Kalyan Jewellers Q1 FY27 Revenue Grows ~38%, India Same-Store Sales Up 28% Amid Adhik Maas

Kalyan Jewellers India Ltd released its quarterly business update for the first quarter of FY2027 (ended June 30, 2026), reporting a consolidated revenue jump of approximately 38% year-on-year (excluding bullion sales). The growth was led by robust India operations, which clocked a same-store-sales increase of about 28% even though a full 28‑day Adhik Maas period – a once‑in‑three‑years lull for weddings – fell entirely within the quarter. The update also highlighted a newly launched gold‑recirculation campaign that lifted recycled gold to over 46% of revenue, rapid expansion of the Candere platform, and continued store additions.

In a Nutshell: What Kalyan Jewellers Does

Kalyan Jewellers is a major Indian jewellery retailer that sells gold, diamond, and precious‑stone ornaments through a network of showrooms. It operates company‑owned stores as well as a large franchisee‑owned company‑operated (FOCO) model, and has a growing international presence in the Middle East, the US, and the UK. Its digital‑first platform, Candere, focuses on lightweight lifestyle jewellery. The company earns by marking up precious metals and stones, charging making fees, and running gold savings schemes.

India: Strong SSSG Despite a Pause in Wedding Demand

The company’s India operations saw revenue growth in excess of 38% compared to Q1 FY2026. Even with the Adhik Maas period – when wedding‑related purchases pause in parts of the country – same‑store‑sales growth (SSSG) came in at approximately 28%.

This is a slight deceleration from the 47% India SSSG recorded in Q4 FY2026 (South 29%, Non‑South 62%) , but it remains well above the 15–16% run‑rate seen in South‑India company‑owned stores in earlier quarters . Management has previously noted that SSSGs have “always been, what, 20%‑30%” over the last 2‑3 years, while their long‑term planning assumption is only 10% . The Q1 performance therefore underscores continued strong momentum, with the Adhik Maas impact partly offset by broad‑based demand across key markets.

‘Shine with India’ Campaign Pushes Recycled Gold to 46% of Revenue

Launched in the second half of May 2026, the ‘Shine with India’ initiative aims to increase the share of recycled gold and reduce dependence on imported metal. The campaign has been “well received by our customers,” helping lift recycled gold as a percentage of revenue to over 46% in Q1, and to more than 55% in the month of June alone.

The financial implications are not yet quantified. The company’s investor communications up to May 2026 do not mention the campaign, and no commentary is available on how a higher recycled‑gold share might affect cost of goods sold or gross margins . Historically, margins have been driven by product mix (studded vs. plain gold), procurement efficiencies, FOCO revenue share, and operating leverage . The new campaign could further improve procurement costs, but this remains to be seen when the full financial results are released.

International: Middle East Grows ~30%, Geopolitical Bumps Contained

International operations – which contributed about 14% of consolidated revenue in the quarter – grew approximately 35% year‑on‑year. Within that, the Middle East revenue grew roughly 30%, predominantly through same‑store sales, although footfalls in April were affected by geopolitical tensions in the region.

For context, the Middle East business posted revenue of ₹1,074 crore in Q4 FY2026 (up 37% YoY) with an SSSG of ~34% . The region has been consistently strong, and the company continues to explore a large‑scale franchisee partnership with Arab investors, having temporarily converted four FOCO showrooms to company‑owned to facilitate the discussions . The US and UK remain small pilots (2 and 1 showroom respectively) with no separate financial metrics disclosed.

Candere: 112% Revenue Growth and a Turn to Profitability

The digital‑first jewellery platform Candere recorded revenue growth of approximately 112% compared to Q1 FY2026. The business turned PAT‑positive in the second half of FY2026 and posted a profit of ₹3 crore in Q4 FY2026 on revenue of ₹131 crore . Candere’s gross margins are in the mid‑30s because its studded‑jewellery mix exceeds 70% . The company added 5 Candere showrooms in Q1, taking the total to 129, and plans to open 50‑55 more during FY2027 .

Store Network and Balance‑Sheet Strength Support Ambitious Expansion

The quarter saw 12 new Kalyan showrooms and 5 Candere showrooms launch in India. As of June 30, 2026, the network stood at 524 outlets:

Format	Showrooms
Kalyan India	354
Kalyan Middle East	38
Kalyan USA	2
Kalyan UK	1
Candere	129
Total	524

Key Things to Watch

Full financials: The update provides only revenue‑side numbers. Margins, profitability, and the exact revenue base will be known when the board approves the quarterly results.
Recycled gold margin impact: The ‘Shine with India’ campaign has clearly lifted the recycled share quickly, but its effect on gross margin and working capital will be a critical metric when detailed numbers arrive.
SSSG trajectory: With a 28% SSSG in a seasonally soft quarter, the upcoming festive season will test whether the exceptional momentum of the past two years can be sustained or begins to gravitate towards management’s 10% long‑term expectation.
Middle East FOCO conversion: Any progress on franchisee partnerships with Arab investors could accelerate the international rollout without straining capital, as indicated by management in May 2026 .

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