Kalyan Jewellers India Limited is one of India’s largest and most reputable jewellery companies, built upon a rich family legacy in commerce that dates back over a century. The group's entrepreneurial journey began in 1908 with textile mills and retailing in Kerala. The pivot into jewellery occurred in 1993 when the third-generation leader, Mr. T. S. Kalyanaraman, opened the first showroom in Thrissur, Kerala. Today, the company is managed by the third and fourth generations of the family, who have professionalized the business and scaled it into a formidable pan-India and international enterprise. The company's core ethos is built on the values of trust and transparency, which it pioneered in a largely unorganized industry by introducing customer-friendly measures like detailed price tags, BIS hallmarking, and the use of Karatmeters to verify gold purity in-store.

The company boasts an expansive operational footprint, with a total of 469 showrooms as of December 31, 2025. This network includes 428 showrooms in India (across both the Kalyan and Candere brands) and 41 international showrooms located in the Middle East, the USA, and the UK. Kalyan Jewellers has successfully executed a "hyperlocal" strategy, tailoring its product portfolio, showroom ambiance, and marketing campaigns to the specific cultural and aesthetic preferences of micro-markets across 23 states and union territories in India. This is further supported by its unique "My Kalyan" grassroots network of 1,111 customer outreach centers, which serve as a critical tool for deep market penetration and customer engagement, particularly in semi-urban and rural areas.

Financially, the company has demonstrated robust growth, achieving revenues of ₹3,16,495 million and a Profit After Tax of ₹11,285 million in the last twelve months. Following its Initial Public Offering (IPO) and listing on the NSE and BSE in 2021, Kalyan has accelerated its expansion through a capital-efficient franchise model, enhancing its return profile and strengthening its balance sheet. The company's product offerings are diverse, catering to a wide spectrum of customer needs from wedding jewellery under its flagship 'Muhurat' brand to daily wear and high-end studded pieces, ensuring a broad market addressability.

Official Website: http://www.kalyanjewellers.net/

• Consolidated Q3 FY26 Performance: The company delivered a strong performance for the quarter ended December 31, 2025.

• Revenue: Grew by 42% year-over-year (YoY) to reach ₹1,03,434 million.

• EBITDA: Increased significantly by 75% YoY to ₹7,505 million.

• Profit After Tax (PAT): Surged by 90% YoY to ₹4,163 million.

• India Business Q3 FY26 Performance: The domestic operations were the primary driver of growth.

• Revenue: Recorded a 42% YoY growth, driven by a very healthy Same-Store Sales Growth (SSSG) of 27%.

• Profitability: PAT grew by 84% YoY to ₹4,008 million. Performance was aided by margin expansion and a favorable base, as the previous year's quarter was impacted by a customs duty reduction loss of ₹548 million.

• Exceptional Item: The quarter includes a one-time exceptional impact of ₹415 million due to changes in employee benefit provisions.

• Middle East Business Q3 FY26 Performance: The international segment also demonstrated robust results.

• Revenue: Grew by 28% YoY, led by a strong SSSG of 24%.

• Profitability: PAT increased by 54% YoY to ₹236 million, reflecting healthy consumer sentiment in the region.

• Historical Growth Trajectory: The company has shown consistent long-term growth.

• TTM Performance: For the trailing twelve months (TTM), consolidated revenue stands at ₹3,16,495 million with a PAT of ₹11,285 million.

• PAT CAGR: The consolidated PAT has grown at a Compound Annual Growth Rate (CAGR) of 51% over the last five years (since FY20).

• Return Metrics & Balance Sheet: There has been a significant improvement in financial health and efficiency.

• Return on Capital Employed (ROCE): Improved to 28.2% (TTM) from 19.8% in FY25.

• Return on Equity (ROE): Increased to 23.3% (TTM) from 15.9% in FY25.

• Deleveraging: The company has actively reduced its debt. Net Debt to Equity (excluding Gold Metal Loan) has fallen to -0.04x, indicating a net cash position on an operational basis. Net Debt to EBITDA (excluding GML) is also negative at -0.1x.

The company's recent financial performance is characterized by strong, broad-based revenue growth, significant margin expansion, and a marked improvement in return ratios and balance sheet strength.

• Hyperlocal Business Model: Kalyan's core strength lies in its ability to operate as a national brand while catering to local tastes. This is achieved by:

• Localized Product Portfolio: Offering jewellery designs that align with the specific preferences of each micro-market, supported by 15 procurement centers across key manufacturing regions.

• Customized Showroom Experience: Employing local staff and designing showrooms that reflect regional sensibilities. For example, showrooms in different parts of Mumbai (Vashi, Borivali, Ghatkopar) are tailored to South Indian, Gujarati, and North Indian customer bases, respectively.

• Targeted Marketing: Using regional brand ambassadors and local language communication to build a strong local connection.

• "My Kalyan" Grassroots Network: This is a unique and powerful distribution and customer engagement channel.

• Deep Outreach: The network of 1,111 centers and 4,211 dedicated personnel engages in door-to-door marketing, especially in semi-urban and rural areas where organized retail penetration is low.

• Significant Revenue Contribution: This network contributes approximately 18% of the company's revenue from operations in India and is responsible for ~28% of enrollments in purchase advance schemes.

• Pioneer of Trust and Transparency: The brand was among the first in the industry to address key customer pain points.

• Institutionalized Standards: It championed BIS Hallmarking even before it became mandatory, introduced detailed price tags, and installed Karatmeters in showrooms for on-the-spot purity verification.

• Strong Brand Building and Marketing: The company has invested over ₹13,000 million in marketing over the last four years.

• High-Profile Ambassadors: It leverages a combination of national ambassadors like Amitabh Bachchan and Katrina Kaif, alongside influential regional stars, to reinforce its pan-India yet local appeal.

• Diversified Product Portfolio: Kalyan offers a wide range of jewellery through various sub-brands.

• Segmented Offerings: Brands like 'Muhurat' for weddings, 'Nimah' and 'Tejasvi' for studded jewellery, and 'Aishwaryam' for staple regional designs cater to different customer segments, occasions, and price points.

Kalyan's distinct competitive advantage stems from its deeply entrenched hyperlocal strategy, a unique grassroots distribution network, and a powerful brand built on decades of fostering customer trust.

• Large and Attractive Market: The Indian jewellery market is the second-largest gold market in the world and a significant component of retail consumption.

• Key Segments: Wedding jewellery is the dominant category, accounting for 60% of the market. Demand from rural India constitutes a majority (60%) of gold jewellery consumption.

• Structural Shift to Organized Retail: The most significant industry trend is the rapid consolidation of the market in favor of organized players.

• Market Share Growth: The share of organized retail is projected to grow from 32% in 2020 to 40% by 2025. Kalyan currently holds an approximate 7% share of the organized market.

• Key Growth Drivers: Several factors are accelerating this shift from the unorganized to the organized sector.

• Regulatory Tailwinds: Government initiatives like the Goods and Services Tax (GST), mandatory hallmarking, and PAN card requirements for high-value transactions are enforcing compliance and transparency, benefiting organized companies.

• Changing Consumer Behavior: Customers are increasingly brand-conscious and demand transparent pricing, certified product purity, and a superior in-store experience, all of which are hallmarks of organized retailers.

• Superior Capabilities of Organized Players: Organized retailers offer a wider product range, better after-sales service, and a more secure and professional shopping environment.

The company is strategically positioned to capitalize on powerful industry tailwinds, primarily the accelerated and regulation-driven shift in consumer preference from unorganized jewellers to trusted, organized brands.

• Capital-Light FOCO Expansion: The primary growth engine is the Franchisee-Owned, Company-Operated (FOCO) model, which is highly capital-efficient and return-accretive.

• Rapid Rollout: The company has already opened 195 FOCO Kalyan showrooms and 68 FOCO Candere showrooms in India as of December 2025.

• Future Pipeline: Plans are in place to launch 84 new Kalyan FOCO showrooms in India in FY26. International expansion will also follow this model.

• Strong Same-Store Sales Growth (SSSG): The company is delivering robust organic growth from its existing store network.

• Q3 FY26 Performance: SSSG was exceptionally strong at 27% in India and 24% in the Middle East.

• Long-Term Target: The company aims for a sustainable SSSG in the mid-to-high single digits.

• Geographic Diversification: A key strategic priority is to increase the revenue share from non-South markets.

• Focus on Non-South: New showroom openings are predominantly planned for non-South regions to tap into underpenetrated markets.

• Current Mix: The non-South region already contributes 58.5% of total revenue in India, indicating successful execution of this strategy.

• Digital and E-commerce Growth: The 'Candere' platform serves as the company's digital-first channel.

• Omni-channel Presence: Candere is expanding its physical footprint via FOCO showrooms (110 total, 68 FOCO) while maintaining a strong online presence in India, the US, and the UK.

Kalyan's growth is being propelled by a dual strategy of aggressive, capital-light network expansion and strong organic growth from its existing stores, with a clear focus on diversifying its geographic revenue base.

• Expansion of Studded Jewellery: The company continues to focus on increasing the share of higher-margin studded jewellery in its product mix. Studded share in India improved to 31.2% in Q3 FY26 from 29.5% in the prior year.

• New Regional Brands: Management plans to leverage its hyperlocal expertise by launching new, exclusively localized regional brands, with the first launch scheduled for FY26.

• Deepening "My Kalyan" Network: There is a significant opportunity to expand the "My Kalyan" network into markets where the company is currently underpenetrated, further strengthening its distribution and customer outreach.

• Leveraging Data Analytics and CRM: The company is investing in technology to better analyze customer data, enabling more effective targeted marketing campaigns to drive sales and enhance customer retention.

• Supply Chain Efficiencies: Opportunities are being explored to enhance margins and returns through initiatives like a pilot project for lean, supplier-payable based procurement and the establishment of a Regional Artisan Park.

The company has multiple levers for future growth, including a focus on higher-margin products, launching new localized brands, and enhancing operational and supply chain efficiencies.

• Accelerated Network Expansion: The company will continue its aggressive showroom expansion, driven predominantly by the capital-light FOCO model for both its Kalyan and Candere brands in India and internationally.

• Enhancing Shareholder Value: A core objective is to reward shareholders.

• Capital Allocation Policy: The company intends to use 40% to 50% of profits for debt reduction, strategic initiatives, and rewarding shareholders.

• Dividends: Following a dividend payout of over 20% in FY25, the company plans to use free cash flow generation to provide dividends over time.

• Return Profile Improvement: Management is focused on further accelerating its return metrics.

• ROCE Accretion: The FOCO strategy is central to driving ROCE higher than the current 28.2%.

• Asset-Light Strategy: Plans include selectively converting existing company-owned stores to the FOCO model and divesting non-core assets to lighten the balance sheet.

• Launch of New Brands and Formats:

• Candere Expansion: The network of Candere showrooms, focused on lightweight lifestyle jewellery, will be expanded rapidly.

• Regional Brands: The first of several new, exclusively localized regional brands will be launched in FY26.

The company's future strategy is centered on disciplined, capital-efficient expansion, a clear commitment to improving return metrics, and rewarding shareholders through dividends and deleveraging.

• Significant Margin Expansion in Q3 FY26: The company reported a notable improvement in profitability.

• Consolidated EBITDA Margin: Increased to 7.3% from 5.9% YoY.

• India EBITDA Margin: Expanded to 7.2% from 5.8% YoY.

• Gross Margin: Consolidated gross margin improved to 13.1% from 12.2% YoY.

• Key Drivers of Margin Improvement: The expansion was driven by a combination of factors:

• Favorable Product Mix: An increasing share of higher-margin studded jewellery contributed to better profitability.

• Procurement Efficiencies: Improvements in the sourcing and procurement process have yielded cost benefits.

• Operating Leverage: Strong revenue growth on a relatively fixed cost base led to better absorption of overheads.

• FOCO Model Impact: A higher share of revenue from franchise stores, which operate on a different cost structure, has positively impacted margins.

• Historical Margin Profile: TTM EBITDA margin stands at 6.8% and PAT margin at 3.6%, reflecting a steady improvement over the past several fiscal years.

Margins are on a clear upward trajectory, supported by a better product mix, operational efficiencies, and the structural benefits of the asset-light franchise model.

• Strong Governance and Leadership: The company is guided by a well-diversified Board of Directors chaired by Mr. Vinod Rai, a respected former Comptroller and Auditor General of India. The management team is composed of experienced professionals who have been instrumental in driving the company's pan-India expansion.

• Candere.com Development: The company's e-commerce platform, acquired in 2017, is a key part of its omni-channel strategy. It has recently appointed Shah Rukh Khan as its brand ambassador to further boost its profile and reach.

• Auditor Change: In 2024, after Deloitte completed a 10-year term as statutory auditor, the company appointed Walker Chandiok & Co LLP, ensuring continuity of high-quality audit and governance standards.

The company benefits from a strong governance framework, an experienced leadership team, and strategic initiatives aimed at strengthening its digital and omni-channel capabilities.