Kalyan Jewellers has sharply increased the share of recycled gold in its business following its “Shine with India” campaign, with recycled gold accounting for more than 46% of revenue in Q1FY27 and exceeding 55% in June, as the jeweller seeks to reduce its dependence on imported gold amid elevated crude oil prices and forex pressures.
Speaking during the company’s Q1FY27 earnings conference call, Kalyan Jewellers Executive Director Ramesh Kalyanaraman said the company’s objective is to maintain the share of recycled gold in the range of 55–60% going forward.
The campaign was launched against the backdrop of a sharp increase in international crude oil prices and the resulting pressure on foreign exchange, which can increase the cost of imported gold.
“The larger objective of the initiative was to increase the share of recycled gold, reducing the dependence on imported gold and thereby make the business more resilient,” Ramesh said.
He added that the initiative had received a strong response from customers.
Kalyan launches Tamil Nadu-focused jewellery brand
Kalyan Jewellers is also sharpening its regional strategy with the launch of its first brand specifically tailored for the Tamil Nadu market.
The company has named the new brand Akshaya Thanga Maligai, or ATM, with the first showroom scheduled to open in Chennai on August 21.
The inventory at ATM will be curated specifically around Tamil Nadu consumer preferences, with designs, rates and price points aligned with regional markets and buying patterns.
Ramesh said the new brand will compete directly with established regional jewellery chains and unorganised players rather than competing with its existing Kalyan showroom network.
The Chennai outlet will be followed by four more showrooms in the coming months.
Non-South markets now contribute over half of revenue
Kalyan Jewellers has significantly expanded its presence beyond its traditional southern markets over the past two to three years.
According to Ramesh, non-South markets now account for more than 50–60% of the company’s revenue.
He said Kalyan’s ability to operate as a “hyperlocal” brand while retaining a national identity has helped it compete across different market segments.
Around 30–40% of the company’s inventory is localised to regional preferences, while 50–60% comprises national inventory.
“With the national inventory, we compete with national players. With the local inventory we compete with local players,” he said.
Capital-light expansion drives ROCE
Kalyan Jewellers plans to continue expanding its showroom network at a pace of around 70–80 showrooms annually, primarily through the FOCO (franchisee-owned, company-operated) model.
The company believes its capital-light expansion strategy will support further improvement in return on capital employed (ROCE).
Ramesh said ROCE has improved from the late teens to around 20% and is expected to rise further as the company focuses on capital-light expansion.
Kalyan positions itself between regional and national jewellery players, seeking to combine local market relevance with a nationwide brand.
The company said this positioning has helped drive strong same-store growth and expansion over the past few years.
Revenue CAGR has exceeded 33% over the past three years and 38% over the past two years, according to Ramesh.
₹102 crore real estate asset sales
Kalyan Jewellers has also made progress in monetising non-core real estate assets.
The company has signed agreements with potential buyers for two separate land parcels for an aggregate consideration of around ₹102 crore.
The sale process is expected to be completed and the consideration received before the end of the current quarter.
The company is also on track to complete repayment of its non-GML debt by the end of September.
Following the repayment, Kalyan plans to initiate steps for the release of the second tranche of real estate collateral.
The combination of higher recycled-gold usage, regional brand expansion, a capital-light showroom strategy and monetisation of non-core assets forms part of Kalyan Jewellers’ broader effort to improve resilience while sustaining its growth momentum.