Hi Avinay
This is an approach that I have suggested to some companies. You have to be aware, that you implement in the same tenant a new company with all the pro's and con's (e.g. no re-use of same org ids, new fixed asset ids, but reuse of materials, suppliers, etc.). Also migration is needed again.
I would suggest to request a 1:1 copy for testing this approach first. And do not forget the new set of book with the new fiscal year variant.
Best regards
Marlene