Financial Performance Overview

Kalyan Jewellers India Limited reported exceptional FY26 results with consolidated revenue reaching ₹357,429 million (43% YoY growth) and profit after tax surging to ₹13,504 million (89% growth). Standalone performance showed revenue of ₹312,625 million and PAT of ₹12,851 million. Key margins improved significantly with EBITDA margin at 7.0% (vs 6.1% FY25) and PAT margin at 3.8% (vs 2.9% FY25).

Operational Expansion & Business Metrics

The company expanded its global footprint to 507 showrooms, adding 129 new locations including its first UK showroom. The FOCO (Franchisee Owned Company Operated) model now represents 65% of the Indian network with 222 outlets. Employee strength reached 15,736, while the My Kalyan network contributed approximately 20% of revenue through 1,139 centers. Candere Lifestyle Jewellery turned PAT positive in H2 FY26 with revenue surging 160% to ₹4,253 million.

Capital Structure & Financing

Kalyan reduced non-Gold Metal Loan debt by approximately ₹5,640 million in FY26, bringing total reduction to nearly ₹10,000 million over three years. Total standalone debt stood at ₹16,001 million with metal gold loans of ₹12,833 million. The company achieved credit rating upgrade from A+ (Positive) to AA- (Stable) by ICRA. Net gearing ratio improved to 0.52 times with total equity of ₹63,087 million.

Corporate Actions & Governance

The Board recommended a final dividend of ₹2.50 per equity share (25% on face value), involving cash outflow of ₹2,582 million subject to shareholder approval. The 18th Annual General Meeting is scheduled for September 19, 2026 via video conferencing, with e-voting cut-off on September 12, 2026. The company maintains strong corporate governance with 10 directors (7 non-executive including 5 independent) and 100% average director attendance.

Risk Management & Financial Instruments

Financial assets totaled ₹27,573 million while liabilities stood at ₹95,562 million, including metal gold loans of ₹35,878 million. The company maintains extensive hedging positions with 1,689 kgs of forward/futures contracts (₹24,057 million notional value). Foreign exchange exposure remains limited with USD trade payables of ₹16.45 million. Interest rate sensitivity analysis shows ₹197 million impact for 50bps rate change.

Subsidiaries & Related Party Transactions

The group operates 12 subsidiaries across India, UAE, USA, UK, Oman, Kuwait and Qatar. Parent company represents 95.11% of consolidated net assets and 91.18% of profit share. Related party transactions included sales to promoters totaling ₹176 million and purchases of ₹515 million. Managerial remuneration to directors was approximately ₹380 million.

Future Outlook & Strategic Initiatives

Kalyan plans to open 150 new showrooms in FY27 across Kalyan Jewellers, Candere and new regional brand 'Akshaya Thanga Maligai'. The company targets complete repayment of non-Gold Metal Loan debt in India during FY27. Continued focus on asset-light expansion through FOCO model and enhancement of return ratios (RoCE: 28.8%, RoE: 24.3% in FY26) remains priority. The recycled gold initiative achieved 46% share in Q1 FY26 through 'Shine with India' program.

Regulatory Compliance & Disclosures

The filing complies with Regulation 34 of SEBI Listing Regulations and Section 108 of Companies Act 2013. Auditor Walker Chandiok & Co LLP issued unmodified opinion with key audit matters on inventory existence and revenue recognition. The company adopted new Indian Accounting Standards effective April 1, 2025 and recognized one-time charge of ₹415 million for New Labour Codes implementation.