Kalyan Jewellers: MOFSL retains 'Buy' rating, shares target price post Q3 results

Motilal Oswal Financial Services (MOFSL) retained its Buy rating on Kalyan Jewellers India Ltd and its target price of Rs 600 per share after the December quarter results, which the brokerage described as an all-around beat. With the successful scale-up of its new franchise businesses and continued success in non-Southern markets, Kalyan has established itself as a leading brand in the industry, MOFSL said. 

MOFSL noted that Kalyan's non-South expansion has improved the studded jewelry mix, while the asset-light expansion supports healthy cash flow generation for debt repayment and enhances profitability by reducing interest costs. It is also gaining momentum in the Middle East and the US, it said.

"The on-ground momentum remained robust through most of Q3FY26, with the festive period delivering stronger growth than anticipated. During the 30 days leading up to Diwali, Kalyan reported LFL growth of over 30 per cent, reflecting sustained festive demand," MOFSL said.

The domestic brokerage said the company's gold saving scheme gained strong traction, aiding customer acquisition, while the gold exchange program also saw improved participation during the quarter, typically 30 per cent of sales, slightly higher in Q3.

"The company repaid Rs 130 crore in Q2FY26, reducing non-GML debt to Rs 550 crore as of September 2025. No debt was repaid in Q3; however, management plans to repay Rs 150 crore in Q4, targeting Rs 400 crore debt by March 2026 and a debt-free status by FY27," MOFSL said.
Kalyn plans to add 80–90 stores over the medium term in India and 6–7 overseas stores annually over the medium term, it added. 

Kalyan Jewellers reported consolidated revenue growth of 42 per cent YoY in the third quarter, exceeding MOFSL's estimate. The brokerage reiterated its 'Buy' rating on the stock with a target price of Rs 600, based on 35 times December 2027 price-to-earnings.

MOFSL said the India business delivered 42 per cent YoY revenue growth, supported by store additions and same-store sales growth of 27 per cent.