Mumbai: Kalyan Jewellers share price jumped nearly 12 percent on February 9 after the company reported better-than-expected Q3 results. The stock rose to Rs 424.85 on the BSE from the previous close of Rs 379.80, showing strong investor buying.
Trading activity was also strong, with traded volumes more than double the two-week average. After this rally, the stock reduced its 2026 year-to-date loss to around 14 percent. The stock had fallen 36 percent last year, its biggest yearly fall since listing.
Strong Revenue Growth Drives Confidence
The company reported strong business performance in Q3 FY26. Revenue grew about 42 percent year-on-year to Rs 10,343 crore from Rs 7,278 crore last year.
The company’s net profit jumped sharply by about 90 percent to Rs 416 crore compared to Rs 219 crore in the same quarter last year.
Management said strong festive demand supported growth. Customer footfall remained healthy even with volatile gold prices. Demand momentum also continued strong in the first month of the new year.
Franchise Expansion And Debt Reduction Support Outlook
Franchise business now contributes over 50 percent of revenue, helping the company expand successfully beyond Southern markets. The company aims to become net debt-free by FY27 through sale of non-core assets and strong cash flows.
International business also performed well. Profit from overseas operations rose 64 percent, while revenue increased 38 percent.
In India, gross margin remained stable at 12.7 percent despite higher franchise contribution. This stability was supported by better product mix, procurement efficiency and inventory gains from silver and platinum jewellery.
Brokerages Remain Positive On Growth
JM Financial raised FY26-28 earnings estimates by 4–5 percent. However, it reduced target price slightly to Rs 750 due to valuation changes but maintained Buy rating.
Motilal Oswal also maintained Buy rating with target price of Rs 600. The brokerage expects strong revenue, EBITDA and profit growth over FY26-28, supported by customer growth, better margins and lower debt.
Overall, analysts remain positive due to strong growth momentum and improving balance sheet strength.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Market investments carry risk. Investors should evaluate risks carefully and consult financial advisors before taking investment decisions.
