Best day for Kalyan Jewellers investors in over a year post strong Q3 show: What bulls need to know

Kerala-based Kalyan Jewellers took centre stage as Dalal Street entered a new trading week, with the jewellery maker's investors enjoying the best single-day rally in more than a year after the company staged a strong financial performance for the final three months of 2025.

The earnings, according to the jewellery manufacturer, included an exceptional expenditure of Rs 42 crore.

Kalyan Jewellers Q3 FY26 Earnings | Profit & revenue vs estimates

Add Zee Business as a Preferred Source

After Friday's market hours, Kalyan reported a much better-than-expected 90.2 per cent year-on-year jump in its net profit to Rs 416.3 crore with 42.1 per cent growth in its top line to Rs 10,343.4 crore, according to a regulatory filing.

Both the top and bottom lines exceeded analyst estimates by a wide margin.

According to Zee Business research, the jewellery manufacturer was estimated to report a net profit of Rs 391 crore with revenue of Rs 9,983 crore.

Kalyan Jewellers operational performance

Kalyan's fiscal third-quarter EBITDA grew about 75 per cent to Rs 750.5 crore, while its margin expanded by 140 basis points -- or 1.4 percentage points -- to 7.3 per cent, according to the filing

Zee Business analysts had pegged the jewellery maker's Q3 EBITDA at Rs 750 crore and margin at 6.7 per cent.

Kalyan Jewellers shares

On Monday, Kalyan Jewellers shares rallied as much as 12.2 per cent in intraday trade to Rs 426.8 apiece on BSE -- its biggest single-day rally since January 30 last year.

HSBC, CITI maintain 'buy' ratings

Giving a big thumbs up to the strong earnings performance, most analysts maintained positive views on the stock.

HSBC pointed out that Q4 demand trends continue to be strong for the jewellery maker, which is set to launch a regional brand during the quarter.

The brokerage maintained a 'buy' rating on the stock with a target price of Rs 650.

The target implies an upside of 71 per cent over Friday's closing price.

The company's debt is flat sequentially but remains in accordance with its FY26 guidance, according to HSBC.

CITI retained a 'buy' rating on Kalyan Jewellers with a reduced target of Rs 650 instead of the Rs 750 per share earlier.

The brokerage noted that sustained execution on growth, profitability and balance sheet deleveraging will be key for a stock re-rating.

Other key takeaways from Kalyan Q3 results

Here's how the jewellery maker summarised key activities in its India and Middle East businesses:

In a presentation to investors, Kalyan highlighted the following favourable trends in the domestic jewellery market:

• Rising share of organised retail in jewellery to continue
• Wedding jewellery dominates the industry
• Gold jewellery demand and ownership is higher in rural india and rises with income levels
• South constitutes the largest pie in the Indian jewellery market
• India is the second largest gold market in the world
• India has the third highest component of retail consumption
• 70% of gold jewellery out of the total gold demand
• No inventory obsolvence risk given recyclability of jewellery