Foreign Institutional Investors (FIIs) are increasingly investing in India’s jewellery sector, bringing two small-cap companies into the spotlight. Sky Gold & Diamonds and PN Gadgil Jewellers have witnessed a sharp rise in foreign investor holdings, according to their September 2026 shareholding patterns.
While FII ownership in Sky Gold has increased nearly sixfold, PN Gadgil Jewellers has recorded an almost eightfold jump. However, the reasons behind the rising foreign investment in these two companies are quite different.
Sky Gold FII Holding Rises Nearly Six Times
Sky Gold & Diamonds has seen a substantial increase in foreign investor participation over the past few quarters. FIIs held a 0.78% stake in the company in December 2025. By September 2026, their shareholding had climbed to approximately 4.7%, representing an increase of nearly six times.
An important aspect of this development is that the promoters’ holding remained unchanged at 51.74%. This indicates that the rise in FII ownership was not accompanied by a reduction in promoter shareholding. Instead, foreign investors increased their exposure through market purchases. The number of foreign institutional investors in the company also went up.
Advance Gold Model Improves Sky Gold’s Business Operations
Sky Gold manufactures jewellery and supplies its products to leading retail brands. One of the major changes in its business operations is the adoption of the advance gold model.
Under this arrangement, jewellery retailers provide gold to the company in advance, while Sky Gold earns revenue through manufacturing charges. This approach reduces the amount of capital required to purchase gold and helps lower working capital requirements and inventory-related risks.
The impact is also visible in the company’s cash flow performance. Sky Gold reported a positive operating cash flow of Rs 136 crore in the first half of FY2026-27, compared with a negative cash flow of Rs 45 crore in FY2025-26.
PN Gadgil Jewellers Records an Eightfold Jump in FII Stake
PN Gadgil Jewellers has also attracted considerable attention from institutional investors. Foreign investors increased their stake from 0.48% in June 2026 to 3.83% in September 2026, marking an almost eightfold rise.
However, the increase in foreign ownership has a different background. The company raised Rs 700 crore through a Qualified Institutional Placement (QIP), allowing institutional investors to acquire shares. Therefore, the rise in FII holdings cannot be directly compared with continuous open-market buying.
The company’s financial performance has also remained strong. During the first half of FY2026-27, consolidated revenue grew 30.5% year-on-year to Rs 5,079 crore. EBITDA increased 56.3% to Rs 417 crore, while net profit rose 52.3% to Rs 226 crore.
Promoters currently hold a 76.62% stake in PN Gadgil Jewellers. The company needs to comply with the minimum public shareholding requirement of 25% by September 2027.
December 2026 Shareholding Data Will Be Important
The next quarterly shareholding disclosures, expected for December 2026, will be important in understanding whether foreign investor interest in these jewellery companies continues.
For Sky Gold, investors will watch whether FIIs continue purchasing shares through the open market. In PN Gadgil Jewellers, attention will be on fresh foreign investment following the company’s QIP.
Although rising FII ownership can indicate growing institutional interest, it does not automatically make a stock a good investment. Investors should carefully examine financial performance, valuations and associated risks before making any investment decision.
Disclaimer
This article is published for informational and educational purposes only. The information provided is based on available company data and shareholding disclosures. It should not be treated as financial advice or a recommendation to buy, sell or hold any security. Stock market investments involve risks, and investors should conduct independent research and consult a registered financial advisor before making investment decisions.