Kalyan Jewellers Q4 FY26: Profit up 118%, stock slides

Shares fall despite a strong quarter

Kalyan Jewellers India Ltd saw its shares fall sharply on Monday even after reporting a strong set of Q4 FY26 results. The stock was last seen down 9.30% at ₹385.15 in late trade. Another update during the session showed the stock down 7.23% or ₹30.70 at ₹393.85, after touching an intraday low of ₹389 against a previous close of ₹424.55. The price action stood out because the reported earnings were strong on both profit and revenue growth.

The pressure was not limited to one company. Jewellery stocks saw broad-based selling after Prime Minister Narendra Modi urged citizens to avoid unnecessary gold purchases for the next one year. The appeal also included reducing fuel consumption to help protect India’s foreign exchange reserves, with gold and crude oil highlighted as major contributors to the import bill.

Q4 FY26 earnings: profit more than doubles

Kalyan Jewellers reported a consolidated net profit of ₹409.5 crore for Q4 FY26. This was a 118.28% year-on-year rise from ₹187.6 crore in the same quarter last year. Revenue from operations rose 66.2% to ₹10,274.9 crore, compared with ₹6,181.5 crore a year ago.

The international business also improved, reporting profit after tax (PAT) of ₹29 crore for the quarter versus ₹14 crore in the corresponding period last year. The numbers signalled a strong finish to FY26, even as gold prices remained volatile in the broader market.

Dividend announcement and the AGM approval process

Alongside results, the board recommended a final dividend of ₹2.5 per equity share for FY26. The dividend is on shares with a face value of ₹10 each. The proposal is subject to shareholder approval at the upcoming annual general meeting (AGM).

For investors, the dividend recommendation added an additional data point in a session where the market’s attention was largely driven by macro headlines rather than company-specific performance.

What triggered the selloff: Modi’s one-year gold appeal

The key trigger for the sector selloff was Prime Minister Modi’s public appeal asking Indians to postpone gold purchases for a year. The stated aim was to conserve foreign exchange during challenging global conditions, alongside a broader call to curb fuel consumption.

One report linked the messaging to the Middle East situation, and flagged that India spends about $1 billion a month on gold imports. The market reaction reflected concern that a widely followed appeal could translate into lower near-term jewellery demand, particularly if it affects purchase decisions around weddings and festivals.

Why jewellery demand is sensitive to weddings

Kalyan Jewellers is widely seen as a wedding-led jewellery retailer. Market commentary in the provided information noted that India conducts an estimated 10-12 million weddings annually, and wedding jewellery accounts for around 50-55% of total gold demand.

That linkage matters for listed jewellery retailers because footfalls, conversion rates, and average ticket sizes are closely tied to wedding shopping. Even if demand is deferred rather than cancelled, the timing of purchases can affect quarterly revenue trends and near-term sentiment.

Policy risk versus a voluntary appeal

Some investors appeared to be pricing in a risk beyond the voluntary nature of the appeal. The concern in the market commentary was about what might follow, especially the possibility of policy action such as an increase in gold import duties.

Systematix Institutional Equities drew a parallel with 2013, when then Finance Minister P Chidambaram pushed for restrictions on gold imports to curb the current account deficit. It also recalled that period of currency pressure amid crude prices of $100-110 per barrel, when India was labelled among the “Fragile Five”, and when an NRI deposit scheme mobilised around $15 billion.

At the same time, the context in the provided material noted that India’s forex reserves stood at $191.11 billion at the end of March 2026, providing nearly 11 months of import cover. That framing suggests the appeal was positioned as preventive rather than a response to an immediate reserves crunch.

How far the stock has corrected

The stock’s decline on Monday added to an already volatile price picture. One update in the material noted that at around ₹389-394, the stock had corrected about 36% from its 52-week high of ₹617.70. The market narrative in that section was that Q4 FY26 numbers were exceptional, but the near-term debate has shifted toward demand risk and potential policy decisions.

Sector moves and brokerage stance

The selloff was seen across jewellery names. Titan shares fell as much as 6.4%, while Kalyan Jewellers declined about 8.3% in one snapshot of intraday moves. Sky Gold and Diamonds fell over 12%, Senco Gold dropped nearly 11%, and other names such as PN Gadgil Jewellers, PC Jeweller and Tribhovandas Bhimji Zaveri were also mentioned among laggards.

Despite the volatility, Motilal Oswal Financial Services (MOFSL) reiterated a ‘Buy’ rating on Kalyan Jewellers with a target price of ₹575. Its note, as cited, pointed to Kalyan strengthening its position as a branded jewellery player, supported by franchise expansion and improving traction outside southern India.

Key facts at a glance

What investors will watch next

The immediate corporate milestone is the AGM, where shareholders will vote on the proposed final dividend. On the macro side, markets will focus on whether the government follows the appeal with any concrete policy action related to gold imports.

For the jewellery sector, the next set of data points will likely come from demand trends across the wedding and festive calendar, and how consumers respond to the appeal in practice. Until then, the session offered a clear reminder that macro cues can dominate near-term price discovery even when quarterly earnings are strong.