Kalyan Jewellers shares jumped approximately 7% on Wednesday as the jewellery retailer reported strong Q3 FY26 performance, with the stock trading at ₹520.10 and hitting an intraday high of ₹535.00 against the previous close of ₹500.15. The Thrissur-based company's impressive consolidated revenue growth of 42% year-on-year was part of a broader rally in jewellery stocks, driven by festive demand and optimism around sustained consumer spending despite elevated gold prices.

Jewellery Sector Rallies on Strong Performance

Jewellery stocks rallied sharply on Wednesday, buoyed by strong quarterly business updates and festive demand. Leading listed players including Titan Company, Kalyan Jewellers, and Senco Gold moved higher as investors cheered Q3 revenue growth and expanding retail footprints. Khushi Mistry, Research Analyst at Bonanza, pointed out that the Q3 FY26 business updates beat market expectations, with growth driven by festive-season demand, higher average selling prices due to elevated gold prices, and healthy traction across both studded and plain gold jewellery.

Kalyan Jewellers Delivers Robust Growth

Kalyan Jewellers reported consolidated revenue growth of 42% in Q3 FY26 compared to the same period last year, demonstrating robust momentum across both domestic and international operations. India operations delivered impressive results with revenue rising 42% year-on-year, largely supported by healthy festive demand during and after the Diwali festival. The company benefited from strong consumer sentiment during the festive season, with growth being broad-based across both plain gold and studded jewellery categories, delivering healthy same-store sales growth of approximately 27%.

International Operations and Digital Success

International operations posted revenue growth of 36% compared with the year-ago period, contributing approximately 11% of consolidated revenue in the quarter. Within the Middle East, revenue increased by about 28% year-on-year, driven mainly by strong same-store sales growth. The company's digital-first jewellery platform, Candere, continued to outperform expectations, recording exceptional revenue growth of around 147% compared with the same period last year, underscoring the growing acceptance of online jewellery purchases.

Sector Outlook and Market Expectations

Although rich valuations raise some caution around near-term profitability, the sector's ability to deliver growth amid mixed market conditions has highlighted its resilience. Sustained demand through the upcoming wedding season, continued consumer preference for branded jewellery, and broader economic stability are expected to support further momentum in the sector. However, investors may remain watchful of gold price volatility and margin pressures, according to market analysts.

Kalyan Jewellers has reported remarkable growth in its digital platform Candere, with the online jewellery segment achieving approximately 147% revenue growth on a year-over-year basis. This substantial increase underscores the company's successful digital transformation strategy and growing market acceptance of its online offerings.

Digital Platform Performance

The impressive growth trajectory of Candere highlights the effectiveness of Kalyan Jewellers' omnichannel approach to jewellery retail. The platform's performance demonstrates strong consumer confidence in purchasing jewellery through digital channels, reflecting changing shopping preferences in the post-pandemic era.

Strategic Digital Expansion

The significant revenue growth of Candere positions Kalyan Jewellers favorably in the competitive online jewellery market. This performance indicates the company's ability to leverage digital technologies to reach a broader customer base while maintaining the quality and trust associated with the Kalyan Jewellers brand.

The strong year-over-year growth suggests that the company's investment in digital infrastructure and online customer experience is yielding positive results. This development aligns with the broader industry trend of increasing digitalization in the jewellery retail sector.

Market Implications

The robust performance of Candere reflects the growing acceptance of online jewellery purchases among Indian consumers. This growth trajectory demonstrates Kalyan Jewellers' successful adaptation to evolving consumer preferences and its ability to compete effectively in both traditional and digital retail channels.

The approximately 147% year-over-year revenue growth positions Candere as a significant contributor to Kalyan Jewellers' overall business performance, highlighting the importance of digital channels in the company's growth strategy.