Kalyan Jewellers plans 134 FY27 openings as Q1 margin pressure offsets revenue beat
Kalyan Jewellers added 17 India stores in Q1, taking its domestic network to 483. It plans 84 Kalyan FOCO and 50 Candere openings in FY27, alongside a Chennai regional store launch in August. Brokerages retained buy calls despite weaker margins.
What happened
Kalyan Jewellers India Ltd. · Kalyan Jewellers’ Q1 revenue beat estimates but margins weakened. The company added 17 Indian stores, plans 134 FY27 openings
Key facts
- Citi target price: Rs 800, raised from Rs 750
- ICICI Securities target price: Rs 680, raised from Rs 670
- MOFSL target price: Rs 700
- Potential upside: up to 35%
- Q1 one-time customs-duty gain: Rs 41 crore
- India gross margin: 10.8%, down 280 bps YoY excluding gain
- Studded jewellery share: 28%, versus 30% YoY
- EBITDA margin: 5.1%, down 280 bps YoY
- Candere profit: Rs 2.1 crore versus Rs 10 crore loss YoY
- India store count: 483 after 12 net Kalyan and 5 Candere additions
- FY27 planned openings: 84 Kalyan FOCO stores and 50 Candere stores
- MOFSL FY26-28E CAGR estimates: revenue 24%, EBITDA 18%, PAT 23%
Why this matters
The Chennai regional-store launch and FOCO-led expansion signal a push to deepen regional density while using an asset-lighter model to accelerate Kalyan and Candere reach.
What to watch
- Quarterly same-store sales growth versus revenue growth from new stores.
- Gross margin, EBITDA margin and management commentary on discounting, gold-price volatility and product mix.
- Actual FY27 opening cadence versus the 84 Kalyan FOCO and 50 Candere target.
- New-store breakeven periods, franchisee demand and FOCO unit economics.
- Candere revenue growth, online customer-acquisition costs and online-to-offline conversion.
- Performance of the Chennai regional store and evidence of broader southern-market cluster expansion.
- Inventory growth, working-capital intensity and return-on-capital trends as the network expands.
- Accelerate FOCO signings in tier-2 and tier-3 markets where local franchisee capital can support faster rollout.
- Use the Chennai regional-store launch to build a southern India cluster, improving brand visibility, inventory allocation and local marketing efficiency.
- Expand Candere as an omnichannel customer-acquisition funnel, with online-to-store conversion supporting Kalyan’s core network.
- Prioritize store productivity metrics, inventory turns and operating-margin protection as the opening pipeline ramps.
- Maintain promotional discipline and improve product mix toward higher-value studded and differentiated designs to offset gold-price and discounting pressure.