Kalyan Jewellers reported its slowest sales growth in four quarters in the July-September period (Q2FY26), with demand tempered by rising gold prices, though festive season sales led by Navratri did offset some of the impact.
Consolidated revenue in Q2 rose 30% year-on-year (y-o-y), Kalyan Jewellers said in its business update released Monday. India operations, which contributes 85-88% to consolidated revenue, saw revenue growth of 31% (y-o-y) in the September quarter, driven by wedding demand and festive sales. Same-store sales growth (SSG) for the period was 16%, lower than the 23% seen in the year-ago period. Rival Titan is yet to release its Q2 business update.
What happened to gold prices?
Gold prices have risen 50% year-to-date, underpinned by strong central bank buying, increased demand for gold-backed exchange-traded funds, a weaker dollar and investors seeking a hedge amid rising trade and geopolitical tensions.
Last week, jewellers such as PC Jeweller and PN Gadgil recorded 63-65% y-o-y growth in Q2, led by strong buying during Navratri and Dussehra. PN Gadgil, which is a Maharashtra-based jeweller, said that Navratri contributed sales of Rs 428 crore, up 66% y-o-y, while Dussehra alone delivered the company’s highest-ever single-day festive sales of Rs 190 crore. This was up 64% versus Dussehra sales reported last year.
International operations see revenue growth
Kalyan Jewellers’ international operations, which accounts for 12% of the retailer’s consolidated revenue, saw a revenue growth of 17% in Q2 versus the same period last year. In West Asia, the revenue rose about 10%, driven entirely by same-store sales.
Kalyan Jewellers’ digital-first brand, Candere, continued to scale up rapidly and recorded a substantial 127% revenue growth compared to the same period last year. The company said that the growth was led by improved footfalls into stores and higher website traffic.
During the quarter, Kalyan expanded its retail footprint by launching 15 new showrooms in India, two outlets in West Asia, and 15 Candere showrooms domestically. As of September 30, Kalyan Jewellers had a total store count of 436, about 300 of which are located in India, 38 in West Asia, two in the US and 96 stores of Candere.
The retailer said that it was on track to add around 15 Kalyan showrooms in India before Diwali, encouraged by strong footfalls across major markets. It had also resumed the next round of debt reduction after securing approval from its lead bank within its consortium of lenders for release of real estate collateral.