijwani from White Whale Partners. Please go ahead. Hi. Thanks for the opportunity and congrats for a good set of numbers. I had a question on the business model. X of the advanced gold business, which is about 5%, I mean, how do we record our revenues? Is it on a per gram basis, such that we acquire the gold and we charge on a per gram, like a cost plus basis? Or is it like a percentage, let's say a 6%, 7% of the value of gold, that we charge? We charge in percentage basis. Okay, okay. You're saying that your gross profit is linked to the gold prices? Yeah, percentage-wise. Yeah, yeah, yeah. Okay, got it. Just 1 question, on the gross margin expansion from current levels, So I'm just talking of X of the advanced gold business. Is it that exports command a different margin versus domestic? Secondly, is there a difference in gross margin between 18 karat versus 22-carat? No, ma'am, it's totally a mix of all these things. Exports also don't have a very exceptional different margin, but there's a better margin of half a percent in exports. Again, we 18 karat has a better margin in 22-carat, because those gold, white gold jewelry has a good margin, but 18 karat percentage has increased to 7%. Again, it has also helped us to improve the margin. Again, in 22-carat also we have launched many lightweight, featherlight, new designs and new verticals, which are creating margin. Blendedly, we are getting the margin from 22-carat also, 18 karat also, from export little bit, and again, advanced gold is a major player, again, because labor charges only be charged from them, so it add up to gross margin and EBITDA. All the four players are there. We are creating new versions in 22-carat also, because 22-carat rates are up, we are creating new lightweight. We have reduced the weight by 20% itself by the three differences and on. Blendedly, we are creating the margin. Got it. Just 1 last question, what would be your wallet share with the anchor customer, and how has it moved in the past 2 years? Again, we have a wallet share of 5%, 6%, 7% in each of the customers. Somewhere 7%, somewhere 5%, somewhere 6%, 7%. Year-on-year, in the last 5 years, we were at before 5, 7 years, we were at 0.5% or 1%. We before 2 years, we were at, I think, approximately where we are at 5%, we were at 3.5% or something. We have increased the wallet share also. Now, their stores are also expanding, new stores are opening, so we are getting the shares from the new store also. Yeah. Got it. That's helpful. Thank you. Thank you. The next question comes from the line of Vijay Chauhan from RHPMS. Please go ahead. Yeah. Thank you for the opportunity. Can you please explain the progress of the 200 kg per month order that we have received from the outside back in quarter two? Yeah. What will be that contribution in quarter three, quarter four? Yeah. Already we have dispatched 40 kg in this quarter, and we have got the order of more 60 kg, and we are waiting to, they want to dispatch it from Dubai office because of the gold prices and all. Already we dispatched 40 kg, 60 kg, we have got the order. Approximately we'll be exporting 100 kg this quarter, I think, and from next quarter. We'll be at the range of per month, 100 kg. Okay. In quarter four, will it be like 150 or 200, any chance, like fully reach? They have confirmed the order to complete it through three quarter, we'll be at the range of 200 kg. Conservatively, you can. 125 kg, 100% will be there in third quarter. Okay, okay. There is a high probability that we will exceed the 650 kg guidance on the export side? We are conservatively at 650 kg only. Based on the gold and all. INR 650 will be our conservative number on the last quarter. Yeah. Yeah, that's fine. That's fine. This advance gold, when we get, so, how is the revenue recognition? Because what I understand, we typically charge 7%-8% as a making charges. Because the inventory belongs to... Because client has purchased gold and given it to us, so we will... Yeah. only record the making charge as the revenue, right? Yeah. It will not be like INR 100 gold we are purchasing, and we, then we are showing 7%, 8%, right? No, no. Yes, yes. Right. If we charge Yeah. 7% or 6.5% or 7.5% for the from when we are producing our gold and funding the data center inventory. In Advance Gold, we charge for the same product 5.5%, 5.25%, 5.75%, like that we charge. We give a consideration of 1% or 1 or 1.25%, that's why we do it the Advance Gold. Based on the product, based on the vertical design they want. Again, we don't have to fund the inventory and all, there is a win-win situation for both. Right. My question is only that, will we report INR 8 as a revenue, let's say the 8% is a making charges, or we will put INR 100 as a revenue and showcase INR 92 as cost, and then INR 8 will be the gross profit? We put only whatever we charge 5.5%, 6% as the revenue, about INR 6 only of the revenue will be showing that, because That is again, advance gold. Revenue will be a INR 6, not INR 106. Correct. It is safe to assume that gross profit will keep increasing because the revenue recognition is because of the accounting practice will change when we increase the advance gold volume, right? it will shift as soon as we increase our. Advance percentage. Yeah, yeah. Yeah, yeah. What will be the interest expense saving because of GML and all other things, combining them? We are expecting, it to.4 basis to save from the Gold Metal Loan. We are at 1.2, something, interest rate is. 1.2%. 1.2% of the revenue, I think we'll be at 0.6, 0.6 or something. GML, we'll save 0.4 or 0.45 basis. Okay. Okay. The hedging policy which we are following... Yeah, it's okay. Yeah, I will come back to you. No problem. Thank you. Thank you. The next question comes from the line of Darshan Jhaveri from Crown Capital. Please go ahead. Hello. Hi, good afternoon, sir. Thank you so much for taking my question. Firstly, congratulations on a great set of results, sir. A lot of my questions have already been answered. Sir, I just wanted to know, like, currently, we're already at around 4% PAT, right? 3.9%. In the current year, because now the volumes will also increase due to operating leverage, can we reach, like, our FY 2027 PAT goal in the current year only as a percentage, like 4.25%, 4.5%? Is that a fair assumption, sir? We'll be conservatively saying that by FY 2027 March, we'll be at 4.25 to 4.5, in between that. It will be a quarter-on-quarter basis. Every quarter will improve by some basis points. In a long period of 7 quarter, you can see we'll be reaching 4.25 to 4.5. Oh, okay, okay. Fair, fair enough, sir. Sir, I just wanted to know, like, our, you know, acquisition of Ganna Gold, that will start contributing revenue from maybe Q2 or H2 only it will start, right? Q2 only. August and September, it will be contributing, Q2 only. Okay, okay. That will also help... Yes, sir. -our volume growth. And our volume guidance is X of Ganna Gold, right? Yeah, yeah. That we have given. Yes. Okay, okay. We have even more scope of growing. I just want to know, like, the following up on the previous participant question about job work. Our revenue currently, like, around of 1,131 crore, when we say that, you know, 5% is job work, so the job work revenue is as good as profits only, right? Because that's a service charge, right? Yeah. It will directly add up to gross margin. Correct, correct. It will directly add up to the gross margin only. We have started job work, basically we have started job work, that's why our gross margin also increasing. Okay, okay. That will be one of the biggest drivers of our, like, margin expansion, because of your service revenue. Yeah, fair enough, sir. Yeah, that's it from my side. Thank you so much. Thank you so much, sir. All the best. Thank you. The next question comes from the line of Aryaman Iyer from Sowilo Investment Managers. Please go ahead. Good morning, sir. Congratulations on the good set of results. Just one question from my side. In 2020, 2021, that gold prices fell from INR 52,000 to INR 46,000. For us, what is the effect on margins as well as working capital days? Working capital in COVID, it was in COVID time, I think. In 2021 was the COVID time, that time 56-46, it came by gold. Whenever it, we are linked with the percentage basis, whenever in the history, gold does not fall below 3%, 4%, 5%. If it is fall of 20% or 50%, we revise our quotation with the customer. Customer also understand that quotation should be revised for 6 months or 12 months whenever gold rate get to normal basis. I think 2000 was the COVID period, and it was a very different period, so I don't remember about 21. But again, our margins are intact with the percentage basis on the gold prices. Yeah. Sir, purpose of asking this question, so if gold prices do fall, what will be the effect on our working capital base? Working capital days, I think if gold price fall as though sales gets faster, payments come faster, so working capital cycle will be improved much better if gold prices increase, decreases. Okay, thank you. That's all from. Thank you. The next question comes from the line of Nilesh Jain from Astute Investment Management Private Limited. Please go ahead. Hi, thank you for the opportunity and, congratulations on great set of numbers. My first question is, can you give me volume breakup, for this quarter by at standalone level and, for your two subsidiaries? Yeah. 60 kg from the subsidiary we have done, and approx 340 kg from the parent company. I see, when, we can say last year, Q1 does not include, subsidiary numbers, from what I understand. Yeah. Last year we did 349 kg per month average. There's some slowdown at the standalone, you know, level company. What would be the reason behind it? Revenue-wise, we are positive, but. It's just a difference of 4 to 5 kg. In the industry, in the data sector also, you can see volumes are, revenue, as everybody has grown, volumes are. Right. Somebody has 2-3% dip or same, or at the same level. We are at near about the same level, at the parent company level and at the level at console level. We have grown by 30%, but the parent company, we are at the same. Total industry, this quarter volumes are the same because of the gold rates are increased drastically. Right. Revenue and volumes are the same, yeah, because of the gold rates. Do we understand that, you know, the volume growth which you have shared for the Q2, Q3 and all the other quarters, will it be largely led by your subsidiary companies, or we are expecting? All the three it will come, because gold rate has totally stabilized. Whenever, last month, quarter, only 30% jump came in this quarter, so it will grow in all the three companies. Okay. My second question is, when you mention about you're procuring gold from the Dubai, Is it you're getting it on advance from your customers there, or it will be, again, the inventory will be on your books? No, again, these all large corporates don't give us advance gold other than Reliance, Aditya Birla, and Nickelodeon. They are the customer of India only. They are not in international deal. Okay. We'll get, but their terms are mostly cash and carry, or 7 days or 10 days, so working capital cycle will improve on that. My last question is on your export. You mentioned by FY 2027, you have target of 25% of revenue. What would be it for FY 2026? 26, we are targeting it to 17%-20% or something. Okay. Okay, sure. Thank you, and all the best. Thank you so much. Thank you. The next question comes from the line of Manan Bandhu, from Wolford PMS. Please go ahead. Yes, thank you so much for the opportunity, and congratulations on the numbers. My first question is, how much are our, how much is our receivable currently? Not the days, the amount. The amount? Okay. INR 397 crore, and inventory is INR 550 crore inventory and INR 397 crore data set. How much? INR 394. 394, yes. 397. INR 397 crores on receivables. Inventory is INR 58,550.550 crores. Okay, INR 550 crores is inventory. Sir, my question is: How is our receivable still INR 397? I believe that our receivable had increased due to our Akshaya Tritiya, you said. Yeah. Now it has come back and our debtor days is normally like 45, 50, 60 days. Even if we count 2 months, still our receivable should go down by a lot, it has gone only INR 50 crores down. Please explain that. It is 31 days right now, and we were at 38 days, so by days we have improved. Our sales are also improved now, so our sales are improved by INR 80 crores. Again, we as soon as our sales improve, so inventory also there, and debtors also. We by days you can see we have come up to 38 days to 22 days. It's a cycle. Okay, understood. How do you see our receivable days, I mean, sorry, receivable amount come, go, you know, further by the year end? We told that we are going for advance gold business. Again, the gold rates was up in the March, that's why the payable days was gone up. We have controlled in this quarter also, and coming quarter also, it will come down to 25-26 days. We are confident that it will come down to 25-26 days. Okay. Sir, last question is that, there was currently a stake sale of almost around 5% something. My question was that why did the promoter sell? Like, I mean, we do preferential, but then we also sell our stake, so it will decrease confidence in the shareholders. Can you please explain that? Yeah, sure. The objective of the transaction was twofold: To enable the promoter to partially monetize their stake after over two decades we are building the business and all, we have sold the stake to broaden the institutional participants. Institutional were interested to participate in this. However, there was some unparticipation issue in the acquisition, which resulted in the intended institutional investor were not able to participate in that. Again, you can see from last 20 years, we are building the business. From 2005 we started, 2010, before 2025, we've done a fundraise of 2 times. We've given a growth to the company. We done it to fundraise, and we have come up with a good turnovers and a set of numbers and all. After 20 years, we, it is between 2, 3 promoters, we have sold. Net sale is 4.3, not 5%, because we have taken the warrants also. It is 4.3 between 3 promoters. It is, I think after 20 years we have sold the thing, but acquisition was not properly. I can say that only. Yeah. Okay, okay. That's it from my side. Thank you so much. Yeah. Thank you. The next question comes from the line of Gagandeep Singh from Growmore. Please go ahead. Hi, sir. Congratulations on great set of numbers. Most of my questions have been answered. I just wanted to know the guidance which you have given, like of INR 54,000 crore, is it on the conservative side or it is on the aggressive side? You can say on the midway side, not very conservative, not very aggressive. Yeah. We are on track. We have done already INR 138.73 crore and we are expecting this quarter also a good set of numbers. Every quarter we increase by INR 150 crore something to every quarter. This is a very decent number, I think, because again, footfalls are very good in the retail side, rates have settled down, and retail are opening their stores actively every month. We are in a very comfortable position to reach that turnover. Amazing, sir. Sir, my second question, would be like the guidance which you have given, does it include Ganna Gold, the, one as well, or it is excluding that? Excluding Ghana, yeah. Thank you, sir. Good luck for this year. Thank you, sir. Thank you. The next question comes from the line of Ankush Agrawal from Surge Capital. Please go ahead. Yeah. Hi, sir, thank you for taking my question. Just two clarifications. You said we did 40 kgs of export in Q1. That is a cumulative number, or it's a monthly average of 40 kg? No, cumulative. Only April end only we got the order. We started. May, and we exported in, I think, May end or something. It's a quarterly number. We got order in the previous... Okay. 100 kg would be the monthly run rate for Q2? Coming two months, we are expecting to deliver 70 kg per month. Third quarter, we are expecting to 100 kg. Okay. The second clarification that I needed was, so when you say the job or the advanced gold business is 5% of revenues, but on a volume basis, it will be much larger, right? Because revenue is just net. No, we are talking about the volume only. 5% of the volume was job one. Okay, 5% of the volume was job. Okay, got it. Thank you. Thank you for that. Thank you. The next question comes from the line of Ganesh Rao from Rupani Capital. Please go ahead. Thank you for the opportunity, sir. I just want to follow up on the previous question one of the participants asked. Do you have the numbers of Ganna Gold, the EBITDA and PAT at the time of acquisition? You can write to me or Palak, IRPR. You can talk to my CFO also, he will give you. Right now we don't have. Yeah. Okay, sir. Okay. My first question is regarding the advance gold model. What are the key enablers or, you know, barriers for your existing clients to transition to this format? Have you initiated any of your existing clients to the advance gold model? Palan, you can repeat the question. Sorry. Yeah. For the advance gold model that you're trying to adopt for the new clients, my question is in regarding to your existing clients, right? Have you started having conversations with your existing clients to move to the advance gold model? In industry, in this industry, you can see Kalyan, CaratLane, Mia by Tanishq, and similar Reliance. Only 3, 4, this type of corporates have advanced gold model. Other corporates like large corporates, they work on the basis of they don't want to fund the gold to us. They want to invest their funds in their store only. They have a policy that we manufacturer will increase in the inventory, they give us the rate also for that. They, that corporate does not work on that model. Different style of working has there. We are diversifying into everybody, mid corporates, large corporate, this Reliance and Aditya Birla Group, CaratLane also. We are blended in doing the business. Every corporate has their own model of working. Okay, sir. Thank you. My second question is: could you share details on your current gold metal arrangements, like what is the quantum that is tied up? Who are your banking partners, and what is your current gross debt? INR 190 crore already we got the GML approval, from 3 bankers, from Federal, Axis and Yes Bank. Now net debt is INR 3. What is the gross debt? Net debt is INR 350, and gross debt is INR 600 crore something. Net debt is INR 350. Okay. INR 190 crore we already got the approval. 20% at least we can use. Okay, sir. In this one. Okay. You had explained it earlier, sorry if I'm repeating the question, but could you, could you explain, like, if I just look at the standalone growth, it has moderated to 12% year-on-year, compared to 50% growth in your previous quarters? If I adjust for exports, the growth in the domestic just stands at 7%. Could you help us understand what were the drivers for the slowdown? year-over-year, you are talking, we have expanded by 35, 30% on the volume basis. Volume. by revenue basis, we have increased 45%, I think. Okay. Year-over-year basis. 56% year-over-year quarter, you can see 56% is the revenue growth and volume growth is 30%, no, I think. Thirty. It's a big mix of gold rate and volume. Volume we have down by 30%, and rate also increased gold rate. That's why we have increased the revenue by 56%. Sir, that is consolidated. I'm asking at the standalone growth, sir. Okay. You, what do you want about the standalone, no? Yes, sir. Standalone. You can call the CFO also for that also if you want. Yeah. Okay. We are holding a number of consolidated. We are holding a number of consolidated, so we, you can call the CFO. Yeah. Okay, sir. Last question, more long term, right? Your current market share, as you presented in the presentation is 0.5%. What is your medium-term aspiration, sir? Where do you want your company to be from a market share perspective? We are at approximately 1%. We made approximately 5 ton to 6 ton last year. India is making 600 tons of jewelry per month. 650 tons of jewelry. We have made 5 to 6 ton last year. We are aiming to be at 4, 5% stake of India in coming 5 years or 2031, 2032. We want to be at 4, 5% stake of India. We are on the good path. Let's see. We first targeted to achieve 1 ton per month by 2027. Awesome. Thank you, sir. Sir, one last question, if I can just sneak in quickly. Could you provide some insight on the gross and EBITDA margins, difference for a 22-carat and an 18 karat, right? Assuming the diamond and stone that is used on the jewelry set is the same, what would be the difference in, sir, between the two? Of course, diamond set, approximately 12%-15% gross margin. 18 karat has 8%, 7%, 8%, 9% gross margin. 22-carat has mix of 7, 6, 7, 8. Blendedly, it comes up to 7%. Yeah. Okay. The gross margins are lower for the 18 karat, but. No, 18 karat-. Because- 18 karat. Is higher. Yeah. Okay. The numbers were reversed. If you just could clarify that again, for 18 karat, roughly, what would be the margin? We sell at 7%, 8%, 9% also. Okay. There are different vertical, different pricing. We cannot give the each perfect pricing, but approximately because of the secrecy level. 22-carat, we sell at 5.5%, 6%, 7%, 8%. Diamond-studded, we sell at 12%, 13%, 15% gross margin. Okay. Thank you, sir. Those were my questions. Appreciate it, best of luck. Thank you. Ladies and gentlemen, in the interest of time, that was the last question. I would now like to hand the conference over to the management for closing comments. Thank you, and over to you, sir. Thank you so much, everybody. Thanks all of you. Thanks for the shareholders for being with us and for a progressively good growth ahead. Thank you so much. Thank you. On behalf of Sky Gold and Diamonds Limited, that concludes this conference. Thank you for joining with us, and you may now disconnect your lines. Thank you.