The analyst highlighted strong execution and expansion in Q1 but said the stock needs fresh volume to break past key resistance.
Kalyan Jewellers shares fell more than 8% on Friday despite the company posting strong first-quarter (Q1) results. However, on the technical charts, the stock faces stiff resistance below ₹604.
Q1 Earnings Review
Kalyan Jewellers reported strong first-quarter results for FY26, with revenue up 31% year-on-year at ₹7,268 crore and profit after tax rising 49% to ₹264 crore.
The India business generated ₹6,142 crore in revenue and ₹256 crore in profit, up 55% from last year, while the Middle East business delivered ₹1,070 crore in revenue, up 32%.
Online platform Candere reported revenue of ₹66 crore and a ₹10 crore loss.
According to SEBI-registered analyst Rajneesh Sharma, growth was driven by tier-2 and tier-3 city demand in India, strong festive and wedding season sales in the Middle East, and expansion of the retail footprint to 262 showrooms globally, including 13 new openings in Q1.
Higher growth translated into better margins and PAT expansion.
Sharma also noted areas of concern, including Candere’s continued underperformance, flat gross margins despite higher volumes due to product mix effects and gold price volatility, and macro risks from currency fluctuations and gold price swings in Middle East markets.
The company’s plans include targeted expansion in eastern India and tier-3 cities, aiming to open 60 new showrooms in FY26, with over 20 in the first half. Additionally, a revamped Candere platform will drive omni-channel sales, and elevated capex will support showroom rollouts and technology upgrades.
Technical Breakdown
Sharma said the stock remains in a bullish channel on the weekly chart, with multiple trendline supports.
The relative strength index (RSI) stands at 56.95, still in bullish territory but flattening near the top.
Key resistance is at ₹604, which combines horizontal resistance with the red channel ceiling. Short-term support is at ₹508.75, with a base zone at ₹444.50.
Sharma added that a close above ₹604 with volume could open the way to ₹680–₹700, while failure to break out could see consolidation or a dip to ₹508–₹520.
“Kalyan Jewellers sparkled with strong execution, expanding both revenue and profits. But technically, it’s stuck below a key ceiling. Bulls need fresh volume to shine. Until then, it’s a range-bound gold play with a bullish undertone,” he said.
On Stocktwits, retail sentiment was ‘bullish’ amid ‘high’ message volume.
Kalyan Jewellers’ stock has declined 30.1% so far in 2025.
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