Kalyan Jewellers shares decline 9.5% despite strong June quarter earnings; check all Q1 numbers

Shares of jewellery retailer Kalyan Jewellers declined 9.5% to intraday low of ₹535 apiece on Friday, August 8, despite registering growth in its June quarter earnings. The stock has tumbled 14% from the opening high of ₹615 per share.

Last seen, shares of Kalyan Jewellers were trading 7.87% lower at ₹544.60 apiece on the NSE.

The stock has declined by 6.57% in the last week. On the other hand, on a monthly basis, the drop stands at 4.50%. The stock touched its 52-week high of ₹633.4 apiece on the NSE and it hit its 52-week low of ₹202.6. The company's market capitalisation stands at ₹60,959.21 crore.

Kalyan Jewellers on Thursday posted a 48% year-on-year (YoY) increase in its consolidated net profit at ₹264 crore in the quarter ended June 2025 (Q1 FY26). In the corresponding period last year, the jewellery firm had clocked a profit of ₹178 crore. The company's revenue from operations stood at ₹7,268 crore, growing 31% YoY in Q1 FY25, compared to ₹5,528 crore in the first quarter of the 2024-25 fiscal year (Q1 FY25).

On the operational level, Kalyan Jewellers’ earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at ₹508 crore in contrast to ₹368 crore in the same quarter of the previous fiscal year, marking a jump of 38%. The EBITDA margin was also flat at 7% in Q1 FY26 as against 6.6% YoY.

The company’s international operations recorded revenue of ₹1,070 crore in the reporting quarter, a growth of 32% when compared with the same period in the previous financial year. Middle East revenue and PAT for Q1 FY26 were ₹1,026 crore and ₹22 crore, respectively, a growth of 27% and 18%, respectively.

Also read: Kalyan Jewellers Q1 Result: Net profit jumps 48%, revenue grows to ₹7,268 crore YoY

a) The company is trialling a “lean credit procurement” initiative aimed at improving profit margins and Return on Capital Employed (RoCE). If extended across the organisation, the project would call for an additional capital investment in the range of ₹1,500 to 2,000 crore.

b) Introducing a new strategy focused on regional brands, with plans to launch five stores in a single state within the next 12 months under the FoCo model.

c) Halting additional debt reduction for now, as the company aims to first realise and monetise real estate collateral with banks.

Commenting on the Q1 results, Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers India Limited, said, “We have started off the ongoing quarter well despite continuing volatility in gold prices and a higher base. We are upbeat about the upcoming festive season across the country and are gearing up for the launch of fresh collections and campaigns.”