Buy Kalyan Jewellers Ltd for the Target Rs.550 by Motilal Oswal Financial Services Ltd
Strong India performance continues, above our estimate
Kalyan Jewellers (KALYAN) released its pre-quarterly update for 4QFY26. Here are the key takeaways:
Company-level performance
* Kalyan reported consolidated sales growth of ~64% YoY (est. 36%; 42% in 3QFY26 and 36.6% in 4QFY25). For FY26, Kalyan recorded revenue growth of ~42% on a consolidated basis.
* During 4QFY26, KALYAN launched 24 net new Kalyan showrooms and 14 Candere showrooms in India.
* On 31st Mar’26, the total number of stores stood at 507 (Kalyan India – 342, Kalyan Middle East – 38, Kalyan USA – 2, Kalyan UK – 1, Candere – 124).
* The ongoing geopolitical challenges in West Asia have caused supply-side disruptions for building materials, impacting some of the showroom launches planned during Mar’26.
* FY27 has started well with strong footfalls across most of the markets. Kalyan is witnessing encouraging trends in the advance collections for both Akshaya Tritiya and wedding purchases for the festive/wedding season.
India division
* The India business grew ~65% YoY (est. 40%) during the quarter vs. 42% YoY growth in 3QFY26 and 38% YoY growth in 4QFY25. FY26 sales grew 43% YoY.
* Both wedding and discretionary demand stayed robust during the quarter despite volatile gold prices.
* The quarter recorded strong same-store-sales growth of ~45% (est: 25%) vs. 27% in 3QFY26 and 21% in 4QFY25.
* The company added 28 (24 net) new Kalyan showrooms in India during 4Q.
International division
* Revenue grew ~45% YoY in 4QFY26. For FY26, sales grew 33% YoY.
* Within the Middle East specifically, Kalyan witnessed revenue growth of ~39% YoY in 4QFY26, driven mainly by same-store-sales growth.
* International markets contributed ~11% to its consolidated revenue.
Candere
* Candere recorded a revenue growth of ~360% YoY in 4QFY26.
* The company opened 14 Candere showrooms during the quarter.
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