Kalyan Jewellers shares tumble 7% despite strong Q1 update. Details here

Shares of Kalyan Jewellers India fell 7.3% to Rs 352.60 on the BSE during Tuesday’s trading session, despite the company reporting a strong Q1 business update. The company reported around 38% year-on-year (YoY) consolidated revenue growth, driven by strong performance across its domestic and international operations.

Kalyan Jewellers said consolidated revenue grew around 38% YoY for the June-ended quarter, supported by healthy consumer demand.

Revenue from its India business also rose over 38%, with same-store sales growth of around 28%, despite the quarter coinciding with the 28-day Adhik Maas period, a once-in-three-year phase that typically slows wedding-related jewellery purchases in several parts of the country.

The company also reported encouraging progress from its ‘Shine with India’ gold recirculation campaign, launched in May to boost the use of recycled gold and reduce dependence on imports. Recycled gold accounted for over 46% of revenue during the quarter, with the contribution exceeding 55% in June alone.

Kalyan Jewellers’s international business delivered around 35% YoY revenue growth, while its Middle East operations grew nearly 30%, supported by strong same-store sales despite softer footfall in April amid geopolitical tensions. Overseas markets contributed approximately 14% of consolidated revenue during the quarter.

Meanwhile, Candere, Kalyan’s digital-first jewellery platform, continued its rapid expansion, posting 112% YoY revenue growth compared with the same period last year.The retailer also strengthened its physical footprint by opening 12 Kalyan Jewellers showrooms and five Candere stores across India during the quarter.Despite the upbeat operational performance, investors appeared to book profits, sending the stock sharply lower. The decline indicates investors may have booked profits despite the strong business update, with the market likely awaiting the company’s detailed quarterly earnings, including profitability and margin trends.

Share Price Trend and Technical Indicators

Kalyan Jewellers shares have declined around 35% over the past year. The company currently commands a market capitalisation of Rs 39,373 crore.

On the technical front, the stock’s 14-day Relative Strength Index (RSI) stands at 53.9. An RSI reading below 30 is generally considered oversold, while a reading above 70 indicates overbought conditions. In terms of moving averages, the stock remains under pressure, trading below all eight of its key Simple Moving Averages (SMAs), indicating a bearish technical trend.

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