Kalyan Jewellers India posted robust growth for the third quarter of FY25, with a significant 21.2% increase in net profit, which reached ₹218.8 crore, up from ₹180.6 crore in the same period last year.

The company’s revenue also saw a sharp 39.5% growth, totalling ₹7,286.8 crore compared to ₹5,223 crore in Q3 FY24.

Despite this positive performance, EBITDA margins contracted to 6% from 7.1% year-on-year (YoY).

The strong revenue growth was driven by a 42% rise in standalone revenue from its India operations, which hit ₹6,393 crore, compared to ₹4,512 crore in Q3 of the previous fiscal.

This increase was largely attributed to the festive and wedding season demand, particularly in gold and studded jewellery. The company reported a healthy same-store sales (SSS) growth of 24%.

The Middle East operations also delivered strong results, with a 23% increase in revenue, reaching ₹840 crore compared to ₹683 crore in the same period last year. However, the growth in the region’s profit after tax (PAT) was modest, rising to ₹15 crore from ₹14 crore YoY.

Kalyan Jewellers’ e-commerce division, Candere, saw a 90% jump in revenue, from ₹29 crore in Q3 FY24 to ₹55 crore in the latest quarter. However, Candere posted a higher loss of ₹6.9 crore compared to ₹1.6 crore in the same period last year.

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Despite the margin squeeze, Kalyan Jewellers remained optimistic about its prospects.

Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers India Limited said, “We are extremely excited with the way the current year has progressed. The current quarter has started off well despite the volatility in gold prices. We are upbeat about the ongoing wedding season and expect to end the financial year on a strong note. We are on track for the launch of 30 Kalyan showrooms and 15 Candere showrooms in India during the current quarter.”

However, the company’s stock saw a 2.02% drop, closing at ₹440.30, ahead of the results. Year-to-date, the stock has fallen by 43.14%, reflecting broader market volatility and profit-booking.

Despite the decline, the company remains upbeat, with eight out of nine analysts tracking Kalyan Jewellers maintaining a ‘Buy’ rating on the stock. The highest target price, ₹875, is set by Motilal Oswal.