Gold prices have breached new highs, but the festive season is here. Will that impact gold buying trends? Most importantly, how would it affect gold jewellery stocks? Motilal Oswal has maintained a Buy rating on Kalyan Jewellers, with a target price of Rs 650, implying an upside of over 34% from current levels. Weddings and festivities are expected to contribute to the growth of the company, and double-digit same-store sales growth (SSSG) continues in Q2 FY26, as per the pre-quarterly update.
The brokerage said that Kalyan Jewellers’ Q3 FY26 has started well, and the company is experiencing robust footfalls across all major markets. The gems & jewellery sector stock reported consolidated sales growth of 30% YoY in Q2 FY26, compared to 31% in Q1 FY26 and 37% in Q2 FY25.
Motilal Oswal on Kalyan Jewellers: Store additions stand strong
Kalyan Jewellers is upbeat about the ongoing season and is fully prepared with fresh collections, campaigns, and the launch of 15 more Kalyan showrooms before Diwali. During the second quarter of the current financial year, the company launched 15 Kalyan showrooms in India, 2 showrooms in the Middle East, and 15 Candere showrooms in India. As of September 2025, the total number of stores stood at 436, with 300 stores of Kalyan India, 96 stores of Candere, 2 stores in the US, and 38 stores of Kalyan Middle East. The company added 15 new Kalyan showrooms in India during the quarter.
Motilal Oswal on Kalyan Jewellers: Robust wedding demand and festive season
The quarter recorded a healthy SSSG of 16% YoY. However, it was lower than 18% in Q1 FY26 and 23% in Q2 FY25. India business grew 31% YoY during the quarter, compared to 31% YoY growth in Q1 FY26 and 39% YoY growth in Q2 FY25. The growth was driven primarily by robust wedding demand and a strong start to the festive season. Navratri sales, which were not part of the base quarter revenue, partially offset the impact of the higher base due to the customs duty reduction in India during Q2 FY25.
Kalyan Jewellers share performance
The share price of Kalyan Jewellers has risen over 5% in the last five trading sessions. However, the stock has declined 15% in the past three months and 0.6% in the last six months. Kalyan Jewellers has corrected more than 30% over the previous one year.