Kalyan Jewellers shares crack 9% despite positive Q1 results; Here's why

Kalyan Jewellers shares saw the steepest fall since January 2025, even after the company reported a 48.73 per cent growth in its Q1 net profit

Shares of Kalyan Jewellers tumbled over 9 per cent on Friday, even after the company reported a 48.73 per cent growth in its net profit in the June quarter of the current financial year. 

 

The jewellery maker's stock fell as much as 9.47 per cent during the day to ₹535 per share, the steepest intraday fall since January 15 this year. The stock pared losses to trade 7.9 per cent lower at ₹543.8 apiece, compared to a 0.73 per cent decline in Nifty 50 as of 12:10 PM. 

 

Shares of the company were at the lowest level since June 30 and currently trade at 12 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 29 per cent this year, compared to a 4 per cent advance in the benchmark Nifty 50. Kalyan Jewellers has a total market capitalisation of ₹56,062.86 crore.   Track LIVE Stock Market Updates Here

 

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Kalyan Jewellers Q1 results 

The Jewellery retailer posted a 48.73 per cent growth in consolidated profit after tax (PAT) to ₹264.08 crore during the quarter ended June 30. The company's PAT stood at ₹177.55 crore in the corresponding period of the previous fiscal year. 

 

Its revenue from operations increased 31.48 per cent during the quarter under review to ₹7,268.47 crore compared to ₹5,527.81 crore a year ago.

 

"We have started off the ongoing quarter well despite continuing volatility in gold prices and a higher base," said Kalyan Jewellers India Executive Director Ramesh Kalyanaraman. "We are upbeat about the upcoming festive season across the country and are gearing up for the launch of fresh collections and campaigns." 

Why did Kalyan Jewellers' stock fall?

Analysts at JM Financial noted that the demand remained until the last week of June, post which the high base is optically leading to some Y-o-Y slowdown in growth. However, the growth is again expected to pick up in Q2 due to the festive season, it noted. 

 

Kalyan Jewellers Q1 beat JM Financial’s estimates, and its steps towards a lean credit policy are expected to drive profitability and improve RoCE. The regional brand strategy aims to expand the total addressable market (TAM); however, this is also likely to increase the overall capital employed in the business, the brokerage said.  

 

JM Financial has a 'Buy' rating on the stock with a target price of ₹700 per share. Meanwhile, Motilal Oswal retained 'Buy' rating with a target of ₹700 apiece.  

 

Motilal Oswal also said that the demand in the first three weeks of July was healthy. The last week of July to the first week of August is not comparable due to a high base created by the customs duty cut, it said. "That said, management believes that the high base impact should be offset in 2QFY26."