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View Bear Cases →Kalyan Jewellers India Ltd — Q4 FY26
Kalyan Jewellers delivered a stellar Q4 FY26 with consolidated revenue of ₹10,275 crore (+66% YoY) and PAT of ₹410 crore (+118% YoY), driven by strong same-store sales growth, aggressive network expansion (129 showrooms added in FY26), and a sharp turnaroun...
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Kalyan Jewellers delivered a stellar Q4 FY26 with consolidated revenue of ₹10,275 crore (+66% YoY) and PAT of ₹410 crore (+118% YoY), driven by strong same-store sales growth, aggressive network expansion (129 showrooms added in FY26), and a sharp turnaround in the Candier business which turned PAT-positive in H2. India standalone revenue grew 68% YoY to ₹8,990 crore, while the Middle East business posted a 122% revenue jump. Management guided for 150 new showrooms in FY27 across Kalyan, Candier, and a new regional brand, and reiterated its target to eliminate non-GML debt in India entirely this year. April has started off very well, though high bases in H2 FY26 and the inauspicious Adhik Maas period in Q1 could create near-term volatility. Key risk: sustained gold price inflation may pressure volume growth as customers stick to fixed budgets.
Strong growth
Can Kalyan sustain 20%+ same-store growth as gold price inflation pressures volume and the franchisee mix continues to compress gross margins?
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Bear Cases2 alive · 0 deadPromises0 met · 1 missedRisks4 trackedTranscriptfull text
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Gold price inflation impacting volumes
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Same-store sales growth (SSG) - Non-South
29%
+4pp YoY
Non-South SSG accelerated sharply in Q4, outpacing South SSG of 25%.
Candier revenue
₹131 crore
+368% YoY
Candier revenue surged on strong SSG and network expansion; turned PAT-positive in H2.
Showroom additions (FY26)
129
+129 stores YoY
Includes Kalyan, Candier, and first UK showroom; 150 planned for FY27.
Non-GML debt reduction (India)
₹360 crore
-55% YoY
Reduced from ₹660 crore to ₹300 crore; target to zero by FY27 end.
What Changed vs Last Quarter
NEW
150 showroom openings in FY27
Plan to open 150 showrooms across Kalyan, Candier, and a new regional brand, similar to FY26 pace.
NEW
Non-GML debt to zero in FY27
Target to completely repay non-GML debt in India during the current financial year, possibly by H1.
NEW
India PBT margin to sustain ~5.5-6%
Management expects India standalone PBT margin to remain in the 5.5-6% range, with potential operating leverage gains.
NEW
Candier focus on SSG and expansion
Candier will prioritize same-store sales growth and network expansion, with ~50 showrooms planned for FY27.
DROPPED
Store additions of 80-90 per year in India for next couple of years
Management guided for 80-90 new Kalyan Jewellers stores in India annually for the next two years.
DROPPED
Regional brand launch in Goa in Q4 FY26
A new regional brand will be launched in Goa during the current quarter (Q4 FY26).
DROPPED
Overseas store additions of 6-7 per year
Middle East and other overseas markets will see 6-7 new showrooms annually for the next couple of years.
DROPPED
Candere store additions of 30-40 with CapEx of INR 2-2.5 crore each
Candere will add 30-40 stores with a capital expenditure of INR 2-2.5 crore per store.
NEW RISK
Gold price inflation impacting volumes
Sustained high gold prices may reduce volume growth as customers stick to fixed budgets, potentially pressuring revenue.
NEW RISK
Adhik Maas impact on Q1 wedding sales
The inauspicious Adhik Maas period in Q1 could shift wedding purchases to adjacent quarters, causing quarterly volatility.
NEW RISK
Middle East franchise conversion uncertainty
Plans to convert four FOCO showrooms to COCO and expand via Arab investors are still under discussion and may not materialize.
NEW RISK
Gross margin pressure from franchise mix
Increasing franchisee share (FOCO) structurally compresses gross margins; Q4 saw ~100bps YoY decline in India gross margin.
RISK GONE
Gold price volatility impacting volume and inventory turns
Sharp rise in gold prices may reduce volume of jewelry sold and increase inventory carrying costs, pressuring cash flows.
RISK GONE
Slower acceptance of lower-karat jewelry in South India
18-karat and lower-karat jewelry adoption is slower in South India, which could limit margin expansion in that region.
RISK GONE
Potential dilution from pledge reduction plans
Management plans to reduce pledges over next six months, which may involve share sales or additional borrowing.
RISK GONE
No immediate plans for lab-grown diamond segment
Competitors are investing in LGD, but Kalyan has no immediate plans, potentially missing a growth trend.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q1 FY26, Q2 FY25, Q3 FY25
Management plans to add 80 Candere showrooms in India during the current financial year.
Mentioned in Q1 FY26, Q2 FY26, Q4 FY25
Candere is expected to achieve PAT neutrality for the full fiscal year, with revenue target of around ₹500 crore.
Mentioned in Q1 FY26, Q2 FY26, Q3 FY26
A new regional brand will be launched in Goa during the current quarter (Q4 FY26).
Mentioned in Q2 FY25, Q3 FY25
Plan to further reduce debt by approximately ₹150 crore during Q4 FY25.
Mentioned in Q1 FY25, Q2 FY25
Local competitors are becoming more active with increased branding and festive promotions, which could impact market share and pricing.
Fast read
Guidance and risk preview
Plan to open 150 showrooms across Kalyan, Candier, and a new regional brand, similar to FY26 pace.
Sustained high gold prices may reduce volume growth as customers stick to fixed budgets, potentially pressuring revenue.
View Risks →