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Informist, Tuesday, Aug. 4, 2026

 

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--Kalyan Jewellers: Aim to reduce dependence on imported gold 
--CONTEXT: Kalyan Jewellers India mgmt comment in post-earnings analyst call 
--Kalyan Jewellers: Effort to maintain recycled gold at 50-55% of total gold 
--Kalyan Jewellers: Expect to get INR 1.02 bln from sale of real estate Q2 
--Kalyan Jewellers: Expect to add more stores in coming months 
--Kalyan Jewellers: No plans for bonus issue as of now 
--Kalyan Jewellers: Cash for gold segment picking up 
--Kalyan Jewellers: Short term focus remains on recirculated gold 
--Kalyan Jewellers: To open 50 Candere showrooms in FY27 

 

By Kabir Sharma and Vaishali Tyagi

 

MUMBAI/NEW DELHI – Kalyan Jewellers India Ltd. aims to reduce its dependence on imported gold by increasing the use of recycled gold. The company's aim is to see that recycled gold accounts for 50-55% of its total requirement of the yellow metal in the near term, the management said in a post-earnings analyst call Tuesday.

 

The company said its immediate focus remains on gold recirculation, with initiatives encouraging customers to exchange old jewellery and sell gold for cash. Management said the "cash for gold" business is gathering pace and is expected to offset the margin dilution associated with old gold exchange transactions over time.

 

Kalyan Jewellers launched its "Shine with India" gold recirculation campaign during the June quarter to increase the share of recycled gold and make the business more resilient amid pressure on foreign exchange caused by higher international crude oil prices. Recycled gold accounted for more than 46% of revenues during the quarter and exceeded 55% in June. The management said it intends to maintain recycled gold at around 50-55% of total gold requirement going forward, and reiterated that the broader objective is to reduce reliance on imported gold.

 

It said the company is also promoting "cash for gold", under which customers sell jewellery for cash instead of exchanging it for new ornaments. The segment has started gaining traction, with its contribution to revenues rising from a single digit in the June quarter to double digits more recently. Since the company purchases gold at a discount to the spot price under this model, the management expects it to offset the lower margins associated with exchange transactions and help maintain full-year profitability at last year's level. 

 

The jewellery retailer also said it expects to receive around INR 1.02 billion during the September quarter from the sale of two parcels of non-core real estate after signing agreements with potential buyers. The proceeds will support the company's efforts to reduce debt. The management reiterated that non-gold metal loan debt should be fully repaid by the end of September.

 

On expansion, the company said store additions will accelerate in the second half of the financial year and reaffirmed its existing rollout plans. It expects to continue opening more Kalyan Jewellers stores in the coming months while sticking to its target of launching 50 Candere showrooms in the financial year 2026-27 (Apr-Mar). The management said the Candere business has turned profitable and the focus will remain on improving throughput at existing stores while expanding the network. 

 

Kalyan Jewellers reported 32% on-year increase in consolidated net profit for the June quarter to INR 3.49 billion, mainly on account of higher sales. Its consolidated revenue, inclusive of gold prices and jewellery making charges, rose 46% on year to INR 105.89 billion.

 

Responding to shareholder queries, the management clarified that the company has no plan for a bonus share issue. Tuesday, Kalyan Jewellers India shares ended at INR 591.40 on the National Stock Exchange, down 2.7% from Monday.  End

 

Edited by Shubhayan Bhattacharya

 

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