Detailed Narrative
Strong Q3 FY26 Performance Driven by Festive Demand and Candere Growth
Kalyan Jewellers reported a robust Q3 FY26, with consolidated revenue surging 42% year-on-year to ₹10,343 crores. Consolidated Profit After Tax (PAT) also saw significant growth, increasing 90% year-on-year to ₹416 crores. This strong performance was underpinned by robust festive demand, with same-store sales growth during the 30-day Diwali period exceeding 30% on a like-for-like basis, and momentum continuing into Q4 FY26.
Candere Achieves Profitability and Significant Revenue Growth
The company's omnichannel platform, Candere, achieved a significant milestone by turning PAT positive during Q3 FY26, reporting a profit of ₹3 crores compared to a loss of ₹7 crores in the prior year. Candere recorded an impressive revenue growth of 144% for the quarter, reaching ₹135 crores. For the nine months ended December 31, 2025, Candere's revenue grew 117%, demonstrating the success of its transformation into an omnichannel model with 110 stores.
Segmental Performance and Geographic Trends
India operations contributed significantly to the overall results, with revenue of ₹9,048 crores and PAT of ₹401 crores, marking an 84% growth. The Middle East business also showed strong growth, with revenues of ₹1,073 crores and a profit of ₹24 crores for the quarter. Management noted that while South India's acceptance of 18-karat jewellery is slower, North India shows faster adoption, and studded jewellery, particularly in 18-karat, is gaining traction across markets.
Strategic Focus on Lower Karatage Jewellery and Franchisee Expansion
Kalyan Jewellers is strategically increasing the share of 18-karat products and plans to launch 14-karat and 9-karat options, especially in studded jewellery, to offer more choice within customer budgets. The company's franchisee model continues to be strong, with approximately 30 showrooms in South India and a total of 200+ franchisee showrooms overall. Management aims to add 80-90 new stores in India over the next couple of years and 6-7 overseas showrooms annually, with active discussions for new Arab investor franchises.
Capital Allocation and Debt Management Initiatives
The company utilized ₹300 crores from free cash generated from operations for Candere expansion and pilot showrooms in the US and UK, and another ₹300 crores for debt reduction and dividend payments. Management indicated no major change in debt from Q2 to Q3, with repayments typically occurring in Q2 and Q4. Plans are in place to further reduce pledged shares over the next six months, which were primarily for buyback purposes, and mediators have been appointed for the sale of a land parcel expected by H1 FY27.
Outlook and Ongoing Initiatives
Management expressed optimism for Q4 FY26, stating that the quarter has started well with strong customer traction despite gold price volatility, and expects to end the financial year on a strong note. Key initiatives include adding more inventory to existing showrooms, driving higher same-store sales growth, and launching a new regional brand in one state during the current quarter. The company also highlighted that leverage on advertisement, employee, and other operating expenses is helping and is expected to continue.