Q2 FY27 results analysis · November 10, 2026
Kalyan Jewellers Q2 FY27 Results Analysis: PAT Jumps 42%, Margin Holds Steady (KALYANKJIL)
+64.0%PAT year on year, Rs. 427.10 Cr
Source: Quarterly results filing (BSE)
Quick summary
Kalyan Jewellers India Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 10,322.62 Cr (+31.40% YoY) and PAT growth of +63.95% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 10, 2026 |
|---|---|
| Revenue (Q2) | Rs. 10,322.62 Cr (+31.40% YoY) |
| PAT (Q2) | Rs. 427.10 Cr (+63.95% YoY) |
| EBITDA margin | 6.24% (-8 bps YoY) |
| EPS (Q2) | Rs. 4.14 (+64.29% YoY) |
Quarter Snapshot
Kalyan Jewellers delivered 31.40% YoY revenue growth and 42.44% normalized PAT growth while meeting its own balance-sheet targets — non-GML debt zero and gross debt of Rs.1,198.85 Cr entirely in metal gold loans. EBITDA margin held nearly flat at 6.24% (−8 bps YoY) against guided degrowth, with cash conversion at 1.39x CFO/PAT. The main watch items are the H2 showroom ramp requiring ~2.8x the H1 pace and a 55% rise in trade receivables since March.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "Ahead... >26% YoY" | +31.40% YoY | Played out |
| EBITDA margin | "Compressing" | 6.24% vs 6.32% (−8 bps YoY; +27 bps QoQ) — mild | Played out |
| PBT margin | "Flat-to-supported" | 4.71% vs 4.46% YoY (H1 4.55% vs 4.65%) — quarter up; H1 marginally below | Played out |
| Interest cost | "Declining" | Standalone −8.9% YoY (H1); consolidated +14.49% YoY (Q2) | Partially |
| Non-GML debt zero | Achieved in Q2 | Standalone borrowings NIL | Played out |
| ~Rs.86 Cr land sale (pre-registered one-time) | Confirmed in filing | Rs.73.46 Cr exceptional gain; Rs.86.16 Cr proceeds | Played out |
| SSSG ~20%, mix KPIs, cash-for-gold bridge, Middle East share/Candere PAT | Watch items | Not addressed in the filing — remain open for the call | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Non-GML debt zero by end-September FY27 | Q1 FY27 earnings call; Oct 7 business update | Standalone borrowings NIL at Sep 30, 2026 | Met |
| Standalone gross debt Rs.1,300 Cr, entirely GML, by FY27 | Q4 FY26 earnings call | Rs.1,198.85 Cr, all GML | On Track |
| EBITDA margins to keep degrowing during FOCO phase | Q2 FY26 earnings call | 6.24% vs 6.32% YoY (−8 bps) | On Track |
| PBT margins to hold prior-year levels in FY27 (incl. customs-duty benefit, ~Rs.40 Cr in Q1, rest in Q2/potentially Q3) | Q4 FY26 / Q1 FY27 calls | Q2 pre-exceptional PBT margin 4.71% vs 4.46% YoY; H1 4.55% vs 4.65% — quarter up; H1 marginally below prior-year | On Track |
| Interest saving of Rs.50 Cr in FY27 | Q4 FY26 earnings call | Standalone finance costs −8.9% YoY in H1; consolidated +14.49% YoY in Q2 — standalone tracking; consolidated not yet | On Track |
| ~150 consolidated showroom additions in FY27 | Q1 FY27 call; Oct 7 update | 39 net adds in H1 (507→546); H2 typically heavier per management | On Track |
| Candere PAT-positive for FY27 | Q4 FY26 / Q1 FY27 calls | Not derivable for Q2 from the filing (all subsidiaries Rs.3.08 Cr combined) | Too Early |
| Rs.200 Cr collateral release in FY27; second ~Rs.16 Cr parcel in the ongoing quarter | Q4 FY26 call; Oct 7 update | First parcel sold Sep 30 (Rs.86.16 Cr); second parcel (Rs.7.60 Cr carrying value) at held-for-sale | On Track |
Key Investment Insights
Key Positives
- Consolidated revenue grew 31.40% YoY to Rs.10,322.62 Cr against an elevated Navratri base
- Normalized PAT grew 42.44% YoY to Rs.371.07 Cr; reported PAT grew 63.95% to Rs.427.10 Cr
- EBITDA grew 29.67% YoY to Rs.644.46 Cr with margin down only 8 bps YoY (6.24%) and up 27 bps QoQ
- Standalone borrowings reduced to NIL; consolidated borrowings fell to Rs.177.25 Cr from Rs.523.65 Cr; gross debt of Rs.1,198.85 Cr is entirely metal gold loan, inside the Rs.1,300 Cr FY27 target
- H1 consolidated CFO of Rs.1,074.55 Cr is 1.39x PAT; FCF of Rs.887.80 Cr
- Inventories flat QoQ at Rs.14,193.22 Cr despite the August gold-price rally; standalone inventories released from Rs.10,687.22 Cr to Rs.10,358.07 Cr
- Rs.73.46 Cr gain on land sale with a second Rs.7.60 Cr parcel moved to held-for-sale, tracking the collateral-release plan
- Consolidated SSSG ~20% in Q2 per the Oct 7 business update vs 16% India SSSG in Q2 FY26
Risk Factors
- Gross margin declined 60 bps YoY to 12.34%, attributed to FOCO/franchise mix and exchange-promotion dilution
- Consolidated finance costs rose 14.49% YoY, driven by the international book, even as standalone finance costs fell 8.9% in H1
- Trade receivables jumped 55% since March to Rs.1,346.50 Cr, outpacing revenue growth
- Employee costs rose 41.68% YoY, partly from an ESOP expense step-up (Rs.21.43 Cr H1 FY27 vs Rs.0.95 Cr H1 FY26)
- H1 PBT margin of 4.55% is 10 bps below the prior-year 4.65%, leaving the full-year PBT-margin-hold target dependent on Q3 customs-duty benefit
- Showroom expansion requires ~111 net adds in H2 (~2.8x the H1 run-rate) to reach ~150 for FY27
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.