Editor’s Note
Promoters of Kalyan Jewellers have significantly increased their stake in the company through open market purchases, a move often interpreted as a strong vote of confidence in its future prospects.
The leading jewelry sector company, Kalyan Jewellers India Ltd, is once again in the spotlight as its promoters are continuously buying the company’s shares from the open market. On Tuesday, February 17, the promoter bought approximately 4.65 lakh shares, while a total of about 9.25 lakh shares have been acquired since February 9. Typically, increasing promoter shareholding is seen as a sign of their confidence in the company’s future. This buying is happening at a time when the company recently announced strong quarterly results, sending positive signals to the market about the strength of its business. The promoter’s increased buying is also being attributed to the company’s strong quarterly results.
The December quarter results showed a strong surge in both the company’s income and profit. The company’s total revenue increased by 42.1% year-on-year to reach Rs 10,343.4 crore, while net profit jumped by approximately 90.4% to Rs 416.2 crore. In the same quarter last year, the company’s profit was Rs 218.6 crore. Such strong performance indicates that the company’s sales have grown rapidly along with improved cost management.
The company’s performance at the operating level was also impressive. EBITDA increased by 74.6% to Rs 750.4 crore, compared to Rs 429.9 crore last year. Alongside this, the EBITDA margin also improved from 5.9% to 7.3%. The company stated that margin improvement was due to a better product mix, operating leverage, and increased demand in categories like silver and platinum. Additionally, sales from existing stores remained strong, with same-store sales growth recorded at 27%. The share of studded jewelry increased to 31.2% from 29.5% last year, helping the company achieve more profitable sales.
The contribution of non-South Indian markets to the company’s growth has also increased rapidly. In the December quarter, 58.5% of total revenue came from non-South regions, indicating that the company is strengthening its brand reach nationwide. Previously, its business was mainly limited to South India, but now it is rapidly expanding into other states and cities.
Despite strong results and promoter buying, the stock’s recent performance has been weak. On Tuesday, February 17, the company’s share closed down nearly 1.45% at Rs 420.85. Over the past 6 months, the stock has fallen by about 21%. It is trading nearly 47% below its all-time high of Rs 795.40 reached in January 2025. The company’s total market cap is approximately Rs 44,069 crore. However, in the long term, the stock has delivered good returns. Over the past 3 years, the stock price has increased by up to 280%. Meanwhile, over 5 years, the share price has risen by up to 470%.
Kalyan Jewellers’ main business involves the design, manufacturing, and retail sale of gold, diamond, and other precious jewelry. The company sells gold jewelry, diamonds, studded jewelry, silver, and premium products through its extensive showroom network. In addition to India, it has a strong presence in Middle Eastern markets and also sells through online channels. Due to continuous promoter buying, strong operating performance, and expansion strategy into new markets, this stock may remain on investors’ radar in the coming time, although the recent decline also indicates that the market is not fully convinced yet, and the future direction will depend on the company’s performance.