Kalyan Jewellers cuts non-gold metal loan debt by ₹564 crore in FY26; aims to divest real estate assets

Kalyan Jewellers India Ltd. reduced its non-gold metal loan debt in India by approximately ₹564 crore during FY26, according to the company's annual report.

Over the last three years, the company has brought down its non-gold metal loan debt in India from ₹1,300 crore to ₹300 crore.

Kalyan Jewellers, in its annual report, also said that it has also secured the release of non-core real estate assets that were previously held as collateral with banks and that it is now actively monetising these assets to generate cash.

The divestiture of the first tranche of real estate assets is already at an advanced stage, with the company expecting meaningful cash realisation from the asset sale in the near term.

Kalyan Jewellers said it is on track to repay its remaining non-gold metal loan debt in India during FY27.

The company also plans to open a total of 150 new showrooms during FY27, according to its annual report.

Q1 results

Kalyan Jewellers reported a 32% year-on-year rise in consolidated net profit to ₹348.7 crore for the June quarter, compared with ₹264.1 crore a year earlier. Revenue from operations increased 45.7% to ₹10,588.9 crore from ₹7,268.5 crore.

Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 24.5% year-on-year to ₹632.5 crore from ₹508 crore. However, EBITDA margin narrowed to 6% from 7% in the year-ago quarter.

The company delivered strong revenue growth despite elevated gold prices, with quarterly revenue crossing ₹10,500 crore for the first time. Profit growth, however, remained below revenue growth as operating margins contracted.

Jefferies initiated coverage on Kalyan Jewellers

Earlier this month, Jefferies initiated coverage on Kalyan Jewellers with a 'Buy' rating and a target price of ₹830, implying nearly 40% upside from the stock's closing price at the time.

The brokerage said Kalyan's combination of the familiarity of neighbourhood jewellery stores with the scale and efficiencies of an organised retailer gives it a differentiated business model. It expects this strategy to support further market share gains.

Jefferies also highlighted Kalyan's franchisee-led expansion model, which supports capital-efficient growth, particularly outside its stronghold in South India. It expects India to remain the company's primary growth driver.

The brokerage noted that Kalyan now has a net cash balance sheet, supported by rising free cash flow generation and healthy return ratios, and expects the company's deleveraging journey to be completed in FY27.

Jefferies expects Kalyan Jewellers' revenue and earnings to grow at a 21-23% compound annual growth rate between FY26 and FY29. It values the stock at 38 times September 2028 estimated earnings, which represents a nearly 30% discount to Titan.

Shares of Kalyan Jewellers India Ltd. are trading 0.5% higher at ₹598.5. The stock has risen 25% so far in 2026.