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Kalyan Jewellers Shares Rise After Jefferies Initiates Buy Rating
Shares of Kalyan Jewellers India gained around 4 percent after Jefferies initiated coverage with a Buy rating and a target price of Rs 830, implying an upside potential of about 33 percent. The brokerage highlighted the company's franchise-led expansion model, while the company's strong first-quarter FY27 earnings further supported investor sentiment.
By Finblage Editorial Desk
4:30 pm
7 August 2026
Shares of Kalyan Jewellers India climbed nearly 4 percent on August 7 after global brokerage Jefferies initiated coverage on the stock with a Buy rating and a target price of Rs 830, indicating a potential upside of approximately 33 percent from current levels.
Jefferies said Kalyan Jewellers has built a differentiated business model by combining strong neighbourhood-level brand relevance with the scale of an organised jewellery retailer. The brokerage believes this positioning has enabled the company to consistently gain market share and expects the trend to continue over the coming years.
The brokerage also highlighted the company's franchise-led expansion strategy, noting that its franchise-owned, company-operated (FOCO) model enhances capital efficiency while supporting rapid network expansion, particularly beyond South India. Although Kalyan has an international presence, Jefferies said the Indian market continues to remain the company's primary growth driver.
The positive brokerage commentary followed the company's strong financial performance for the first quarter of FY27. Kalyan Jewellers reported consolidated revenue of Rs 10,588.9 crore, marking a 46 percent year-on-year increase from Rs 7,268.5 crore in the corresponding quarter last year. Gross profit rose 25 percent year-on-year to Rs 1,263.8 crore, although the gross profit margin declined to 11.9 percent from 13.9 percent a year earlier.
Operating performance also remained robust, with EBITDA increasing 25 percent year-on-year to Rs 632.5 crore, while EBIT rose 26 percent to Rs 517.5 crore. Profit after tax (PAT) grew 32 percent year-on-year to Rs 348.7 crore.
As of the end of the first quarter of FY27, Kalyan Jewellers operated 354 showrooms in India, including 234 franchise-owned, company-operated stores. Its digital-first jewellery brand Candere had expanded to 129 showrooms, of which 73 were FOCO outlets.
Outside India, the company operated 38 Kalyan showrooms across the Middle East, two stores in the United States, and one FOCO showroom in the United Kingdom, reflecting its continued international expansion strategy.
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