Buy Kalyan Jewellers Ltd for the Target Rs.660 by Motilal Oswal Financial Services Ltd
Strong double-digit SSSG continues
Kalyan Jewellers (Kalyan) released its pre-quarterly update for 1QFY26. Here are the key takeaways:
Company-level update
* Kalyan reported consolidated sales growth of ~31% YoY (est. 28% in 1QFY26, 37% in 4QFY25, and 27% in 1QFY25) despite volatility in gold prices and geopolitical tensions.
* As of 30th Jun’25, the total number of stores stood at 406, with 287 stores of Kalyan India, 81 stores of Candere, 2 stores of Kalyan US, and 36 stores of Kalyan Middle East.
* The ongoing quarter has begun well, and we are upbeat about the upcoming new showroom launches, as the company is gearing up with fresh collections and campaigns for the upcoming festive and wedding season across India.
* In FY26, Kalyan plans to launch 170 showrooms across Kalyan and Candere formats – 75 Kalyan showrooms (all FOCO) in non-South India, including 5 largerformat flagship Kalyan showrooms, 15 Kalyan showrooms (all FOCO) across South India and international markets, and 80 Candere showrooms in India.
India division
* The India business grew ~31% YoY (est. 30%) during the quarter, compared to 38% YoY growth in 4QFY25 and 29% YoY growth in 1QFY25. The growth was driven primarily by robust Akshaya Tritiya and wedding demand.
* The quarter recorded a healthy SSSG of ~18% vs. 21% in 4QFY25 and 12% in 1QFY25.
* The company added 10 new Kalyan showrooms in India during the quarter.
International division
* Revenue grew ~31% YoY in 1QFY26.
* In the Middle East, the company recorded a revenue growth of ~26% YoY in 1QFY26, driven predominantly by SSSG.
* International markets contributed ~15% to consolidated revenue for 1QFY26.
Candere
* Candere registered a revenue decline of ~67% YoY in 1QFY26.
* It launched its brand campaign during the second half of May’25, which led to a significant improvement in showroom footfalls, web traffic, and revenue growth.
* The company opened eight Candere showrooms during the quarter.
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