Kalyan Jewellers Targets Repayment of Rs 318 Crore Non-Gold Debt by H1 FY27

Kalyan Jewellers Aims for Debt-Free Status by FY27

Kalyan Jewellers, a leading Indian jewellery retailer, has set its sights on repaying its remaining non-gold metal loan (non-GML) debt of Rs 318 crore by the first half of FY27. The company's deleveraging plans have gained momentum due to strong profitability and cash generation, according to executive director Ramesh Kalyanaraman.

As of March 31, 2026, Kalyan Jewellers' non-GML debt stood at Rs 316.8 crore, a significant decline from Rs 894.4 crore recorded in the previous year. The company's net profit more than doubled to Rs 409.5 crore in Q4 FY26, driven by higher gold prices and robust festive and wedding-led demand for studded jewellery.

The company's sales clocked a 66% rise in Q4 FY26, while its free cash generated from operations during the year was used to reduce debt by Rs 350 crore and pay out dividends worth Rs 150 crore. Going forward, Kalyan Jewellers plans to allocate 50% of its cash generated towards debt reduction and dividends.

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To accelerate debt reduction, the company is in the process of disposing of non-core assets. It has already secured the release of Rs 180 crore in collateral for assets to be sold by September 2026, and has initiated the process to release a second set of assets valued at Rs 200 crore.

Kalyan Jewellers' debt reduction strategy is a significant shift from its earlier approach, which involved accumulating high-cost non-GML debt to fuel an aggressive expansion through its company-owned showroom (COCO) model and strategic land acquisitions. The company's non-GML debt was around Rs 1,300 crore in FY23.

However, recognizing the drag on profitability, management pivoted to a franchise-led (FOCO) model and began liquidating non-core assets. As a result, the company's showroom network has expanded sharply from 147 stores in FY23 to 342 stores in FY26, with FOCO-led additions contributing significantly to the growth.

Under its FY27 guidance, Kalyan Jewellers plans to scale up to 426 India showrooms, of which nearly 306 are expected to operate under the FOCO model.

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Debt Repayment Timeline