The festive season and the wedding Raunak have increased the earnings of Kalyan Jewelers this time. According to the report by brokerage firm Motilal Oswal, the company recorded a great growth of 40% in the third quarter of FY 2025. The total income of the company was ₹ 7,290 crore, in which the Indian market contributed majority.
Impact of new stores and wedding season
Kalyan Jewelers opened 22 new stores and 23 candle stores in India, which showed directly in sales. The wedding and festive season saw a large crowd of customers. The same store sales (SSSG) also increased by 24%.
Big advantage from new customers
In this quarter, the company sold 33% of new customers, causing a huge jump in total earnings. The sales of the staded jewelery caught a speed of 54%, while gold jewelery increased by 37%. This increased the total part of the studded jewelery to 30%.
Franchise stores pressure on margin
Increasing income (40% stake) from franchise stores put the company’s gross margin under slight pressure. The gross margin of the Indian business came to 12.8%, while the Ebitda margin was 6.7%. However, repayment of debt reduced interest cost and saw an improvement in PBT margin.
Extension in West Asia and America
In West Asia, an income increased by 23% and the same store sales (SSSG) gained 16%. The company has also opened its first store in the US in this quarter.
Brokerage bulish
In the report of Motilal Oswal, a target of ₹ 625 has been given by retaining the ‘buy’ rating on Kalyan Jewelers. Kalyan Jewelers’ stock closed at Rs 505.15 on Saturday. This stock will give a return of 24% in the long term according to this price.
The report said that the success of the company in the new franchise model and non-south Indian markets will keep it shiny for a long time. Although in FY26, there may be a slight decrease in demand in urban areas, it may be a good chance for investment. It is worth noting that this stock has fallen 34 percent in the last 6 months. However, it has gained 10 percent for the last one week.