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View Bear Cases →Kalyan Jewellers India Ltd — Q3 FY25
Kalyan Jewellers delivered a strong Q3 FY25 with consolidated revenue of ₹7,287 crore (+40% YoY) and PAT of ₹219 crore (+22% YoY).
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Kalyan Jewellers delivered a strong Q3 FY25 with consolidated revenue of ₹7,287 crore (+40% YoY) and PAT of ₹219 crore (+22% YoY). India revenue grew 42% to ₹6,393 crore, while Middle East revenue rose 23% to ₹840 crore. Same-store sales growth (SSG) remained robust at 24%, driven by festive and wedding demand. Management highlighted broad-based growth across gold and studded categories, with minimal impact from lab-grown diamonds due to low solitaire exposure. The company plans to open 170 showrooms in FY26 (90 Kalyan, 80 Candere), with LOIs already signed for H1. PBT margins expanded ~40 bps YoY, aided by operating leverage and lower ad spends. Debt reduction of ₹450 crore over 18 months is expected to continue, with ₹150 crore more in Q4. A key risk is gold price volatility, which could temporarily dampen non-wedding demand, though management noted customer adaptation.
कल्याण ज्वैलर्स ने तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी की कुल कमाई 7,287 करोड़ रुपये रही, जो पिछले साल से 40% ज्यादा है। मुनाफा 219 करोड़ रुपये रहा, जो 22% बढ़ा। भारत में कमाई 42% बढ़कर 6,393 करोड़ और मिडिल ईस्ट में 23% बढ़कर 840 करोड़ रुपये हुई। त्योहार और शादी के सीजन की वजह से पुरानी दुकानों की बिक्री 24% बढ़ी। सोने और जड़ाऊ गहनों की मांग अच्छी रही। कंपनी अगले साल 170 नए शोरूम खोलेगी। कर्ज घटाने का सिलसिला जारी रहेगा। सोने के दाम में उतार-चढ़ाव से शादी के अलावा अन्य मांग पर थोड़ा असर पड़ सकता है, लेकिन ग्राहक इसके आदी हो रहे हैं।
Bear Cases0 alive · 2 deadPromises0 met · 3 missedRisks4 trackedTranscriptfull text
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Gold price volatility impacting demand
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Read Transcript →Quarter Snapshot
Same-store sales growth (SSG)
24%
+24pp YoY
Q3 SSG was 24%, driven by festive and wedding demand, with lesser Shraddh days.
India revenue growth
42%
+42% YoY
India revenue grew 42% YoY to ₹6,393 crore, driven by strong demand.
Middle East revenue growth
23%
+23% YoY
Middle East revenue grew 23% YoY to ₹840 crore, with PAT impacted by UAE corporate tax.
Store openings in Q3
45
+45 stores QoQ
Opened 45 showrooms in India across Kalyan and Candere, plus first US store.
What Changed vs Last Quarter
NEW
170 showroom openings in FY26
Plans to open 170 showrooms in FY26: 90 Kalyan and 80 Candere. LOIs for H1 already signed.
NEW
Candere revenue target of ₹1,000 crore
Target to take Candere revenue to ₹1,000 crore in the next 2-3 years.
UPDATED
30 Kalyan and 15 Candere showrooms in Q4 FY25
On track to launch 30 Kalyan and 15 Candere showrooms in India during Q4 FY25.
UPDATED
Debt reduction of ₹150 crore in Q4 FY25
Plan to further reduce debt by approximately ₹150 crore during Q4 FY25.
DROPPED
Debt reduction target of INR 350-400 crore for FY26
Management guided for a higher debt reduction of INR 350-400 crore in the next financial year, supported by improved cash flows from the franchise model.
DROPPED
US showroom opening by end of Q3 FY25
The first US showroom, delayed earlier, is expected to open by the end of the current quarter (Q3 FY25).
NEW RISK
Gold price volatility impacting demand
Recent surge in gold prices caused temporary turbulence; non-wedding purchases may be postponed if prices remain volatile.
NEW RISK
UAE corporate tax impact on Middle East PAT
Introduction of corporate tax in UAE impacted Q3 PAT growth; ongoing tax burden may pressure margins.
NEW RISK
Potential increase in gold lease costs
Analyst raised concern about possible increase in gold lease costs due to US tariff expectations; management said it's stable but cannot pass on to customers.
NEW RISK
Franchisee partner financial health
Analyst questioned stress testing of franchisee partners; management noted checks but did not detail periodic stress tests.
RISK GONE
Customs duty write-off impact in Q3
A one-time loss of INR 120 crore from customs duty reduction will be fully recognized, with INR 70 crore in Q2 and the remaining ~INR 50 crore expected in Q3.
RISK GONE
Slower international expansion
Management acknowledged slower-than-planned expansion in the Middle East and international markets, with only four FOCO stores in Oman and a delayed US opening.
RISK GONE
Franchisee margin dilution risk
As franchisee revenue share increases (currently ~32-33%), consolidated gross margins could face pressure since franchisee stores have lower margins (~8%) compared to company-owned stores (~15.5-16%).
RISK GONE
Competitive intensity in non-South markets
Local competitors are becoming more active with increased branding and festive promotions, which could impact market share and pricing.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY24, Q3 FY24, Q4 FY24
Management reiterated plans to open 80 showrooms in FY25, with 35 Kalyan and 20 Candere stores expected before Diwali.
Mentioned in Q1 FY25, Q2 FY25, Q3 FY24
Local competitors are becoming more active with increased branding and festive promotions, which could impact market share and pricing.
Mentioned in Q1 FY24, Q1 FY25
Four company-owned showrooms in the Middle East will be converted to franchise model in Q2, with proceeds used to reduce regional debt.
Mentioned in Q2 FY24, Q4 FY24
Shift to franchisee model reduces EBITDA margins (franchisee EBITDA ~8% vs own ~20%), though PBT margins improve.
Mentioned in Q2 FY25, Q3 FY24
As franchisee revenue share increases (currently ~32-33%), consolidated gross margins could face pressure since franchisee stores have lower margins (~8%) compared to company-owned stores (~15.5-16%).
Fast read
Guidance and risk preview
Plans to open 170 showrooms in FY26: 90 Kalyan and 80 Candere.
Recent surge in gold prices caused temporary turbulence; non-wedding purchases may be postponed if prices remain volatile.
View Risks →