Concall AI

Kalyan Jewellers India Limited — Q4 FY26 earnings call

Call held 8 May 2026

Management summary

Kalyan Jewellers delivered a strong Q4 and full year FY26, with consolidated revenue growing 66% and PAT 118% in Q4, and full year PAT reaching INR 1,350 crores. The Candere business achieved significant growth and profitability, and the company plans aggressive showroom expansion in FY27. While the current quarter started well, potential moderation due to an inauspicious month and a slight gross margin reversal were noted.

Highlights

Consolidated revenue for Q4 FY26 increased by 66% to INR 10,275 crores.
Consolidated PAT for Q4 FY26 surged by 118% to INR 410 crores.
Full year FY26 consolidated revenue reached INR 35,740 crores, a 43% YoY growth.
Full year FY26 consolidated PAT was INR 1,350 crores, an 89% YoY growth.
Candere business achieved 160% revenue growth in FY26 and became PAT positive from H2 FY26.

Concerns

A slight reversal in gross margin trend was noted in Q4 FY26 compared to previous quarters.
The company expects potential slower growth days during Q1 FY27 due to the Adhik-Maas (inauspicious month).
The launch of the new regional brand is delayed due to post-election conditions in the target state.

Key financials

2 periods

Q4 FY26

Consolidated Revenue
₹10,275 Cr
YoY +66%
Consolidated PAT
₹410 Cr
YoY +118%

FY26

Consolidated Revenue
₹35,740 Cr
YoY +43%
Consolidated PAT
₹1,350 Cr
YoY +89%

What they filed

Q1 FY27: revenue up 47.0%, net profit up 25.4% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	5,227	6,386	5,350	6,142	6,843 +31%	9,048 +42%	8,994 +68%	9,026 +47%
Expenses	4,964	6,016	5,007	5,708	6,411	8,394	8,390	8,525
EBITDA	263	370	344	434	432 +64%	654 +77%	604 +76%	500 +15%
Margin	5%	6%	6%	7%	6%	7%	7%	6%
Other income	28	41	42	52	57	33	52	72
Interest	63	58	69	72	65	69	83	63
Depreciation	61	61	68	70	72	77	77	77
Profit before tax	167	292	249	344	352 +111%	541 +85%	495 +99%	432 +26%
Tax rate	28%	25%	26%	26%	25%	26%	26%	26%
Net profit	120	218	185	256	262 +118%	401 +84%	366 +98%	321 +25%
EPS	1.17	2.11	1.80	2.49	2.54	3.88	3.54	3.11

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue

₹10,195 Cr Total

India Business (Q4 FY26) ₹8,990 Cr 88.2%
Middle East Business (Q4 FY26) ₹1,074 Cr 10.5%
Candere Business (Q4 FY26) ₹131 Cr 1.3%

Capital allocation

high confidence

Debt Debt disclosed
- Repayment Reduced non-GML debt in India by INR 360 crores in FY26, bringing it from INR 1,300 crores to INR 300 crores over 3 years. ₹360 Cr
The year also saw a reduction of debt in India by INR360-odd crores, in line with the already announced plan to pay down the non-GML debt in India completely. Over the last 3 years, we have reduced the non-GML in India from INR1,300 crores to INR300 crores.
Returns FYTD ₹150 Cr

Guidance & targets

Showroom Expansion

Number of new showrooms Showroom Expansion · FY27 · High confidence 150

During the ongoing financial year, we plan to open 150 showrooms across Kalyan, Candere and the new regional brand.

— Ramesh Kalyanaraman
Number of new Candere showrooms Showroom Expansion · FY27 · Medium confidence 50-55

So, it will be in the similar line of the last financial year, 50-55.

— Ramesh Kalyanaraman

Debt

Non-GML debt status Debt · FY27 · High confidence Zero

From INR 300 crores today

Yes. So, we want to make it a non-GML debt-free in the running financial year.

— Ramesh Kalyanaraman

Interest Expense

Reduction in interest cost Interest Expense · FY27 · High confidence INR 50 crores

So INR 20 crores is one-off and INR 30 crores reduction next year. So then the reduction is INR 50 crores? Correct. You are correct.

— Ramesh Kalyanaraman

Profitability

India Standalone PBT Margin Profitability · Ongoing · High confidence 5.5%-5.6%

So now if you look at this financial year, meaning the previous financial year, the PBT India has been in the range of, what, 5.5%- 5.6%. I think that is here to stay. And some again, I told you, some operating leverage can come in and stuff.

— Ramesh Kalyanaraman

Sales Growth

Same-Store Sales Growth (SSSG) Sales Growth · Next 3-5 years · Medium confidence >10%

If you are trying to put a number for the next 3-5 years, we usually don't guide more than 10% SSSG for next 3 to 5 years.

— Ramesh Kalyanaraman

What to watch in Q1 FY27

Launch of new regional brand

Next quarter

Current Delayed due to post-election conditions

Target Launch announced/initiated

Why it matters

Marks entry into a new market segment and contributes to FY27 showroom expansion target.

So, it is on, but the post-election dust has not been settled in the state where we want to open our new brand. So, we are just waiting for the dust to settle down, and we start our campaign.

Risks & concerns

Potential for slower growth during Q1 FY27 due to Adhik-Maas
medium

Inauspicious month (Adhik-Maas) in Q1 FY27 could lead to slower wedding-related sales, though some preponement of purchases is expected.

Management acknowledged
Gross margin trend reversal in Q4 FY26
medium

Gross margins showed a slight reversal compared to previous quarters, attributed by management to Q4 seasonality and specific product mix.

Analyst acknowledged
Delay in launching the new regional brand
low

Launch of the new brand is on hold due to post-election conditions in the target state.

Management acknowledged

Q&A highlights

4 direct, 1 evasive

Divergence in SSSG between South and non-South regions Direct

I think the shift is again further accelerated in the non-South region when compared to South. And we have been seeing it from Q3, but Q4 again was non-South was more interesting than the South.

Highlights regional performance differences and a shift in growth drivers, which could impact future strategy.

Asked by Nihal Mahesh Jham

Update on the launch of the new regional brand Partial

So, it is on, but the post-election dust has not been settled in the state where we want to open our new brand. So, we are just waiting for the dust to settle down, and we start our campaign.

Indicates a delay in a new strategic initiative due to external factors, impacting market entry.

Asked by Gaurav Jogani

Reasons for the sequential increase in interest cost in Q4 FY26 Direct

So, you see the major reason for the increase is the -- increase in the processing charges as well there were some advanced tax which we had to pay. There were some estimate which we did for the full year, we couldn't budgeted correctly. So, then there was an interest which we had to pay for the advanced tax. That is a major reason in the increase in the interest cost.

Clarifies a specific financial anomaly and provides context for future interest cost expectations (INR 50 crores reduction in FY27).

Asked by Gaurav Jogani

Impact of Adhik-Maas (inauspicious month) on Q1 FY27 sales and potential for slower growth Partial

As we speak, things are on track. It is more than on track, but we'll have to see what plays out during the Adhik-Maas time. But yes, there is high possibility that those days can be slower than our usual wedding.

Flags a potential seasonal headwind for the current quarter, indicating possible volatility in sales.

Asked by Devanshu Bansal

Strategy for managing ROCE given rising gold prices and inventory Direct

So usually, when the gold price goes up by INR100, we increase our inventory at the store only by INR30 or INR40. We reduce our volume at the store. That is how we take care of our ROCE.

Explains the company's operational strategy to maintain capital efficiency in a volatile gold price environment.

Asked by Pallavi

Gross margin profile of Candere and its contribution to overall profitability Direct

So, margins are higher in Candere because the studded ratio in Candere is more than 70%. So mid-30s are the gross margins in Candere.

Provides insight into the profitability drivers of the fast-growing Candere segment, highlighting the premiumization strategy.

Asked by Subhanu Bangal

Status of unpledging of promoter shares Evasive

Yes, nothing has changed. So -- but it's not a very right platform to discuss on the promoter pledging. But there is no change for the past, 15 months.

An evasive answer to a recurring question about promoter share pledging indicates a sensitive topic that investors may want to monitor.

Asked by Chetan Phalak

3 min read 7 chapters

Detailed narrative

Strong Q4 and Full Year FY26 Performance

Kalyan Jewellers reported a robust Q4 FY26, with consolidated revenue growing 66% to INR 10,275 crores and consolidated PAT surging 118% to INR 410 crores. For the full financial year FY26, consolidated revenue reached INR 35,740 crores, a 43% increase from FY25, while consolidated PAT grew 89% to INR 1,350 crores. The India business contributed significantly with Q4 revenue of INR 8,990 crores and PAT growth of 97%.

Candere's Turnaround and Growth

The Candere business demonstrated exceptional performance in FY26, recording a 160% revenue growth. More importantly, Candere turned PAT positive from the second half of FY26, reporting a profit of INR 3 crores in Q4 FY26 compared to a loss of INR 12 crores in the prior year. For FY27, Candere plans to focus on driving Same-Store Sales Growth (SSSG) and expanding its showroom footprint, with 50-55 new showrooms planned.

Aggressive Showroom Expansion Plans

In FY26, Kalyan Jewellers launched 129 new showrooms across its Kalyan and Candere formats, including its first Kalyan showroom in the U.K. The company has ambitious plans for FY27, targeting the opening of 150 new showrooms across Kalyan, Candere, and a new regional brand. The expansion in South India will focus on metros like Bangalore, Chennai, and Hyderabad, with 13-15 new showrooms, while over 60-65 showrooms are planned for regions outside South India.

Debt Reduction and Capital Allocation Strategy

The company successfully reduced its non-GML debt in India by INR 360 crores in FY26, bringing the total non-GML debt down from INR 1,300 crores to INR 300 crores over the last three years. Management aims to be completely non-GML debt-free in FY27, potentially by H1 FY27. Approximately 50% of the cash generated will be allocated to dividends, debt reduction, and capex, with the remaining 50% earmarked for Candere and the new regional brand.

Gross Margin Dynamics and Interest Cost Outlook

Gross margins have been improving and maintained, though a slight reversal was noted in Q4 FY26, attributed to seasonal product mix and regional revenue differences. The company expects a reduction of INR 50 crores in interest costs for FY27, comprising INR 30 crores from non-GML debt reduction and INR 20 crores from a one-off adjustment in Q4 FY26. India standalone PBT margin is expected to remain stable at 5.5%-5.6%.

Managing Gold Price Volatility and ROCE

Kalyan Jewellers employs a strategy to manage ROCE amidst rising gold prices. For every INR 100 increase in gold price, inventory at stores is increased by INR 30-40, while sales volume is reduced. The company also focuses on promoting studded jewelry and reducing gold purity (e.g., from 22K to 18K or 14K) to make jewelry more accessible to customers and mitigate the impact of higher gold prices.

Middle East Expansion and New Brand Delay

The company is actively pursuing a major franchisee expansion in the Middle East through Arab investors, with discussions ongoing for converting FOCO showrooms to COCO. However, the launch of the new regional brand in India is currently delayed, awaiting political stability in the target state.

This is an AI-generated summary of a publicly available earnings call transcript.

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