Kalyan Jewellers Share Price Surge: What’s Driving the Buzz?

 

Why This Is Trending

Kalyan Jewellers’ share price has surged into the spotlight due to a potent mix of robust financial growth and swirling market controversies. Social media buzz and analyst upgrades have fueled investor interest, making it a hot topic on Google and X. 

Relevance Summary: Kalyan Jewellers’ stock is trending due to its 39% revenue growth, expansion plans, and bribery allegations that sparked a 36% price correction. Investors are curious about its recovery potential and long-term value. 

The Indian jewelry market is glittering with opportunity, and Kalyan Jewellers India Ltd. is at the heart of it. Known for its vast network of over 349 outlets and iconic brands like Mudhra and Candere, the company has become a household name. However, its share price has recently grabbed headlines, oscillating between record highs and sharp corrections. From a 39% revenue surge to bribery allegations rocking investor confidence, the story of Kalyan Jewellers’ stock is one of ambition, volatility, and resilience. What’s driving this trend, and should investors jump in? Let’s dive into the sparkling yet turbulent world of Kalyan Jewellers’ shares.

Kalyan Jewellers Share Price Surge.

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Recent Developments

Kalyan Jewellers reported a 39% revenue growth in Q3 FY25, with India operations up 41%. The stock hit a 52-week high of ₹794.60 but fell 36% after bribery rumors. (98 characters)

In its latest quarterly update, Kalyan Jewellers showcased a stellar performance, with consolidated revenue climbing 39% year-on-year for the December 2024 quarter, driven by a 41% surge in its India operations. The company expanded aggressively, opening 24 new showrooms, bringing its global footprint to 349 stores, including 253 in India and 59 under its Candere brand. However, the stock faced turbulence, plummeting 36% from its January 2025 peak of ₹794.60 to ₹493, triggered by unverified social media allegations of bribery involving fund managers at Motilal Oswal AMC. The asset manager swiftly denied these claims, calling them “baseless” and “defamatory,” leading to a 9.4% stock recovery on January 20, 2025.

This volatility has kept investors on edge, with posts on X reflecting both skepticism and optimism. Some users speculate a “short attack” to accumulate shares at lower prices, while others highlight the company’s strong fundamentals, like a 24% same-store sales growth, as a reason to stay bullish. The market’s reaction underscores the power of social media in shaping stock sentiment, but Kalyan’s operational strength suggests resilience.

Financial Performance Fueling Optimism

Kalyan’s Q1 FY26 profit hit ₹2565M, with revenue up 36% to ₹6222.36Cr. Its 14.88% ROE outperforms the 5-year average. (100 characters)

Kalyan Jewellers’ financials paint a picture of robust growth. For the quarter ending March 2025, the company reported a consolidated total income of ₹6,222.36 crore, a 36.34% increase from ₹4,563.73 crore the previous year. Its profit after tax (PAT) grew 20% year-on-year, reaching ₹187.61 crore, aligning with analyst expectations. The company’s return on equity (ROE) stood at 14.88%, surpassing its five-year average of 10.56%, signaling improved profitability.

Analysts like ICICI Securities remain optimistic, maintaining an ‘ADD’ rating with a target price of ₹670, projecting revenue, EBITDA, and PAT compound annual growth rates (CAGRs) of 28%, 33%, and 51% over FY25-FY27. This optimism stems from Kalyan’s strategic focus on non-South markets, boosting its studded jewelry mix, and an asset-light expansion model that supports debt repayment. Despite a 60-basis-point contraction in gross margins to 13.6% due to a higher franchise store mix, EBITDA margins expanded to 7%, reflecting improved sourcing efficiencies. For investors, these numbers highlight Kalyan’s ability to balance growth with profitability, even in a competitive market.

Controversies Shaking Investor Confidence

Bribery allegations against Motilal Oswal AMC led to a 30% stock drop in January 2025. Promoters pledged 15.65% shares, raising concerns. (99 characters)

The Kalyan Jewellers stock saga took a dramatic turn in January 2025 when social media speculation alleged misconduct by Motilal Oswal AMC fund managers, triggering a 30% share price plunge in just days. The asset manager’s swift rebuttal, emphasizing its ethical legacy, helped the stock recover to ₹548.65 on January 20. Adding fuel to the fire, promoters Ramesh and Seetharam Trikkur Kalyanaraman pledged 7.65% and 7.998% of their shares, respectively, raising concerns about financial strain. With 24.89% of promoter holdings now pledged, investors are questioning the company’s stability.

Posts on X have amplified the drama, with users like @ThetaVegaCap noting the impact on Motilal Oswal’s mutual fund NAVs due to concentrated bets on Kalyan. Others, like @sumitkbehal, humorously linked the stock’s fall to unrelated market sentiments, highlighting the emotional rollercoaster for retail investors. While the allegations remain unproven, they’ve sparked a broader conversation about transparency in India’s stock market, keeping Kalyan Jewellers under scrutiny.

Expansion and Market Positioning

Kalyan operates 349 stores globally, with 24 new outlets added in Q3 FY25. It holds 6% of India’s organized jewelry market. (96 characters)

Kalyan Jewellers’ aggressive expansion has solidified its position as one of India’s top five gold jewelry retailers, commanding a 6% share of the organized market. The company added 24 showrooms in India during Q3 FY25, with a strong pipeline for further growth. Its global network now spans 349 outlets, including 36 in West Asia and one in the U.S., where 30-40% of inventory is sourced locally. The Candere brand, targeting younger consumers with lightweight, daily-wear jewelry, has grown to 59 stores, boosting studded jewelry sales by 30% year-on-year.

This expansion aligns with shifting consumer trends, as younger buyers favor versatile, Western-style gold pieces. Kalyan’s focus on non-South markets has diversified its revenue, with studded jewelry maintaining a stable 30.2% share. However, high gold prices and competitive pressures from rivals like Titan pose risks. With a price-to-earnings (P/E) ratio of 85.2, compared to Titan’s 90, Kalyan trades at a premium, reflecting high growth expectations but also vulnerability to market corrections.

Challenges and Risks Ahead

Gold price volatility and a 14.97% QoQ revenue drop in Q1 FY26 pose risks. Competition from Titan remains a key challenge. (97 characters)

Despite its growth, Kalyan Jewellers faces headwinds. The company reported a 14.97% quarter-on-quarter revenue decline in Q1 FY26, the lowest in three years, driven by gold price volatility and seasonal wedding demand fluctuations. High raw material costs continue to squeeze margins, with the jewelry industry’s average net profit margin at just 1.5%. Compared to Titan, which boasts an 11% operating margin and stronger brand pricing power, Kalyan’s 7% operating margin highlights its competitive disadvantage.

Analysts warn that delays in showroom expansion or increased competition in South India could dent growth. Additionally, the high P/E ratio of 85.2 signals that the stock’s rosy outlook is already priced in, leaving little room for error. Investors must weigh these risks against Kalyan’s expansion plans and debt reduction efforts, supported by potential RBI rate cuts that could boost consumer spending.

FAQs

1. What is the current share price of Kalyan Jewellers?

As of August 7, 2025, Kalyan Jewellers’ share price is ₹578.50, down 1.99% from ₹590.20. The stock has seen a 52-week high of ₹794.60 and a low of ₹399.20.

2. Is Kalyan Jewellers a good stock to invest in?

Kalyan Jewellers offers strong growth potential with a 39% revenue increase and 24% same-store sales growth. However, its high P/E ratio of 85.2 and recent volatility suggest caution. Analysts like ICICI Securities recommend an ‘ADD’ with a ₹670 target.

3. Why did Kalyan Jewellers’ share price drop in January 2025?

The stock fell 36% due to unverified bribery allegations involving Motilal Oswal AMC, amplified by social media. The company and AMC refuted the claims, leading to a partial recovery.

4. How does Kalyan Jewellers compare to Titan?

Kalyan’s operating margin (7%) and ROE (14.88%) lag behind Titan’s 11% and higher ROE. While Kalyan trades at a 10% valuation discount, Titan’s stronger brand commands a premium.

Conclusion

Kalyan Jewellers’ share price has captivated investors with its dizzying highs and lows, driven by stellar financials and market controversies. The company’s 39% revenue growth and aggressive expansion signal a bright future, but gold price volatility and competitive pressures warrant caution. Watch for updates on debt reduction and new showroom openings to gauge its trajectory.