Thrissur-based Kalyan Jewellers is sharpening its push into non-South Indian markets by expanding through the franchise-owned company-operated (FOCO) model, according to its Q2FY26 earnings investor presentation. The jeweller has outlined a capital-efficient strategy to drive store expansion while strengthening its balance sheet.

As of September 30, 2025, Kalyan operates 174 FOCO showrooms across India and has signed Letters of Intent (LOIs) for an additional 89 outlets to be launched in FY26. Its digital-first brand, Candere, is also scaling using the FOCO approach, with 54 such showrooms already operational.

Kalyan plans to adopt this franchise-led format internationally as well, with measured expansion in the Middle East and upcoming entry into the US market.

The company said that future growth will be guided by capital-light operations, allowing higher returns and lower leverage. Kalyan intends to allocate 40–50% of profits towards debt repayment and shareholder returns. Since April 2023, it has repaid Rs 6,461 crore in working capital loans in India and announced a dividend payout of over 20% for FY25.

Kalyan reported about 31% revenue growth in Q2FY26, backed by 16% same-store sales growth and strong new customer acquisition, which contributed to around 38% of total sales. Nearly 49% of quarterly revenue was generated from franchised showrooms. Better procurement efficiencies and operating leverage supported margin improvements.

During the quarter, the company added 15 showrooms (13 net) to its domestic retail network.