Kalyan Jewellers Q1 FY27 Results (NSE: KALYANKJIL)
Signal: Growth decelerated
The read
The key inflection is margin: consolidated EBITDA margin fell to 6.5%, down 50bps YoY after expanding 100bps in both Q2FY26 and Q3FY26, while revenue remained strong at ₹105889.27 million and grew 45.68% YoY. PAT growth of 32.03% remained healthy but lagged revenue, making operating conversion and subsidiary profitability the central trajectory question.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹10,588.93 Cr | +45.68% | +3.05% |
| EBIT | ₹573.22 Cr | N/A | |
| Net profit | ₹348.67 Cr | +32.03% | |
| EPS | ₹3.38 | +32.03% | |
| EBIT margin | 6.5% |
P&L walk
Revenue of ₹105889.27 million grew 45.68% YoY and 3.05% QoQ, but EBITDA margin contracted 50bps YoY and QoQ to 6.5%; PAT still grew 32.03% to ₹3486.65 million, broadly tracking operating profit rather than being driven by other income.
Segments
No reportable segment table was provided; however, consolidated revenue exceeded standalone revenue by ₹15634.07 million while consolidated PAT exceeded standalone PAT by only ₹273.41 million, implying subsidiaries and international operations added scale at a lower group-level profit conversion than the parent.
Key positives
- Consolidated revenue reached ₹105889.27 million, up 45.68% YoY and 3.05% QoQ, sustaining the company's multi-year high-growth trajectory.
- PAT increased 32.03% YoY to ₹3486.65 million and EPS increased 32.03% to ₹3.38, with PAT growth not dependent on a material exceptional or other-income distortion.
- Advertisement expense was ₹1168.73 million, or 1.10% of revenue, while revenue grew 45.68% YoY, indicating advertising intensity declined by 32bps YoY.
Key concerns
- EBITDA margin contracted 50bps YoY and QoQ to 6.5% despite 45.68% YoY revenue growth, reversing the two-quarter margin expansion streak.
- Finance costs increased 27.99% QoQ to ₹1084.01 million, creating a larger drag between EBIT of ₹5732.2 million and PBT of ₹4648.17 million.
- Consolidated PAT exceeded standalone PAT by only ₹273.41 million despite group revenue being ₹15634.07 million higher, indicating lower profit conversion in subsidiaries and international operations.
Research and educational content only. Not investment advice.