Kalyana Jewellers Ltd, which recently posted its second quarter result (July and September) for fiscal year 2025, has expressed interest in entering into the ‘value-for-money’ and ‘Luxury’ segments. However, Ramesh Kalyanaraman, Executive Director said this might take a short while after Candere’s business settles down.
“There are four major verticals in jewellery today, out of which Kalyan is there in one bucket and Candere is there in another bucket. We can, in the future, medium term, we can enter into the other 2 segments, the value for money segment and the luxury segment. But as we speak today, if you ask me, will we do it for next year? Might be no because we are waiting for Candere to settle down”.
According to Kalyanaraman, Candere’s target is working women, youngsters, and Gen Z. “Footfalls have started increasing, but not to the level, which we want because we
have not started our campaigns well. So our focus now is to build the team to increase the footprint and campaigns will follow,” he said.
Candere currently has a total of 46 showrooms in the country. Kalyan Jewellers opened 34 showrooms this year. The jewellery brand has plans to open a total of 50 showrooms of Candere in FY 25 while another 20 are in the pipeline.
On studded, Kalyanaraman said the demand is strong in a few markets where solitaire is looked upon as a commodity, predominantly in Delhi, Punjab, and all. However, in South India, people don’t see diamond jewellery or any studded jewellery as an investment. They don’t buy only a piece of solitaire and keep it with them as an
investment,” he added.
On lab-grown diamonds, Kalyanaraman said he has not witnessed any demand at the store level. However, he added, “When there is demand, we will surely go and supply. So at the store level, we don’t see any demand for lab-grown diamonds. And because the price itself has not stabilized, big brands, major brands are not pushing that also because people believe the brand more than the product”.
Kalyan Jewellers reported a 115.2 percent rise in advertisement expenses in the second quarter (July and September) of fiscal year 2025. The jewellery brand ad expenses surged to Rs 91.08 crore in Q2 FY 25 compared to Rs 42.32 crore in the corresponding quarter in FY 24.
However, the sales and promotion expenses saw a marginal decline in Q2 FY 25 to Rs 10.75 crore from Rs 11.4 crore in Q2 FY 24.
Kalyan Jewellers also posted a decline in its standalone net profit to Rs 120.25 crore between July and September FY 25. Last year, the company’s profit in Q2 stood at Rs 125.53 crore.
The consolidated revenue of the company in H1FY 25 rose to Rs 11,601 crore compared to Rs 8,790 crore- witnessing a 32 percent growth.
The standalone revenue for the company (India) in H1 FY25, was Rs 9,914 crore, as against Rs 7,395 crore in H1 of the previous financial year.
In the Middle East market, the company’s total revenue from the operations during H1 FY 25 stood at Rs 1,611 crore as against Rs 1,329 crore in H1 FY 24.
According to Kalyan Jewellers, the Middle East operations recorded a PAT of Rs 33 crore for the first half compared to a PAT of Rs 29 crore for the corresponding period in the previous year. Revenue and PAT for Q2 FY25 was Rs 800 crore and Rs 14 crore respectively. The e-commerce division, Candere, recorded a revenue of Rs 80 crore in H1 FY25 versus Rs 66 crore in H1 FY24. The company recorded a loss of Rs 6 crore in H1 FY25 versus a loss of Rs 4.8 crore during H1 FY24. Revenue and net loss for Q2 FY25 was Rs 41 crore and Rs 3.8 crore, respectively.