The rally comes after the company released its first-quarter business update. Brokerage firm Citi also reiterated its ‘Buy’ rating on the stock with a target price of ₹750.
Citi said that Kalyan’s India business reported 38% year-on-year revenue growth during the June quarter, slightly below its estimate of 43%. The growth was supported by 28% same-store sales growth (SSSG) and the addition of 12 net new Kalyan stores during the quarter.
According to the brokerage, management indicated that demand remained healthy across key markets despite the impact of Adhik Maas. The contribution of old gold exchanges to sales exceeded 46% during the quarter and rose to over 55% in June.
The company’s international business recorded 35% revenue growth, while the Middle East operations grew 30% year-on-year. Management, however, noted that geopolitical tensions affected customer footfalls in the region during April.
Its jewellery brand Candere continued to outperform, with revenue more than doubling year-on-year, rising 112%. As a result, consolidated revenue grew around 38%, marginally below Citi’s estimate of 40%.
During the quarter, Kalyan Jewellers added 12 Kalyan showrooms and five Candere stores, taking its total retail network to 524 outlets. This includes 354 Kalyan stores in India, 38 in the Middle East, two in the US, one in the UK, and 129 Candere outlets.
Citi believes the company’s franchise-led expansion strategy will continue to support long-term growth while improving return on capital employed (RoCE) and strengthening the balance sheet through lower leverage.
However, the brokerage also highlighted a few key risks. It pointed out that Kalyan’s India business underperformed Titan’s domestic jewellery growth for the first time in 13 quarters.
Other concerns include the possibility of higher promoter share pledging, weaker consumer demand, slower-than-expected deleveraging, and any departure from its asset-light franchise expansion strategy.
The stock had already staged a sharp rebound on Wednesday, snapping a three-session losing streak and recording its biggest single-day gain since June 15.
Trading activity also picked up in the previous session. Around 5.3 crore shares changed hands on Wednesday, compared with the 20-day average of 77 lakh shares, making Kalyan Jewellers the third-most traded stock in the Nifty 500.
Of the total traded quantity, nearly 91 lakh shares, or 17%, were marked for delivery, well above the 20-day average of 21 lakh shares.
Despite declining 14% so far in 2026 and trading around 33% below its 52-week high of ₹617, Kalyan Jewellers continues to enjoy strong support from analysts.
All eight brokerages tracking the stock currently have a ‘Buy’ recommendation, with the consensus target price implying an upside of nearly 85% from current levels.
