Reporting from DUBAI: Kalyan Jewellers India Ltd has sharply pared down its non‑gold‑metal loan (non‑GML) borrowings, reporting a reduction of Rs130 crore in Q2 (ended September 30, 2025) to bring the non‑GML debt to approximately Rs550 crore.
The company said it remains “on track” to meet the full‑year reduction target of Rs300 crore.
Management said the pause in repayments – pending lease approvals on real estate collateral- has now been cleared by the lead bank in the lender consortium, enabling the next phase of deleveraging.
Kalyan Jewellers expects to cut non‑GML borrowings to around Rs400 crore by March 2026, and aims to become debt‑free on the non‑GML front by the following financial year.
That means the company will still carry working‑capital backed gold‑metal loans (GMLs) – typical for the jewellery business – but will eliminate all other forms of debt.
On the gold‑loan side,Kalyan Jewellers did not disclose a precise GML outstanding figure for September 30, in its Q2 update, but analysts highlight that the burden of gold‑metal loans is considered more flexible and normalised in the jewellery sector.
Quarter highlights
For Q2 FY26, Kalyan Jewellers reported consolidated revenue of Rs7,856 crore, up around 30 per cent year‑on‑year, driven by a strong Navratri and pre‑Diwali demand.
EBITDA rose to Rs497 crore, from Rs319 crore a year ago, while profit after tax (PAT) doubled to Rs261 crore. India revenue increased by about 31 per cent to Rs6,843 crore with PAT up 118 per cent to Rs262 crore; its Middle East business posted revenue at Rs866 crore and PAT at Rs15 crore.
The retailer opened 32 new stores during the quarter (15 India, 2 Middle East, 15 under the Candere brand). Same‑store sales growth in the 30 days leading to Diwali was over 30 per cent.
The Kalyan Jewellers push to eliminate non‑GML debt signals a strategic leap towards a leaner balance sheet.
“If Kalyan achieves its goal of being non‑GML debt‑free next year, the company will lean largely on gold‑metal loans – which are seen as safer and typical for the jewellery trade—while freeing up funds for expansion and brand building,” a gold trade analyst said..
