Investor Update: Kalyan Jewellers India Ltd. (Q3 FY26)

Executive Summary Kalyan Jewellers India Ltd. has delivered a robust operational and financial performance for the quarter ending December 2025. The stock surged 10% in early trade on Monday, February 9, 2026, driven by a stellar 90% YoY growth in Profit After Tax (PAT) and significant margin expansion. Revenue Growth: Consolidated revenue jumped 42.1% YoY to ₹10,343.4 crore (vs. ₹7,278 crore in Q3 FY25), signaling strong consumer demand. Profitability: PAT surged 90.4% YoY to ₹416.2 crore. Operational Efficiency: EBITDA rose 74.6% to ₹750.4 crore. Crucially, EBITDA margins expanded by 140 bps to 7.3% (up from 5.9%), supported by operating leverage and a favorable product mix. Operational KPIs & Strategic Drivers Same-Store Sales Growth (SSSG): Stood at a robust 27%, indicating strong traction in existing showrooms. Premiumisation: The share of studded jewellery—a higher margin category—improved to 31.2% (from 29.5% YoY). Market Expansion: Non-south markets remain a key growth engine, now contributing 58.5% of total revenue. Category Performance: Margin expansion was further aided by gains in the silver and platinum categories. Analyst Sentiment & Outlook Street sentiment remains overwhelmingly positive, with all nine analysts tracking the stock maintaining a 'Buy' rating. Target Price: Both HSBC and Citi have set a price target of ₹650, implying a potential upside of significantly over 60% from current levels. Valuation: The stock currently trades at approximately 26x FY27E earnings, which analysts view as attractive given the growth trajectory. Future Triggers: Q4 Demand: HSBC notes that demand trends remain strong for the ongoing quarter. Strategic Launches: A new regional brand is slated for launch in Q4. Deleveraging: Debt levels remained flat QoQ, aligning with FY26 guidance. A planned land sale in H1 FY27 is expected to further strengthen the balance sheet.