Kalyan Jewellers Bets on Franchises and Debt Reduction to Drive Growth in FY26

Kalyan Jewellers is set for aggressive expansion in FY26, aiming to open 170 new showrooms, including 90 under the flagship Kalyan brand and 80 under Candere, its lifestyle jewellery arm. Seven of the new Kalyan stores will be overseas—in the UK, US, and Middle East—marking a major step in its global foray. This growth strategy relies on the franchise model, allowing the company to expand without heavy capital investment, thus freeing up cash for debt reduction.

Last fiscal, Kalyan reduced its debt by ₹400 crore and now targets a further ₹300 crore reduction, focusing on Gold Metal Loans (GMLs) backed by land parcels. Lowering GMLs helps release land collateral, strengthening the balance sheet and giving the company financial flexibility for future investments.

As of June 30, 2025, Kalyan operates 406 stores globally, including 287 in India and 119 overseas. Domestically, the focus is shifting to non-South Indian regions and tier I–IV cities, all using the franchise route to maintain capital efficiency. Internationally, the UK launch will be followed by more stores in the US and Middle East, with Australia, Malaysia, and Singapore in the pipeline for future expansion.

On the operations side, Kalyan plans to invest ₹350–400 crore in maintenance and inventory. Importantly, the company is setting up a contract manufacturing hub in Thrissur, aiming to consolidate 1,000+ partner manufacturers under one roof to improve supply chain efficiency.

Financially, Kalyan reported Q1 FY26 revenue of ₹5,557.63 crore, continuing a streak of double-digit same-store sales growth for 8–9 quarters. Strong retail demand and robust monsoon season trends have aided this performance. With an 8–9% share in India’s organized jewellery market, Kalyan aims to grow its market share by over 1% annually.

By leveraging franchise-led expansion, focusing on debt reduction, enhancing manufacturing infrastructure, and expanding both domestically and globally, Kalyan Jewellers is positioning itself for sustainable growth and financial strength in the years ahead.