Kalyan Jewellers Stock Surges Over 50% as Citi Reiterates Buy Rating on Franchise Expansion

Kalyan Jewellers Stock Surges Over 50% as Citi Reiterates Buy Rating on Franchise Expansion​

Kalyan Jewellers stock has sustained a robust rally for the fifth consecutive session, climbing nearly 5 percent in morning trade and placing it among the top performers in the BSE Midcap index. Investors are actively betting on the jewellery retailer's long-term growth trajectory, fueling a dramatic turnaround in investor sentiment regarding the company.

The shares of Kalyan Jewellers reached Rs 535 in morning trading, reflecting gains of 4.8 percent. This rally has pushed the stock's performance to over 50.8 percent across five sessions, consequently boosting its market capitalization by approximately Rs 18,500 crore, bringing the total valuation to around Rs 55,000 crore for the session.

Dramatic Turnaround as Stock Outperforms Market​

The strong momentum has significantly reversed the stock's performance year-to-date. Just a week prior, the company had seen declines exceeding 26 percent. However, Kalyan Jewellers has since advanced about 10.3 percent in 2026, starkly contrasting with the Nifty 50, which registered a decline of 7.5 percent over the same period.

This sharp rebound follows positive commentary from brokerage Citigroup last week, which reiterated its Buy rating and maintained a target price of Rs 750 per share. Although the shares have rallied more than 50 percent since that time, Citi's current target still suggests considerable upside potential from prevailing levels.

Corporate Performance and Digital Growth Drivers​

The rally intensified after analysts reviewed Kalyan Jewellers’ June-quarter performance. While the consolidated revenue growth for the quarter stood at 38 percent year-on-year, this figure was noted by the brokerage to be below estimates. However, Citigroup maintains a constructive long-term outlook despite the softer-than-expected quarter.

The company reported that its India revenue grew by 38 percent, supported by an impressive same-store sales growth (SSSG) of 28 percent. International business demonstrated strong expansion, growing around 35 percent year-on-year, with West Asia operations specifically rising about 30 percent, contributing roughly 14 percent to consolidated revenue for the quarter.

Franchise Expansion and Candere's Dominance​

Citi highlighted that Kalyan Jewellers' franchise-led expansion strategy is expected to underpin profitable growth while improving the return on capital employed (RoCE). A key long-term driver identified by analysts is the robust momentum within Candere, the company’s digital-first jewellery business.

Kalyan Jewellers continued its aggressive network expansion during the quarter, adding 12 Kalyan showrooms and five Candere stores. As of June 30, the total showroom network expanded to 524 outlets. Management noted that the second quarter began on a positive note ahead of the festive and wedding season.