India’s Kalyan Jewellers is betting on rising formalisation and a capital-light franchise strategy to capture a larger slice of the country’s vast jewellery market. The INR 6.4 trillion Indian jewellery sector, with just 38% organised share in FY24, is expected to see the formal segment outpace overall growth, expanding at a 20% CAGR through FY28, analysts estimate.
Founded in 1993 by T.S. Kalyanaraman, Kalyan has evolved from a regional player in Kerala to a pan-India brand with a growing international presence. As of FY25, the company operates 278 stores across India, 36 in the Middle East, and one in the U.S., alongside its online platform Candere and 73 Candere showrooms.
Kalyan’s hyperlocal strategy, brand trust, and ‘My Kalyan’ network – which drives sales in regions without physical stores – have strengthened its position in an industry still dominated by unorganised players. The company’s pivot to a franchise-led expansion has enabled rapid store rollouts while keeping capital requirements low, as partners shoulder inventory and capex costs. Kalyan added a net 74 stores in India in FY25 and targets 85-90 new stores annually through FY28.
The asset-light model is expected to drive revenue, with analysts projecting a 25% CAGR in revenue and 31% CAGR in PAT over FY25-28, despite a slightly lower EBITDA CAGR of 23% due to margin sharing. Profitability is set to improve at the PBT level, aided by operating leverage and lower capital deployment.
Analysts see room for a re-rating as Kalyan trades at a discount of 10-40% to peers despite stronger growth prospects. The stock is rated ‘Buy’ with a target price of INR 700, implying a P/E multiple of 45x Jun’27 EPS, lower than Titan’s 57x due to its superior margins and returns.
