KOCHI: Joyalukkas, one of India’s leading jewellery retailers, is preparing a Rs1000 crore bank borrowing facility, highlighting the company’s cautious yet confident approach to expansion.
Despite aggressive store additions in recent years, the company remains a conservative borrower, with low reliance on external funding for inventory and net leverage at a comfortable 1.1 times as of FY25.
The group’s core operating earnings, measured by Ind-Ra-adjusted EBITDA, stood at Rs2,588 crore in FY25, a marked improvement from Rs1,661 crore in FY24. This robust cash operating performance underpins the company’s ability to raise debt without stressing its balance sheet.
Over FY25, Joyalukkas added eight new showrooms across India, followed by four more in the first quarter of FY26. The company plans to open an additional 15 stores over the next year, with roughly three-fourths of the new space targeted in South India, where the brand enjoys its strongest presence.
Joyalukkas has also addressed legacy balance sheet issues. Contingent liabilities, including pending FEMA and tax disputes, have declined significantly. Notably, a FEMA penalty of Rs16.9 crore was settled by Joyalukkas in October 2025, clearing a major overhang on the books.
The company’s expansion strategy focuses on asset-light growth, leveraging internal accruals to fund inventory and store openings. According to rating agency Ind-Ra, the combination of steady EBITDA growth, disciplined borrowing, and prudent expansion supports healthy credit metrics and liquidity.
Financial prudence
“Joyalukkas is strategically balancing growth with financial prudence,” said an analyst. “The proposed Rs1000 crore borrowing reflects confidence in future expansion, rather than an urgent funding need, reinforcing its position as a conservative borrower with a strong operating base.”
The planned borrowing could also enable Joyalukkas to strengthen its presence beyond South India, tapping into emerging markets in western and northern India, and potentially increasing the share of high-margin studded jewellery in its portfolio.
With revenue growing at a 25 per cent CAGR over FY22-FY25, the company is well positioned to sustain its market share and leverage its brand recall, even as the organised jewellery sector becomes increasingly competitive.
