Kalyan Jewellers Q1 FY27: revenue up 46% YoY, margins compress as consol PAT rises 32%

Kalyan Jewellers posted consolidated revenue of ₹10,588.9 Cr for Q1 FY27, up 45.7% YoY from ₹7,268.5 Cr and up 3.1% QoQ from ₹10,274.9 Cr in Q4 FY26. Consolidated PAT came in at ₹348.7 Cr, up 32.0% YoY from ₹264.1 Cr but down 14.9% QoQ from ₹409.5 Cr — the QoQ dip reflects Q4's seasonally stronger wedding-season base rather than a genuine sequential slowdown. Basic EPS was ₹3.38 (consolidated) versus ₹2.56 a year ago. Standalone told a similar but slightly stronger story: revenue +47.0% YoY to ₹9,025.5 Cr, PAT +25.3% YoY to ₹321.3 Cr — the ~7-point gap versus consolidated PAT growth (32.0%) reflects a stronger showing from the overseas/Candere subsidiaries this quarter. The real story is margin, not growth: consolidated total expenses rose to 95.6% of total income versus 95.1% a year ago, pushing consolidated OPM/EBITDA margin down to roughly 6.0% from ~7.0% YoY and ~7.2% QoQ, and NPM to 3.3% from 3.6% YoY. Standalone (India) PBT margin worked out to ~4.8% (₹432.1 Cr PBT / ₹9,025.5 Cr revenue) — below the 5.5–5.6% band management guided for FY27 in the Q4 FY26 concall, where it cited operating leverage and interest-cost savings as the levers to hold that range. No exceptional items appear in either the current or year-ago quarter, so the growth and margin figures are on a like-for-like reported basis with no adjustment needed. Against the Street, the print was mixed: pre-result consensus (Uniresearch) modeled revenue of ~₹9,556 Cr and PAT of ~₹392 Cr; actual revenue beat that by ~11%, but PAT missed it by a similar margin — consistent with the margin compression described above. Our pre-result preview had flagged exactly this risk ("watch for gross margin pressure" alongside SSSG and US-subsidiary progress), and it materialized: PAT growth of 32% sits at the lower end of the company's own 30–50% FY27 growth aspiration cited in the preview, even as revenue cleared the preview's ₹9,000–9,200 Cr expectation comfortably. On corporate developments, the quarter included the ₹12M (~USD) loan-to-equity conversion in the US subsidiary (26 June 2026), consistent with funding the company's stated US expansion track, alongside the routine insider-trading window closure ahead of results. No standalone management press release/commentary was available in our records to cross-check against the numbers, so management's own framing of the quarter could not be verified here — the margin and guidance reads above rely solely on the filed statements and the prior concall record.