Kalyan Jewellers Posts 64% Q4 Growth, Why Did Shares Fall?

Kalyan Jewellers India reported a robust business update for the fourth quarter ending March 31, 2026, posting consolidated revenue growth of approximately 64% year-on-year. The strong performance initially sent the company's shares rallying as much as 4% to a day's high of Rs 437.45 on the BSE. However, the stock later pared its gains, reflecting a cautious sentiment prevalent in the broader market, which saw benchmark indices like the Sensex and Nifty slip by 1%.

Domestic Operations Drive Growth

The company's India operations were the primary engine of growth during the quarter, recording a revenue increase of over 65% compared to the same period last year. This impressive performance was underpinned by strong same-store sales growth (SSSG) that exceeded 45%. According to the company's exchange filing, both wedding-related purchases and discretionary spending remained strong throughout the quarter, showing resilience despite significant volatility in gold prices. For the full financial year FY2026, the India business registered a revenue growth of about 43%.

Resilient International Performance

Kalyan Jewellers' international operations also delivered a healthy performance, with revenue rising by approximately 45% year-on-year in the fourth quarter. The Middle East business, a key component of its international footprint, grew by around 39%, largely driven by strong same-store sales. The company noted that geopolitical developments in West Asia did impact customer walk-ins during the first three weeks of March. However, a surge in sales during the last ten days of the month, coinciding with Ramadan, helped offset the earlier slowdown. The international business contributed about 11% to the company's consolidated revenue for the quarter.

Digital Arm Candere Sees Explosive Growth

The company's digital-first jewellery platform, Candere, continued its sharp growth trajectory. It recorded revenue growth of over 360% in the fourth quarter compared to the corresponding period in the previous year. This highlights a significant acceleration in consumer adoption of online channels for jewellery purchases. For the full financial year, Candere's revenue grew by approximately 160%, indicating sustained momentum in the company's digital strategy. The expansion of Candere's physical presence also continued, with 14 new showrooms launched during the quarter.

Q4 FY2026 Performance Highlights

Aggressive Retail Expansion

Kalyan Jewellers maintained its focus on expanding its physical retail network. During the fourth quarter, the company launched 28 new showrooms under the Kalyan brand in India, resulting in a net addition of 24 stores. This expansion was supplemented by the 14 new Candere showrooms. The company did mention that some planned showroom launches for March were affected by supply-side disruptions in building materials due to geopolitical issues in West Asia. As of March 31, 2026, the company's total showroom count stood at 507 across India and international markets.

Stock Reaction and Market Headwinds

Despite the stellar operational update, the initial optimism in Kalyan Jewellers' stock was short-lived. After hitting a high of Rs 437.45, the share price retreated, trading 0.27% lower at Rs 419.20 later in the session. This pullback appears to be linked to broader market pressures, including a general market decline, rising crude oil prices, and sustained selling by foreign institutional investors (FIIs). The market's cautious mood seemed to overshadow the company-specific positive news, leading to profit-taking after the initial spike.

Positive Outlook for FY2027

Looking ahead, Kalyan Jewellers stated that the new financial year has started on a positive note. The company is witnessing strong footfalls across its markets and has observed encouraging trends in advance collections for the upcoming Akshaya Tritiya festival and the wedding season. This positive commentary suggests that management is optimistic about sustaining the growth momentum into the new fiscal year, supported by continued consumer demand and its ongoing network expansion strategy.