Citi said Kalyan’s India business reported 38% year-on-year revenue growth in the June quarter, below its estimate of 43%, driven by 28% same-store sales growth (SSSG) and the addition of 12 net Kalyan stores.
The brokerage said that management highlighted healthy same-store sales growth across key markets despite the impact of Adhik Maas. The share of old gold in sales stood at over 46% during the quarter, rising to over 55% in June.
International operations grew 35%, while the Middle East business posted 30% growth, although management said footfalls in the region were impacted in April due to geopolitical tensions.
Meanwhile, Candere continued to outperform, with revenue surging 112%, helping consolidated revenue growth reach around 38%, slightly below Citi’s 40% estimate.During the quarter, the company added 12 Kalyan stores and five Candere stores, taking its total network to 524 stores, including 354 Kalyan stores in India, 38 in the Middle East, two in the US, one in the UK, and 129 Candere outlets.
Citi believes Kalyan’s franchise-led expansion strategy should support long-term growth, improve return on capital employed (RoCE), and aid balance sheet deleveraging.
However, the brokerage flagged several risks, including Kalyan’s India business underperforming Titan’s domestic jewellery growth for the first time in 13 quarters, a potential increase in promoter pledge, slowing consumer demand, delays in deleveraging, and any deviation from its asset-light franchise expansion model.
Despite the 26% fall seen by the stock so far in 2026, it remains a consensus buy on the Street, with all eight analysts covering the stock maintaining their ‘Buy’ rating on it. The consensus estimates of price targets implies an upside potential of 85% from current levels.
Asian Markets Securities has the highest price target on the street for Kalyan Jewellers at ₹770 per share, followed by Citi at ₹750.
Shares of Kalyan Jewellers ended 6.49% lower on Tuesday at ₹356.50. The stock has declined over 26% so far this year.
