Kalyan Jewellers share price zooms 12% after Q3 results: Is it a stock to buy now?

Kalyan Jewellers' share price zoomed nearly 12% on Monday, February 9, after its third-quarter results turned out to be better-than-expected.

The jewellery stock rose to ₹424.85 on the BSE as against its last closing price of ₹379.80, up 11.8%, amid solid buying action visible in the counter. As of 9.50 am, the number of shares traded on BSE was more than twice the two-week average.

With today's rise, Kalyan Jewellers share price cut its year-to-date losses to 14%. The stock had lost 36% last year, its biggest annual drop since listing.

The Interim Trade Agreement between India and the US also rubbed off on the jewellery stocks as US remains one of the largest consumption markets for Indian jewellery exports.

Kalyan Jewellers shares: Time to buy?

The company's robust 40% revenue growth in Q3 FY26 is due to operating leverage, and the benefits of debt repayment started to kick in.

The management indicated that on-ground demand momentum remained healthy in 3QFY26 amid the festive season. In the first month of the new year, the demand remained robust, supported by healthy consumer footfalls despite volatility in gold prices, supporting a positive outlook for the company.

With the successful scale-up of franchise businesses, with over 50% revenue contribution and stable success in non-Southern markets, the company has established itself as a leading brand in the industry. Going ahead, it looks to attain its target to be net debt-free by end-FY27E led by a combination of sale of non-core assets and cash flows.

Given the robust revenue growth momentum, domestic brokerage JM Financial is raising FY26–28E EPS by 4–5%. However, despite the robust show, it slashed the target price to ₹750 from ₹775 earlier on a cut in target P/E to 40x (due to higher beta over the last 6 months from 45x) along with a rollover to Dec’27E EPS. It has maintained a BUY rating.

Consistent success on customer acquisition, improving operating margin, and deleveraging balance sheet remain the key rationale for our constructive view on the business, said Motilal Oswal Financial Services. "We model a 21%/18%/22% revenue/EBITDA/PAT CAGR during FY26-28E. We reiterate our BUY rating with a TP of ₹600 (based on 35x Dec’27 P/E)," it said.

Kalyan Jewellers Q3 Results

Kalyan Jewellers last Friday reported a 90.36% growth in consolidated net profit to ₹416.29 crore as against ₹218.68 crore during the corresponding quarter of the previous fiscal year.

Revenue from operations of the company grew 42.11% during the quarter under review to ₹10,343.41 crore compared to ₹7,278.09 crore in the year-ago period.

The international operations recorded a PAT of ₹12 crore for the quarter compared to ₹8 crore for the corresponding period in the previous year, up 64%, while revenue was higher by 38%.

In the India business, adjusting for the customs duty impact in the base, gross margin was flat YoY at 12.7%. Despite a higher franchise mix, flat GM indicates an improvement in underlying GM, driven by a favourable product mix, procurement efficiencies, and inventory gains from silver and platinum products (contribution of ~2-3% to Indian revenue).

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