Kalyan Jewellers Reports 39% Revenue Growth in Q2 FY25

Kalyan Jewellers reported a robust revenue growth of 39% in India during the second quarter of the fiscal year 2024-25. This growth was primarily driven by increased footfalls and a notable 23% rise in same-store sales, the company announced in a recent regulatory filing with the Bombay Stock Exchange (BSE).

The company credited the boost in footfalls to a reduction in customs duty on gold imports announced during the 2024-25 Union Budget. This policy change led to a surge in customer visits from late July to the end of August, effectively counterbalancing the traditionally slow sales period during the 14-day Shradh festival, known for its subdued economic activity. According to Kalyan Jewellers, these efforts helped mitigate the volatility in gold prices experienced during this period.

In the Middle East, Kalyan Jewellers recorded a 24% increase in revenue compared to the same quarter in the previous year. This growth was supported by the successful conversion of some owned showrooms to FOCO (Franchise-Owned, Company-Operated) showrooms, with four such establishments now operational in the region. The Middle East contributed 13% to the company’s consolidated revenue for the quarter.

Kalyan Jewellers’ digital platform, Candere, reported a 30% rise in revenue over the same period. The digital-first initiative reflects the company’s strategy to blend traditional retail models with modern digital commerce, as evidenced by the launch of 12 new Candere showrooms in the second quarter of FY25.

Looking ahead, Kalyan Jewellers plans an ambitious expansion strategy. It aims to open 25 new showrooms under the Kalyan brand in India, 18 more Candere outlets, and marks a foray into the U.S market with its first showroom by the Diwali festival. By the end of the second quarter, the company operated a total of 303 showrooms, comprising 231 in India, 36 in the Middle East, and 36 under the Candere brand.

Despite these positive financial updates, Kalyan Jewellers’ stock faced a 5% drop on October 7, 2024. This decline was attributed to profit-taking actions by investors following a 40% rise in stock prices over the past three months. At the time of reporting, shares were trading at Rs 694.55 on the National Stock Exchange (NSE), slightly above the day’s low of Rs 678.50.

The company continues to navigate the fluctuating market conditions and remains focused on its strategic retail expansions and promotional campaigns to maintain its growth trajectory.