Kalyan Jewellers has rolled out a multi-pronged growth strategy that blends product innovation, regional brand expansion and calibrated foreign forays, even as volatile gold prices weigh on consumer sentiment.
The jewellery retailer plans to expand its studded jewellery portfolio with 14-karat and 9-karat offerings and will unveil its third regional brand in one Indian state during the current quarter. At the same time, it is in active discussions with Arab investors to open franchise stores in the Middle East, Executive Director Ramesh Kalyanaraman said during an analysts’ call.
“We see strong organic growth in studded jewellery,” Kalyanaraman said. “At high gold prices, studded products become relatively easier to upsell. They look bigger than plain gold jewellery and are also available in 18-karat, which gives customers more choice within their budgets.”
The push towards studded and lower-karat jewellery reflects changing consumer behaviour, particularly among younger buyers. Social media-led discovery and deeper pre-purchase research have accelerated acceptance of contemporary designs and lighter gold formats. While 22-karat jewellery still dominates volumes, growth in 18-karat products is expected to be significantly faster due to a smaller base.
Adoption, however, remains uneven across regions. “The South is slower to adopt 18-karat compared to the North, where acceptance is much faster,” Kalyanaraman noted. Within studded jewellery, the penetration of 18-karat is substantially higher than in plain gold, prompting Kalyan to extend its portfolio to 14-karat and 9-karat options.
On overseas expansion, the company is taking a cautious approach. Although interest in the brand has picked up in the Middle East, Kalyanaraman said the franchise ecosystem there is yet to mature to Indian levels. As a result, overseas expansion will be capped at six to seven showrooms a year over the next couple of years. The company is also tracking lab-grown diamonds but has no immediate plans to enter the segment.
Operationally, Kalyan reported a strong December quarter, driven by festive demand. Same-store sales growth for the 30-day period ending Diwali exceeded 30% on a like-for-like basis, with the festive window significantly outperforming the rest of the quarter.
A key growth driver has been Candere, Kalyan’s digital-first jewellery brand. Over the past two years, Candere has been transformed into an omnichannel platform, with its store network expanding to 110 outlets. For the nine months ended December 31, Candere posted revenue growth of 117% and turned profitable, with profit after tax rising 144% in the latest quarter. The focus now is on deepening inventory and improving same-store sales.
Gold savings schemes and old-gold exchange programmes continue to support footfalls and conversions. Monthly savings plans help customers average gold prices over time, while old-gold exchanges saw higher traction in the third quarter even without promotional offers.
On the financial front, CEO Sanjay Raghuraman said consolidated profit after tax for the nine months rose 79% to ₹941 crore. Of the free cash generated, about ₹300 crore was deployed towards Candere’s expansion and pilot stores in the U.S. and the UK, while another ₹300 crore was used for debt reduction and dividends.
India remains the primary growth engine. In Q3, revenues rose from ₹6,386 crore to ₹9,048 crore, while net profit increased 84% to ₹401 crore. The Middle East business reported revenues of ₹1,073 crore and profits of ₹24 crore, and Candere swung to profitability with revenues of ₹135 crore.
With the wedding season underway and development plans in place, Kalyan Jewellers is aiming to close the financial year on a strong note, banking on lighter gold formats, sharper regional branding and disciplined capital allocation to sustain momentum.