Kalyan Jewellers (KALYANKJ IN) Buy: Robust growth, debt repayment guidance met

Research evidence excerpt

Kalyan Jewellers (KALYANKJ IN) Buy: Robust growth, debt repayment guidance met

11 May 2026

Kalyan Jewellers EquitiesTextiles Apparel & Luxury

Goods (KALYANKJ IN)

Buy: Robust growth, debt repayment guidance met India

◆ Very strong Q4 results with 66% revenue and 84% EBITDA MAINTAIN BUY

growth y-o-y – a beat of 20% on EBITDA

TARGET PRICE (INR) PREVIOUS TARGET (INR)

◆ April continued to see strong growth, although high base and

710.00 650.00 volatile gold prices could affect H2FY27e

◆ Raise FY27-28e EPS estimates on higher revenues but lower SHARE PRICE (INR) UPSIDE/DOWNSIDE

margins; maintain Buy with a TP of INR710 (from INR650) 424.55 +67.2%

(as of 08 May 2026)

Strong Q4FY26: Kalyan reported solid Q4 results with 66% y-o-y consolidated MARKET DATA

revenue growth driven by strong performance in the India business. Gross margins at Market cap (INRm) 438,450 Free float 12%

12.9% were down 89bp y-o-y and 26bp q-o-q as the FOCO (franchise-owned, Market cap (USDm) 4,643 BBG KALYANKJ

3m ADTV (USDm) 30 RIC KALN.NS

company-operated) store ramp-up is gross margin dilutive but strong operating leverage

led to higher EBITDA margins y-o-y – EBITDA was up 84% y-o-y and was 16-20% FINANCIALS AND RATIOS (INR)

above our estimate and consensus. Interest expenses of INR1.3bn in Q4 had one- Year to 03/2026a 03/2027e 03/2028e 03/2029e HSBC EPS 13.48 14.78 18.40 22.60

offs affecting it so underlying charges would be lower going forward, especially with HSBC EPS (prev) 11.83 14.30 17.56 NA

non-GMLs (gold metal loans) declining through the year to nil. The Middle East Change (%) 13.9 3.3 4.8 NA

Consensus EPS 12.19 15.90 19.22 -

business grew revenues 37% (28% y-o-y in Q3FY26) in spite of disruptions and PE (x) 31.5 28.7 23.1 18.8

Candere revenues surged 344% y-o-y.