Citi raises Kalyan Jewellers target to Rs 800 despite June-quarter margin pressure

Citi retained its Buy rating and lifted Kalyan Jewellers’ target price from Rs 750 to Rs 800. June-quarter revenue rose 45.7% year on year to Rs 10,588.9 crore, while EBITDA margin narrowed to 6% from 7% amid cost and business-mix pressure.

— Source publishedThu, 6 Aug, 2026, 10:05 IST·First seen Thu, 6 Aug, 2026, 10:47 IST·Source Business Today · Latest

What happened

Citi retained its Buy call on Kalyan Jewellers and raised the target price to Rs 800. June-quarter revenue and reported profit rose strongly, but adjusted

Key facts

  • Citi retained Buy rating
  • Target price raised to Rs 800 from Rs 750
  • Share gained about 50% in one month
  • BSE price: Rs 568.55, up 0.10%
  • NSE price: Rs 568.70, down 0.14%
  • Ex-bullion revenue grew 38% YoY
  • Inventory-related one-off gain: Rs 41 crore
  • Adjusted EBITDA grew 16% YoY; 17% below Citi estimate
  • Adjusted PAT grew 20% YoY; 20% below Citi estimate
  • Consolidated net profit: Rs 348.7 crore, up 32% YoY
  • Revenue from operations: Rs 10,588.9 crore, up 45.7% YoY
  • EBITDA: Rs 632.5 crore, up 24.5% YoY
  • EBITDA margin: 6%, versus 7% a year earlier

Why this matters

Kalyan’s growth-plus-margin trade-off suggests acquisition or partnership opportunities should prioritize higher-margin formats, sourcing efficiencies and complementary customer segments.

What to watch

  • Quarterly EBITDA margin trend versus the reported 6% level and management guidance on recovery timing.
  • Same-store sales growth, new-store additions, and the revenue contribution/ramp-up of recently opened stores.
  • Gold-price movement and its effect on customer ticket size, volume growth, inventory funding and hedging costs.
  • Share of studded jewellery, franchise/FOCO mix, and discounting intensity during the festive and wedding seasons.
  • Any revisions to revenue-growth or earnings estimates following the June-quarter margin miss.
  • Accelerate store openings in underpenetrated tier-2 and tier-3 markets while prioritising franchise-led expansion to limit capital intensity.
  • Use festive and wedding-season campaigns to protect footfall and conversion without broad-based discounting.
  • Increase higher-margin studded, lightweight and branded product penetration to offset gold-jewellery mix pressure.
  • Communicate a clear margin-recovery path through mix, sourcing and new-store maturity metrics to sustain investor confidence after the target-price increase.

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