Kalyan Jewellers Shares Rally 13%, Hit Fresh 52-Week High On Q2 Show; Q3 Off To A 'Very Strong' Start, Says Management

Kalyan Jewellers shares were in demand on Wednesday, with the scrip rallying as much as 10% to hit a fresh 52-week high of Rs 672.10 per share, after the company reported a strong set of results for the September quarter of FY27 and delivered an upbeat outlook for the second half of the financial year.

At 9:21 am, Kalyan Jewellers shares were trading 8.5% higher at Rs 663.05 per share. In comparison, the BSE Sensex was trading 1.46% higher at 82,314 levels.

The northward move in Kalyan Jewellers shares came after the company reported a 63.9% year-on-year (YoY) jump in consolidated net profit to Rs 427 crore in Q2FY27, compared with Rs 261 crore in the corresponding quarter last year.

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Revenue from operations, or top line surged 31.4% annually to Rs 10,323 crore in the September quarter, from Rs 7,856 crore a year ago.

At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) rose 29.7% YoY to Rs 644 crore in Q2FY27, compared with Rs 497 crore in Q2FY26. 

EBITDA margin, however, contracted 10 basis points (bps) to 6.2%, from 6.3% a year ago.

The company also reported a one-time gain of Rs 73.5 crore during the quarter. Excluding this gain, profit after tax (PAT) growth stood at around 40%, according to the company's highlights.

Kalyan Jewellers Q2 Results: What Management Said On Growth Outlook

Management struck an optimistic note on the demand environment, indicating that the second half of FY27 could deliver stronger growth despite a higher base.

During the earnings call, the company said Q3 had started on a very strong footing and expects H2 growth to surpass the growth recorded in the corresponding period last year.

Kalyan Jewellers reiterated its revenue growth target of 25%, while indicating that it expects to outperform this target.

The company is targeting mid-to-high single-digit same-store sales growth, with wedding jewellery expected to contribute 40%-45% of sales by CY28.

Its growth strategy will focus on capital-light franchise expansion, with Candere and regional brands expected to contribute to the growth trajectory. The company also plans calibrated expansion in the Middle East.

However, management indicated that there are no immediate plans to expand its store network. Surplus cash will instead be deployed towards upgrading existing stores, with the company expected to announce a detailed utilisation plan.

Kalyan Jewellers: Balance Sheet Improves, Festive Demand Remains Strong

Despite the shift in the festive calendar, the company reported a stable performance in the September quarter.

Kalyan Jewellers' borrowings declined sharply to Rs 177 crore from Rs 524 crore, indicating an improvement in its balance sheet.

Management also expressed confidence in festive demand and the upcoming wedding season. Profitability growth continued to outpace revenue growth during the first half of FY27.

The company expects wedding demand, healthy same-store sales and its franchise-led expansion strategy to support growth in the coming quarters.

UBS, HSBC Maintain ‘Buy' On Kalyan Jewellers Shares

Brokerages remained positive on Kalyan Jewellers following the September-quarter performance, with both UBS and HSBC maintaining their Buy ratings.

UBS On Kalyan Jewellers

UBS maintained its Buy rating on Kalyan Jewellers with a target price of Rs 900 per share. The brokerage expects strong festive and wedding demand to sustain growth, supported by healthy same-store sales.

It believes franchise-led store expansion will support long-term growth and improve capital efficiency. UBS expects a 35% earnings per share (EPS) CAGR over FY26-FY29, while flagging gold price volatility and franchise execution as key risks.

HSBC On Kalyan Jewellers

HSBC also maintained its ‘Buy' rating, with a target price of Rs 770 per share. The brokerage highlighted strong demand during Navratri and Dhanteras, supporting a positive outlook for the festive quarter.

Management remains optimistic about wedding-season demand and expects a strong quarter-end, HSBC noted. However, the brokerage said inventory gains and customs-duty benefits require further clarity to assess the underlying profitability of the business.

READ | Kalyan Jewellers Q2 Results: Profit Jumps 64% To Rs 427 Crore On One-Time Gain, Revenue Up 31%

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