Kalyan Jewellers Stock Soars 12% on 90% Q3 Profit Jump

Introduction

Shares of Kalyan Jewellers India Ltd jumped nearly 12% in trading on Monday, February 9, 2026, after the company reported a remarkable 90% year-on-year increase in consolidated net profit for the third quarter of fiscal year 2026. The strong financial performance, driven by robust festive and wedding season demand, pushed the stock to a day's high of ₹424.70 on the National Stock Exchange (NSE), signaling strong investor confidence.

Stellar Q3 Financial Performance

For the quarter ending December 31, 2025, Kalyan Jewellers posted a consolidated net profit of ₹416.3 crore, a significant 90% rise from the ₹218.82 crore reported in the same period of the previous fiscal year. The company's revenue from operations also saw substantial growth, increasing by 42% to ₹10,343.4 crore from ₹7,278.1 crore year-over-year. This growth was broad-based, reflecting healthy consumer demand despite volatility in gold prices.

The operational efficiency of the company improved notably. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) surged by 75% to ₹750.5 crore, compared to ₹430.0 crore in the year-ago period. Consequently, the EBITDA margin expanded to 7.3% from 5.9%, aided by better operating leverage. The company did, however, report a one-time exceptional charge of ₹41.5 crore related to changes in employee benefit provisions following the implementation of new labour codes.

Robust Growth in India Operations

The primary engine for this growth was the company's domestic business. India operations recorded a 42% increase in revenue, reaching ₹9,048 crore for the quarter. The profit after tax from the India business stood at ₹401 crore, an 84% increase from the previous year. A key indicator of this performance was the Same-Store Sales Growth (SSSG), which was a healthy 27% for the quarter. The company also expanded its physical footprint by adding 21 new showrooms in India.

Strong Performance in International Markets

Kalyan Jewellers' international operations also delivered a strong performance. Revenue from overseas markets grew by 38% year-on-year to ₹1,164 crore. The Middle East business was a significant contributor, with revenue rising 28%, driven by a 24% SSSG. The international segment contributed ₹12 crore to the net profit, marking a 64% increase from the corresponding quarter last year.

Strategic Highlights and Segment Growth

The company's capital-efficient franchise store strategy is paying dividends, with franchised showrooms contributing approximately 51% of revenue from the India operations. The studded jewellery segment also gained traction, with its share improving to 31.2% in India. Furthermore, Candere, the company's lifestyle jewellery brand, reported a significant turnaround. Its revenue surged 144% to ₹135 crore, posting a net profit of ₹3 crore against a loss of ₹7 crore in the same quarter last year.

Market Reaction and Analyst Outlook

The market responded positively to the results. By mid-day, the stock was trading around ₹421.4 per share, with heavy trading volumes of around 23.5 million shares on the NSE. Investor sentiment was also bolstered by the company's recent move to approach SEBI, alleging manipulative trading practices in its shares and requesting a temporary suspension from the futures & options (F&O) segment.

Brokerage firms have maintained a constructive view. Motilal Oswal Financial Services reiterated a 'Buy' rating with a target price of ₹600, citing consistent customer acquisition and an improving balance sheet. They forecast a 22% profit after tax compound annual growth rate (CAGR) for FY26-28. Similarly, Centrum issued a 'BUY' call with a ₹600 target, expecting a revenue CAGR of around 27% and a PAT CAGR of 35% between FY25 and FY28, while noting execution risks related to store expansion.

Future Strategy and Management Commentary

Looking ahead, Kalyan Jewellers plans to focus on increasing its revenue share from non-south markets in India and pursuing a calibrated expansion in the Middle East. The company is targeting mid to high single-digit SSSG going forward. Executive Director Ramesh Kalyanaraman expressed optimism, stating, "We are upbeat about the ongoing wedding season and expect to end the financial year on a strong note."

Conclusion

Kalyan Jewellers' exceptional third-quarter performance demonstrates its strong execution capabilities and brand resonance in a competitive market. The significant growth in profit and revenue, coupled with margin expansion and a positive outlook from analysts, has rightfully boosted investor confidence. The company's strategic focus on a capital-light franchise model and geographic expansion positions it well for sustained growth, provided it navigates the associated execution risks effectively.