Kalyan Jewellers reports 31% y-o-y revenue growth

Kalyan Jewellers: ICICI Securities Raises Target to Rs. 800

Kalyan Jewellers’ strong revenue growth, retail expansion and improving balance sheet underpin ICICI Securities’ BUY recommendation. In its report dated 11 November 2026, the brokerage raised its target price to Rs. 800 from Rs. 700, implying approximately 31% upside from the report’s reference price of Rs. 611.

The investment case rests on healthy same-store sales growth, increasing franchise participation and earnings expansion. However, gross-margin pressure and valuation remain important considerations.

Why Is ICICI Securities Positive on Kalyan Jewellers?

Kalyan Jewellers reported 31.4% year-on-year consolidated revenue growth to Rs. 10,320 crore in Q2FY27. EBITDA increased approximately 30%, while profit after tax rose around 64%.

Standalone India revenue advanced 31.6% to Rs. 9,010 crore, supported by 20% same-store sales growth. This indicates that growth came from existing outlets as well as network expansion.

Markets outside southern India contributed approximately 55% of India revenue, with revenue increasing 31% and same-store sales growing around 21%. The performance demonstrates the brand’s expanding geographical reach.

New customer additions remained above 33%. Studded jewellery revenue increased 27%, with its share broadly stable at 30.9%.

How Are Franchise Stores Supporting Growth?

Franchise-Owned, Company-Operated stores contributed approximately 59% of India revenue. This model supports expansion with lower company-funded capital requirements than a wholly owned network, although the rising franchise contribution also affects reported margins.

Middle East revenue increased 11% to Rs. 960 crore, supported by approximately 12% same-store sales growth. Studded jewellery’s share in that business declined to 16.6% from 17.7%.

Why Did Kalyan Jewellers’ Margins Decline?

Consolidated gross margin contracted 61 basis points to 12.3%. Key pressures included a higher recycled-gold mix, increased franchise participation and losses on open silver and platinum positions.

Recycled gold accounted for 42%, compared with 29% a year earlier. Silver and platinum positions recorded losses of Rs. 8.3 crore, against gains of Rs. 21.2 crore in the corresponding quarter.

A one-off customs duty benefit of approximately Rs. 52 crore partly offset these pressures. EBITDA margin declined a smaller 9 basis points to 6.2%, helped by relatively controlled growth in other operating expenses.

Balance Sheet and Earnings Outlook

Non-Gold Metal Loan debt reached zero in September 2026, ahead of management’s FY27 objective. This does not mean that all company debt has been eliminated. Non-core property disposals also support management’s balance-sheet strategy.

Source: ICICI Securities report dated 11 November 2026. Estimates are brokerage forecasts.

Kalyan Jewellers Investment View

ICICI Securities expects healthy sales momentum, store additions and a leaner balance sheet to support further growth. Its Rs. 800 target is a brokerage valuation objective, with no investment horizon specified in the extract.

Investors should monitor underlying margins after one-off benefits, franchise execution and earnings delivery. The valuation requires sustained growth; the projected upside remains dependent on business performance and market conditions.