ICRA Upgrades Kalyan Jewellers’ Credit Rating On Strong Growth, Diversification

ICRA has upgraded Kalyan Jewellers India Ltd.'s long-term banking facilities rating to ‘AA-’ from ‘A+’ and revised the outlook to ‘stable’ from ‘positive’. The agency also raised the short-term rating to ‘A1+’ from ‘A1’.

The upgrade reflects improved credit metrics, steady earnings growth, increased geographical and product diversification, and lower working capital intensity, ICRA said.

The company’s consolidated operating income grew at a 32% CAGR between 2021-22 and 2024-25, supported by strong same-store sales, ramp-up of new stores, and ongoing expansion. ICRA noted the jeweller’s large scale, strong brand presence, and three-decade track record.

However, it flagged risks from intense industry competition, volatility in gold prices, and regulatory challenges.