Kalyan Jewellers Q3 FY26 Results: Stellar Performance with 90% Profit Surge
Shares of Kalyan Jewellers experienced notable value buying activity on Friday, following a period of trading at discounted levels during the early morning session. This renewed investor interest comes in the wake of the company's announcement of its financial results for the October to December 2026 quarter, which showcased exceptionally robust numbers.
Impressive Financial Metrics
The jewelry brand posted a remarkable net profit increase of 90% year-over-year, reaching ₹416.2 crore compared to ₹218.8 crore in the same period last year. Revenue from operations demonstrated substantial growth as well, climbing 42% YoY to ₹10,343 crore, up from ₹7,278 crore a year earlier.
Analyst Insights on Q3 Performance
Seema Srivastava, Senior Research Analyst at SMC Global Securities, provided a detailed review of Kalyan Jewellers' Q3 FY26 results. "Kalyan Jewellers’ Q3 FY26 performance reflects a business that has clearly moved into a strong, scalable growth phase, combining sharp revenue momentum with meaningful margin expansion," she stated.
Key highlights from her analysis include:
- Consolidated revenue growth of 42% YoY and 32% quarter-over-quarter, indicating robust demand driven by healthy same-store sales growth and rapid showroom expansion.
- Profitability scaling faster than topline, with EBITDA rising 75% YoY and margins expanding to 7.3%, highlighting operating leverage and an improving product mix.
- The rising contribution of studded jewelry and the increasing share of franchised (FOCO) stores—now over half of the India network—are structurally positive, supporting both gross margins and return ratios.
Srivastava emphasized that India remains the core growth engine, delivering a strong same-store sales growth (SSSG) of 27% and outsized profit growth. Meanwhile, the Middle East business continues to add stability with consistent growth and improving profit after tax (PAT) despite a competitive environment. Even after absorbing a one-time labor code provision, profit before tax (PBT) and PAT growth of around 90% YoY points to the underlying strength of the franchise.
"Balance sheet metrics have also improved materially, with lower leverage and healthy return on capital employed (ROCE) and return on equity (ROE), reflecting disciplined capital allocation and strong cash generation," she added. "The Candere segment, though still relatively small, adds long-term optionality through omnichannel expansion and brand investments. Overall, Kalyan Jewellers is demonstrating a rare combination of scale-led growth, improving profitability, and balance sheet strength, positioning it well for sustained compounding over the medium to long term, provided gold price volatility and execution risks remain well managed."
Investment Perspective: To Buy or Wait?
Anshul Jain, Head of Research at Lakshmishree, offered a contrasting technical viewpoint, advising investors to exercise caution. "Kalyan Jewellers' share price has decisively broken below its 242-day base near ₹450, confirming structural weakness and a shift into distribution," he explained. "The next meaningful demand zone lies in the ₹300 to ₹320 band, which aligns with the buying climax target and marks a high-probability area for a technical bounce. Until that zone is approached, risk–reward remains skewed against longs. Any interim pullbacks toward broken supports are likely to face supply, reinforcing a clear sell-on-rallies bias while the trend resets."
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
