Robust revenue growth, strong showroom expansion and higher recycled gold contribution boost investor confidence

Shares of Kalyan Jewellers India Limited gained sharply on Wednesday after the jewellery retailer announced a strong business performance update for the first quarter of financial year 2026-27 (Q1FY27).

The stock moved higher despite weakness in the broader equity market, reflecting positive investor sentiment following the company’s strong revenue growth across domestic and international markets.

Kalyan Jewellers shares opened nearly 2% higher at ₹360 on the NSE and extended gains during the trading session, touching an intraday high of ₹377.70, marking a rise of around 6.5%.

The stock witnessed strong trading activity, with nearly 18.5 million shares changing hands on the NSE, indicating increased investor interest after the quarterly update.

Q1FY27 Business Update: Consolidated Revenue Rises 38%

Kalyan Jewellers reported a 38% year-on-year growth in consolidated revenue during Q1FY27, supported by strong consumer demand across India and overseas markets.

The company had recorded consolidated net revenue of ₹7,314.74 crore in Q1FY26.

The latest performance highlights continued momentum for the organised jewellery sector, where established brands are gaining market share due to rising consumer preference for trusted retailers, transparent pricing and quality assurance.

India Operations Drive Growth With Strong Store Performance

The company’s India business remained the key growth driver during the quarter.

Kalyan Jewellers reported:

• 38% revenue growth in India operations

• 28% same-store sales growth (SSSG) compared with Q1 of the previous fiscal year

Strong same-store sales growth indicates healthy demand from existing outlets and reflects improved customer engagement without relying only on new store additions.

The company benefited from continued jewellery demand during the quarter, supported by festive purchases, wedding-related buying and increased preference for organised jewellery retailers.

International Business Maintains Strong Momentum

Kalyan Jewellers’ overseas operations also delivered healthy growth during Q1FY27.

The company reported:

• 35% revenue growth in international markets

• Middle East operations grew by 30%

• International business contributed around 14% of consolidated revenue

The Middle East continues to remain an important market for the company due to its established presence among Indian-origin customers and growing demand for branded jewellery products.

Aggressive Retail Expansion Strengthens Market Presence

Kalyan Jewellers continued its expansion strategy during the quarter by opening new stores across formats.

During Q1FY27, the company launched:

• 12 new Kalyan showrooms in India

• 5 new Candere showrooms

The expansion is part of the company’s long-term strategy to increase geographical reach and capture growth opportunities in both metro cities and emerging markets.

A wider retail network allows the company to improve customer accessibility while strengthening its brand presence.

Candere Digital Jewellery Platform Records Triple-Digit Growth

The company’s digital jewellery platform Candere recorded significant growth during the quarter.

Candere reported 112% revenue growth in Q1FY27, highlighting the increasing adoption of online jewellery shopping among consumers.

The digital jewellery segment is becoming increasingly important as customers look for convenience, wider product selection and online price discovery before making high-value purchases.

Kalyan Jewellers is focusing on an integrated retail approach by combining physical showroom experience with digital commerce capabilities.

Recycled Gold Initiative Improves Supply Chain Efficiency

A key highlight of the quarterly update was the company’s progress on its gold recirculation initiative.

Kalyan Jewellers launched the ‘Shine with India’ gold recirculation campaign in the second half of May to encourage customers to exchange old gold and participate in the recycling ecosystem.

According to brokerage analysis, the initiative resulted in a significant increase in recycled gold contribution.

The share of recycled gold increased:

• Above 46% of revenue during Q1FY27

• More than 55% during June

Higher recycled gold usage can help jewellery companies reduce dependence on imported gold and improve raw material management.

Motilal Oswal Maintains Buy Rating; Target Price Set at ₹525

Following the strong quarterly update, Motilal Oswal Financial Services maintained its Buy rating on Kalyan Jewellers.

The brokerage has assigned a target price of ₹525 per share, indicating a potential upside of around 47% from the previous closing level.

The brokerage believes the company’s growth strategy, store expansion plans and improving operational efficiency could support long-term value creation.

Jewellery Sector Outlook Remains Positive

India’s jewellery market is undergoing structural changes, with organised players gaining market share from traditional unorganised retailers.

Factors supporting organised jewellery companies include:

• Rising consumer trust in branded retailers

• Greater transparency in pricing and purity

• Expansion into smaller cities

• Growing digital adoption

• Increasing preference for exchange-based jewellery purchases

Companies with strong brands and wide distribution networks are expected to benefit from this industry transformation.

Key Risks Investors Should Track

Despite the positive business update, investors should continue monitoring several factors:

Gold Price Volatility

Sharp movements in gold prices can impact customer demand and inventory costs.

Competition Intensity

The jewellery sector remains highly competitive, with both organised and regional players expanding aggressively.

Consumer Spending Trends

Economic conditions and discretionary spending patterns can influence jewellery purchases.

Outlook: Growth Strategy Keeps Kalyan Jewellers in Focus

Kalyan Jewellers’ Q1FY27 performance reflects strong operating momentum, supported by domestic growth, international expansion, digital business acceleration and improved gold recycling initiatives.

With continued showroom expansion and increasing contribution from digital channels, the company is positioning itself for long-term growth in India’s expanding organised jewellery market.

However, investors should evaluate valuation levels, gold price trends and broader market conditions before taking investment decisions.