Kalyan Jewellers Stock Jumps 12% on 90% Q3 Profit Surge

Kalyan Jewellers Reports Exceptional Q3 Results

Kalyan Jewellers India announced a remarkable financial performance for the third quarter of fiscal year 2026, ending December 31, 2025. The company's consolidated net profit nearly doubled, leading to a significant rally in its share price. The strong results were driven by robust festive season demand, resilient consumer sentiment despite gold price volatility, and broad-based growth across all its business segments. This performance underscores the company's strong market position and operational efficiency.

A Surge in Profitability and Revenue

The jewellery retailer reported a consolidated net profit of ₹416.3 crore for the October-December quarter, marking a substantial 90% increase from the ₹219 crore recorded in the same period of the previous fiscal year. This impressive bottom-line growth was supported by a significant rise in top-line figures. Revenue from operations grew by 42% year-on-year, reaching ₹10,343.4 crore compared to ₹7,278.1 crore in Q3 FY25. The strong revenue growth reflects healthy consumer demand and successful sales strategies during a key quarter.

Market Reacts with Enthusiasm

Investors responded positively to the strong earnings report. On Monday, February 9, 2026, the share price of Kalyan Jewellers India jumped nearly 12% on the National Stock Exchange (NSE), reaching an intraday high of ₹424.70. Trading volumes were also high, with approximately 23.5 million shares changing hands on the NSE by mid-morning. The stock's performance significantly outpaced the broader market, reflecting strong investor confidence in the company's growth trajectory following the announcement.

Key Drivers of Quarterly Growth

The company's exceptional performance was primarily fueled by strong demand during the festive season, which includes Diwali. Management noted that consumer demand remained robust even after the festive period, despite fluctuations in gold prices. Growth was well-distributed across both plain gold and studded jewellery segments. A key indicator of underlying health, same-store sales growth (SSSG) in India was a healthy 27% for the quarter, demonstrating strong performance from existing showrooms.

Strong Performance Across All Segments

Kalyan Jewellers witnessed growth across its domestic, international, and digital operations. The India business saw revenue increase by approximately 42% year-on-year. International operations also delivered a strong performance, with revenue growing by 36%. The Middle East market, a key international contributor, recorded a 28% revenue increase, driven largely by a 24% SSSG. The company's digital-first jewellery platform, Candere, was a standout performer, with its revenue surging by an impressive 147% compared to the same quarter last year.

Q3 FY26 Financial Highlights

Strategic Expansion and Future Outlook

Kalyan Jewellers continued its network expansion during the quarter, adding 21 new showrooms in India. The company is focused on increasing its market share in non-south regions of India and pursuing a calibrated expansion in the Middle East, where it has seen good business traction. Looking ahead, the company is targeting mid to high single-digit same-store sales growth. Management also highlighted its capital-efficient franchise store strategy, which is expected to accelerate new showroom openings and improve the return on capital employed (ROCE).

Analyst View Remains Positive

Brokerage firm Motilal Oswal Financial Services maintained a "Buy" rating on the stock with a target price of ₹600. The brokerage noted that Kalyan Jewellers beat its estimates and has established itself as a leading brand through its franchise business and successful expansion in non-southern markets. Analysts at the firm remain constructive on the stock, citing consistent customer acquisition, improved operating margins, and a deleveraging balance sheet. They project a 21% revenue compound annual growth rate (CAGR) and a 22% profit after tax (PAT) CAGR for the company between fiscal years 2026 and 2028.

Concluding Remarks

Kalyan Jewellers' third-quarter results demonstrate strong operational execution and an ability to capitalize on market demand. The significant growth in profit and revenue, coupled with a positive market reaction, sets a strong foundation for the remainder of the fiscal year. With an optimistic outlook for the ongoing wedding season and a clear strategy for expansion, the company appears well-positioned for sustained growth.