The Indian jewellery market is witnessing a literal “gold rush” on the stock exchange today. Kalyan Jewellers India saw its share price surge nearly 12%, hitting a high of ₹424.7 on the NSE. This massive rally follows a blockbuster Q3FY26 earnings report that has left investors and analysts beaming.

While the stock had a rocky road over the past year, dipping nearly 22% while the Nifty 50 climbed, today’s performance marks a decisive turnaround.

Kalyan Jewellers Q3 Results: Why Net Profit Doubled to ₹416 Crore

The primary catalyst for this vertical climb is a jaw-dropping 90% year-on-year (YoY) surge in net profit. For the October to December quarter, Kalyan Jewellers reported a bottom line of ₹416.3 crore, nearly doubling the ₹219 crore recorded in the same period last year.

Key Financial Highlights:

  • Revenue Growth: A massive 42% jump to ₹10,343.4 crore.
  • Trading Volume: A staggering 23.5 million shares changed hands by mid-morning, signalling high investor confidence.
  • Profit Margin: The company’s ability to scale revenue while maintaining profitability has exceeded most market expectations.

Strategy for Kalyan Jewellers Future: Beyond Southern Borders

Kalyan Jewellers is not just riding a temporary wave; they are executing a calculated shift in their business model. For a brand traditionally rooted in South India, the future looks much broader.

  • Non-South Expansion: The brand is aggressively capturing market share in Northern and Western India.
  • The “Asset-Light” Model: By pivoting toward a franchise-based strategy, Kalyan is opening new showrooms without the heavy capital expenditure typically required. This is expected to boost their Return on Capital Employed (ROCE) significantly.
  • International Traction: With steady growth in the Middle East over the last two years, the company is planning a “calibrated expansion” to solidify its global footprint.

Motilal Oswal Target Price: Is Kalyan Jewellers a ‘Buy’ at ₹600?

Motilal Oswal Financial Services remains highly bullish, maintaining a ‘Buy’ rating with an ambitious target price of ₹600.

The brokerage noted that Kalyan Jewellers has successfully established itself as a national powerhouse. With a projected 22% PAT (Profit After Tax) compound annual growth rate (CAGR) through 2028, the brokerage believes the company’s deleveraging balance sheet and consistent customer acquisition make it a top pick in the retail sector.

“Kalyan Jewellers has beaten our estimates. Their success in non-southern markets and the scale-up of the franchise business prove the brand’s resilience and scalability,” stated Motilal Oswal Financial Services.

The Verdict for Investors

For readers of Business Outreach Magazine, the takeaway is clear: Kalyan Jewellers is no longer just a regional player. They are a lean, aggressive, and highly profitable retail giant that has successfully navigated market volatility. With a 40% upside potential, according to top brokerages, all eyes are on whether they can maintain mid- to high-single-digit sales growth in the coming quarters.