Kalyan Jewellers Q1 FY27: Revenue tops Rs 10,000 cr

Q1 snapshot: growth stays strong, margins come under watch

Kalyan Jewellers India Ltd (BOM:543278, NSE: KALYANKJIL) reported a strong start to FY27, with consolidated revenue (ex-bullion) rising 38% year-on-year to Rs 10,008 crore for Q1 FY27. Consolidated profit after tax (PAT) increased 32.2% to Rs 349 crore, supported by higher operating scale and steady demand across key markets. Consolidated EBITDA rose to Rs 633 crore, compared with Rs 508 crore in the prior-year quarter.

But the earnings commentary also flagged near-term margin pressure. The company said its PBT margin declined to 5.1% from 5.5%-5.6% in the previous year, with dilution linked to gold exchange promotions and a one-time employee cost increase.

Board approval and auditor review

The unaudited financial results for the quarter ended June 30, 2026 were approved by the board on August 04, 2026. The results were reviewed by statutory auditors Walker Chandiok & Co LLP, which issued a limited review report stating that the statements comply with Ind AS 34 and do not contain material misstatements.

India continues to drive volumes

India remained the largest contributor, with revenue (ex-bullion) at Rs 8,503 crore compared with Rs 6,142 crore in the corresponding quarter. India EBITDA rose to Rs 500 crore from Rs 434 crore, while India PAT increased to Rs 321 crore from Rs 256 crore.

Management also said demand on the ground remained strong and continued through Q1 levels. Separately, the company noted that July demand remained robust after a quarter that was briefly affected by Adhik Maas.

Middle East business stays steady

The Middle East business reported revenue of about Rs 1,320 crore, up from Rs 1,026 crore in Q1 of the previous year. Profit from the region came in at Rs 25 crore, compared with Rs 22 crore in the corresponding period.

While India remained the primary engine, the Middle East performance added to consolidated stability, especially in a quarter where the focus shifted toward gold recirculation initiatives.

Candere turns profitable as revenue more than doubles

Candere, Kalyan Jewellers’ e-commerce subsidiary, reported revenue of Rs 141 crore versus Rs 66 crore in the prior-year quarter. The business turned profitable, with PAT at Rs 2.1 crore compared with a loss of Rs 10 crore a year earlier.

The company also reiterated its retail expansion plans, with Candere targeting 50 new showrooms in FY27, alongside 84 new Kalyan showrooms.

Gold recirculation campaign lifts recycled gold share

The company said the “Shine with India” gold recirculation campaign was highly successful. Recycled gold accounted for over 46% of revenue during Q1 FY27, and June exceeded 55%.

Management set a target of 55%-60% recycled gold share going forward, positioning the program as a lever to reduce import dependence.

New Tamil Nadu brand to take on regional competition

Kalyan Jewellers said it is launching a new regional brand, “Akshaya Thanga Maaligai” (ATM), specifically for Tamil Nadu. The company described the brand as a response to regional and unorganized competition, with the first showroom slated to open in August.

Balance sheet: debt-free goal and asset sales

Management said it is on track to become debt-free (excluding GML) by the end of September. The company also signed agreements to sell non-core real estate assets worth Rs 102 crore, aimed at improving the balance sheet.

Why margins slipped: exchange promotions and employee costs

Executive Director Ramesh Kalyanaraman said margin dilution is short-term and stems from promoting gold exchanges, which are margin-dilutive by about 0.2%-0.3%. He added that the company is actively promoting “cash for gold,” which is margin-accretive as it buys at a discount to spot, and this should help negate the dilution.

The company also flagged a one-time increase in employee costs as a factor behind the Q1 margin movement.

One-time gains and the underlying profit trend

The company said profit growth looked subdued when excluding a one-time customs duty gain of Rs 410 crore. It also noted that standalone PBT growth was only 14% against 38% revenue growth, pointing to the effect of promotions and prior-period one-offs on comparisons.

Market reaction: stock dips after results

In early trading following the update, shares fell 2.73% to 591.4 versus the previous close of 608, as investors weighed margin pressure and higher employee costs. The stock was reported to be about 8.0% below its 52-week high of 648.95 and about 80.9% above its 52-week low of 327.05.

Key numbers at a glance

What management guided for FY27

Management said it expects to maintain FY26 PBT margins for the full year FY27 on a conservative basis, despite the Q1 dip. It also kept full-year store expansion targets unchanged at 84 Kalyan showrooms and 50 Candere showrooms.

Conclusion

Kalyan Jewellers delivered strong Q1 FY27 growth in India, steady momentum in the Middle East, and a profitability turnaround at Candere, while margins softened due to exchange-led promotions and one-time costs. The next key checkpoints for investors include the planned first ATM showroom opening in August and the company’s stated timeline to become debt-free (excluding GML) by end-September.