Kalyan Jewellers India Limited — PPTs, 08-05-2025: Investor Presentation

1. Financial Highlights:

Kalyan Jewellers reported consolidated revenue of ₹25,045 Cr in FY25, up 35% YoY, driven by strong demand in India and the Middle East. Profit After Tax rose 20% to ₹714 Cr, with PAT margin slightly down to 2.9%, impacted by a one-time customs duty loss. EBITDA margin held steady at 6.1%. India standalone revenue increased 37% to ₹21,639 Cr and PAT grew 24% to ₹689 Cr. Q4FY25 consolidated revenue and PAT both grew approximately 36-37%. Gross margin softened to 13.1% from 14.5%, partly due to higher franchise income share. The balance sheet strengthened with Net Debt to Equity near zero, supported by disciplined working capital management, steady free cash flow, debt reduction, and share buybacks.

2. Strategic Initiatives & Growth Drivers:

Kalyan is accelerating growth through its capital-light Franchisee Owned Company Operated (FOCO) model, targeting 90 new Indian FOCO showrooms in FY26 and expanding in the Middle East and US. The focus is on broadening presence beyond South India and increasing studded jewellery mix. Investments in CRM, data analytics, localized marketing, and digital platforms like Candere support omni-channel growth and deepen customer engagement via the “My Kalyan” network.

3. Business Developments:

FY25 saw 25 new showrooms opened in India with Candere expanding to 37 FOCO stores. Several company-owned stores were converted to FOCO for better capital efficiency. Candere’s revenue doubled to ₹16.38 Cr, boosted by online marketplace traction. ERP upgrades and digital sales tools were implemented to enhance operational scalability and internal controls.

4. Market Position & Competitive Advantage:

Kalyan stands as one of India’s largest jewellery retailers with 278 Indian stores plus operations in 6 countries. Its hyperlocal strategy and trusted brand, backed by a vast “My Kalyan” network, enable deep reach into tier 2/3 markets. A diversified portfolio including gold, studded, bridal, and regional designs helps cater to varied segments. Franchise-led expansion and strong governance provide a competitive edge in a fragmented and growing organised jewellery market.

5. Investor Implications:

The shift to a capital-efficient FOCO model reduces balance sheet risk and boosts returns (ROCE around 20%). Growth in studded jewellery and omni-channel initiatives point to improving profitability and widening market share outside South India. Ongoing working capital improvements and strong free cash flow support further deleveraging and steady dividends (~20% payout). Margins need monitoring due to product mix and costs, but overall outlook shows positive growth potential with scalable execution amid rising organised retail penetration in jewellery.