Strong Revenue Growth, Aggressive Store Expansion and Digital Momentum Reinforce Investor Confidence Despite Weak Broader Markets

Mumbai | Smart Investment News Desk

Kalyan Jewellers has emerged as one of the standout performers in the Indian stock market, with its shares surging nearly 47% in just four trading sessions after the company reported an impressive business update for the first quarter of FY27. The rally comes at a time when broader equity markets remain under pressure due to geopolitical uncertainty, highlighting investors' confidence in the jewellery retailer's strong fundamentals and growth trajectory.

On Monday, the stock climbed as much as 9.6% during intraday trade to touch ₹521.85 on the NSE before settling with strong gains. The sharp rise came despite weakness in benchmark indices, reflecting the market's positive response to the company's robust operational performance and expansion plans.

Strong Q1 Performance Exceeds Market Expectations

Kalyan Jewellers delivered an impressive start to FY27, reporting an estimated 38% year-on-year growth in consolidated revenue during the April-June quarter. The growth was driven by strong consumer demand across India and overseas markets despite the quarter witnessing fewer wedding days because of the Adhik Maas period.

The company's India business remained the primary growth engine, recording revenue growth of over 38%, supported by healthy same-store sales growth (SSSG) of around 28%. This indicates that existing stores continued to witness strong customer footfall and higher average ticket sizes, reflecting resilient demand for both wedding and lifestyle jewellery.

Management stated that demand remained broad-based across southern, western and northern markets, with customers continuing to prefer branded jewellery retailers amid increasing focus on transparency and product quality.

International Business Continues to Strengthen

Kalyan Jewellers' overseas operations also maintained healthy momentum during the quarter.

International revenue increased by approximately 35%, while the Middle East remained the company's largest overseas market, contributing nearly 30% of international sales. Overall, international operations accounted for around 14% of consolidated revenue, demonstrating the company's growing global footprint.

The steady performance across overseas markets reflects improving consumer demand among the Indian diaspora and continued brand acceptance in Gulf countries.

Aggressive Retail Expansion Supports Long-Term Growth

The company continued its expansion strategy by strengthening its retail network across the country.

During the first quarter, Kalyan Jewellers inaugurated:

• 12 new Kalyan Jewellers showrooms

• 5 new Candere experience centres

These new outlets are expected to enhance market penetration and support future revenue growth while strengthening the company's presence in both metro and emerging cities.

Management has indicated that store expansion will remain one of its key growth drivers throughout FY27 as it aims to capture rising demand in India's organised jewellery market.

Candere Emerges as a High-Growth Digital Business

One of the biggest highlights of the quarter was the outstanding performance of Candere, Kalyan Jewellers' online jewellery platform.

Candere reported an impressive 112% year-on-year revenue growth, significantly outperforming the overall jewellery industry. The strong performance reflects increasing consumer preference for digital jewellery purchases, supported by omnichannel integration, improved customer experience and wider product offerings.

The rapid growth of Candere also strengthens Kalyan Jewellers' long-term strategy of combining physical retail with digital commerce.

Gold Recycling Initiative Improves Operational Efficiency

Another major positive during the quarter was the success of the company's 'Shine with India' Gold Recirculation Campaign.

The initiative encouraged customers to exchange old jewellery, leading to a significant increase in recycled gold usage.

According to management:

• Recycled gold contributed more than 46% of total revenue during Q1 FY27.

• The contribution exceeded 55% during June alone.

Greater reliance on recycled gold reduces dependence on imported bullion, lowers procurement costs and helps improve margins while reducing exposure to fluctuations in international gold prices.

Stock Performance Reflects Growing Investor Confidence

The company's strong operational update triggered aggressive buying by institutional and retail investors alike.

Kalyan Jewellers Share Performance

Market reports also indicated that nearly 5.4% of the company's equity changed hands through large transactions during the trading session, suggesting significant institutional activity.

Analysts Remain Constructive Despite Sharp Rally

Brokerages continue to maintain a positive long-term outlook on the company.

Motilal Oswal Financial Services has reiterated its 'Buy' recommendation with a target price of ₹525, citing strong execution, healthy demand, continued retail expansion and improved sourcing efficiency through recycled gold.

Market experts, however, advise investors not to chase the stock after its recent sharp rally. They believe long-term investors may consider accumulating the stock during periods of price consolidation rather than buying at elevated levels.

Analysts also expect the organised jewellery sector to continue gaining market share from unorganised players due to rising consumer preference for trusted brands, transparent pricing and hallmark-certified jewellery.

Industry Outlook Remains Positive

India's jewellery market continues to benefit from rising disposable incomes, increasing wedding demand and growing preference for branded retailers. Organised players such as Kalyan Jewellers are well positioned to capitalise on these structural trends through wider retail networks, digital capabilities and stronger brand recognition.

While fluctuations in gold prices and geopolitical uncertainties may create near-term volatility, long-term demand fundamentals remain favourable. Continued expansion, improving operational efficiencies and growing omnichannel sales are expected to support Kalyan Jewellers' growth trajectory in the coming quarters.