Synopsis: Kalyan Jewellers’ shares rallied after strong Q1 FY27 business growth, rapid showroom expansion, strong Candere performance, and Citi reaffirmed its Buy rating with a Rs. 750 target.
This Mid-Cap Jewellery Stock, engaged in the design, manufacturing, retail, and sale of gold, diamond, platinum, silver, and precious stone jewellery through its extensive showroom network, initially fell nearly 9 percent after announcing its Q1 FY27 business update.
However, the stock witnessed a sharp recovery thereafter, surging 36.26 percent over the last three trading sessions and rising up to 9.12 percent in today’s intraday trade. In this article, we will explore the key reasons behind the stock’s strong rally.
Stock Price Movement
With a market capitalization of Rs. 48,590.43 crores, the share of Kalyan Jewellers India Limited has reached an intraday high of Rs. 483.40 per equity share, rising nearly 9.12 percent from its previous day’s close price of Rs. 443. Since then, the stock has retreated and is currently trading at Rs. 470.75 per equity share.
Kalyan Jewellers India Limited touched an intraday high of Rs. 483.40, rising 36.26 percent from its closing price of Rs. 354.75 on July 7, 2026. However, despite the recent rally, the stock has delivered a negative return of over 19.99 percent over the past one year.
Reason Behind the Rally
Kalyan Jewellers India Limited is one of India’s leading jewellery retailers, engaged in designing, manufacturing, and selling gold, diamond, platinum, silver, and precious stone jewellery through an extensive network of showrooms in India and the Middle East. The stock surged 36.26 percent in just three trading days, supported by a strong Q1 FY27 company update and a positive brokerage view from Citi, with a target price of Rs. 750 per share. Here are the key reasons behind the stock rally.
Quarterly Update: Q1 FY27
Kalyan Jewellers India Limited reported a strong performance in the first quarter of FY2027, with consolidated revenue increasing by around 38 percent compared to the same quarter last year. Its India business also recorded over 38 percent revenue growth, supported by healthy demand and around 28 percent same-store sales growth, despite the impact of the Adhik Maas period, which usually slows wedding-related jewellery purchases in some regions.
The company also received a positive response to its “Shine with India” gold recirculation campaign, launched in May. This initiative encouraged customers to recycle old gold, increasing recycled gold’s share of revenue to over 46 percent during the quarter and more than 55 percent in June.
International operations also performed well, with revenue growing by around 35 percent, while the Middle East business recorded approximately 30 percent growth. Kalyan Jewellers’ digital jewellery platform, Candere, delivered excellent performance with 112 percent revenue growth compared to the previous year.
Retail Network and Showrooms
Kalyan Jewellers India Limited continued to expand its retail network during the quarter by opening 12 Kalyan showrooms and 5 Candere showrooms across India. As of June 30, 2026, the company operated a total of 524 showrooms worldwide, including 354 in India, 38 in the Middle East, 2 in the United States, 1 in the United Kingdom, and 129 Candere showrooms. With its growing retail footprint and the expected boost from the upcoming festive and wedding season, the company remains optimistic about sustaining strong business growth in the coming quarters.
Brokerage Viewpoint
Citi has recommended a “Buy” call on Kalyan Jewellers India Limited with a target price of Rs. 750 per share, indicating an upside potential of 111.42 percent from its close price of Rs. 354.75 per share on July 7, 2026. Following the stock’s 36.26 percent rally, the upside potential has now moderated to 59.32 percent from its current market price of Rs. 470.75 per share.
Citi has maintained its Buy rating on Kalyan Jewellers even though the company’s June quarter revenue came in slightly below Citi’s expectations. The company reported 38 percent year-on-year revenue growth, while its India business also grew by 38 percent, supported by a strong 28 percent same-store sales growth. Citi believes the company’s overall business performance remains healthy despite the slight miss.
The brokerage remains positive because of Kalyan Jewellers’ franchise-led expansion model, which helps the company grow with lower investment. It also highlighted the strong performance of Candere, whose revenue increased by 112 percent, along with the opening of five new stores. Citi expects strong festive demand and continued expansion in India and international markets to support the company’s long-term growth.
Company Overview
Kalyan Jewellers India Limited is one of India’s largest jewellery retailers, engaged in the design, manufacture, and sale of gold, diamond, platinum, silver, and precious stone jewellery. Established in 1993 and headquartered in Thrissur, Kerala, the company has a strong retail presence across India, the Middle East, the United States, and the United Kingdom. It also operates Candere, its digital-first jewellery brand, which strengthens the company’s omnichannel presence and expands its reach in the online jewellery market.
Recent Quarter Results
Coming into financial highlights, Kalyan Jewellers India Limited’s revenue has increased from Rs. 6,182 crore in Q4 FY25 to Rs. 10,275 crore in Q4 FY26, which has grown by 66.21 percent. The net profit has also grown by 118.09 percent from Rs. 188 crore in Q4 FY25 to Rs. 410 crore in Q4 FY26. Kalyan Jewellers India Limited’s revenue and net profit have grown at a CAGR of 33 percent and 195 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 20.5 percent and 24.8 percent, respectively. Kalyan Jewellers India Limited has an earnings per share (EPS) of Rs. 13.1, and its debt-to-equity ratio is 0.97x.
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