Kalyan Jewellers reported a robust start to the fiscal year with consolidated net profit after tax (PAT) rising 32% year-on-year to ₹3,487 million for the quarter ended June 30, 2026. The growth was driven by a significant expansion in top-line sales, with consolidated revenue from operations jumping 46% to ₹105,889 million compared to ₹72,685 million in the corresponding period of the previous year. This performance underscores strong consumer demand and effective operational execution across its India and international segments.

The Board of Directors approved the unaudited financial results at a meeting held on August 04, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the statutory auditors, Walker Chandiok & Co LLP, who issued a limited review report confirming that the statements comply with Ind AS 34 and do not contain material misstatements. The full financial results were published in 'The Hindu Business Line' and 'Deepika' on August 05, 2026.

Financial Performance Highlights

The company demonstrated strong momentum across key financial metrics in Q1FY27. Standalone PAT also grew significantly, rising 25% to ₹3,213 million from ₹2,565 million in Q1FY26. Revenue from operations on a standalone basis reached ₹90,255 million, up from ₹61,422 million in the prior year quarter. The following table outlines the key financial figures for the quarter:

Note: Figures are in millions of Indian Rupees.

Operational Expenses and Margins

Despite the revenue surge, the company managed its cost structure effectively. Consolidated employee benefits and other operating expenses increased to ₹6,313 million from ₹5,001 million, reflecting strategic hiring and compensation adjustments. Advertisement expenses rose to ₹1,408 million on a consolidated basis, up from ₹1,282 million in the previous year. Finance costs remained relatively stable at ₹1,084 million, slightly higher than the ₹1,036 million recorded in Q1FY26. The gross margin expansion contributed directly to the improved profitability, with profit before tax growing at a faster rate than revenue.

What the Numbers Show

The divergence between revenue growth (46%) and net profit growth (32%) suggests that while top-line expansion was aggressive, certain cost components scaled proportionally. Notably, the consolidated EBITDA margin contracted to 5.97% from 6.99% year-on-year, reflecting the proportional increase in operating costs relative to revenue. The increase in advertisement expenses and other operating expenses indicates continued investment in market share and talent acquisition. However, the absence of exceptional items in the current quarter, unlike the ₹415 million provision for employee benefits recognised in FY26 due to new Labour Codes, provides a cleaner comparison for operational efficiency. The consistent growth in both standalone and consolidated metrics highlights the strength of the core jewellery business without reliance on non-operating income, which remained modest at ₹557 million consolidated versus ₹463 million in the prior year.

Kalyan Jewellers expects to keep its profit margins steady for the current financial year, with an estimated customs duty gain of around ₹60 crore anticipated in Q2. The company's strategic Cash for Gold programme is expected to play a key role in sustaining profitability by enabling the purchase of gold below spot prices, thereby helping offset margin losses arising from exchange transactions.

Margin Strategy and Gold Sourcing

A core pillar of Kalyan Jewellers' margin management strategy is its focus on recycled gold, with the company expecting the recycled gold revenue share to remain within the 55% to 60% range. The Cash for Gold initiative complements this approach by sourcing gold at below-spot prices, which directly contributes to improved margins even as exchange-related pressures persist. The following table summarises the key margin and sourcing parameters:

Debt Repayment and Asset Monetisation

Kalyan Jewellers has outlined a clear roadmap for strengthening its balance sheet. The company aims to complete repayment of its non-GML debt by the end of September. Additionally, the company plans to divest non-core real estate assets worth ₹102 crores by the end of the current quarter, a move aimed at unlocking capital and improving financial flexibility.

Expansion Plans and Candere Performance

On the store expansion front, Kalyan Jewellers has confirmed plans to open 84 Kalyan showrooms and 50 Candere stores during the current financial year. The company noted that the second half of the financial year is typically busier for expansion activity. Key highlights of the expansion and Candere strategy include:

• 84 Kalyan showrooms planned for opening this financial year
• 50 Candere stores targeted for launch in the same period
• H2 is expected to see a higher pace of store openings
• Candere is expected to remain profitable for the year
• Candere's strategy prioritises increasing sales within existing showrooms before aggressively scaling new outlets

The dual-brand expansion strategy reflects Kalyan Jewellers' intent to deepen its retail footprint across both its flagship and digital-first formats, while maintaining a disciplined approach to profitability at the Candere level.