Kalyan Jewellers shares fall after gaining 5% post Q3 business update

Shares of Kalyan Jewellers rose in Tuesday's session (January 7) rose by as much as 5 per cent to the day's high price of Rs 781 following the company's Q3 business update. Nevertheless, after decent gains, the stock at around the time of writing this copy traded weak by over 1 per cent at Rs 735 per share on the BSE.

The recently concluded quarter has been a very fulfilling one recording consolidated revenue growth of approximately 39 per cent when compared to the same period in the previous financial year," said the company in its filing with the exchanges.

The gems, jewellery and watches company's India operations recorded revenue growth of around 41 per cent during the December quarter of the ongoing fiscal year in comparison to the same period last year on the back of very strong festive and wedding demand across both gold and studded categories.

The quarter recorded healthy same-store-sales-growth (SSSG) of approximately 24 per cent. Same-store sales growth is a financial metric that compares a retail company's revenue from existing stores over a given period to the same period in the previous year.

Further, the company added that during the December quarter it opened 24 new Kalyan showrooms in the country and has a strong pipeline of showrooms which are set to open over the course of the current quarter.

Kalyan Jewellers Middle East and other global operations

In the Middle East, the company registered revenue growth of approximately 22 per cent when compared to the same period in the previous financial year, with the Middle East business contributing around 11 per cent to its consolidated revenue in Q3.

During the recently concluded quarter we launched our first showroom (Company Owned Company Operated) in the United States of America, it added.

Candere financials 

The company's digital-first jewellery platform, Candere, recorded a revenue growth of approximately 89 per cent during the December quarter as compared to the same period during the last year. Additionally, during the review period the company launched as many as 23 Candere showrooms. 

Kalyan Jewellers plans going ahead

In the current quarter, the company plans to aunch 30 Kalyan showrooms and 15 Candere showrooms in India, keeping it ahead of its earlier announced showroom roll-out plan of 80 Kalyan showrooms and 50 Candere showrooms in India for FY 2025.

For FY 2026, we have drawn up plans to launch 170 showrooms across Kalyan and Candere formats - 75 Kalyan showrooms (all FOCO) in non-south India, 15 Kalyan showrooms (all FOCO) across south India and international markets and 80 Candere showrooms in India, it added.

Kalyan Jewellers share price performance 

The stock in the last one year has doubled investors wealth with gains of 104 per cent as against Nifty50's return of just over 9 per cent during the same period.