Kalyan Jewellers Q3 Profit Soars 90% to ₹416 Crore in FY26

Kalyan Jewellers India Ltd. announced a remarkable performance for the third quarter of fiscal year 2026, with its consolidated net profit surging by over 90%. The strong results, released on February 6, 2026, were driven by robust revenue growth fueled by festive demand and significant gains in operational efficiency. This performance highlights the company's resilience and ability to capture market demand despite volatility in gold prices.

Stellar Financial Performance in Q3

The jewellery retailer reported a consolidated net profit of ₹416.3 crore for the quarter ending December 31, 2025. This represents a 90.36% year-on-year increase compared to the ₹218.7 crore profit recorded in the corresponding quarter of the previous fiscal year. The company's revenue from operations also saw a substantial jump, growing by 42.11% to ₹10,343.4 crore from ₹7,278.1 crore in Q3 FY25. This top-line growth demonstrates strong consumer confidence and purchasing power during a key sales period.

Key Drivers of Growth

The impressive growth was not just a result of higher sales but also improved profitability. The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 75% year-on-year to ₹750.5 crore. Consequently, the EBITDA margin expanded significantly to 7.3% from 5.9% in the same period last year. This improvement was attributed to higher operating leverage, better procurement efficiencies, and an enhanced product mix. A key factor behind the revenue surge was a strong same-store-sales growth (SSSG) of 27% in its India operations, indicating healthy demand from existing stores.

A Closer Look at Segment Performance

Performance was strong across all business segments. The India operations reported a profit after tax (PAT) of ₹401 crore, an 84% increase from the previous year. The company's international business also delivered solid results, with revenue growing by 38% to ₹1,164 crore. The PAT from international operations stood at ₹12 crore, marking a 64% increase year-on-year. Furthermore, Candere, the company's lifestyle and online jewellery brand, recorded a significant turnaround. Candere's revenue grew by 144% to ₹135 crore, and it posted a profit of ₹3 crore for the quarter, compared to a loss of ₹7 crore in the same period last year.

Strategic Expansion and Store Network

Kalyan Jewellers continued its aggressive retail expansion during the quarter. The company added 21 new showrooms in India, resulting in a net addition of 18 stores. This expansion is a core part of its strategy to increase its market presence and reach more customers. The company's focus on the Franchisee Owned Company Operated (FOCO) model has also been a key contributor to its growth, with franchised showrooms accounting for approximately 51% of total revenue from India operations. As of December 31, 2025, the company's global showroom count stood at 469.

Financial Highlights: Q3 FY26 vs Q3 FY25

One-Time Financial Impact

The company’s financial statements for the quarter included a one-time exceptional charge of ₹41.5 crore. This charge was related to changes in employee benefit provisions following the implementation of new labour codes in India. While this impacted the bottom line, it is a non-recurring expense and does not reflect the underlying operational performance of the business.

Market Reaction and Management Outlook

Following the announcement of the strong quarterly results, the shares of Kalyan Jewellers closed at ₹379.80 on the BSE, up 0.96% for the day. The management expressed confidence in the company's future performance. Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers India, stated, "We are extremely excited with the way the current year has progressed so far. The current quarter has started off very well despite the volatility in gold prices. We are upbeat about the ongoing wedding season and expect to end the financial year on a strong note."

Conclusion

Kalyan Jewellers' third-quarter results for FY26 underscore a period of exceptional growth and enhanced profitability. The near-doubling of its net profit, driven by a significant revenue surge and margin expansion, positions the company strongly in the competitive Indian jewellery market. With continued store expansion and a positive outlook for the upcoming wedding season, Kalyan Jewellers appears well-equipped to maintain its growth momentum.