Kalyan Jewellers Q1 Results: Net profit jumps 32% YoY to ₹349 crore; margins contract

Kalyan Jewellers India, one of the country's largest jewellery retailers, announced its financial results for the June quarter on Monday, August 4, after market hours.

The company reported a net profit of ₹348 crore for the first quarter, marking a 32% year-on-year (YoY) increase from ₹264 crore in the corresponding quarter last year. However, on a sequential basis, profit declined from ₹409 crore reported in the March quarter.

Revenue from operations stood at ₹10,589 crore during the reporting quarter, rising 46% YoY from ₹7,268 crore. However, it was 3% lower on a quarter-on-quarter (QoQ) basis.

Revenue contribution from studded jewellery, which typically carries higher profit margins, declined during the quarter.

In India, the share of studded jewellery fell to 29.7% from 30.3% a year ago, while in the Middle East, it declined to 16.3% from 18.3% in the corresponding period last year.

At the operating level, EBITDA stood at ₹632 crore, up 25% YoY from ₹505 crore in the year-ago quarter. On a sequential basis, however, EBITDA declined 14%, while the EBITDA margin contracted by 100 basis points on both a YoY and QoQ basis to 6%.

Higher exchanged gold and promotions dent gross margins

The company expanded its retail footprint by adding 12 new showrooms in India during the June quarter, compared with 10 showrooms opened in the corresponding period last year. Its India business recorded 38% year-on-year revenue growth, primarily driven by a healthy same-store sales growth (SSSG) of 28%, while business-to-consumer (B2C) revenue increased by around 34%.

New customer acquisition remained strong, with new customers accounting for over 36% of total customers during the quarter. Meanwhile, franchised showrooms contributed around 57% of the India revenue.

The share of recycled gold in the India business rose to 46% during the quarter, compared with 30% in Q1FY26 and 31% in Q4FY26.

Gross margins were impacted by a higher proportion of exchanged gold, promotional offers under the exchange campaign, and a one-off gain from platinum and silver sales recorded in the base quarter (Q1FY26).

However, the company benefited from a one-time gain of around ₹41 crore during the quarter following the increase in import duty.

FOCO-led expansion in the Middle East

The company said it is in discussions with potential investors in the Middle East to establish a larger Franchisee Owned, Company Operated (FOCO) partnership.

According to the company, the FOCO model has played a key role in accelerating showroom expansion in India through a more capital-efficient and return-accretive approach. It expects a similar partnership in the Middle East to support faster expansion in the region while further strengthening the overall return profile of the business.

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