Thrissur-based Kalyan Jewellers has crossed the ₹10,000 crore quarterly revenue mark for the first time, supported by strong sales growth across its existing stores and continued business expansion.
The jewellery retailer reported a 31.4% year-on-year increase in consolidated revenue to ₹10,323 crore for the second quarter of FY27, compared with ₹7,857 crore in the corresponding period last year.
The strong earnings performance triggered a rally in Kalyan Jewellers' shares on Wednesday (November 11). The stock surged more than 10% in early trading to ₹672 before climbing further to ₹689, its highest level in the past year.
Global brokerage UBS maintained its ‘Buy’ rating on the stock with a price target of ₹900.
Kalyan Jewellers reported a 63.6% increase in consolidated net profit to ₹427 crore for the July-September quarter, against ₹260.51 crore in the year-earlier period.
However, the reported profit included an exceptional gain of ₹73.46 crore from the sale of a portion of land classified as investment property.
Excluding this one-off gain, adjusted net profit stood at approximately ₹354 crore, representing an underlying profit growth of around 36%.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 29.7% to ₹644.7 crore. However, the EBITDA margin narrowed marginally to 6.25% from 6.33% a year earlier, reflecting some pressure on operating profitability.
Kalyan Jewellers' revenue growth was not driven by showroom expansion alone. Existing outlets also recorded strong sales, with same-store sales growth (SSSG) reaching approximately 20%.
Revenue excluding bullion transactions increased 27.5%, while clean EBITDA, a measure of underlying operating profitability, rose 26%.
The performance indicates healthy demand for jewellery despite fluctuations in gold prices. However, volatility in the precious metal's price continued to affect operating margins.
For the first half of FY27, the company's consolidated revenue increased 38% to ₹20,912 crore, while net profit rose 48% to ₹776 crore.
Management has expressed optimism about demand during the Navratri and Dhanteras festive periods and the upcoming wedding season, which traditionally supports jewellery purchases in India.
The strong quarterly results, healthy same-store sales growth and expectations of sustained jewellery demand have supported investor interest in the stock. However, the marginal decline in operating margins and the contribution of exceptional income to reported profit remain important factors in assessing the company's underlying earnings performance.