Kalyan Jewellers Share Price Falls 9% After Q1 2026 Results:
Kalyan Jewellers Share Price Falls 9% After Q1 2026 Results: Kalyan Jewellers—one of India’s largest jewellery retailers—delivered strong financial results for the first quarter of FY26, recording robust double-digit growth in profit and revenue.
Yet the stock saw a sharp sell-off of over 9% on August 8, 2025. This article explores the Q1 earnings in detail, the reasons behind the market’s reaction,
what top brokerages are forecasting, and what it means for investors in the midst of volatile gold prices and tariff uncertainties.
Q1 FY26 Results: Profit and Revenue Surge
- Net Profit: ₹264 crore, up 49% YoY (Q1 FY25: ₹177.7 crore).
- Revenue from Operations: ₹7,268.4 crore, up 31% YoY (Q1 FY25: ₹5,527.8 crore).
- EBITDA: ₹508 crore, up 38% YoY.
- EBITDA Margin: 7% (Q1 FY25: 6.7%).
- International Revenue: ₹1,070 crore, up 32% YoY.
- Middle East Revenue: ₹1,026 crore, up 27% YoY; PAT from region: ₹22 crore (18% growth).
- Candere (Online arm): Revenue of ₹66 crore, net loss of ₹10 crore.
Ramesh Kalyanaraman, Executive Director, highlighted that despite high gold price volatility and a strong previous-year base, the company began the quarter positively.
Preparations for the festive season, with new collections and campaigns, are underway, positioning the firm for continued demand growth.
Stock Price Reaction: Why the Fall?
Despite eye-catching Q1 numbers, Kalyan Jewellers’ share price:
- Dropped as much as 9.47% to ₹535 before recovering slightly.
- Closed the day nearly 7% lower at ₹550.25.
- The decline came on high volumes—almost three times its 30-day average—signaling brisk profit-booking and some market concerns after a run-up in recent months.
Key Triggers for the Dip:
- Profit-taking: After a strong rally in the past few quarters, investors likely booked gains.
- Tariff Concerns: Fresh US tariff threats on Indian jewellery exports heightened market anxiety.
- Resistance Levels: Technical analysts flagged resistance at ₹604, and the stock approached its yearly high before the results.
- Candere’s Loss: The negative performance of the online vertical also weighed subtly on sentiment.
Yet, it’s vital to note the broader context: despite Friday’s selloff, Kalyan Jewellers stock had risen by more than 2.4% over the past year, though it remains down 28% year-to-date.
Brokerages Stay Bullish: Target Prices Raised
Motilal Oswal
- Rating: Buy
- Target Price: ₹700 (based on 50x Jun’27 P/E)
- Growth Estimates (FY26–28): Revenue +21% CAGR, EBITDA +17% CAGR, PAT +21% CAGR
- Key Points: Commends the scale-up in non-southern markets, strong franchise model (40% revenue via franchisees), steadiness in studded jewellery (~30% share), improved profitability, and healthy free cash flows. Risks include store expansion delays and competitive intensity in South India.
Citi
- Rating: Buy
- Target Price: ₹700 (17% upside from current levels)
- Highlights: Notes strong revenue and margin gains support continued bullishness.
ICICI Securities
- Rating: Add
- Target Price: ₹670
- Estimates: Models revenue/EBITDA/PAT CAGRs of 28%/33%/51% (FY25–FY27). Praises aggressive store rollout with 170 new outlets planned for FY26.
Analyst Consensus
- 8 out of 9 analysts recommend ‘Buy’.
- Twelve-month target price consensus reflects a 12–17% upside from post-result levels.
Strategic Updates and Growth Initiatives
- Expansion: 170 new showrooms planned for FY26 (90 Kalyan + 80 Candere), mainly via franchise (FOCO) model.
- Non-South Markets: For the first time, sales outside South India comprise over 50% of domestic revenue.
- Studded Jewellery: Share steady at ~30%; studded segment revenue rose 30% YoY.
- Middle East and US: Geographic diversification is accelerating, aiding growth and margin stability.
- Capital Structure: Net debt/equity (ex-Gold Metal Loans) near zero. RoCE stands at 21.8%—a strong sign of capital efficiency.
Industry Context: Jewellery Demand, Tariffs, and Outperformance
- Organized Market Share: Organized players now claim 40% of India’s jewellery retail business (2020: 32%), with Kalyan holding a 7% share in this segment.
- Rural Demand: Demand in tier-2/3 cities, as well as robust Akshaya Tritiya and wedding sales, underpin revenue growth.
- Festive Outlook: Management is “upbeat” on prospects for the upcoming festival season, expecting steady demand to continue.
- Tariff Risks: The US imposed additional 25% tariffs on Indian jewellery exports, raising longer-term concerns about international revenue.
Technical & Financial Snapshot
| Metric | Q1 FY26 | Q1 FY25 | YoY Change |
|---|---|---|---|
| Revenue (₹ crore) | 7,268.4 | 5,527.8 | +31% |
| Net Profit (₹ crore) | 264.0 | 177.7 | +49% |
| EBITDA (₹ crore) | 508 | 368.5 | +38% |
| EBITDA Margin (%) | 7 | 6.7 | +30 bps |
| Share Price (Close, ₹) | 550.25 | — | -7% (post-Q1) |
| 12-mo Analyst Target (₹) | 700 | — |
Kalyan Jewellers posted another strong set of numbers with significant profit and revenue growth in Q1 FY26, expansion across India and overseas, and solid cash flow and capital efficiency.
The share price plunge appears to be more a result of near-term profit-booking, technical resistance, and external risks than any business weakness.
Almost all top brokerages—including Motilal Oswal, ICICI Securities, and Citi—have raised or reaffirmed their 12-month target price at ₹700, seeing consistent growth and robust fundamentals.
