The share price of Kalyan Jewellers India came under heavy selling pressure today (July 7). This is even after the company reported strong business growth for the June quarter.
The jewellery retailer posted healthy revenue growth across its India and overseas businesses, but it did not lift the investors sentiment.
Instead, the stock fell sharply in early trade, raising questions about why the market reacted negatively despite an encouraging business update.
The stock dropped as much as 9% during the morning session before trimming some losses. The decline also made Kalyan Jewellers one of the weakest-performing stocks on the Nifty 500 index in the intraday trading session.
Revenue growth remains strong in the June quarter
According to the company’s business update, consolidated revenue increased by around 38% year-on-year during Q1FY27.
Kalyan Jewellers said its India operations also recorded revenue growth of more than 38% compared with the same quarter last year. Existing stores continued to perform well, with same-store sales growth of nearly 28%.
The company said customer demand remained healthy across major markets despite the impact of the 28-day Adhik Maas period during the quarter, which typically affects jewellery purchases due to religious beliefs followed by many consumers.
International business and Candere continue to expand
Growth was not limited to the domestic market. Kalyan Jewellers’ international operations reported revenue growth of around 35% year-on-year during the quarter.
Its digital-first jewellery platform, Candere, delivered another strong performance. The brand reported revenue growth of approximately 112% compared with the same period last year.
The company has also continued expanding its presence through new store additions. This remains an important part of its long-term growth strategy.
Titan comparison may have influenced market sentiment
While Kalyan Jewellers reported healthy numbers, investors also compared the update with rival Titan Company, which announced its business update a day earlier.
Titan reported overall consumer business growth of 41% during the quarter, with its jewellery division growing 39%.
Furthermore, the company’s international jewellery business more than doubled. The company reported a growth of 128% year-on-year. Titan also delivered strong growth in its watches and eye care businesses, with both segments expanding by 23%.
Although Kalyan Jewellers delivered strong growth across its businesses but Titan’s stronger international performance and more diversified business segments may have attracted greater investor attention.
Why did the stock fall despite positive numbers?
The sharp decline in Kalyan Jewellers’ share price suggests that investors may have already factored strong quarterly growth into the stock before the business update was released.
When market expectations are high, even healthy operational performance may not always lead to gains if investors were anticipating even stronger numbers.