Kalyan Jewellers Q2 Surge: Decoding the Growth Strategy Behind a 30% Revenue Jump

Kalyan Jewellers reported a roughly 30% year-on-year rise in consolidated revenue for Q2 FY26, led by stronger India sales and early festive demand. The rise reflects both increased foot traffic in physical stores and faster growth from its digital-first arm. Here is a closer look at what factors are driving this surge.

Decoding Kalyan Jewellers Q2 FY26 Results

Kalyan Jewellers reported a solid performance in Q2 FY26, with consolidated revenue rising approximately 30% year-on-year. India operations led the growth, registering a 31% increase in revenue compared to Q2 FY25.

Same-store sales in India went up by 16%, which shows that there is strong demand. International operations saw a 17% increase in revenue, with the Middle East accounting for a 10% increase, all of which came from same-store performance.

Candere, Kalyan’s digital-first jewellery arm, delivered a remarkable 127% year-on-year revenue surge.

What’s Driving Kalyan Jewellers’ Growth

These are the four main reasons why Kalyan Jewellers' sales are growing so quickly:

1. Digital Acceleration

The growth of Kalyan Jewellers is supported by its aggressive online and omnichannel strategy. By 2025, its website is projected to exceed 1 million unique monthly visits. Its social media channels are projected to exceed 1 million followers on Facebook and Twitter each. On Instagram, it is expected to have over 270,000 followers.

The company has also seen a 300% rise in organic traffic because of improved SEO and digital campaigns aimed at younger, urban customers. The Candere brand, which is the digital-first arm of Kalyan, plans to open 80 new showrooms this year. To grow more efficiently, they will use Franchise-Owned Company-Operated (FOCO) and Company-Owned Company-Operated (COCO) models. These new businesses are opening at an appropriate time because India's jewellery market is growing at a CAGR of 7% through 2030, driven by rapid digital adoption and large-scale urbanisation.

Kalyan's influencer marketing strategy, which includes famous celebrities, has greatly increased brand recall and digital influence.

2. Debt Reduction Moves

In the past 18 months, the company has paid off more than ₹500 crore in debt, resulting in the release of ₹200 crore in real estate collateral previously pledged to its group of lenders. This action improved its asset-light positioning and freed capital for expansion, evidenced by 15 new Kalyan outlets in India, 2 in the Middle East and 15 Candere showrooms, bringing the total number of showrooms to 436 as of 30 September 2025.

The company has resumed its next round of debt reduction in line with its FY26 targets, following a brief strategic pause to prioritise collateral release.

Additionally, Kalyan piloted a lean credit procurement model, slashing its average credit cycle from 30–32 days to nearly 10 days, thereby enhancing working capital efficiency. These measures have improved return on capital employed (ROCE) and supported margin expansion.

3. Festive Demand Acceleration

Q2FY26 benefited from a festive boost with Navratri sales, which were absent in the base quarter of FY25. This calendar shift led many consumers to fuel festive demand, with early purchases in September. The impact was particularly strong in North and West India, where Navratri holds cultural significance. Promotional campaigns, limited-edition collections, and festival-specific offers increased foot traffic and conversion rates.

This seasonal uplift helped the company offset the high base created by FY25’s customs duty-led demand spike.

4. Customised Wedding Segment

The wedding jewellery segment remained a strong revenue driver in Q2FY26, especially in South and West India. The quarter saw higher wedding-related spending compared to the previous year, driven by a busy wedding season and strong consumer sentiment.

Customised bridal collections, regional design launches, and influencer-led bridal campaigns boosted segmental sales. The average ticket size in this category increased due to the higher gold weightage and premium design preferences. This segment’s contribution was pivotal in sustaining growth despite a high base.

Investor Sentiment vs. Fundamentals

Kalyan Jewellers’ recent stock decline underscores the tension between strong fundamentals and fragile investor sentiment. Despite posting a solid revenue growth in Q2 FY26, the stock dipped. Analysts attribute this to margin pressures and profit-booking after a prior rally.

The transition to franchised locations with lower profit margins and greater cost of expansion has affected short-term investor sentiment. To further complicate sentiment, potentially negative actions from early 2025 remain relevant, such as news of IT raids and inventory overvaluation, which management has rejected. This combined contradiction suggests that market sentiment is often influenced more by perceived risks and future profits than by headline earnings.

While brokerages remain bullish, the sell-off reflects caution amid aggressive expansion and operational complexity. Fundamentals remain strong, but sentiment is clearly in flux.

Conclusion

Kalyan Jewellers’ Q2 performance suggests that the business is strong, regardless of short-term market movements. Despite the recent stock dip, its strong fundamentals, digital expansion, debt reduction, and festive-led sales show resilience. The company continues to focus on expansion through its digital and asset-light model, but short-term margins could change as market sentiment evolves.

Sources

CNBC TV18
NDTV Profit
SIP4Future
The Economic Times
Latterly.org