Kalyan Jewellers Shares up 10% as Strong Q1 FY27 Performance and Citi's ₹750 Target Boost Sentiment

13 Jul 2026 , 12:05 PM

Kalyan Jewellers shares extended their winning streak for the fifth consecutive trading session, supported by strong operational performance, bullish brokerage commentary, and improving investor sentiment toward the jewellery sector. The stock has rallied over 40% in the last five trading sessions, significantly outperforming the broader market.

During Monday’s trade, the stock opened at ₹470.50 before climbing further to around ₹521.85, registering gains of nearly 9%. In comparison, the BSE Sensex traded lower by approximately 0.4%, highlighting the stock’s exceptional momentum.

Citi Sets ₹750 Target Price

Investor confidence received a major boost after global brokerage Citi reiterated its positive outlook on Kalyan Jewellers following the company’s Q1 FY27 business update.

Citi has assigned a target price of ₹750, valuing the company at 40x its estimated March 2028 consolidated earnings per share (EPS). The brokerage noted that this valuation still represents a 25% discount to the valuation of industry leader Titan Company, suggesting meaningful upside potential.

Strong Q1 FY27 Business Performance

Kalyan Jewellers delivered an impressive start to FY27 with consolidated revenue growing approximately 38% year-on-year.

The company’s India operations also recorded over 38% revenue growth, driven by healthy consumer demand and same-store sales growth (SSSG) of around 28%.

Notably, this performance came despite the impact of the 28-day Adhik Maas period, which typically affects wedding-related jewellery purchases in several regions.

Gold Recycling Campaign Gains Momentum

The company’s “Shine with India” gold recirculation initiative emerged as another key highlight during the quarter.

Recycled gold contributed:

• More than 46% of total Q1 FY27 revenue
• Over 55% of June 2026 revenue

The increasing contribution from recycled gold is expected to improve inventory efficiency, reduce working capital requirements, and support profitability over the long term.

International Business Maintains Healthy Growth

Kalyan Jewellers also delivered solid performance in overseas markets.

International operations registered around 35% year-on-year revenue growth, while the Middle East business grew approximately 30%, despite lower customer footfalls during April due to geopolitical tensions.

International markets accounted for nearly 14% of the company’s consolidated revenue, demonstrating the growing contribution of global operations.

Candere Records Triple-Digit Growth

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

Candere reported a remarkable 112% year-on-year increase in revenue, reflecting rising consumer preference for online jewellery purchases and the company’s successful omnichannel strategy.

Aggressive Store Expansion Continues

Kalyan Jewellers maintained its expansion momentum during the quarter by opening:

• 12 new Kalyan Jewellers showrooms
• 5 new Candere stores

As of June 30, 2026, the company operated 524 showrooms across India and overseas, including:

• 354 Kalyan Jewellers stores in India
• 129 Candere outlets

The continued expansion is expected to strengthen the company’s market presence and support future revenue growth.

Positive Outlook for Festive and Wedding Season

Management stated that the company has started the current quarter on a strong note and remains optimistic about the upcoming festive and wedding season.

The company plans to support demand through new showroom launches, fresh jewellery collections, and marketing campaigns aimed at driving customer engagement.

Key Positives for Investors

Several factors continue to strengthen the investment case for Kalyan Jewellers:

• Strong consolidated and domestic revenue growth
• Healthy same-store sales growth
• Robust expansion of the retail network
• Triple-digit growth in Candere’s digital business
• Rising contribution from recycled gold, supporting operational efficiency
• Positive brokerage sentiment with a target price significantly above current market levels

Risks to Watch

Despite the strong momentum, investors should keep an eye on a few potential risks:

• Short-term profit booking after the sharp rally
• Gold price volatility impacting consumer demand
• Geopolitical uncertainties affecting overseas operations
• Execution challenges in sustaining rapid expansion and growth

Kalyan Jewellers has delivered a strong beginning to FY27 with impressive revenue growth, healthy same-store sales, rapid store expansion, and exceptional performance from its digital business. Citi’s ₹750 target price has further strengthened investor confidence, while improving operational efficiency through gold recycling and an optimistic festive season outlook provide additional growth catalysts.

Although investors should remain mindful of short-term volatility and external risks, the company’s operational momentum and expansion strategy position it well for sustained long-term growth.

 

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