Kalyan Jewellers Share Price Rises — But How Much Debt Does the Company Have?

As of July 14, 2025, Kalyan Jewellers' share price closed at ₹589.50, reflecting a 0.64% gain on the day. The share price has shown a clear upward trend recently, with intraday highs near ₹594.50 and lows around ₹502.35 over the past month. Notable spikes include a 3.75% gain on June 25 and a 2.67% rise on July 2. This steady rise suggests growing investor confidence in the firm’s recovery plans.

Long-Term Debt Trends of Kalyan Jewellers

Kalyan Jewellers’ long-term debt has grown notably in recent years. From a modest ₹84.84 crore in FY 2020, it surged sharply to ₹632.40 crore in FY 2021. After a slight dip in FY 2022, debt climbed again to ₹672.09 crore in FY 2023, before jumping to over ₹1,001 crore in FY 2024. This significant rise highlights the company’s reliance on long-term borrowings, especially as it expanded its store network and operations.

What Debt Reduction Initiatives Have Been Taken?

Despite the high debt levels, Kalyan Jewellers has been actively working to reduce its overall debt burden. Over the last two years, it has cut approximately ₹520 crore from its total debt. In FY 2025 alone, the company lowered debt by about ₹250 crore, primarily targeting its Gold Metal Loan (GML) liabilities. For FY 2026, it aims to reduce debt further by ₹300–₹400 crore, with plans to sell land assets mortgaged to banks and focus on an asset-light expansion model.

Kalyan Jewellers' Balance Sheet Shows Strong Equity and Reserves Support

Alongside managing debt, Kalyan Jewellers has steadily strengthened its financial foundation. Total equity grew from ₹1,968 crore in FY 2018 to ₹4,187 crore in FY 2024. Meanwhile, reserves and surplus expanded significantly, from ₹91 crore to ₹1,557 crore during the same period. This build-up of retained earnings improves the company’s capacity to repay debt and invest in future growth.

Shift to Franchise Model and Profitability

Kalyan Jewellers is moving towards a franchise-operated model. In this setup, franchise partners pay to open new stores, but Kalyan keeps full control of how the stores are run. Right now, these stores bring in 40% of the company’s revenue. By next year, the goal is for franchise and company-owned stores to each contribute 50%. Since franchise stores earn better profits before tax, this shift is expected to boost the company’s overall earnings.

Kalyan Jewellers' Future Plans

Kalyan Jewellers plans international expansion with 10 new stores in the Middle East, the UK, and the US next year. Once its debt reduction phase completes around 2027, the company may explore options like buybacks, dividends, or increased company-owned store openings, depending on board decisions.

Read more: Check Today’s Gold and Silver Prices Across New Delhi, Mumbai, and Other Cities Here!

Conclusion

Kalyan Jewellers carries substantial debt, especially long-term borrowings, but it is taking clear steps to reduce this burden while maintaining growth. The rising share price, strong equity base, and shift to a franchise model indicate that the company is balancing expansion with financial health. Investors should watch the ongoing debt reduction and how it supports sustained profitability and market confidence.

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