Kalyan Jewellers Rallies 15% on 90% Q3 Profit Surge

Introduction

Shares of Kalyan Jewellers India Ltd surged nearly 15% in mid-day trading on Monday, February 9, 2026, marking a significant rebound for the stock. The rally was fueled by the company's robust financial results for the third quarter of fiscal year 2026, which saw net profit climb by over 90%. Investor sentiment was further bolstered by the company's proactive measures against alleged manipulative trading, including a formal complaint to the Securities and Exchange Board of India (SEBI).

Stellar Q3 Financial Performance

Kalyan Jewellers announced its Q3 FY26 results on Sunday, February 8th, revealing impressive growth across key metrics. The company reported a consolidated net profit of Rs. 416.3 crore for the October-December quarter, a substantial 90.3% increase from the Rs. 218.8 crore recorded in the same period last year. Revenue from operations also saw a significant uptick, growing by 42.1% year-on-year to reach Rs. 10,343.4 crore, compared to Rs. 7,278.1 crore in Q3 FY25. This performance was largely driven by strong festive demand and resilient consumer spending, even amidst gold price volatility.

Broad-Based Growth Across Segments

The company's growth was not confined to a single area. Indian operations, which form the core of the business, witnessed revenue growth of approximately 42%, supported by a healthy same-store sales growth (SSSG) of around 27%. The international business also performed well, with revenue increasing by 38% year-on-year. Profit after tax from international operations grew by 64% to Rs. 12 crore. The company's digital-first platform, Candere, reported a remarkable 147% surge in revenue, highlighting a successful expansion into online channels.

Action Against Alleged Market Manipulation

Adding to the positive momentum, it was revealed that Kalyan Jewellers had approached SEBI in 2025, alleging unfair and manipulative trading practices in its stock. The company reported observing unusual trading patterns and the circulation of unverified, damaging rumors, including claims about the arrest of promoters. These activities, the company alleged, were designed to create panic and drive the share price down. The stock had previously fallen 41% between January 6 and January 30, 2025. In its communication with the regulator, Kalyan Jewellers sought intervention, including a temporary suspension of its stock from the futures and options (F&O) segment to protect market integrity and shareholder value.

Market Reaction and Stock Movement

The combination of strong earnings and decisive corporate action led to a sharp rally in the stock. By 1 PM on February 9th, Kalyan Jewellers shares were trading near Rs. 421 on the BSE, a significant increase from the previous close of Rs. 380.25. The surge was accompanied by heavy trading volumes of approximately 39 million shares. This rally represents a strong recovery for the stock, which had declined around 45% year-to-date before this announcement, having fallen from a lifetime high of Rs. 770 in December 2024.

Analyst Outlook Remains Positive

Brokerage firms have maintained a positive outlook on the company. Centrum, for instance, reiterated its 'BUY' rating with a target price of Rs. 600 per share. The brokerage cited Kalyan's industry-leading growth and aggressive store expansion as key drivers. It projects a revenue Compound Annual Growth Rate (CAGR) of approximately 27% and a Profit After Tax (PAT) CAGR of around 35% between FY25 and FY28. However, Centrum also noted potential execution risks, such as a slower-than-guided pace of store additions, which require monitoring.

Conclusion

Kalyan Jewellers' recent 15% stock surge is a direct result of its exceptional Q3 financial performance and its firm stance against perceived market manipulation. The 90% jump in net profit underscores strong operational efficiency and robust consumer demand. The appeal to SEBI has likely reassured investors, contributing to the positive sentiment. While the stock has been volatile, the underlying business fundamentals and positive analyst ratings suggest a constructive outlook, contingent on continued execution of its expansion strategy.