Kalyan Jewellers: SSSG at 20% Across 546 Showrooms

KALYANKJIL Kalyan Jewellers India (NSE: KALYANKJIL) is a Kerala-based jewellery retail chain with stores across India and in the Middle East, USA and UK. It sells gold, diamond and studded jewellery across formats targeting different consumer segments. The showroom network grew from 436 to 546 stores in one year. What happened: In Q2 FY27, consolidated revenue grew 31.4% year on year to Rs 10,322.6 crore. Net profit grew 64.2% to Rs 427 crore. Same-store sales growth was 20% year on year, up from 16% a year earlier. Stores outside the south region reported SSSG of 21%. Studded jewellery revenue grew 27%, reflecting demand for lighter, contemporary items over heavy gold pieces. Why it matters: Gold prices averaged Rs 1.5 lakh per 10 grams in Q2 FY27, up 40% year on year due to higher import duties and global prices. Kalyan is growing volumes alongside this price environment. The Navratri festival, which fell entirely in Q2 FY26, shifted to Q3 FY27 this year, making the 20% SSSG comparison conservative. Kalyan trades at 43.5 times earnings, a 30% discount to Titan Company at 62.1 times. What I am watching: Whether SSSG sustains above 15% in Q3 FY27 when the Navratri base effect reverses. The company opened 110 stores in a year and store-level returns will determine if the expansion creates value or dilutes it. Studded jewellery mix is a margin driver and its trajectory matters as the network scales. My stance: Kalyan trades at 43.5 times earnings with ROE of 24.8%. Revenue growth is outpacing the industry leader, though on a much smaller revenue base. The 30% discount to Titan reflects lower brand equity, but narrows if pan-India expansion delivers consistent returns. I do not hold a position in Kalyan Jewellers at the time of writing. This is not investment advice.