Synopsis:
Kalyan Jewellers India is in focus after PE firm Warburg Pincus eyes 10% stake in Candere for an estimated Rs 800-850 crore which will increases Candere’s presence across India.
The shares of this leading manufacturer and seller of gold jewellery are in focus after PE firm eyes to purchase a 10 percent stake in its Candere business. In this article, we will dive more into the details of this.
With a market capitalisation of Rs 52,797 crore, the shares of Kalyan Jewellers India Ltd made a day high of Rs 521.40 per share, up by 2.5 percent from its previous day closing price of Rs 508.70 per share. In the last one year, the stock has corrected by 21 percent.
About the news
According to sources, global private equity powerhouse Warburg Pincus is currently in discussions with Kalyan Jewellers India to buy about a 10 percent stake in its lifestyle jewellery brand, Candere, for an estimated Rs 800-850 crore.
This deal is anticipated to involve a combination of purchasing existing shares and issuing new equity. Some of the stake will likely be acquired from Kalyan Jewellers, while the remainder will come from newly issued shares by Candere. The capital raised from these new shares is set to fuel Candere’s expansion throughout India.
For Warburg Pincus, this investment would signify a return to the Kalyan Jewellers family. The firm had previously invested in Kalyan Jewellers since 2014, but completely exited the publicly listed company last year.
Candere is a jewellery brand that kicked off in 2013 as a digital start-up, driven by the goal of making diamond jewellery both affordable and accessible for today’s consumers. It started as an online platform and quickly transformed into a beloved e-commerce brand, celebrated for its modern, and wallet-friendly designs.
In 2017, Kalyan Jewellers took Candere under its wing, allowing the brand to broaden its reach across India and enhance its omnichannel approach. Nowadays, Candere seamlessly blends online shopping with a growing network of over 25 retail showrooms, giving customers the flexibility to shop however they prefer. The brand prides itself on innovative designs, customisation options, and top-notch craftsmanship, all aimed at making the experience of buying fine jewellery straightforward and enjoyable.
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Financial Highlights
Kalyan Jeweller’s revenue for Q1 FY26 came in at Rs 7,268 crore, registering a 31 percent growth from Rs 5,528 crore in the same quarter last year. Additionally, on a sequential basis, revenue surged by 18 percent from Rs 6,182 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit growth of 48 percent to Rs 264 crore in Q1 FY26 as compared to Rs 178 crore in Q1 FY25. Additionally, on a QoQ basis, it increased by 40 percent from Rs 188 crore.
The stock delivered an ROE and ROCE of 15.95 percent and 15.02 respectively, and is currently trading at a high P/E of 66x as compared to its industry average of 29.18x.
Written by Satyajeet Mukherjee
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