The stock locked into the circuit after the company reported a staggering 90.36% surge in consolidated net profit to Rs 416.29 crore for the quarter, nearly doubling from ₹218.68 crore in the year-ago period. Revenue from operations jumped 42.11% to Rs 10,343.41 crore compared to Rs 7,278.09 crore last year.
JM Financial leads the Street’s optimism with a Rs 750 price target, maintaining its BUY rating despite raising fiscal 2026-28 earnings estimates by 4-5%. The brokerage cut its target price-to-earnings multiple to 40 times from 45 times due to higher stock volatility over the past six months, but rolled forward its estimates to December 2027.
“Management highlighted sustained strong growth in Jan’26 in the face of volatility in gold prices, and noted they expect to end FY26 on a good note,” JM Financial said in its note. The brokerage flagged robust same-store sales growth across regions, with India registering 27% year-on-year growth and the Middle East posting 24% gains.
Motilal Oswal set a Rs 600 target price based on 35 times December 2027 price-to-earnings, reiterating its BUY rating while raising earnings estimates by 3-4% for fiscal 2027-28 on margin expansion in the third quarter.
“We are extremely excited with the way the current year has progressed so far. The current quarter has started very well despite the volatility in gold prices,” said Ramesh Kalyanaraman, Executive Director at Kalyan Jewellers India. “We are upbeat about the ongoing wedding season and expect to end the financial year on a strong note.”Motilal Oswal highlighted the company’s successful franchise scale-up, with the business now contributing over 45% of revenue, and its expansion beyond Southern markets improving the studded jewellery mix. The asset-light model supports healthy cash flow generation for debt repayment while enhancing profitability through reduced interest costs. The brokerage projects 21%/18%/22% revenue/EBITDA/net profit compound annual growth during fiscal 2026-28.The company’s digital brand Candere turned net profit-positive this quarter, meeting guidance, while management remains on track to become net debt-free by end-fiscal 2027 through a combination of non-core asset sales and cash flows, according to JM Financial.
The regional brand is expected to open four to five stores over the next year, with some openings planned for the fourth quarter of fiscal 2026.
