National News
Kalyan Jewellers to expand in non-South markets via franchise model
Kalyan Jewellers said it will accelerate the rollout of franchise-owned company-operated (FOCO) showrooms to drive expansion in India and overseas. Nearly half its revenue now comes from franchised stores, and most new openings in FY26 will follow the capital-light FOCO model as the company focuses on improving returns and reducing debt.
Thrissur-based jewellery retailer Kalyan Jewellers plans to sharpen its focus on franchise-owned company-operated (FOCO) showrooms as it scales both in India and overseas, according to its Q2FY26 earnings investor presentation. The jeweller said future incremental expansion will be driven largely through capital-light franchise formats, aimed at improving returns and reducing balance sheet leverage.
The company, which has 174 FOCO showrooms in India as of September 30, 2025, has signed letter of intents (LOIs) for 89 new FOCO outlets to be opened in FY26. Its digital-first brand Candere will also expand primarily through the FOCO route, with 54 such showrooms already in place. Internationally, Kalyan said calibrated expansion in the Middle East and entry into the US market will similarly rely on franchise-led stores.
The shift is part of a broader strategy towards capital-efficient growth. The company aims to use 40-50% of profits to repay debt and invest in shareholder returns. Since April 2023, Kalyan has repaid Rs 6,461 crore in working capital loans in India and declared a dividend payout of over 20% for FY25.
The jeweller reported about 31% revenue growth in Q2FY26, supported by 16% same-store sales growth and continued strong new customer additions, which accounted for over 38% of sales. Nearly 49% of quarterly revenue came from franchised showrooms. Margin gains were driven by improved procurement efficiencies and operating leverage.
National News
GJC welcomes RBI’s 25 basis point repo rate cut
Seen as a boost to economic growth and sectoral stability
The All India Gem and Jewellery Domestic Council (GJC) welcomes the Reserve Bank of India’s announcement of a 25 basis point cut in the key repo rate. This progressive and timely measure reflects the Hon’ble Prime Minister and the Finance Minister’s commitment to strengthening India’s economic environment.
The gem and jewellery sector, a vital contributor to employment and exports, will benefit significantly from this reduction in interest rates. Lower borrowing costs and improved liquidity will ease financial pressures, enhance business confidence, and support growth across the trade.
Rajesh Rokde, Chairman of GJC, said: “We sincerely appreciate the Government of India and the RBI for this supportive move. The repo rate cut will help the trade stabilise, sustain, and grow in the coming months. It is a welcome relief for our industry and will encourage investment, strengthen retail demand, and create a more conducive environment for expansion.”
Avinash Gupta, Vice Chairman of GJC, added: “This decision demonstrates the government’s proactive approach to nurturing economic growth. By easing financial pressures, the RBI has created an enabling environment for businesses in the gem and jewellery sector to flourish. We urge all our fellow members nationwide to take note of this positive development and utilise the benefit effectively, especially small and medium enterprises that form the backbone of our industry.”
The GJC believes this move will have a cascading positive impact across allied industries, empowering artisans, manufacturers, wholesalers, and retailers. With improved liquidity, jewellers will be better positioned to meet consumer demand during the upcoming festive and wedding seasons, further contributing to India’s economic momentum.
The Council reiterates its gratitude to the Government of India and the Reserve Bank of India for their continued support. This measure will strengthen the sector’s resilience and long-term growth, reinforcing India’s position as a global leader in gems and jewellery.
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