Kalyan Jewellers profit jumps 64% in Q2 FY27

Kalyan Jewellers India Limited (NSE: KALYANKJIL) reported a strong Q2 FY27 performance, with consolidated revenue from operations increasing 31.4% YoY to ₹10,323 crore. Net profit increased 63.9% to ₹427 crore, compared with ₹261 crore in the corresponding quarter last year. Key Highlights • Revenue increased 31.4% YoY to ₹10,323 crore. • Net profit grew 63.9% to ₹427 crore. • EBITDA increased 29.7% to ₹644 crore, compared with ₹497 crore a year earlier. • EBITDA margin stood at 6.2%, slightly lower than 6.3% in the previous year. • A one-time gain of ₹73.5 crore contributed to the reported net profit growth. • Management reported encouraging business momentum during Navratri and Dhanteras, with optimism around the ongoing wedding season. My View Kalyan Jewellers delivered strong revenue growth, reflecting healthy demand and continued momentum in India's organised jewellery retail market. The 31.4% increase in revenue and 29.7% growth in EBITDA indicate that the company's underlying operating business continues to expand. However, the headline 64% profit growth needs to be viewed carefully. A one-time gain of ₹73.5 crore contributed to the bottom line, meaning reported net profit growth overstates the improvement in recurring earnings. Operating margins also remained largely flat, declining slightly from 6.3% to 6.2%. The company's growth strategy, expanding retail footprint and presence across domestic and international markets remain important long-term factors. What I'm Watching Next The key question is whether Kalyan Jewellers can sustain its strong revenue growth while translating expansion into consistent operating profit growth. Stance: Cautiously positive. Strong revenue growth and healthy operating performance are encouraging, but the contribution of one-time gains to reported profit and relatively flat margins deserve attention. Disclosure: I do not have any holding or position in the stock mentioned above. KALYANKJIL