Kalyan Jewellers Shares Rally 19% in Two Days After Strong Q1 FY27 Update; Citi Sees Nearly 97% Upside

9 Jul 2026 , 11:46 AM

Kalyan Jewellers India Ltd. witnessed strong buying interest as its shares jumped 13.08% to ₹423.10, extending gains for a second consecutive trading session. The stock has rallied 19.27% over the last two sessions, driven by the company’s robust first-quarter business update and a bullish brokerage upgrade from Citi.

The rally comes after Kalyan Jewellers announced an impressive 38% year-on-year growth in consolidated revenue for Q1 FY27, highlighting strong consumer demand across its domestic and international operations. Although the stock had declined 8.59% in the previous three trading sessions and remains down 27.41% over the past year, the latest operational performance has renewed investor confidence.

Strong Domestic Performance Drives Revenue Growth

Kalyan Jewellers’ India business continued to deliver healthy growth during the April–June quarter. Revenue from domestic operations increased by more than 38% year-on-year, supported by same-store sales growth (SSSG) of around 28%.

The performance is particularly noteworthy as the quarter included the 28-day Adhik Maas period, which traditionally impacts wedding-related jewellery demand in several parts of India. Despite this seasonal slowdown, the company maintained robust sales momentum, reflecting resilient consumer demand.

Gold Recirculation Campaign Boosts Margins

One of the key highlights of the quarter was the success of Kalyan Jewellers’ “Shine with India” gold recirculation campaign, launched in the second half of May.

The initiative received strong customer acceptance, with recycled gold contributing more than 46% of the company’s revenue during Q1 FY27. In June alone, recycled gold accounted for over 55% of revenue, helping reduce dependence on imported gold while strengthening operational efficiency.

International Business Continues to Grow

Kalyan Jewellers also reported healthy growth across its international operations. Revenue from overseas markets increased by approximately 35% year-on-year, while the company’s Middle East business recorded nearly 30% revenue growth, driven primarily by strong same-store sales despite temporary geopolitical disruptions that affected customer footfalls in April.

International operations contributed around 14% of the company’s consolidated revenue during the quarter. The company did not add any new international showrooms during the period.

Candere Delivers Triple-Digit Growth

The company’s digital-first jewellery platform, Candere, continued its strong growth trajectory.

Candere posted an impressive 112% year-on-year revenue growth during Q1 FY27, reflecting increasing consumer preference for online jewellery shopping and omnichannel retail experiences.

To strengthen its retail presence, Kalyan Jewellers opened 12 new Kalyan showrooms and five Candere showrooms across India during the quarter.

Citi Upgrades Stock to ‘Buy’

Global brokerage Citi turned significantly more bullish on Kalyan Jewellers following the quarterly business update.

The brokerage upgraded the stock by two notches to a ‘Buy’ rating and assigned a target price of ₹750, implying a potential upside of nearly 97% from the stock’s opening price of around ₹380.

While Citi noted that the company’s 38% revenue growth was slightly below its expectation of 45%, it maintained a positive long-term outlook based on the company’s strong execution and expansion strategy.

Long-Term Growth Outlook Remains Positive

According to Citi, Kalyan Jewellers is well positioned to benefit from its franchise-led expansion model, which is expected to support sustained revenue growth while improving capital efficiency.

The brokerage also expects the company to strengthen its balance sheet through gradual deleveraging and improve its Return on Capital Employed (RoCE) over the coming years.

Positive Outlook for Q2 FY27

Looking ahead, Kalyan Jewellers said it has entered the second quarter of FY27 with positive momentum. Management remains optimistic about consumer demand, supported by the upcoming festive season and the traditional wedding calendar.

With strong domestic sales, healthy international growth, rapid expansion of Candere, and improving operational efficiency through its gold recirculation initiative, Kalyan Jewellers appears well positioned for sustained growth in the coming quarters.

 

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