Kalyan Jewellers’ share price surged over 4% in early trading on Tuesday, following a strong third-quarter business update for FY25. The company's stock gained as much as 4.84%, reaching ₹781.00 per share on the Bombay Stock Exchange (BSE), as investors reacted positively to the stellar results.
Q3 FY25 Revenue Growth
The jewellery giant reported a remarkable 39% year-on-year (YoY) increase in consolidated revenue for Q3 FY25, compared to the same period in the previous financial year. The company’s Indian operations played a pivotal role in this surge, with revenue rising approximately 41% YoY during the October-December quarter. This robust growth was primarily driven by surging festive and wedding demand across both gold and studded jewellery categories. The same-store sales growth (SSG) for Q3FY25 stood at an impressive 24%, further indicating the strong consumer demand for Kalyan's products.
Expansion Plans Accelerate Growth Prospects
In addition to strong organic growth, Kalyan Jewellers has significantly expanded its footprint. During Q3FY25, the company launched 24 new Kalyan showrooms across India, contributing to its impressive performance. The company has set an ambitious target for the current quarter, planning to open 30 Kalyan showrooms and 15 Candere showrooms. Kalyan’s rapid expansion is in line with its larger vision for FY 2025, which includes opening 80 Kalyan showrooms and 50 Candere showrooms across India.
Candere, Kalyan Jewellers’ digital-first jewellery platform, also reported remarkable growth. The platform saw an 89% YoY revenue increase, reflecting the growing demand for online jewellery shopping. Candere further expanded its footprint by launching 23 showrooms during Q3FY25.
International Growth and Expansion
On the international front, Kalyan Jewellers saw a solid 22% revenue growth in the Middle East, which now accounts for approximately 11% of its consolidated revenue. The company’s international expansion efforts are further exemplified by its launch of the first Kalyan Jewellers showroom in the United States during Q3.
Looking ahead, Kalyan Jewellers plans a massive global expansion, with a target to launch 170 new showrooms for FY 2026 across both Kalyan and Candere formats. The company aims to open 75 Kalyan showrooms in non-south India and 15 in the south, as well as 80 Candere showrooms in India. The brand has already begun signing Letters of Intent (LOIs) for franchise-owned showrooms in both domestic and international markets, further solidifying its growth trajectory.
Kalyan Jewellers’ stock has had a stellar performance over the past year, with the share price skyrocketing by over 110%, delivering multi-bagger returns to its investors. Over the past six months alone, the stock has surged 52%, reflecting strong investor confidence in the company’s continued growth and expansion strategy.
Should You Buy Kalyan Jewellers Shares?
Analysts are bullish on Kalyan Jewellers’ long-term prospects. Anshul Jain, Head of Research at Lakshmi Shree Investment and Securities, highlighted the company’s consistent growth and strategic expansion plans as key factors that will likely continue to drive its success. "Kalyan Jewellers’ ability to tap into rising consumer demand and its multi-channel approach puts it in a strong position to capitalize on the growing market for gold and studded jewellery," Jain said.
At the time of writing, Kalyan Jewellers shares were trading 0.91% lower at ₹738.15 apiece on the BSE. However, the company’s strong financials and expansive growth strategy suggest a promising future, making Kalyan Jewellers a stock worth considering for investors looking to capitalize on the booming jewellery market in India and abroad.
With robust Q3 results, ambitious expansion plans, and a strategic focus on both physical and digital channels, Kalyan Jewellers is poised for continued growth. The company’s ability to deliver consistent performance, coupled with its forward-looking expansion strategy, underscores its strong market position. As demand for jewellery, especially in India’s wedding and festive seasons, continues to rise, Kalyan Jewellers is well-positioned to leverage this trend and continue delivering value to its investors. Whether you're a seasoned investor or a newcomer, Kalyan Jewellers remains a promising player in the Indian and global jewellery markets.
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