Kalyan Jewellers Reports Strong Q1 Growth, Unveils Strategic Initiatives

2 min read     Updated on 11 Aug 2025, 10:26 AM
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Reviewed by
Jubin VergheseBy ScanX News Team
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Overview

Kalyan Jewellers India Limited reported strong Q1 results with consolidated revenue reaching INR 7,268.00 crores, a 31% YoY growth. Consolidated PAT increased by 49% to INR 264.00 crores. The company announced strategic initiatives including a pilot project to reduce vendor credit periods, plans to launch a regional brand retail format, and development of a jewellery park in Thrissur. The FOCO revenue share reached 43%, and e-commerce business Candere posted revenue of INR 66.00 crores. Management expects continued strong demand and anticipates PBT for India operations to be on the upper side of 5% for coming quarters.

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*this image is generated using AI for illustrative purposes only.

Kalyan Jewellers India Limited has reported robust financial results for the first quarter, with significant growth in revenue and profitability. The company also announced several strategic initiatives aimed at enhancing operational efficiency and expanding its market presence.

Financial Highlights

  • Consolidated revenue reached INR 7,268.00 crores, representing a 31% year-over-year growth.
  • Consolidated profit after tax (PAT) increased by 49% to INR 264.00 crores from INR 178.00 crores in the previous year.
  • The India business achieved a 31% revenue growth to INR 6,142.00 crores, with PAT growing by 55% to INR 256.00 crores.
  • Middle East operations reported a 27% growth, with revenue of INR 1,026.00 crores and a profit of INR 22.00 crores.

Strategic Initiatives

Leaner Credit Period

Kalyan Jewellers has successfully implemented a pilot project to reduce vendor credit periods, which has shown promising results:

  • The pilot project demonstrated higher returns than the company's corporate Return on Capital Employed (ROCE).
  • The company plans to implement this strategy across its operations, potentially requiring INR 1,500.00-2,000.00 crores in working capital.
  • This initiative is expected to drive significant margin improvements and cost efficiencies.

Regional Brand Strategy

The company announced plans to launch a third retail format focusing on regional brands:

  • The first regional brand is expected to be launched before the end of the calendar year.
  • Initial investment for the regional brand is estimated at INR 300.00 crores.
  • The company plans to open five showrooms for the regional brand in the next 12 months.
  • After the initial company-owned stores, expansion will primarily be through the Franchise-Owned Company-Operated (FOCO) model.

Jewellery Park

Kalyan Jewellers is developing a jewellery park in Thrissur, Kerala:

  • The park will serve as a hub for contract manufacturers, particularly those from South India.
  • This initiative aims to improve efficiency and attract younger generations to the jewellery manufacturing business.

Operational Updates

  • The company's FOCO revenue share reached 43% as of the end of the quarter.
  • Candere, the company's e-commerce business, posted revenue of INR 66.00 crores, up from INR 39.00 crores in the previous year.
  • Management expects Candere to reach PAT neutral by the end of the current financial year.

Future Outlook

  • The company remains optimistic about the upcoming festive season and is preparing to launch fresh collections and campaigns.
  • Kalyan Jewellers anticipates continued strong demand in both its India and Middle East markets.
  • The management expects the PBT (Profit Before Tax) for India operations to be on the upper side of 5% for the coming quarters.

Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, expressed satisfaction with the company's performance, stating, "I'm extremely satisfied with our performance in the recently concluded quarter. We have been able to substantially reduce our non-GML working capital loans over the last 2 years, and we are seeing meaningful improvements in our return profile."

As Kalyan Jewellers continues to implement its strategic initiatives and expand its market presence, the company appears well-positioned for sustained growth in the coming quarters.

Historical Stock Returns for Kalyan Jewellers

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-1.35%-12.63%-11.97%-2.05%-7.61%+585.70%
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Kalyan Jewellers Pauses Debt Reduction to Focus on Releasing Land Collateral

1 min read     Updated on 09 Aug 2025, 09:42 PM
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Reviewed by
Riya DeyBy ScanX News Team
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Overview

Kalyan Jewellers has temporarily halted its debt reduction strategy to prioritize releasing Rs 200 crore worth of non-core land assets used as bank collateral. The company plans to resume debt repayment within months. Despite this pause, Kalyan Jewellers continues its expansion plans, including introducing a new regional jewellery line, opening five new showrooms, and allocating Rs 300 crore for capex. The company is also developing a jewellery park in Kerala and has piloted a lean credit procurement model. Management expects margins to exceed 7% and projects organic growth in Return on Capital Employed by 1-2% annually.

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*this image is generated using AI for illustrative purposes only.

Kalyan Jewellers , a prominent player in the Indian jewellery market, has announced a strategic shift in its financial management approach. The company has temporarily halted its debt reduction strategy to prioritize the release of non-core land assets currently used as bank collateral.

Strategic Pause in Debt Reduction

Executive Director Ramesh Kalyanaraman emphasized that this move is a strategic pause rather than a permanent stop to the company's debt reduction efforts. Over the past year and a half, Kalyan Jewellers successfully reduced its debt by over Rs 500.00 crore. The company is now working on releasing Rs 200.00 crore worth of collateral through bank paperwork.

Kalyanaraman stated, "We plan to resume debt repayment within a couple of months once the collateral is released." This approach demonstrates the company's flexible financial strategy in managing its assets and liabilities.

Expansion Plans Continue

Despite the temporary pause in debt reduction, Kalyan Jewellers remains committed to its growth trajectory. The company has outlined several expansion initiatives:

  1. Introduction of a new jewellery line targeting regional markets
  2. Plans to open five new showrooms in the next 12 months
  3. Allocation of Rs 300.00 crore for capex, including inventory for new stores

Jewellery Park and Lean Credit Model

In a move to strengthen its supply chain, Kalyan Jewellers is developing a jewellery park in Kerala for contract manufacturers. This initiative is expected to streamline production and potentially reduce costs.

The company has also piloted a lean credit procurement model, which has yielded impressive results. This new approach has reduced the average credit period from 30-32 days to approximately one-third of that duration, potentially improving cash flow management.

Financial Outlook

Management expressed optimism about the company's financial performance:

  • Margins are expected to exceed 7.00%
  • Return on Capital Employed (ROCE) is projected to grow organically by 1-2% annually

These improvements are anticipated to be driven by asset-light expansion and operating leverage.

Kalyan Jewellers' strategic decisions reflect a balanced approach to financial management and growth. By temporarily pausing debt reduction to free up collateral, the company aims to create more flexibility for its expansion plans while maintaining a focus on improving financial metrics in the long term.

Historical Stock Returns for Kalyan Jewellers

1 Day5 Days1 Month6 Months1 Year5 Years
-1.35%-12.63%-11.97%-2.05%-7.61%+585.70%
Kalyan Jewellers
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