Kalyan Jewellers plans 84 FOCO India showroom openings in FY27

Kalyan Jewellers plans 84 franchisee-owned, company-operated, or FOCO, showroom openings in India in FY27, with every planned domestic Kalyan opening assigned to that format. As of 30 September 2026, Kalyan had 246 FOCO outlets in its 365-showroom India network, and franchised showrooms generated about 59% of Q2FY27 India revenue.

How many FOCO showrooms is Kalyan planning in FY27?

Kalyan plans to open 84 showrooms in India in FY27, and all 84 are designated as FOCO outlets. The programme applies to the Kalyan India business, while six planned international Kalyan openings will use a mix of FOCO and company-owned, company-operated, or COCO, structures. The company also plans 50 Candere showrooms through a mix of COCO and FOCO formats during FY27.

The India expansion is intended to increase Kalyan's revenue contribution from non-south markets, where incremental openings are expected to be concentrated. In Q2FY27, non-south India revenue rose 31% year on year to Rs 4,818.2 crore, compared with 23% growth to Rs 3,882.5 crore in south India. Non-south markets accounted for about 55% of India revenue in the quarter.

The FY27 plan builds on the 246 FOCO Kalyan outlets operating in India on 30 September 2026. Kalyan had one FOCO Kalyan showroom in the UK at that date and says it is working with potential franchise partners to convert more Middle East showrooms to FOCO during FY27. The Middle East network remained at 38 showrooms in Q2FY27, while revenue rose 11% to Rs 961.3 crore, led largely by same-store sales growth of about 12%.

What does Kalyan's FOCO model require franchisees to fund?

Under Kalyan's FOCO structure, the franchisee funds inventory and, outside south India, showroom capital expenditure, while Kalyan operates the store. The franchisee also bears showroom-related costs except salaries. Kalyan says the format allows it to use the franchise owner's infrastructure and resources while retaining the operating role.

Kalyan retains responsibility for compliance, monitoring systems and adherence to its brand standards in FOCO stores. Its first franchise showroom opened in Aurangabad, Maharashtra, in Q1FY23. The company describes the model as a capital-efficient route for expansion and separately plans selective conversions of existing COCO showrooms to FOCO to reduce capital employed.

Management has linked the format to its return objective. It targets mid- to high-single-digit same-store sales growth and says the franchise strategy can further accelerate return on capital employed, or ROCE, from 30.7% on a trailing 12-month basis. ROCE is calculated as earnings before interest and tax divided by average equity, average net debt excluding gold metal loans, and average lease liabilities.

How has Kalyan's FOCO network grown?

Kalyan's India network increased from 147 showrooms, including 15 FOCO outlets, in FY23 to 342 showrooms, including 222 FOCO outlets, in FY26. By 30 September 2026, the network had reached 365 India showrooms and 246 FOCO outlets. Candere's first FOCO showroom opened in FY24, and the brand had 73 FOCO stores within its 138-showroom network at the September 2026 date.

The presentation's FY27 network figure shows 426 Kalyan India showrooms and 306 FOCO outlets, compared with 365 and 246 on 30 September 2026. That is an increase of 61 total showrooms and 60 FOCO outlets, while the separately disclosed FY27 plan specifies 84 new India FOCO openings. The presentation does not explain the difference between the two FY27 disclosures.

Franchise stores have also become a material part of current sales. In Q2FY27, franchised showrooms contributed about 59% of India revenue, and the India network had 365 stores, up 22% from 300 in Q2FY26. Kalyan added 12 showrooms, net 11, in India during Q2FY27; the comparable Q2FY26 period included 15 showroom launches.

What operating evidence supports Kalyan's franchise expansion?

Kalyan reported India revenue of Rs 8,700.7 crore in Q2FY27, up 27% from Rs 6,842.8 crore in Q2FY26. Earnings before interest, tax, depreciation and amortisation rose 27% to Rs 548.5 crore, while profit after tax increased 62% to Rs 424 crore. Management attributed the revenue increase mainly to same-store sales growth of about 20% and reported business-to-consumer revenue growth of about 23%.

Across a longer period, consolidated revenue rose from Rs 10,100.9 crore in FY20 to Rs 35,742.9 crore in FY26 and Rs 41,529.9 crore on a trailing-12-month basis. Profit after tax increased from Rs 142.3 crore in FY20 to Rs 1,350.4 crore in FY26 and Rs 1,601.6 crore on the same trailing basis. ROCE rose from 11.7% in FY20 to 28.8% in FY26 and 30.7% on a trailing-12-month basis.

Kalyan said non-gold-metal-loan debt in India had been fully repaid by September 2026 after it repaid Rs 1,324.1 crore between 1 April 2023 and 30 September 2026. Standalone gross debt at 30 September 2026 was Rs 1,198.9 crore, entirely comprising gold metal loans. The Q2FY27 result included a one-off gain of about Rs 52 crore from an import-duty hike, while open silver and platinum positions produced a Rs 8.3 crore loss against a Rs 21.2 crore gain in Q2FY26.

Conclusion

Kalyan's disclosed FY27 India programme makes FOCO the sole format for 84 planned Kalyan showroom openings. The model shifts inventory, most capital expenditure and most showroom costs to franchisees while Kalyan retains operations, compliance systems and brand control. Its growing presence in the network and its 59% contribution to Q2FY27 India revenue show the format is central to current trading as well as future rollout.

The next measures to watch are progress on the 84 India FOCO openings, the 50 planned Candere stores and six international Kalyan openings during FY27. Kalyan also disclosed that real-estate assets worth Rs 16 crore were expected to be divested during Q3FY27, while additional real-estate collateral worth Rs 200 crore was expected to be released during FY27 for potential divestment.