Kalyan Jewellers Shares Hit Record High Following 64% Rise in Q2 PAT

Shares of jewellery retailer Kalyan Jewellers rallied over 12 per cent to a fresh high on Wednesday following the release of its financial results for the second quarter. By 9:52 am, the stock traded at ₹684.60 on the National Stock Exchange (NSE), compared to its previous close of ₹611.

The sharp rise in stock price came after the company reported a 64 per cent year-on-year increase in consolidated profit after tax (PAT), reaching ₹427 crore for the quarter ending September. Revenue from operations also experienced robust growth, climbing 32 per cent to ₹10,323 crore compared to ₹7,856 crore in the corresponding period of the previous fiscal year.

Strong revenue numbers, alongside positive management commentary regarding anticipated festive and wedding-season demand, heavily supported investor sentiment during the trading session.

Speaking on the business outlook, Kalyan Jewellers India Executive Director Ramesh Kalyanaraman stated that the ongoing festive quarter had started well with encouraging growth, specifically highlighting performance during Navratri and Dhanteras. He added that the company remains upbeat about the upcoming wedding season and expects to conclude the quarter on a strong note.

Major brokerages responded to the Q2 performance with maintained ratings and revised outlooks. UBS maintained its buy rating on the stock with a target price of ₹900. The brokerage cited expectations that strong festive and wedding demand will sustain growth, supported by healthy same-store sales.

Furthermore, UBS noted that a franchise-led store expansion strategy supports long-term growth and capital efficiency, projecting a 35 per cent EPS CAGR over FY26–29. However, the firm also identified gold price volatility and franchise execution as key risks to monitor.

Similarly, HSBC maintained a buy rating on Kalyan Jewellers with a target price of ₹770. The brokerage acknowledged that strong demand during Navratri and Dhanteras underpins a positive outlook for the festive quarter, alongside management's optimism regarding wedding-season demand. At the same time, HSBC pointed out that inventory gains and customs-duty benefits require further clarity to fully assess underlying profitability.

"Kalyan Jewellers' latest financial performance highlights the significant impact of seasonal consumption patterns on the retail sector in India. A 32 percent growth in operating revenue alongside a 64 percent rise in profit after tax demonstrates strong operational leverage during high-demand periods like the festive season. However, as noted by major brokerages, investors and business leaders must continuously balance short-term seasonal surges with long-term factors such as gold price volatility, inventory management, and the execution risks associated with franchise-led expansion models." — Dr. Shishir Gupta, Founder & CEO, StartupLanes