01 — At a Glance
The Bling Boom Gets Bigger (And More Complicated)
- 52-Week High / Low₹618 / ₹348
- FY25 Full Year Revenue₹25,045 Cr
- FY25 Full Year PAT₹714 Cr
- TTM EPS₹10.93
- Q3 FY26 EPS₹4.03
- Book Value₹51.7
- Price to Book7.65x
- Dividend Yield0.38%
- Debt / Equity1.00x
- Return 1 Year-8.4%
Auditor’s Opening Note: Kalyan Jewellers crushed Q3 FY26 with ₹10,343 crore revenue (+42% YoY), ₹416 crore PAT (+90% YoY), and an OPM of 7.2%. The stock was down 8.4% over one year while the company grew PAT by 74% over five years. A P/B of 7.65x on a company that’s doubling down on asset-light franchising. Something doesn’t add up — or everything adds up too much, depending on how you squint at gold prices.
02 — Introduction
Gold Is Peak. So Is The Drama.
Kalyan Jewellers India Limited is one of India’s top five gold jewellery retailers. It operates 300+ Kalyan showrooms, 110 Candere stores, and 1,092 “My Kalyan” grassroots centres across India, the Middle East, and the USA. Founded in 1993 by T.S. Kalyanaraman, it’s now a ₹40,847 crore entity. Simple enough — except gold prices have entered the stratosphere, the company is transitioning to asset-light franchising (FOCO), Candere just flipped to profit, and management is casually launching a new “regional brand” in Q4. This is not a quiet quarter.
The organised jewellery retail industry in India is still undergoing structural formalisation. Kalyan, Titan, and a few others are consolidating market share from unorganised players. At the same time, gold prices are at all-time highs, which typically causes two things: (i) inventory inflation on balance sheets, and (ii) affordability anxiety among customers. Kalyan’s response? Launch more formats, sell more studded jewellery, expand franchising, and ship product to franchisees so they carry the inventory risk instead of you. It’s not genius. It’s just… sophisticated nuance.
CY25 (the full financial year ending March 2025) closed at ₹25,045 crore revenue and ₹714 crore PAT. TTM (trailing twelve months) is at ₹31,649 crore revenue and ₹1,157 crore PAT. The company is growing. The stock is down 8% in one year. Welcome to the organised jewellery market, where timing the gold cycle is harder than finding a showroom in South India.
03 — Business Model: Gold In, Bling Out
They Sell Shiny Stuff. Across Formats. Forever.
Kalyan buys gold, converts it into jewellery through contract manufacturers (13 procurement centres across India), and sells through three channels: (i) owned showrooms (COCO), (ii) franchised showrooms (FOCO), and (iii) the “My Kalyan” grassroots centres. The business model is ancient and proven. What’s new is the FOCO pivot.
Until FY23, Kalyan ran mostly owned stores. Capital-intensive. Inventory-heavy. Risky when gold prices spike. Post-FY23, the company shifted to a Franchisee-Owned Company-Operated (FOCO) model. Franchisees own and stock inventory; Kalyan operates the store and takes a margin. Lower capex. Lower inventory risk. Exactly what a smart operator does when the macro environment is choppy.
The product mix: Gold jewellery (~69% of revenue), Studded jewellery (~31%), and a growing roster of sub-brands. “Kalyan” is the flagship (traditional, wedding-focused). “Candere” is the digital-first affordable segment (28.3% studded, growing 144% YoY in Q3). New “regional brand” launching in Q4 — details sparse, but positioning is: lightweight, local taste, five showrooms in one state, ₹4-5 crore per store capex. Think hyper-local luxury adjacent.
Geographical play: Non-South India is now 52% of standalone revenue (was 34% in FY22). West Asia (Middle East) is 13% of consolidated revenue. USA is in pilot. The company is deliberately derisking its South India exposure, which is the mature, competitive, low-margin part of the market.
India Showrooms300+Kalyan + Candere
My Kalyan Centres1,092Grassroots Network
FOCO Share~49%India Revenue
Non-South Mix52%Standalone Revenue
💬 Gold prices at all-time highs. Would you rather own inventory or not? Kalyan chose “not.” Does that smell like genius or panic?
04 — Financials Overview
Q3 FY26: The Numbers That Broke The Internet (If Jewellery Traded On Twitter)
Result type: Quarterly Results | Q3 FY26 EPS: ₹4.03 | Annualised EPS (Q3×4): ₹16.12 | Full-year FY25 EPS: ₹6.93
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 10,343 | 7,278 | 7,856 | +42.1% | +31.6% |
| Operating Profit | 750 | 430 | 497 | +74.4% | +50.9% |
| OPM % | 7.2% | 5.9% | 6.3% | +130 bps | +90 bps |
| PAT | 416 | 219 | 261 | +90.0% | +59.4% |
| EPS (₹) | 4.03 | 2.12 | 2.52 | +90.1% | +59.9% |
What The Hell Just Happened: Revenue up 42% YoY. PAT up 90% YoY. OPM expanded 130 basis points. But here’s the kicker: Q3 included a one-time ₹41.5 crore exceptional provision due to Labour Code changes. Strip that out, and PAT was even stronger. The company is not just growing — it’s expanding margins while doing so. Festive season, wedding season, high gold prices driving studded demand, and new FOCO store commercial terms all contributed. Also: no major one-time headwinds, unlike some of its rivals.
05 — Valuation Discussion: Fair Value Range
What’s This Bling Actually Worth?
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