Why Kalyan Jewellers Stock Jumped Nearly 12% Today: Q3 Profit Soars 90%, Revenue Hits Rs 10,343 Crore – Analyst Targets Inside

Kalyan Jewellers India Ltd has captured investor attention with a stellar performance in its Q3 FY26 results. The jewellery retail giant reported a massive surge in both revenue and profit, driven by strong festive and wedding demand, robust same-store sales growth (SSSG), and successful store expansion. This led to a sharp rally in its share price, jumping nearly 12% in trading sessions following the announcement, highlighting renewed confidence in the company's growth trajectory.

Strong Q3 FY26 Financial Performance

The company delivered impressive numbers for the October-December quarter (Q3 FY26):

• Revenue from operations climbed 42% year-on-year (YoY) to Rs 10,343.4 crore, up from Rs 7,278.1 crore in Q3 FY25. This growth was fueled by healthy demand across India and international markets, with India operations contributing significantly.
• Net profit soared over 90% YoY to Rs 416.3 crore, compared to Rs 218.8 crore in the previous corresponding period. This beat analyst expectations comfortably, even after accounting for a one-time exceptional charge of around Rs 41.5 crore related to new labour code provisions.
• Key operational highlights include a 27% SSSG in India, reflecting strong footfalls and customer additions (new customers contributing over 39% of revenue). The share of studded jewellery improved, aiding better margins, while EBITDA rose sharply with operating leverage kicking in.

These results underscore Kalyan Jewellers' scalable model, including a growing franchise (FOCO) network—now over half of its India showrooms—and expansion beyond southern markets.

Why Shares Jumped 12%

The market reacted positively to the earnings beat, with shares surging up to Rs 424.70 in early trading on February 9, 2026—the highest in recent weeks. The combination of top-line momentum, profit growth outpacing revenue, and positive management commentary on ongoing demand trends (including strong Q4 outlook) drove the rally. Analysts noted the company's ability to navigate gold price volatility while improving gross margins through mix shifts and procurement efficiencies.

Latest Analyst Target Prices and Ratings

Brokerages remain largely bullish on Kalyan Jewellers post-results, maintaining 'Buy' ratings due to sustained demand, expansion potential, and improving return ratios. Here's a summary of the latest target prices:

• Consensus average target price hovers around Rs 680-695, implying significant upside (over 70-80% from recent levels around Rs 380-420).
• High-end targets reach Rs 750-775 (e.g., from some reports implying strong re-rating potential).
• Specific updates include:
  • Motilal Oswal: Retained 'Buy' with a target of Rs 600 (based on 35x Dec'27 P/E), citing an all-around beat and scalable franchise model.
  • Citi and HSBC: 'Buy' maintained, but targets adjusted to Rs 650 (from higher levels), reflecting solid Q3 and strong Q4 demand visibility.
  • Other estimates suggest upside potential of 60-97% in some cases, driven by expected 20%+ CAGR in revenue and profits over the coming years.

Analysts highlight structural positives like rising studded jewellery share, non-south market success, and medium-term growth guidance (mid-to-high single-digit SSSG). However, risks such as gold price fluctuations, competition, and execution on expansions remain key monitorables.

Outlook for Kalyan Jewellers

With festive momentum carrying into the current quarter and a focus on asset-light growth via franchises, Kalyan Jewellers appears well-positioned in India's booming jewellery sector. The Q3 beat reinforces its shift toward higher-margin, scalable operations.

Investors tracking the stock should watch for sustained demand trends and any macro impacts on gold prices. As always, conduct your own research or consult a financial advisor before making investment decisions—this is not financial advice.

The jewellery retail space continues to sparkle, and Kalyan Jewellers' recent performance positions it as a standout player. Stay tuned for more updates as the company progresses through FY26!