Kalyan Jewellers Q3 net profit nearly doubles YoY to Rs 416 crore, aided by sales growth

Kalyan Jewellers India Ltd

• Kalyan Jewellers Q3 net profit jumped 90 percent to Rs 416.3 crore year-on-year
• Revenue rose 42% to Rs 10,343.4 crore due to strong demand and store growth.
• Company absorbed a Rs 41.5 crore one-time charge due to new labour codes

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Kalyan Jewellers India Ltd reported a sharp jump in its Q3 FY26 consolidated net profit, aided by strong revenue growth and inventory gains, even as the jewellery retailer absorbed a one-time hit linked to the implementation of the new labour codes. The company’s fiscal third quarter consolidated net profit rose 90 percent year-on-year to Rs 416.3 crore, compared with Rs 218.7 crore in the year-ago period, according to its exchange filing.

Kalyan Jewellers' revenue from operations increased 42 percent on-year to Rs 10,343.4 crore during the quarter, reflecting robust demand and store-led growth.

The company’s operating performance strengthened during the quarter, with EBITDA rising 75 percent year-on-year to Rs 750.5 crore. EBITDA margin expanded to 7.3 percent from 5.9 percent in the same period last year, aided by higher operating leverage and margin improvement at the gross level.

Gross profit increased 52 percent on-year to Rs 1,357.7 crore, while gross margin improved to 13.1 percent from 12.2 percent a year earlier.

Operating expenses increased 32 percent on-year to Rs 607.3 crore, led by higher advertising and promotion spends as well as other operating costs. The company also recognised a one-time exceptional charge related to changes in employee benefit provisions following the introduction of the new labour codes.

The company also recognised a one-time exceptional charge of Rs 41.5 crore related to changes in employee benefit provisions following the implementation of the new labour codes. Under Ind AS 19, amendments to employee benefit plans arising from legislative changes require immediate recognition of past service costs in the profit and loss account. The charge was reported as an exceptional item in the quarter.

Shares of Kalyan Jewellers India Ltd closed at Rs 380.70 on Friday, February 6, ahead of the results announcement, up 1.21 percent on the day, but down about 30 percent over the past one year.