Kalyan Jewellers India (KALYANKJIL) Q1 25/26 earnings summary

Executive summary

• Consolidated revenue grew 31% year-over-year to INR 7,268 crore (₹72,685 mn), with PAT up 49% to INR 264 crore (₹2,641 mn); standalone business saw 31% revenue growth and 55% PAT growth.

• Strong growth was driven by robust same-store sales, franchise (FOCO) expansion, and healthy new customer additions.

• FOCO model accelerated network growth and improved capital efficiency, with 161 Kalyan and 41 Candere FOCO showrooms in India as of June 2025.

• Continued deleveraging and focus on shareholder returns, with dividend payout exceeding 20% in FY25.

• Standalone and consolidated unaudited financial results for the quarter ended 30 June 2025 were approved by the Board on 7 August 2025.

Financial highlights

• Q1FY26 consolidated EBITDA rose 38% year-over-year to ₹5,080 mn, with EBITDA margin at 7.0%.

• India revenue was INR 6,142 crore (₹61,422 mn), with EBITDA at INR 434 crore and PAT at INR 256 crore (₹2,565 mn).

• Middle East revenue reached INR 1,026 crore (₹10,265 mn), EBITDA at INR 73 crore, and PAT at INR 22 crore (₹221 mn).

• Candere e-commerce revenue was INR 66 crore (₹1,909 mn in last 12 months), with a loss of INR 10 crore.

• Basic EPS (consolidated) for the quarter was Rs 2.56, up from Rs 1.82 year-over-year.

Outlook and guidance

• Management is upbeat about the upcoming festive season and expects robust demand to continue.

• FY26 expansion to be led by capital-light franchise model, with 84 new FOCO Kalyan showrooms planned in India.

• Candere is projected to be PAT positive or neutral by year-end, with accelerated showroom rollout and launch of new regional brands in CY2025.

• PBT for India is expected to remain above 5% for the year.

• Continued focus on deleveraging, free cash flow generation, and rewarding shareholders via dividends.