Kalyan Jewellers’ shares slid 1.8% to ₹563 on the NSE as the company announced Q1 earnings that saw net profit climb to ₹348.7 crore, a 32% jump from ₹264.1 crore a year ago, and revenue surge to ₹10,588.9 crore, a 45.7% rise over ₹7,268.5 crore.
The earnings‑before‑interest‑tax‑depreciation‑amortization (EBITDA) rose 24.5% to ₹632.5 crore, though the operating margin contracted from 7% to 6%, reflecting higher cost of goods sold amid steady sales.
UBS keeps its “buy” call and now targets ₹900 per share, implying a 60% upside from the Monday close. “Management remains confident of a strong second half despite a high base,” said UBS analyst Rahul Sharma, citing aggressive network expansion and robust gold‑savings schemes.
Gold demand remains buoyant, with the company reporting that ticket size variance across segments will help cushion margin pressure. The firm’s aggressive rollout of new outlets is expected to sustain revenue momentum through FY2026, according to the management remarks.
Investors will eye the next quarterly filing for guidance on the high‑growth trajectory and any changes in the cost structure that could affect the narrowing margin trend. The broader gold‑retail sector has seen a 6.3% decline last month but a 16.3% year‑to‑date gain, positioning Kalyan Jewellers as a key play for bullish market sentiment.
For now, traders should weigh the 60% upside potential against the margin squeeze, while long‑term investors can look to the company’s network expansion and gold‑saving products as a buffer against price volatility.