Kalyan Jewellers share price rallied up to 10 percent in early morning trade on Wednesday, touching an intraday high of ₹672 per share after reporting a 63.6 percent year-on-year (YoY) rise in consolidated net profit for Q2 FY27. The sharp stock rally was backed by quarterly revenue crossing the ₹10,000-crore mark and a bullish recommendation from global brokerage UBS, which reiterated its Buy rating with a ₹900 target price.
Q2 FY27 Financial Highlights: Revenue and Profit Breakdown
The Kerala-headquartered jewellery retailer reported a consolidated net profit of ₹427 crore for the quarter ended September 30, 2026, compared to ₹260.51 crore in the corresponding period of the previous financial year.
The reported net profit figures were significantly augmented by an exceptional one-time gain:
“The quarterly profit included an exceptional gain of ₹73 crore (₹73.5 crore) from the sale of a non-core land parcel asset. Excluding this exceptional item, core net profit stood at approximately ₹354 crore, marking a steady operational growth of nearly 36 percent YoY.”
Kalyan Jewellers Q2 FY27 Financial Metrics at a Glance
| Metric | Q2 FY27 | Q2 FY26 | YoY Change (%) |
|---|---|---|---|
| Consolidated Revenue | ₹10,323 Cr | ₹7,856 Cr | +31.4% |
| Reported Net Profit | ₹427 Cr | ₹260.5 Cr | +63.6% |
| Adjusted Net Profit* | ₹354 Cr | ₹260.5 Cr | +35.9% |
| EBITDA | ₹644.7 Cr | ₹497.2 Cr | +29.7% |
| EBITDA Margin (%) | 6.25% | 6.33% | -8 bps |
Revenue from operations expanded 31.4 percent YoY to reach ₹10,323 crore, up from ₹7,856 crore recorded in Q2 FY26. The top-line momentum was driven primarily by robust store-level execution and strong volume growth across non-south and domestic Indian markets.
On the operational efficiency front, EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) rose 29.7 percent to ₹644.7 crore. However, the EBITDA margin witnessed a slight contraction of 8 basis points, easing to 6.25 percent compared to 6.33 percent in the year-ago quarter due to shifting product mix and promotional expenses.
Store Execution and Same-Store Sales Growth (SSSG)
Kalyan Jewellers’ India business remained the core earnings anchor during the second quarter. Key operational highlights include:
- India Operations Revenue: Rose 32 percent YoY to ₹9,007 crore, with standalone domestic Profit After Tax (PAT) climbing 62 percent to ₹424 crore.
- Same-Store Sales Growth: SSSG for the India division registered at an impressive 20 percent YoY, confirming high footfall retention and expanding transaction values per customer.
- Regional Performance: Non-South Indian markets recorded a revenue expansion of 31 percent, outpacing South India’s 23 percent growth rate.
- Half-Yearly (H1 FY27) Performance: For the first six months of the financial year (H1 FY27), consolidated revenue climbed 38 percent to ₹20,912 crore, while total net profit surged 48 percent to ₹776 crore.
With this performance, Kalyan Jewellers shares have gained approximately 38.4 percent year-to-date in 2026, outperforming the broader benchmark Nifty 50, which declined by nearly 3 percent over the same period. At the market price of ₹672, Kalyan Jewellers commands a market capitalization of approximately ₹69,000 crore.
UBS Analysis & Share Price Target: Why Analysts See 47% Upside
Global brokerage UBS retained its positive stance on Kalyan Jewellers, reiterating a Buy rating and placing the target price at ₹900 per share.
The target price implies a potential upside of ~47 percent relative to Monday’s closing price of ₹611. According to UBS analysts, the company’s July–September operational performance aligned comfortably with street expectations once adjusted for one-time land asset sales.
Valuation & Rating Summary: UBS on Kalyan Jewellers
Brokerage commentary emphasizes that the ongoing asset-light showroom rollout model (FOCO – Franchise Owned Company Operated) continues to improve return ratios without putting excessive capital expenditure pressure on the balance sheet.
Management also expressed confidence regarding demand trends in the third quarter (Q3 FY27), reporting stronger footfalls during major cultural shopping periods including Navratri and Dhanteras.
“The ongoing festive quarter has started on a strong note, with encouraging growth on the ground, particularly during Navratri and Dhanteras. We remain upbeat about the upcoming wedding season,” noted executive leadership in post-earnings commentary.
Frequently Asked Questions (FAQs)
What was Kalyan Jewellers’ net profit in Q2 FY27?
Kalyan Jewellers reported a consolidated net profit of ₹427 crore for Q2 FY27, representing a 63.6 percent YoY increase that included a ₹73 crore exceptional gain from a land sale.
What is the UBS target price for Kalyan Jewellers share price?
UBS has maintained a Buy rating on Kalyan Jewellers with a target price of ₹900 per share, representing an upside potential of approximately 47 percent from its prior close.
What was Kalyan Jewellers’ revenue for Q2 FY27?
The company’s consolidated revenue from operations rose 31.4 percent YoY to ₹10,323 crore during the September quarter.
How much did Kalyan Jewellers’ Same-Store Sales Growth (SSSG) increase?
Kalyan Jewellers achieved a 20 percent YoY Same-Store Sales Growth (SSSG) across its domestic India business during Q2 FY27.
Why did Kalyan Jewellers shares jump 10% today?
The stock surged after the company posted a 64% jump in net profit, crossed ₹10,000 crore in quarterly revenue, and received positive target price coverage from global brokerage UBS.
Conclusion & Outlook
Kalyan Jewellers’ Q2 FY27 earnings highlight sustained retail momentum driven by network additions and market share gains from unorganized players. While investors should monitor EBITDA margin movement amid fluctuations in raw gold prices, strong early trends from Dhanteras and the upcoming winter wedding season position the retailer well for the second half of the fiscal year.
Manish Kumar began his professional journey in digital marketing and performance marketing, and currently works as a Digital Marketing Excutive and SEO expert. With over 3 years of professional experience, he handles both strategy and execution. Currently, he manages digital marketing and performance marketing at ‘Shabd Sanchi’ (shabdsanchi.com).
