Kalyan Jewellers shares: 35% upside? Citi, ICICI Sec, MOFSL reveal fresh target prices
Kalyan Jewellers was hit by a higher proportion of exchanged gold, promotional offers as part of the exchange campaign, and a one-off gain in platinum and silver sales during the base quarter of Q1FY26.
- Aug 5, 2026,
- Updated Aug 5, 2026 10:34 AM IST
Kalyan Jewellers share price: At least three brokerages namely Citi, ICICI Securities and MOFSL suggested 'Buy' on Kalyan Jewellers India Ltd post its June quarter results, hinting at up to 35 per cent potential upside for the stock. Citi raised its target on Kalyan Jewellers to Rs 800 from Rs 750 earlier. ICICI Securities upped its target on Kalyan Jewellers to Rs 680 from Rs 670 earlier. MOFSL suggested a target of Rs 700 on the stock. The jeweller's Q1 revenue beat analyst estimates but its margins missed Street expectations.
"With the successful scale-up of franchise businesses (over 50 per cent revenue contribution) and stable success in non-Southern markets, Kalyan has established itself as a leading brand in the industry. Consistent success on customer acquisition, improving operating margin, and deleveraging the balance sheet remains the key rationale for our constructive view on the business," MOFSL said.
This brokerage is expecting Kalyan to report a growth of 24 per cent in revenue, 18 per cent in Ebitda and 23 per cent in profit after tax (PAT), compounded annually, over FY26-28E.
Kalyan Jewellers said there was a one-time gain of Rs 41 crore due to an increase in customs duty from 6 per cent to 15 per cent. Adjusted for the gain, the India business gross margin dipped 280 basis points YoY to 10.8 per cent.
"The margin pressure was partly offset by ‘Cash for Gold’ purchases and customs duty benefits. Debt reduction remains ahead of guidance, with non-GML debt expected to be fully paid off by Sep’26. Additionally, the recent ATM (Akshaya Thanga Maligai) format may be a new (material) revenue driver which consensus is yet to model, in our opinion. Maintain BUY," ICICI Securities said.
MOFSL said Kalyan was hit by a higher proportion of exchanged gold, promotional offers as part of the exchange campaign, and a one-off gain in platinum and silver sales during the base quarter of Q1FY26. For Kalyan, share of Studded moderated to 28 per cent in Q1 against 30 per cent YoY. Ebitda margin contracted 280 bps YoY to 5.1 per cent against an estimate of 6.7 per cent. Candere reported a profit of Rs 2.1 crore against a loss of Rs 10 crore YoY.
Citi reportedly said that while the balance sheet deleveraging stayed on track, a sharp miss on June quarter margin could weigh on stock in the near term.
Kalyan Jewellers added 12 net Kalyan Indian stores and 5 Candere stores, taking the total store count to 483 in India. It will open its first regional store in Chennai in August 2026. In FY27, the company plans to open 84 Kalyan (all FOCO) and 50 Candere stores.
MOFSL said Kalyan is on track to become debt-free, excluding gold metal loans, by the end of September.
Kalyan Jewellers share price: At least three brokerages namely Citi, ICICI Securities and MOFSL suggested 'Buy' on Kalyan Jewellers India Ltd post its June quarter results, hinting at up to 35 per cent potential upside for the stock. Citi raised its target on Kalyan Jewellers to Rs 800 from Rs 750 earlier. ICICI Securities upped its target on Kalyan Jewellers to Rs 680 from Rs 670 earlier. MOFSL suggested a target of Rs 700 on the stock. The jeweller's Q1 revenue beat analyst estimates but its margins missed Street expectations.
"With the successful scale-up of franchise businesses (over 50 per cent revenue contribution) and stable success in non-Southern markets, Kalyan has established itself as a leading brand in the industry. Consistent success on customer acquisition, improving operating margin, and deleveraging the balance sheet remains the key rationale for our constructive view on the business," MOFSL said.
This brokerage is expecting Kalyan to report a growth of 24 per cent in revenue, 18 per cent in Ebitda and 23 per cent in profit after tax (PAT), compounded annually, over FY26-28E.
Kalyan Jewellers said there was a one-time gain of Rs 41 crore due to an increase in customs duty from 6 per cent to 15 per cent. Adjusted for the gain, the India business gross margin dipped 280 basis points YoY to 10.8 per cent.
"The margin pressure was partly offset by ‘Cash for Gold’ purchases and customs duty benefits. Debt reduction remains ahead of guidance, with non-GML debt expected to be fully paid off by Sep’26. Additionally, the recent ATM (Akshaya Thanga Maligai) format may be a new (material) revenue driver which consensus is yet to model, in our opinion. Maintain BUY," ICICI Securities said.
MOFSL said Kalyan was hit by a higher proportion of exchanged gold, promotional offers as part of the exchange campaign, and a one-off gain in platinum and silver sales during the base quarter of Q1FY26. For Kalyan, share of Studded moderated to 28 per cent in Q1 against 30 per cent YoY. Ebitda margin contracted 280 bps YoY to 5.1 per cent against an estimate of 6.7 per cent. Candere reported a profit of Rs 2.1 crore against a loss of Rs 10 crore YoY.
Citi reportedly said that while the balance sheet deleveraging stayed on track, a sharp miss on June quarter margin could weigh on stock in the near term.
Kalyan Jewellers added 12 net Kalyan Indian stores and 5 Candere stores, taking the total store count to 483 in India. It will open its first regional store in Chennai in August 2026. In FY27, the company plans to open 84 Kalyan (all FOCO) and 50 Candere stores.
MOFSL said Kalyan is on track to become debt-free, excluding gold metal loans, by the end of September.