Why did Kalyan Jewellers India share price rise today?

Kalyan Jewellers India saw its share price surge by 16.61 per cent on Monday following a stellar performance in the third quarter of FY26. The company reported a consolidated net profit of Rs 416.3 crore, marking a nearly 90 per cent year-on-year increase from Rs 219 crore. This growth was underpinned by a robust 42.1 per cent jump in revenue, which reached Rs 10,343.4 crore. The market responded favourably to these figures, which were bolstered by healthy consumer footfalls during the festive season and a strong start to the new year despite gold price volatility.

The company's operational efficiency showed significant improvement, with EBITDA rising 74.6 per cent to Rs 750.4 crore and margins expanding to 7.3 per cent. This expansion was driven by a favourable Service mix, including increased contributions from silver and platinum, as well as a higher share of studded jewellery, which rose to 31.2 per cent. In the domestic market, same-store sales grew by 27 per cent, while international operations in the Middle East also saw a 64 per cent increase in profit. Furthermore, the recent India-US Interim Trade Agreement has provided a positive tailwind for the stock, given the US's status as a primary export market.

Strategic shifts toward a capital-light model are central to Kalyan’s future outlook. The company is aggressively pursuing a franchise-led expansion strategy, which now contributes over 50 per cent of revenue and is expected to accelerate the return on capital employed (ROCE). To further penetrate regional markets, the board approved the incorporation of a new wholly-owned subsidiary, KJG Brands Private Limited, which will focus on localised retail brands.

This pivot, combined with a successful scale-up in non-South Indian markets, supports the company’s long-term goal of becoming net debt-free by the end of FY27. The management remains optimistic, targeting mid-to-high single-digit same-store sales growth and continuing their calibrated expansion in international markets to maintain current business traction.

About the Company

 Founded in 1993 by Mr T. S. Kalyanaraman, Kalyan Jewellers India Ltd. has evolved into one of the nation's largest organised jewellery retailers, specialising in the design, manufacture, and sale of a diverse portfolio including gold, studded, and precious metal products across various price segments. The company operates a sophisticated hyperlocal retail model that allows it to cater to regional consumer preferences while maintaining a massive Pan-India footprint. Beyond its domestic dominance, Kalyan Jewellers has established a significant international presence with scaled operations in the Middle East and the USA. The company has a market cap of Rs 45,000 crore and the stock is up by 25 per cent from its 52-week low of Rs 347.65 per share.

Disclaimer: The article is for informational purposes only and not investment advice.