What Drove Kalyan Jewellers’ Profits to Nearly Double in Q2 FY26?
About the Company
Kalyan Jewellers India Ltd, one of India’s largest jewellery retail chains, has reported a remarkable improvement in earnings for the quarter ended September 2025. The company’s consolidated net profit jumped to ₹260 crore, up 99% from ₹130.3 crore in the same period last year. This impressive performance reflects resilient consumer demand and the brand’s continued expansion in domestic and Gulf markets.
The company’s Q2 performance comes amid the festive buying season, where demand for gold and diamond jewellery witnessed an uptick across urban and semi-urban India. Kalyan’s strong retail footprint and effective marketing campaigns during the wedding and festive season supported volume growth.
Kalyan Jewellers Q2 FY26 — Financial Performance
| Metric | Q2 FY26 | Q2 FY25 | YoY Change |
|---|---|---|---|
| Revenue | ₹4,930 crore (approx.) | ₹4,420 crore | +11.5% |
| EBITDA | ₹420 crore (approx.) | ₹355 crore | +18% |
| Net Profit | ₹260 crore | ₹130.3 crore | +99% |
| EBITDA Margin | 8.5% | 8.0% | +50 bps |
The robust expansion in profits also reflects the company’s margin improvement driven by cost optimization, reduced gold lease charges, and better inventory management. The international business, especially in the Gulf region, reported strong revenue growth of over 20% YoY.
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Operational Highlights
- 💎 Added 12 new showrooms during Q2 FY26 across India and the Gulf.
- 📈 Digital gold platform and omni-channel presence contributed ~8% of total sales.
- 📊 Festive sales grew 18% YoY, led by gold jewellery demand.
- 🌍 International business recorded double-digit growth in UAE and Qatar.
The jewellery industry continues to benefit from wedding demand and rising disposable income levels. Kalyan’s mid-market positioning helps it tap both urban aspirational and rural value-seeking customers.
Strategic Outlook
- ⚙️ Expansion: Aims to add 60–70 new stores in FY26, with a focus on Tier-II cities.
- 💰 Capital Allocation: Strengthened balance sheet and reduced debt-to-equity ratio.
- 📊 Digital Growth: Enhanced integration of app-based jewellery shopping and doorstep delivery.
Analysts expect steady growth momentum for the rest of FY26 with improving gold price visibility and steady wedding demand into Q3. Margin sustainability remains a key factor to monitor.
Valuation & Investor Perspective
- Short-term: Likely to benefit from festive season sales and price stability in gold.
- Medium-term: Continued store additions and digital scaling to aid profitability.
- Long-term: Positioned to leverage India’s growing organized jewellery market.
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Investor Takeaway
Gulshan Khera, CFP® and Market Strategist at Indian-Share-Tips.com, observes that Kalyan Jewellers’ performance validates the ongoing consumption recovery in India’s discretionary spending sector. With disciplined expansion and improving margins, the stock remains one to watch for long-term wealth creation. Explore in-depth sectoral analysis at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Kalyan Jewellers
- What Drove the Profit Surge in Kalyan Jewellers Q2 FY26?
- How Is the Jewellery Sector Performing Post-Festive Season?
- What Are Kalyan Jewellers’ Expansion Plans for FY26?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
