How has been the historical performance of Kalyan Jewellers?

Revenue and Profit Growth Over the Years

Kalyan Jewellers’ net sales have shown a remarkable upward trend, rising from ₹8,573 crores in March 2021 to over ₹25,000 crores by March 2025. This represents nearly a threefold increase in just four years, underscoring the company’s successful expansion and market penetration. The total operating income mirrors this growth, with no other operating income reported, indicating that the core business remains the primary revenue driver.

Operating profit (PBDIT) excluding other income also improved substantially, climbing from ₹594 crores in March 2021 to ₹1,517 crores in March 2025. Including other income, operating profit reached ₹1,662 crores in the latest fiscal year. However, operating profit margins have slightly contracted from 6.93% in 2021 to 6.06% in 2025, suggesting some pressure on cost efficiencies despite rising absolute profits.

Profit before tax surged from a modest ₹39 crores in 2021 to ₹960 crores in 2025, while profit after tax turned positive after a loss in 2021, reaching ₹714 crores in the latest year. Earnings per share (EPS) followed a similar pattern, recovering from a negative value in 2021 to ₹6.93 in 2025, reflecting improved profitability and shareholder returns.

Cost Structure and Margins

The company’s raw material costs have scaled in line with revenue, increasing from ₹7,482 crores in 2021 to over ₹22,257 crores in 2025. This reflects the high material intensity typical of the jewellery business. Other expenses and employee costs have also risen, though at a more moderate pace, indicating controlled overheads amid expansion. The gross profit margin has improved from 3.08% in 2021 to 5.2% in 2025, signalling better pricing or cost management despite the raw material cost pressures.

Interest expenses have decreased slightly from ₹375 crores in 2021 to ₹359 crores in 2025, helping to support net profitability. Depreciation charges have increased moderately, consistent with asset additions and capital expenditure.

Balance Sheet Strength and Asset Growth

Kalyan Jewellers’ total assets have grown from ₹8,819 crores in 2021 to ₹15,013 crores in 2025, reflecting investments in inventory, property, and other assets to support business growth. Inventories have nearly doubled, reaching ₹9,681 crores, which is typical for a jewellery retailer managing a wide product range.

Shareholders’ funds have strengthened significantly, rising from ₹2,826 crores in 2021 to ₹4,804 crores in 2025, supported by accumulated reserves and retained earnings. Book value per share has increased steadily from ₹27.44 to ₹46.57 over the same period, indicating enhanced net worth per share for investors.

While total debt has remained relatively stable around ₹3,300 crores, the company has reduced long-term borrowings to zero by 2025, relying more on short-term financing. This shift may reflect improved cash flow management and a focus on optimising capital structure.

Cash Flow and Liquidity

Operating cash flow has shown a strong upward trend, rising from ₹628 crores in 2021 to ₹1,209 crores in 2025, demonstrating the company’s ability to generate cash from its core operations. Despite some fluctuations in investing and financing activities, net cash inflow was positive at ₹192 crores in 2025, supporting liquidity and operational needs.

Cash and bank balances have increased to over ₹1,031 crores, providing a comfortable buffer for working capital requirements and contingencies. The company’s working capital position has improved, with net current assets rising to ₹2,589 crores in 2025, reflecting efficient management of receivables, payables, and inventory.

Summary of Historical Performance

Overall, Kalyan Jewellers has exhibited strong historical performance characterised by rapid revenue growth, improved profitability, and a solidifying balance sheet. The company has successfully navigated challenges, including a temporary loss in 2021, to return to sustained profitability and cash generation. Its expanding asset base and shareholder equity highlight a firm foundation for future growth, while stable debt levels and enhanced cash reserves provide financial flexibility.

Investors may note the slight compression in operating margins, which warrants monitoring, but the consistent rise in earnings per share and book value per share are positive indicators of value creation. The company’s ability to maintain healthy cash flows amid expansion further supports its operational resilience in the competitive gems and jewellery sector.

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