Kalyan Jewellers Q1 FY27: Revenue Surges 38% as Gold Recirculation, Store Expansion and New Tamil Nadu Brand Drive Growth
Kalyan Jewellers India Limited (NSE: KALYANKJIL, BSE: 543278) delivered a strong start to FY27, with consolidated revenue rising 38% year-on-year in the first quarter ended June 30, 2026. Despite a temporary slowdown in wedding-related demand during the Adhik-Maas period and volatility in gold prices, the company reported healthy growth across India, the Middle East and its digital business Candere.
Management said demand has remained strong at the start of the current quarter and expressed confidence about the upcoming festive and wedding season.
The company’s key priorities for FY27 include accelerating store expansion, increasing recycled-gold usage, growing the recently launched regional brand Akshaya Thanga Maligai (ATM) in Tamil Nadu, reducing non-GML debt and improving the contribution from cash-for-gold transactions.
Kalyan Jewellers Q1 FY27 Results at a Glance
The company reported strong consolidated financial performance during Q1 FY27.
| Particulars | Q1 FY27 | Q1 FY26 |
|---|---|---|
| Consolidated Revenue* | ₹10,008 crore | ₹7,252 crore |
| EBITDA | ₹633 crore | ₹508 crore |
| Consolidated PAT | ₹349 crore | ₹264 crore |
| India Revenue* | ₹8,503 crore | ₹6,142 crore |
| India EBITDA | ₹500 crore | ₹434 crore |
| India PAT | ₹321 crore | ₹256 crore |
| Middle East Revenue* | ₹1,320 crore | ₹1,026 crore |
| Middle East EBITDA | ₹90 crore | ₹73 crore |
| Middle East PAT | ₹25 crore | ₹22 crore |
| Candere Revenue | ₹141 crore | ₹66 crore |
| Candere PAT | ₹2.1 crore | Loss of ₹10 crore |
*Revenue figures discussed by management are net of bullion sales.
Overall, consolidated revenue excluding bullion sales increased 38% YoY, while consolidated PAT grew approximately 32%.
On a standalone basis, revenue excluding bullion grew 38%, while PAT increased 25%.
India Business Continues to Lead Growth
The India business remained the company’s biggest growth engine.
Revenue from India increased to approximately ₹8,503 crore, compared with ₹6,142 crore in Q1 FY26.
India EBITDA increased to ₹500 crore, while India PAT rose to ₹321 crore from ₹256 crore in the year-ago period.
Management highlighted that the company is continuing to gain traction outside its traditional South India markets. Revenue contribution from non-South markets has now crossed 50%-60%, demonstrating the growing acceptance of the Kalyan brand across India.
The company believes its positioning between regional jewellery chains and national brands gives it a competitive advantage.
Gold Recirculation Becomes a Major Strategic Focus
One of the most important themes discussed during the earnings call was Kalyan’s increased focus on gold recirculation.
The company launched its “Shine with India” campaign following a sharp rise in international oil prices and the resulting pressure on foreign exchange.
The objective is to encourage consumers to bring existing gold back into the organized jewellery ecosystem rather than relying entirely on imported gold.
This strategy is already showing results.
The share of recycled gold increased to more than 46% of revenue in Q1 FY27.
More importantly, the proportion crossed 55% in June.
Management said its target is to maintain recycled gold at approximately 55%-60% of the business going forward.
This could become strategically important for Kalyan as higher recycled-gold usage can reduce dependence on imported gold and improve the resilience of the company’s supply chain.
Cash-for-Gold Could Offset Margin Pressure
The increased use of gold exchange has created some margin pressure because exchanged gold is purchased at the prevailing board rate, whereas gold purchased for cash can be acquired at a discount to the spot price.
To address this, Kalyan is increasingly promoting its cash-for-gold offering.
Management said the cash-for-gold business was in the single-digit percentage range during June but has now moved into double digits.
The company believes the higher-margin cash-for-gold business can offset the margin dilution associated with traditional gold exchange transactions.
Management therefore maintained that, on a full-year basis and even on a conservative basis, PBT margins should remain broadly in line with FY26.
Q1 Margins Impacted by Exchange Promotion and Employee Costs
The company acknowledged that margins were temporarily affected during Q1 by several factors.
The standalone PBT margin was around 5.1%, compared with approximately 5.5%-5.6% previously.
The factors affecting margins included:
- Promotional spending to encourage old-gold exchange
- Margin dilution from exchange transactions
- Employee cost increases
- Certain one-time gains in the previous period
Management said employee costs increased substantially because the company provided higher increments to retain and motivate employees.
However, it expects operating leverage from revenue growth to offset the higher employee costs over time.
The company remains confident that full-year PBT margins can broadly match the previous year’s level.
Customs Duty Benefit to Continue in Q2
Another important factor discussed during the call was the benefit arising from customs duty changes.
Management indicated that approximately ₹40-₹41 crore of the benefit flowed through Q1.
For Q2, the company expects a customs-duty-related benefit of approximately ₹60 crore.
However, management cautioned that some of this benefit could be passed on to customers through promotional offers, particularly as the company continues to encourage gold recirculation.
Therefore, investors should not assume that the entire customs duty benefit will directly translate into higher margins.
Middle East Business Delivers Steady Growth
Kalyan’s Middle East operations also delivered healthy growth during Q1.
Revenue increased to approximately ₹1,320 crore, compared with ₹1,026 crore in the corresponding quarter.
EBITDA rose to ₹90 crore from ₹73 crore, while PAT increased to ₹25 crore from ₹22 crore.
The Middle East business continues to provide geographical diversification and remains an important component of Kalyan’s international growth strategy.
Candere Turns Profitable
The company’s digital jewellery business Candere showed a significant improvement during Q1 FY27.
Revenue increased to approximately ₹141 crore, more than double the ₹66 crore reported in Q1 FY26.
More importantly, Candere reported a PAT of ₹2.1 crore, compared with a loss of ₹10 crore in the year-ago quarter.
Management said Candere has remained PAT-positive since the second half of FY26 and expects profitability to continue during FY27.
The company plans to open approximately 50 Candere showrooms during FY27.
Rather than focusing only on opening new stores, management also wants to increase inventory at existing locations to improve throughput.
New Tamil Nadu Brand Akshaya Thanga Maligai
One of the biggest strategic announcements is the launch of Kalyan’s new regional jewellery brand in Tamil Nadu.
The brand is called Akshaya Thanga Maligai, also referred to as ATM.
Unlike the main Kalyan brand, which follows a hyperlocal strategy combined with national inventory, ATM will be designed specifically around Tamil Nadu consumers.
Its inventory will be tailored to:
- Local jewellery preferences
- Regional designs
- Local price points
- Buying patterns
- Regional market requirements
The first ATM showroom is scheduled to open in Chennai on August 21, 2026.
The company plans to open four additional stores over the following months, including locations outside Chennai.
Management sees a large opportunity in Tamil Nadu’s regional and local jewellery market.
The expansion will primarily follow the FOCO — Franchise Owned, Company Operated — model, allowing Kalyan to expand in an asset-light manner.
Kalyan Maintains FY27 Store Expansion Target
Management confirmed that there is no change in its FY27 showroom expansion targets.
Kalyan continues to target approximately 84 new Kalyan showrooms in India during the financial year.
The company noted that store expansion is typically heavier during the second half of the financial year.
The FOCO model has become an important part of Kalyan’s expansion strategy because franchise partners fund the capital expenditure and inventory while Kalyan operates the stores.
Management indicated that franchise partners can earn ROCE of around 14% under the current model.
Non-South India Expansion Remains a Key Growth Driver
Kalyan’s growth story is increasingly moving beyond its traditional South Indian stronghold.
The company now generates more than half of its revenue from non-South markets, according to management.
Its strategy is to maintain a mix of:
- 30%-40% locally relevant inventory
- 50%-60% national inventory
This allows the company to compete simultaneously with regional jewellery players, unorganized jewellers and national chains.
Management highlighted that same-store growth has remained strong, with revenue CAGR over the past three years exceeding 33%.
For the previous two years, the CAGR was above 38%.
Debt Reduction on Track
Kalyan Jewellers is also making progress on reducing its non-GML debt.
Management said the company remains on track to complete repayment of its non-GML debt by the end of September 2026.
After repayment, the company expects to initiate steps to release the second tranche of its real estate collateral.
This should strengthen the company’s balance sheet and provide greater financial flexibility.
₹102 Crore Real Estate Asset Sale
Kalyan has also made progress on monetizing non-core real estate assets.
The company has signed agreements with potential buyers for two separate parcels of land with an aggregate consideration of approximately ₹102 crore.
Management expects the transactions to be completed and the consideration to be received before the end of the ongoing quarter.
The asset monetization is part of the broader effort to improve capital efficiency and reduce debt.
Demand Remains Strong Despite Gold Price Volatility
Gold prices have experienced significant volatility in recent months, raising concerns about whether consumers would delay jewellery purchases.
Management said there can be a temporary “wait and watch” period when gold prices move sharply.
However, wedding-related purchases are less discretionary because weddings cannot be postponed indefinitely.
The company also pointed out that consumers generally shop according to a budget rather than a fixed quantity of gold.
For example, a customer may decide to purchase a ₹1 lakh or ₹2 lakh jewellery item rather than specifically targeting a certain number of grams.
Therefore, when gold prices decline, customers can automatically receive higher gold weight within the same budget.
Management said that July demand has been strong, suggesting that consumer activity has remained healthy despite gold price volatility.
Shift from Unorganized to Organized Jewellery Continues
One of the biggest structural opportunities for Kalyan remains India’s gradual shift from unorganized jewellery retailers toward organized chains.
Management said the transition continues to be visible across markets.
Kalyan believes its combination of national brand recognition, local inventory, regional positioning and rapid store expansion puts it in a strong position to capture this shift.
The company expects this structural trend to remain a long-term growth driver.
FY27 Outlook: Stronger Second Half Expected
Management remains optimistic about the remainder of FY27.
The current quarter has started well, despite fluctuations in gold prices.
The company is preparing for the upcoming:
- Festive season
- Wedding season
- New jewellery collections
- Promotional campaigns
- Store expansion
Management also expects the second half of the year to be stronger in terms of showroom additions.
The company continues to target 84 new Kalyan stores and approximately 50 Candere stores during FY27.
Key Things Investors Should Watch
Kalyan Jewellers enters the rest of FY27 with several important growth and strategic initiatives underway.
1. Recycled gold reaches 55%-60%
The company’s ability to maintain a high recycled-gold share could reduce import dependence and support supply-chain resilience.
2. Cash-for-gold growth
The increasing contribution of cash-for-gold could help offset the margin pressure created by higher gold exchange volumes.
3. ATM rollout
The performance of Akshaya Thanga Maligai will be important in determining whether Kalyan can successfully create a new regional brand alongside its national brand.
4. Store expansion
The company remains committed to adding approximately 84 Kalyan stores and 50 Candere stores during FY27.
5. Debt reduction
Completion of non-GML debt repayment by September would be a positive balance-sheet development.
6. Candere profitability
The digital jewellery business has turned profitable and will be closely watched as the company expands its physical store footprint.
7. Margin stability
Management’s ability to maintain FY26-level PBT margins despite increased gold exchange and employee costs will be an important indicator.
Overall View
Kalyan Jewellers has started FY27 on a strong footing.
The 38% revenue growth, improvement in profitability, strong India performance, profitable Candere business and continued expansion outside South India point to sustained business momentum.
At the same time, the company is making several strategic moves that could shape its next phase of growth.
The push toward 55%-60% recycled gold, expansion of cash-for-gold, launch of the ATM regional brand, aggressive FOCO-led store expansion and planned debt reduction are all significant developments.
The biggest opportunity remains the continued formalization of India’s jewellery market. Kalyan is positioning itself between national and regional players, using its brand strength while adapting its inventory and store formats to local markets.
The key question for investors will be whether the company can sustain strong revenue growth while maintaining margins and improving capital efficiency as the store network expands.
With July demand described as strong and the festive and wedding season approaching, management remains confident about the FY27 growth trajectory.
Disclaimer: This article is based on Kalyan Jewellers India’s Q1 FY27 earnings conference call and management commentary. It is intended for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult a qualified financial adviser before making investment decisions.