Archive · 5 Aug 2026
Kalyan Jewellers shares tumble 5% on weak Q1 margins
Kalyan Jewellers is a big company that runs jewellery shops in India and the Middle East.
The company told everyone how much money it made from April to June.
It earned more profit than it did one year ago, and it sold a lot more jewellery.
But people who buy and sell shares were not happy, so the share price went down.
They expected the company to make even more profit than it did.
Making profit got a little harder because the company gave discounts and took in more old gold from customers.
Jewellery with stones brings more profit, but the company sold a little less of that kind.
The company is still growing — it opened 12 new big shops and 5 smaller Candere shops and plans to open 84 more next year.
One smart money company still says to buy the shares, even though other people are selling them.
Kalyan Jewellers shares fell 5% on Wednesday, August 5, to an intraday low of ₹562.70, extending losses to 11.2% over the past four sessions.
June quarter net profit rose 32% year-on-year to ₹348 crore but declined sequentially from ₹409 crore in the March quarter.
Revenue from operations grew 46% year-on-year to ₹10,589 crore, though it was 3% lower quarter-on-quarter.
EBITDA margin contracted 100 basis points to 6%, pressured by a lower studded jewellery mix, exchanged gold, promotional offers and a high base from a one-off gain last year.
Motilal Oswal cut FY27-FY28 EPS estimates by 3-4% but retained a 'Buy' rating with a ₹700 target price, while the company added 12 Kalyan showrooms and five Candere stores.
- Who
- Kalyan Jewellers, an Indian jewellery retailer, its shareholders, and brokerage Motilal Oswal.
- What
- The company's shares fell 5% after June quarter earnings missed Street expectations on weaker-than-expected margins, despite strong profit and revenue growth.
- When
- Wednesday, August 5, after results were announced the previous evening; the quarter ended June 2026.
- Where
- India, where the stock trades and the retailer operates 483 stores; the company also operates in the Middle East.
- Why
- Investors were disappointed by margin pressure from a lower studded jewellery mix, exchanged gold, promotional offers and a high base from a one-off gain in the year-ago quarter.
Market Sell-Off
Brokerage Optimism
Q1 earnings and stock outlook
Market Sell-Off
Investors sold the stock, extending losses to 11.2% in four sessions, because June quarter earnings missed Street expectations on weaker-than-expected margins; the stock remains 28% below its record high.
Brokerage Optimism
Motilal Oswal retained a 'Buy' rating with a ₹700 target price, citing strong revenue growth, a successful scale-up of franchise businesses and asset-light expansion that supports cash flow and profitability.
Margins vs. growth
Market Sell-Off
Margin pressure from a falling studded jewellery mix, exchanged gold, promotional offers and a high base offset the benefit of strong sales growth.
Brokerage Optimism
The brokerage noted that expansion beyond South India has improved the studded jewellery mix, while India revenue grew 38% YoY with 28% same-store sales growth.
- Stock drop (August 5)
- 5%, to an intraday low of ₹562.70
- Four-session decline
- 11.2%
- Q1 net profit
- ₹348 crore, up 32% YoY; down from ₹409 crore QoQ
- Revenue from operations
- ₹10,589 crore, up 46% YoY
- EBITDA margin
- 6%, down 100 basis points YoY and QoQ
- India store count
- 483 (12 new Kalyan showrooms, 5 new Candere stores)
- Motilal Oswal rating
- Buy, target price ₹700; EPS estimates cut 3-4% for FY27/FY28
- Record high
- ₹795.40 (stock now 28% below)