Financial Performance and Operational Leverage
Kalyan Jewellers reported consolidated revenue of ₹10,275 crore in Q4 FY26, representing a 66% increase over the same period in the previous year. For the full fiscal year, standalone India revenue grew 43%, while the Middle East business showed steady performance with Q4 revenue reaching ₹1,074 crore. The company demonstrated significant operating leverage, as evidenced by PAT growth nearly doubling the rate of revenue growth.
This efficiency was largely driven by the 'FOCO' (Franchise Owned Company Operated) model, which allowed for rapid scaling of the store network without corresponding increases in capital expenditure. Standalone PAT for the year ending March 2026 stood at ₹1,350 crore.
Strategic Expansion and Segmental Turnaround
The company added 129 showrooms in FY26, significantly beating its initial guidance of 80 to 100 stores. Expansion was particularly aggressive in the Non-South regions, where same-store sales growth continued to outperform the South India market. A notable highlight was the turnaround of Candere, which achieved profitability in H2 FY26.
Management noted that the digital-first brand is now focusing on expanding its physical footprint to complement online sales. Looking ahead to FY27, Kalyan Jewellers has set an ambitious target to open 150 more showrooms across its diverse brand portfolio, including the launch of a new regional brand designed to capture hyper-local demand.
Management Outlook and Debt Reduction
- Elimination of the remaining ₹300 crore non-GML debt in India is expected by H1 FY27
- Targeting 150 new store openings in FY27 to sustain hyper-growth momentum
- Strong demand visibility for Q1 FY27 supported by robust wedding season purchases
- Focus on driving same-store sales growth (SSSG) through light-weighting and product mix shifts
- Ongoing conversion of select owned showrooms to the franchise model to further optimize capital
Commentary on Debt and Growth
Over the last three years, we have reduced the non-GML in India from 1,300 crores to 300 crores. In line with our announced dividend policy, the Board of Directors has recommended a dividend of approximately 257 crores.
What to Watch
- Execution of the 150-store expansion target across Kalyan and Candere formats
- Impact of structural shifts toward 18k and 14k gold jewelry on overall gross margins
- Consumer response to the new regional brand slated for launch in the current fiscal
- Sustainability of volume growth amidst continued volatility in international gold prices
