Kalyan Jewellers delivered exceptional first-quarter results with consolidated net profit rising 32% to ₹348.67 crore from ₹264.08 crore in the previous financial year, as reported by Moneycontrol. The company's revenue from operations surged 45.66% year-on-year to ₹10,588.93 crore compared to ₹7,268.48 crore in the corresponding quarter last year. Earnings Per Share (EPS) for the quarter ending June 2026 was ₹3.38, up from ₹2.56 in June 2025. Profit before tax (PBT) rose 31.68% year on year to ₹464.81 crore during the quarter. EBITDA grew 25% to ₹632.5 crore from ₹523.3 crore year-on-year, while EBIT increased 26% to ₹517.5 crore. The strong revenue growth demonstrates the company's robust operational performance and market expansion during the quarter, with the company achieving more than ₹10,500 crore in quarterly revenue for the first time, underscoring its scale as one of India's largest organised jewellery retailers.
While the quarter showed strong year-on-year growth, the company faced sequential challenges with net profit declining 14% from ₹409.50 crore reported in the March quarter. As per CNBC TV18, revenue contribution from studded jewellery, which typically carries higher profit margins, declined during the quarter. In India, the share of studded jewellery fell to 29.7% from 30.3% a year ago, while in the Middle East, it declined to 16.3% from 18.3% in the corresponding period last year. This shift in product mix contributed to the sequential margin compression despite strong overall performance, with the company generating significantly higher sales than last year but earning slightly less operating profit on every rupee of revenue, suggesting operating costs grew faster than sales during the quarter.
Despite healthy operating performance, EBITDA margin narrowed 120 basis points year-on-year to 6% in the June quarter from 7.2% in the corresponding quarter last year, indicating that costs increased faster than operating earnings. As reported by CNBC TV18, while EBITDA increased by nearly one-fourth, the lower operating margin suggests the benefits of higher sales were partly offset by rising costs. The company also recorded a one-off gain of around ₹41 crore during the quarter due to the import duty hike, while gross margins were impacted by a higher share of exchanged gold, promotional offers under the exchange campaign, and a one-off gain from platinum and silver sales in the base quarter. According to Citigroup, the earnings miss was driven by higher old-gold exchange transactions, increased promotional spending and a higher contribution from franchise stores, all of which weighed on margins during the quarter. Gross margin contracted 194 basis points YoY to 11.9%, led by exchange offers, a higher recycled gold mix of 46% versus 30% in Q1FY26, and a lower studded mix in new FOCO stores.
Despite strong fundamentals, Kalyan Jewellers shares fell 5% to ₹562.70 on Wednesday morning, positioning the stock among the top losers on the Nifty Midcap 150 index, as reported by Mint. However, the stock has since recovered, with ICICI Securities reiterating its 'Buy' rating and raising its target price to ₹680 from ₹670, implying a potential upside of about 15% from current levels. The brokerage believes the jewellery retailer's strong growth momentum, improving return ratios and rapid debt reduction outweigh near-term margin pressures. Motilal Oswal Financial Services retained its 'Buy' rating on Kalyan Jewellers with a target price of ₹700, despite trimming its earnings per share estimates by 3-4% for FY27 and FY28. The company's strong performance was driven by robust consumer demand and healthy same-store sales growth, with EBITDA increasing 24.5% YoY to ₹632 crore and profit after tax growing 32% YoY to ₹349 crore. Debt reduction remains ahead of guidance, with non-GML debt expected to be fully paid off by September 2026.
As of June 30, 2026, Kalyan Jewellers operated 354 Kalyan showrooms in India, including 234 franchise-owned, company-operated (FOCO) outlets, as reported by Business Standard. Its digital-first brand, Candere, had 129 showrooms, of which 73 were FOCO outlets. Internationally, the company operated 38 Kalyan showrooms in the Middle East, two in the US and one FOCO showroom in the UK. India revenue rose 38% year-on-year, largely driven by same-store sales growth of 28%, while B2C revenue increased by around 34%. The company added 12 new showrooms in India during the quarter, compared with 10 additions in the corresponding period last year, with franchised stores contributing around 57% of revenue during the quarter. New customer additions remained healthy, with first-time buyers accounting for more than 36% of customers. The recent ATM (Akshaya Thanga Maligai) format may be a new material revenue driver that consensus is yet to model, according to ICICI Securities research report dated August 05, 2026. For FY27, Kalyan Jewellers plans to open 84 Kalyan showrooms and 50 Candere stores, all under the Franchisee-Owned Company-Operated (FOCO) model.
