Shares of Kalyan Jewellers India Ltd fell 6.75% to Rs 551.05 on Thursday, August 8, 2025, after dropping as much as 8% earlier in the day. The decline comes amid investor concerns over the company’s increased focus on backend infrastructure and potential plans for higher in-house manufacturing, which could impact its return on capital employed (ROCE) metric.
Market speculation suggested the company was ramping up in-house manufacturing, but management clarified that there are no such plans. Instead, Kalyan has received land from the Kerala government at a subsidised rate to promote local employment. The company will set up a manufacturing park there, sourcing exclusively from select suppliers in improved working conditions. Hallmarking personnel will also operate from this facility. The land cost is estimated at Rs 5 crore, and the company expects negligible construction expenses, ensuring minimal ROCE impact.
Additionally, Kalyan’s pilot programme to reduce credit periods remains under evaluation, aimed at improving sourcing efficiencies.
On the financial front, Kalyan Jewellers reported consolidated revenue of Rs 25,045.07 crore for FY25, up 34.99% from Rs 18,548.29 crore in FY24. Net profit rose 19.77% to Rs 714.17 crore, while EPS increased to Rs 6.93 from Rs 5.80. For Q4 FY25, revenue stood at Rs 6,181.53 crore, with a net profit of Rs 187.61 crore. The company’s debt-to-equity ratio improved sharply from 0.79 in FY24 to 0.20 in FY25.
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