Kalyan Jewellers India Ltd — Q2 FY26
Kalyan Jewellers delivered a strong Q2 FY26 with consolidated revenue of ₹7,856 crore (+30% YoY) and PAT of ₹261 crore (+100% YoY), driven by robust same-store sales growth of 3...
bullish
high
✓ Verified against BSE filing
Bear Cases vs Reality
The market's top concerns about Kalyan Jewellers, tested against this quarter's numbers.
! Still alive
Candere losses persist despite strong growth
The bear thesis
Candere has been posting losses even as revenue grows. In Q2 FY26, Candere revenue more than doubled to ₹93 crore, but profitability remains elusive. Management expects full-year PAT neutrality, but execution risk persists.
What the numbers say
Candere revenue and PAT in Q2 FY26
Candere revenue grew 127% YoY to ₹93 crore, but no PAT figure was disclosed. Management expects full-year PAT neutrality, but the path remains uncertain.
While Candere revenue more than doubled, the lack of PAT disclosure suggests losses may still be significant. The bear case remains alive as profitability is not yet achieved.
Source: From analyst Q&A
! Still alive
Franchisee mix dilutes EBITDA margins
The bear thesis
Franchisee stores have lower margins (~8%) vs company-owned (~15.5-16%). As franchisee share grows, consolidated margins face pressure. In Q2 FY26, EBITDA margin declined to 6.33% from 7.0% in Q1, despite strong revenue growth.
What the numbers say
EBITDA margin in Q2 FY26
EBITDA margin was 6.33% in Q2 FY26, down from 7.0% in Q1 FY26, indicating margin pressure from franchisee mix shift.
EBITDA margin declined to 6.33% from 7.0% in the previous quarter, confirming margin pressure from the franchisee mix. The bear case remains alive as margins continue to trend lower.
Source: Flagged in previous quarter
! Still alive
Middle East revenue growth decelerates
The bear thesis
Middle East revenue growth slowed to 8% YoY in Q2 FY26 from 27% in Q1, impacted by timing of festivities. Sustained slowdown could affect overall growth and diversification strategy.
What the numbers say
Middle East revenue growth in Q2 FY26
Middle East revenue grew only 8% YoY to ₹866 crore, with same-store growth of 7%, down from 27% YoY in Q1 FY26.
Middle East revenue growth decelerated sharply to 8% YoY from 27% in the prior quarter, confirming a slowdown. The bear case is alive as the region's growth momentum has weakened.
Source: Market narrative
! Still alive
Candere store opening delays
The bear thesis
Candere store openings are behind schedule (30 opened vs 80 target) due to location upgrades. Execution risk remains for meeting the full-year target, which could delay revenue and profitability milestones.
What the numbers say
Candere store openings in H1 FY26
Only 30 Candere stores opened in H1 FY26 against a full-year target of 80, indicating a significant shortfall.
With only 30 stores opened in H1 against a target of 80, the pace is insufficient to meet the annual goal. The bear case remains alive due to execution risk.
Source: Market narrative
! Still alive
High employee attrition in My Kalyan
The bear thesis
Overall employee attrition rose to 52%, driven by My Kalyan's field marketing staff. Management indicated this is an industry norm and unlikely to improve, which could impact operational efficiency and customer acquisition costs.
What the numbers say
Employee attrition rate in Q2 FY26
Employee attrition rate was 52%, driven by My Kalyan field staff. Management considers it industry norm and does not expect improvement.
Attrition remains high at 52% with no expected improvement, indicating a persistent operational risk. The bear case is alive as the issue is structural.
Source: From analyst Q&A