Summary of Contents

The document is a cover letter submitted to the National Stock Exchange of India Ltd. and BSE Limited, enclosing an investor presentation. The presentation provides a comprehensive overview of Kalyan Jewellers India Limited's business, its financial performance for Q2 and H1 FY27, and its strategic direction.

Company Overview

  • History & Legacy: Established in 1993 by Mr. T.S. Kalyanaraman, building on a 100-year family legacy in the jewellery business. Mr. Ramesh Kalyanaraman and Mr. Rajesh Kalyanaraman joined the business from its initial days.
  • Business Scale: Described as one of India's largest jewellery companies with a pan-India and international presence.
  • Brand Values: Positioned as a trusted brand built on core values of trust and transparency, pioneering consumer-friendly measures like BIS hallmarking and price transparency even before regulatory mandates.
  • Product Portfolio: Offers a wide range of gold, studded, and other jewellery catering to varied price points and occasions.
  • Global Presence: As of September 30, 2026, the company operates 546 showrooms across India, the USA, the UK, and the Middle East.
  • Distribution Model: Utilizes a hyperlocal business model supported by a vast grassroots "My Kalyan" network of 1,203 members, which facilitates deep customer outreach and is a facilitator for being considered the neighborhood jeweller.
  • Other Formats: Distribution expanded to include the Candere brand (lightweight jewellery) and the newly launched Akshaya Thanga Maligai (ATM) format, a regional brand exclusively curated for the Tamil Nadu market launched in August 2026.

Investment Highlights & Competitive Strengths

The presentation outlines several key pillars of the company's strategy:

  • Leading brand in a large market with a rapidly increasing organized share.
  • Pan-India presence with 504 showrooms in India and 38 international showrooms as of September 30, 2026.
  • Wide range of product offerings and sub-brands for diverse customer segments.
  • Effective hyperlocal marketing and promotion strategy.
  • Strong promoter and management leadership.
  • Robust internal control processes and governance framework, with an independent chairperson on the board. Walker Chandiok and Co LLP is the current statutory auditor, having taken over from Deloitte in August 2024.

Strategic Priorities

  • Phase-wise Growth: The company outlines a purpose-led growth strategy across multiple phases.
  • Long-term Objectives: Focus on leveraging a scalable business model for expansion, largely via a capital-light franchise (FOCO) store strategy.
  • Expansion Plans: As of September 30, 2026, India has 246 FOCO showrooms, with 84 new FOCO showrooms planned for FY27. 73 FOCO showrooms exist for the Candere format.
  • Product & Network: Continue widening product offerings, increasing focus on higher-margin studded jewellery, and expanding the "My Kalyan" network.
  • Capital Allocation: Policy of using 40% to 50% of profits for debt repayment, strategic initiatives, and rewarding shareholders. A FY26 dividend of ₹2,582 Mn (approx. 20% payout) was declared, payable in FY27.

Financial Performance Summary

Recap of Progress (FY20 to TTM FY27):

  • Consolidated Revenue: Increased from ₹1,01,009 Mn in FY20 to ₹3,57,429 Mn in FY26, with a TTM figure of ₹4,15,299 Mn.
  • India Revenue: Increased from ₹78,458 Mn in FY20 to ₹3,10,271 Mn in FY26, with a TTM figure of ₹3,60,748 Mn.
  • Profit After Tax (PAT): Increased significantly from ₹1,423 Mn in FY20 to ₹13,504 Mn in FY26, with a TTM PAT of ₹16,016 Mn.
  • Return Metrics: Return on Capital Employed (ROCE) improved from 11.7% in FY20 to 28.8% in FY26 (TTM: 30.7%). Return on Equity (ROE) improved from 6.7% to 24.3% (TTM: 26.7%).
  • Leverage: Demonstrated a strong focus on deleveraging. Non-Gold Metal Loan (GML) debt in India was completely repaid by September 2026. ₹13,241 Mn of non-GML loans in India were repaid between April 1, 2023, and September 30, 2026.
  • Net Debt (with GML) / EBITDA improved from 3.8x in FY20 to 1.3x in FY26 (TTM: 1.0x).
  • Net Debt (without GML) / EBITDA improved from 2.3x in FY20 to -0.1x (net cash) in FY26 (TTM: -0.3x).

Operational Metrics:

  • The "My Kalyan" grassroots network has 1,203 members, engaging with approximately 10 million customers and contributing ~18% of India revenue with ~31% productivity.

Disclaimer (Safe Harbor)

The presentation includes standard safe harbor statements noting that it is for informational purposes only, contains forward-looking statements subject to risks and uncertainties, and is not an offer to sell securities. The company assumes no obligation to update any forward-looking information.