In India’s jewellery trade, Titan has always been the benchmark for scale, brand power and retail discipline.
But now there’s a challenger.
Kalyan Jewellers, once a Thrissur-based family outfit, is increasingly being pitted against the jewellery giant. And with good reason.
In FY25, Kalyan’s revenue rose about 35% to roughly Rs 25,000 crore, nearly 2x faster than Titan’s 18% growth.
For a business that spent decades confined to the South, that catch-up pace is striking.
The momentum continued into the new financial year. In the June quarter, consolidated revenue jumped 31% year-on-year to Rs 7,268 crore, on the back of same-store sales growth of 18% and a 30% leap in the studded-jewellery segment.
Titan, by contrast, managed 24% growth in jewellery excluding bullion.
Investors love a good crossover story and Kalyan looks like one in the making.
The new face of ambition
Kalyan’s strong growth is no accident. It reflects strategy meeting timing.
The company has focused on smaller towns where aspiration is rising but branded jewellery remains scarce. Nearly half its Indian showrooms now follow the franchise-owned, company-operated (FOCO) model, keeping capital needs low and risk spread wider.
In the June quarter alone, 17 stores opened, taking the total count beyond 280. The FOCO model lets Kalyan scale quickly, though it pressures gross margins.
In Q1 FY26, gross margin slipped 47 basis points year-on-year to 13.9%, yet lower overheads helped maintain an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) margin of 7%.
The momentum can continue with a 20% annual growth in revenue and profit through FY28 as store expansion stays on course and consumption in smaller cities strengthens.
FY26 is set to be an aggressive year, as the company plans to add about 170 stores, roughly 90 Kalyan outlets and 80 Candere stores, most under the FOCO structure. It is targeting a profit-before-tax margin above 5% and expects same-store sales growth to remain in the mid- to high-single-digit range, led by steady demand in Tier 2 and Tier 3 markets.
Kalyan is also launching its first regional brand in 2025 and building a manufacturing hub in Thrissur to streamline sourcing and cut dependence on third-party vendors. The hub should boost supply efficiency once volumes scale.
A playbook built for smaller pockets
Kalyan’s rise also mirrors a structural shift.
The next wave of jewellery growth is coming from smaller cities, not metros. Its designs are priced for aspiration rather than indulgence. In a market where Tanishq and Mia target the premium consumer, Kalyan sells to the middle-class bride who still wants tradition with a modern shine.
The company has learned to localise well. Its “My Kalyan” network acts like a ground army for customer acquisition and financing, offering everything from gold-saving plans to purchase counselling.
Digital is part of that mix. Candere, the online arm, is closing in on profitability. It caters to lightweight and everyday jewellery. These categories help expand margins and attract younger buyers. As omnichannel shopping picks up, this blend of physical reach and digital convenience could give Kalyan an advantage.
The expensive glitter
For all the excitement, Kalyan’s valuation is rich. The stock trades around 63x earnings, implying investors are pricing in the next few years of growth upfront. Titan still commands about 89x earnings, supported by higher margins and deeper brand equity.
That sets up the tricky part.
The market loves a growth multiple until growth wobbles. If same-store sales moderate or the expansion plan drags on profitability, the rerating can turn quickly.
The company has paused its earlier debt-reduction drive and is channeling cash into regional brands and the Thrissur facility. Some investors would prefer deleveraging at this stage.
Governance: The invisible risk
Kalyan’s promoters still control about 63% of the company. Of that, roughly a quarter is pledged as collateral. That number alone keeps governance on the radar. High pledging levels amplify risk in volatile markets and limit management flexibility.
Board independence is modest and while formal frameworks exist, oversight remains thinner than blue-chip peers.
Disclosures are improving but still lag Titan’s. Details on franchise economics, regional revenue mix and hedging policies are sparse. These may sound like footnotes, but in a business where working capital moves with gold prices and local demand cycles, transparency is not optional. A few quarters of weak disclosure or aggressive accounting can erode investor trust fast.
The growth conundrum
Kalyan’s execution so far has been impressive, yet it faces the classic growth-versus-governance dilemma. Scaling up requires capital and local partners. Both can test discipline. The jewellery trade is still largely unorganised, which means competition from local stores remains fierce. Sustaining 20%-plus growth means winning new customers every quarter while keeping credit, purity and compliance in check.
Margins tell their own story.
Titan’s jewellery EBIT margin sits around 10%. Kalyan’s operating margin is roughly 7%. That gap reflects more than scale. It reflects brand power, sourcing advantage and trust built over decades. For Kalyan, narrowing that gap without inflating costs will decide whether its surge is sustainable or just cyclical.
Why the market still cares
Despite the caution, the enthusiasm around Kalyan is understandable.
The company sits at the intersection of rising disposable incomes, organised-retail penetration and cultural affinity for gold. When gold prices stabilise, consumers return to jewellery shops. With India’s formal retail still expanding, there is headroom left.
If it plays its cards right, the company could double its scale over the next four years.
But there is a thin line between growth and overreach. Investors have seen this movie before. Rapid expansion, followed by concerns on debt, governance or transparency. The difference this time is valuation, already rich and leaving little margin for disappointment.
The verdict
Kalyan has momentum, a clear retail strategy and a loyal regional base.
Meanwhile, Titan has trust, scale and discipline.
The two are not equals yet, but the gap is narrowing.
Whether Kalyan turns from challenger to champion will depend not just on how quickly it grows, but on how carefully it governs.
For now, the market is buying the growth story. The real test will come when sentiment turns and only clean numbers, not glitter, hold up to scrutiny.
Disclaimer:
Note: We have relied on data from http://www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information. The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Manvi Aggarwal has been tracking the stock markets for nearly two decades. She spent about eight years as a financial analyst at a value-style fund, managing money for international investors. That’s where she honed her expertise in deep-dive research, looking beyond the obvious to spot value where others didn’t. Now, she brings that same sharp eye to uncovering overlooked and misunderstood investment opportunities in Indian equities. As a columnist for LiveMint and Equitymaster, she breaks down complex financial trends into actionable insights for investors.
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