Kalyan Jewellers: JM Financial reiterates 'Buy' as revenue growth stays strong

JM Financial has reiterated its 'Buy' rating on Kalyan Jewellers India Ltd, citing sustained robust revenue growth across domestic and international operations during the December quarter (Q3 FY26).

In its note, JM Financial said, "Revenue growth remains robust: Kalyan reported revenue growth of ~42 per cent YoY (year-on-year) on consolidated basis (vs our estimate of 39 per cent). India operations reported ~42 per cent YoY (vs our estimate of 41 per cent) growth driven primarily by strong festive demand and healthy SSSG of 27 per cent (vs our expectation of 23 per cent). Growth was broad-based across plain gold and studded categories."

The brokerage highlighted that store expansion during the quarter was marginally ahead of expectations. According to JM Financial, "Store addition above estimates: Kalyan (India) added 21 stores in India and closed 3 stores during Q3 (net 18 store addition; Total Stores – 318). We expected 20 net stores additions."

JM Financial noted, "International business: revenue from international operations grew ~36 per cent YoY. Middle East grew 28 per cent YoY (vs our estimate of 20 per cent) driven largely by SSSG. International markets contributed ~11 per cent to their consolidated revenue for the Q3 FY26. They added 1 Kalyan store in UK."

The brokerage further pointed to strong momentum in Candere, Kalyan Jewellers' digital-first jewellery brand. "Candere: Opened 14 showrooms and reported revenue growth of ~147 per cent YoY in Q3 (Total stores – 110)," JM Financial said.

The brokerage also stated, "We expect 57 per cent YoY PBT growth (standalone) in Q3 as we expect PBT margins to expand by ~60 bps YoY."