The Indian stock market witnessed a surprising move when Kalyan Jewellers share price nosedived by over 9% in a single day. Despite posting robust financial results for Q1FY26, the jewellery giant’s stock fell sharply, triggering mixed reactions among investors. But here’s the twist – while panic gripped some, top brokerages like Motilal Oswal and Citi are confidently projecting a rally all the way up to ₹700. So, what’s really happening with the Kalyan Jewellers share?
Q1FY26 Results: Growth, Profits & Expansion
Let’s start with the facts. Kalyan Jewellers reported a consolidated revenue of ₹7,268 crore in Q1FY26, up an impressive 31% year-on-year. The company’s consolidated profit after tax (PAT) stood at ₹264 crore – a massive 49% increase from ₹178 crore in the previous financial year.
In terms of margins, the PAT margin rose from 3.2% to 3.6% YoY, while the EBITDA margin also saw a healthy uptick from 6.7% to 7%. The company reported an EBITDA of ₹508 crore for the quarter, reflecting a 38% rise YoY.
And yet, despite all these strong numbers, Kalyan Jewellers share crashed to an intraday low of ₹534.95 on August 8. Why?
The Big Dip: What Caused the Kalyan Jewellers Share to Fall?
The steep fall in Kalyan Jewellers share price is primarily attributed to a contraction in gross margins in its India business. The margins dipped by 60 basis points to 13.6% due to a rising mix from franchised stores. This shift is a result of the company’s aggressive expansion through its FOCO (Franchise Owned Company Operated) model.
Investors may have panicked over this margin pressure, overlooking the long-term strategy. The sharp dip, however, could be more of a market overreaction than a sign of actual weakness in fundamentals.
₹700 Target – Are Brokerages Seeing What Retail Investors Are Missing?
Despite the fall, leading brokerage firms like Motilal Oswal remain bullish on Kalyan Jewellers share. They believe the company’s fundamentals are strong, and the market is underestimating its growth potential.
Motilal Oswal projects a target of ₹700 per share, citing a robust CAGR of 21% in revenue, 17% in EBITDA, and 21% in PAT between FY26 and FY28. Their confidence stems from the company’s strategic expansion plans, improving operational efficiencies, and strong market presence.
Citi also echoes a similar positive sentiment, seeing the current dip in Kalyan Jewellers share as a solid buying opportunity rather than a red flag.
170 Stores in FY26 – The Expansion That Could Fuel the Next Rally
One of the biggest drivers behind the optimism around Kalyan Jewellers share is the company’s aggressive expansion strategy. Kalyan Jewellers plans to open 170 new stores in FY26, significantly increasing its retail footprint across India. The use of the FOCO model allows the company to expand rapidly with lower capital investment.
This expansion, combined with festive season tailwinds and new collections in the pipeline, positions the company strongly for future growth.
Should You Buy Kalyan Jewellers Share Now?
While the short-term volatility in Kalyan Jewellers share might have spooked some investors, the long-term picture remains positive. The fundamentals are strong, financial performance is solid, and expansion plans are ambitious but strategic.
If you’re an investor looking at medium to long-term opportunities, the current dip in Kalyan Jewellers share could be the golden chance you’ve been waiting for. With expert targets pointing to ₹700 and beyond, this could be one of the most rewarding stocks to watch in the coming quarters.
Final Thoughts
The stock market often reacts sharply to short-term concerns, and Kalyan Jewellers share is the latest example of this trend. Despite the decline, everything from revenue growth to expansion plans paints a bullish picture. For savvy investors, this correction could be the perfect opportunity to accumulate before the next big rally.
Kalyan Jewellers share is down for now – but it may not stay down for long.