Kalyan Jewellers is sharpening its multi-brand strategy to tap India's evolving jewellery market, betting that consumers are buying more frequently, seeking region-specific designs, and shopping by budget rather than weight, even as elevated gold prices continue to reshape purchasing patterns.
The company is positioning its three brands to cater to distinct consumer segments rather than relying on a single retail format. While Kalyan Jewellers continues to focus on wedding and aspirational pieces, Candere is being built around lightweight, gifting and everyday collections, and its soon-to-be-launched Akshaya Thanga Maaligai (ATM) brand is aimed exclusively at customers seeking traditional regional designs.
"The same customer decides where to shop depending on the occasion," executive director Ramesh Kalyanaraman said in an interview with Mint. “Someone may buy from Kalyan for a wedding, Candere for daily wear or gifting, and another brand for a completely regional requirement.”
The strategy comes as Kalyan reported a 46% year-on-year jump in consolidated revenue to ₹10,589 crore in the June quarter, while net profit rose 32% to ₹349 crore, driven by robust demand in India, reflected in healthy same-store sales growth.
Kalyan bought a majority stake in Candere in April 2017 for roughly ₹35–40 crore. Candere reported a profit of ₹2.1 crore in the June quarter, reversing a loss of ₹10 crore in 1QFY26. Its store count has surged to 129 showrooms as of 30 June, from just two in FY23.
At 12:11 pm on Thursday, Kalyan Jewellers' stock was trading 0.5% higher at ₹572.40 on the National Stock Exchange.
The company's confidence in the segment stems less from rising gold prices than from structural changes in consumer behaviour following the pandemic.
According to Kalyanaraman, jewellery purchase is no longer restricted to weddings or festivals. Younger consumers are buying multiple pieces for different occasions: office, parties, gifting or everyday wear rather than owning a handful of ornaments for years.
"In the past, people would buy one chain or one bangle and wear it for years. Today, they change jewellery depending on the occasion," he said. "Customers are also visiting jewellery stores much more frequently."
That behavioral shift has coincided with the rapid formalisation of India's jewellery industry, as consumers increasingly gravitate towards organised retailers offering transparency, standardised pricing and wider product collections.
The company does not intend to enter the lab-grown diamond segment despite its rising popularity among younger buyers. "Our consumers are value-conscious. We don't see enquiries for lab-grown diamonds at our stores," he said.
Kalyan is simultaneously expanding into another fast-growing niche through Akshaya Thanga Maaligai, a Tamil Nadu-focused jewellery chain built entirely around regional designs.
Unlike Kalyan's existing "hyperlocal" merchandising strategy, where around 30% of inventory is customised for local preferences, and the balance remains nationally relevant, the new brand will stock exclusively regional collections.
Its first showroom will open in Chennai on 21 August, followed by four more stores in Tamil Nadu over the next few months.
The expansion is incremental to the company's previously announced plan to open 84 Kalyan showrooms in India, around 50 Candere stores, besides international additions during the year, Kalyanaraman said.
"There is still a huge regional market. We felt this was the right time to position ourselves as a local brand," he said.
Competitor Titan Ltd also has a multi-brand strategy. Titan operates CaratLane, Mia, Zoya and Rivaah as sub-brands.
The major Tamil Nadu-focussed brands like Thangamayil and Lalitha Jewellery are also competitors. Thangamayil reported a revenue of ₹8,514 crore in FY26, up 73.2%.
Recycled gold
The retailer is also recalibrating its gold sourcing strategy as higher prices encourage customers to recycle old jewellery.
While gold exchange transactions carry lower margins than outright cash purchases because retailers forgo the pricing advantage available when sourcing fresh gold from banks, Kalyanaraman said the company expects the impact to be offset by the rapid growth of its recently launched "cash for gold" business, where customers sell old jewellery directly for cash.
"Cash for gold is margin-accretive and should offset the dilution from exchange transactions," he said.
Looking ahead to the festive season, Kalyanaraman said jewellery volumes matter less as consumers increasingly shop to a fixed budget rather than for a specific quantity of gold.
"When gold prices are low, volumes naturally increase. When prices are high, volumes come down. Today, customers come with a budget and want the best product within that budget," he said.
Analysts are hopeful on the expansion plans. “With the successful scale-up of its new franchise businesses (>50% revenue contribution) and continued success in non-Southern markets, the company has established itself as a leading brand in the industry,” analysts at Motilal Oswal said in a August 5 report.
Shares of Kalyan Jewellers have gained about 50% in the last month on the National Stock Exchange, versus a 0.79% rise in the benchmark Nifty 50. However, the stock is down 9.93% this week compared to a 1.33% rise in Nifty 50.