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Informist, Friday, Feb. 6, 2026

By Shweta and Pallavi Singhal

MUMBAI/NEW DELHI – Kalyan Jewellers India Ltd. expects to end the current financial year on a strong note despite the continuing volatility in prices of precious metals, the company's management said during a post-earnings analyst conference call. The management's confidence comes from the strong traction and higher consumption amid the ongoing wedding season in India.

"Talking about the ongoing quarter, we have started off well despite continuing volatility in gold prices. We are upbeat about the ongoing wedding season across the country and expect to end the financial year on a very strong note," the management said. Gold prices have risen sharply over the past year, nearly doubling at the peak, driven by global geopolitical uncertainty, central bank buying and safe-haven demand. 

Kalyan Jewellers India Ltd. reported a sharp rise in its consolidated net profit and revenue in the December quarter, boosted by strong demand in India and margin expansion. The Kerala-based company's net profit for the December quarter jumped 90% on year to INR 4.16 billion. On a sequential basis, net profit rose nearly 60%. The company's revenue in the December quarter rose over 42% on year to INR 103.43 billion. Sequentially, revenue increased nearly 32%.

The company said it is seeing organic growth in the studded jewellery segment, aided by targeted social media campaigns and changing consumer behaviour. "Studded jewellery has an organic growth these days because of social media and the campaigns which we do. Youngsters do a lot of research before buying jewellery, and that is driving organic growth for studded jewellery," the management said.

Despite volatility in gold prices, the company said it is continuing to launch new products in the studded jewellery segment and across different gold purities in the coming quarters. Higher prices have also aided upselling, management said. "It becomes actually relatively easier for us to upsell during high gold prices because the product looks bigger than the plain gold jewellery and it also comes in 18-carat," the management said.

Management added that consumer acceptance of 18-carat jewellery is significantly higher within studded categories compared with plain gold jewellery. "Within studded jewellery, we are now focusing on launching 14-carat as well as 9-carat products," it said. Kalyan Jewellers' studded jewellery sales rose 50% year-on-year to INR 28.24 billion in the December quarter.

On its franchisee ecosystem in the Middle East, the management said, it "has not turned up the way like what we did in India." Due to this, the company is maintaining its "overseas expansions in the range of 6-7 showrooms per year."

"The only change is that we are in active discussions with a few Arab investors for franchise and the interest level from Arab investors for a Kalyan franchise has now developed when compared to the recent past. If that materialises, the growth can be much higher." The company had 38 showrooms in West Asia as of Dec. 31. During the December quarter, the company's West Asia same store sales rose 24% on year. The revenue in West Asia was INR 10.73 billion during the quarter.

The management said store-level inventory planning is calibrated to the revenue potential of each market, rather than to absolute gold prices. "Every market has a size," the company said, adding that inventory levels are kept in line with what each market can realistically absorb, even as higher gold prices reduce the quantity of jewellery that can be stocked at the same value.

To mitigate the impact of elevated prices, the company said it is increasing the share of lower-carat products. "We increase the percentage of 18-carat jewellery so that the volume does not get hurt too much," the management said, adding that franchisees are also advised to maintain calibrated inventory buffers.

The company said inventory cut is gradual rather than abrupt, with adjustments made over time instead of sharp cuts. "When the inventory price goes up, we cannot bring it down overnight by the same percentage," the management said.

Kalyan Jewellers said similar measures are being taken across company-owned stores to protect inventory turns and cash flows. "In our own showrooms also, we cannot keep the same volume of jewellery when prices are going up, and we will have to trim the volume to some extent," the company said.

The management said that the moderation in inventory has not altered its broader financial plans. "There is no major change in our cash-flow planning for the year," they said.

The Kerala-based company also said that it saw higher traction in its gold exchange programme during the reporting quarter. "And regarding the exchange of jewellery, old gold exchange, we have seen a bit more traction in Q3 (Oct-Dec) when compared to last Q3 (2024-25). And that's also a constant driver for revenue," the management said.

For the current financial year, the company had targeted around 84 stores in India. Looking ahead, the company is looking to add similar number of stores in the country. "...the store count for the next couple of years will be in this range of 80-90 (for) KJ (Kalyan Jewellers) India," the management said.  End

Edited by Deepshikha Bhardwaj

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