Shares of Kalyan Jewellers fell sharply on Thursday, dropping nearly 9.4% to a low of ₹534.95 on the Bombay Stock Exchange (BSE). This came soon after the company announced its first-quarter results for the financial year 2025-26 (Q1 FY26).
The fall surprised many investors because the company had reported strong growth in both revenue and profits. Earlier in the day, the stock recovered slightly to around ₹550.25, according to NDTV Profit. However, figures from Angel One and ICICI Direct showed the stock had closed the previous day at around ₹590–₹591.

Kalyan Jewellers Strong Growth in Revenue and Profit
For Q1 FY26, Kalyan Jewellers posted impressive financial numbers. The company’s profit after tax (PAT) rose by 49% year-on-year to ₹246 crore. Revenue also jumped by 31% to ₹7,268 crore, supported by strong demand across its network.
The growth came from both existing stores and new store openings. The company has been focusing on expanding its presence in smaller cities while maintaining strong sales in larger markets. This performance highlights the growing popularity of the brand and the steady demand for gold and jewellery in India, despite fluctuations in gold prices.
Why the Kalyan Jewellers Stock Still Dropped
Despite the strong Q1 results, the market reaction was negative. Analysts believe the main reason for the drop was pressure on profit margins. In India, the gross margin fell by 60 basis points to 13.6%. This was mainly due to an increasing share of sales from franchised stores, which typically have lower margins compared to company-owned outlets.
Cost pressures also played a role, including higher expenses linked to expansion and marketing. These factors made investors cautious, leading to a sell-off in the stock. Many traders also booked profits after the recent rally in Kalyan Jewellers shares, which may have added to the sudden fall.
Analysts Remain Bullish with Higher Targets
While the share price fell in the short term, several brokerage firms remain positive about the company’s long-term prospects. Citi and Motilal Oswal have maintained or even raised their target price to ₹700 per share. If these targets are met, the stock could see an upside of nearly 30% from its current levels.
JM Financial has also given a “Buy” rating with a target price of ₹700. Analysts cite the company’s aggressive store expansion plans and favourable market conditions for the jewellery sector as key reasons for their optimism. They believe that once the margin concerns are addressed, the strong revenue growth will drive the stock higher.
Aggressive Expansion Ahead
Kalyan Jewellers has laid out an ambitious growth strategy for FY26. The company plans to open 160 new stores—half under the flagship “Kalyan” brand and the other half under its more affordable “Candere” brand. This expansion is aimed at reaching more customers in different income segments and strengthening its presence across India.
The management expects revenue growth to exceed 25% for the year, supported by these new openings and steady demand. The company is also focusing on improving its digital and omni-channel presence, making it easier for customers to browse and buy jewellery online as well as in physical stores.
F.A.Q.
– Why did Kalyan Jewellers’ share price fall despite strong Q1 results?
The fall was mainly due to margin pressures from a growing share of franchised stores, which have lower profit margins, and higher operating costs.
– How much did Kalyan Jewellers’ stock drop?
The stock fell nearly 9.4% to ₹534.95 on the BSE before recovering slightly to around ₹550.25 during the day.
– What were Kalyan Jewellers’ Q1 FY26 results?
The company posted a 49% year-on-year rise in profit after tax to ₹246 crore and a 31% jump in revenue to ₹7,268 crore.
– What do analysts expect for Kalyan Jewellers’ stock?
Brokerages like Citi, Motilal Oswal, and JM Financial have set a target price of ₹700 per share, indicating a potential upside of around 30%.
– What are Kalyan Jewellers’ future plans?
The company plans to open 160 new stores in FY26, split evenly between its “Kalyan” and “Candere” brands, aiming for revenue growth above 25% for the year.
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