Kalyan Jewellers: Glittering Growth, Hidden Concerns

Kalyan Jewellers is scripting one of the most remarkable growth stories in India’s jewellery market. Once a regional player, the firm is now challenging industry leader Titan with aggressive expansion and consumer-focused strategies. In FY25, Kalyan’s revenue surged 35% to around Rs 25,000 crore, nearly double Titan’s pace. This momentum carried into FY26, with Q2 revenue jumping 30% year-on-year, driven by strong wedding demand, early festive sales, and a 127% surge in its online arm, Candere. Same-store sales climbed 16%, and the company continued expanding, opening 32 new stores globally during the quarter, taking its total to 436 outlets. The company’s edge lies in targeting smaller towns and using its franchise-owned, company-operated model to scale with lower capital risk. This approach, though margin-dilutive, maintains steady profitability. Kalyan aims for 20% annual growth through FY28, backed by a new manufacturing hub in Thrissur, regional brand launches, and deeper penetration in Tier 2 and Tier 3 cities. However, for shareholders, the glitter hides some concerns. The stock trades at about 63x earnings — high for a company still closing the margin gap with Titan, whose jewellery business earns around 10% EBIT versus Kalyan’s 7%. Governance remains under watch, with 63% promoter holding and significant share pledging. While transparency is improving, detailed disclosures on franchise performance and hedging remain limited. For investors, Kalyan offers exciting growth but with elevated risk. Sustaining expansion without straining balance sheets or trust will define shareholder value. If managed well, Kalyan could indeed be India’s next jewellery titan.