After 35% Correction, This Jewellery Stock Is Showing Rebound Potential

Kalyan Jewellers rose nearly 2% on Tuesday after the company posted robust Q2 operational data. Consolidated revenue rose around 30%, supported by robust wedding demand, festive buying, and a sharp rebound in its digital-first platform, Candere.

India operations led the growth with a 31% revenue increase, driven by strong demand for wedding jewellery and early festive sales. Same-store sales growth reached 16%, driven by strong Navratri sales. International revenue grew 17%, with the Middle East business rising 10%, entirely from same-store growth, contributing about 12% of total revenue.

Candere emerged as the standout performer, posting a 127% revenue surge, which reflected higher showroom foot traffic, online traffic, and brand momentum. During the quarter, Kalyan added 15 new showrooms in India, two in the Middle East, and 15 Candere outlets, bringing the total store count to 436 globally.

The company also received approval to release real estate collateral linked to repaid debt, paving the way for further deleveraging in fiscal year 2026.

Looking ahead, Kalyan remains optimistic about the festive quarter, with plans to open 15 additional showrooms before Diwali.

ICICI Securities Upgrades Rating

Domestic brokerage ICICI Securities upgraded Kalyan Jewellers to a ‘BUY’ rating, stating that the stock’s 35% correction in the past year offers a meaningful margin of safety. Price target was unchanged at ₹670.

The broker expects Kalyan Jewellers to post strong same-store sales growth (SSSG) in FY26, supported by robust festive and wedding-led demand.

Kalyan continues to strengthen its growth outlook through aggressive store expansion under its asset-light franchise-owned, company-operated (FOCO) model, the scaling up of omni-channel brand Candere, and ongoing balance sheet improvement, with another ₹3.5 - ₹4 billion debt reduction targeted in FY26.

Citing the company’s consistent execution, improving return ratios, and a strong festive pipeline, ICICI Securities expects Kalyan’s revenue momentum to stay healthy in the coming quarters.

What Is The Retail Mood?

Data on Stocktwits shows that retail sentiment has remained ‘bullish’ for a month. It was ‘bearish’ prior to that.

Year-to-date, the stock has declined by over 35%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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