Kalyan Jewelers shares zoom to 10% higher circuit. What Motilal Oswal and JM Financial said after Q3 results

Shares of retailer Kalyan Jewelers India hit the 10% upper limit on BSE, rising to Rs 417.75 after the jeweler’s blockbuster third-quarter profit triggered a flurry of bullish brokerage calls with price targets as high as Rs 750, a potential upside of 80% from current levels.The shares remained stuck after the company reported a staggering 90.36% rise in consolidated net profit to Rs 416.29 crore for the quarter, almost doubling from ₹ 218.68 crore in the year-ago period. Revenue from operations rose 42.11% to Rs 10,343.41 crore compared to Rs 7,278.09 crore last year.

JM Financial leads The Street’s optimism with a price target of Rs 750 and maintains its buy rating despite raising earnings estimates for the 2026-2028 financial year by 4-5%. The brokerage cut its price-to-earnings ratio to 40 times from 45 times due to higher stock volatility over the past six months, but pushed back its estimates to December 2027.

“Management highlighted continued strong growth in Jan’26 amid gold price volatility, noting that they expect to close FY26 on a strong note,” JM Financial said in its note. The brokerage showed robust same-store sales growth across all regions, with India recording 27% year-on-year growth and the Middle East posting a 24% gain.

Motilal Oswal set a target price of Rs 600 based on 35 times December 2027 price-to-earnings ratio, reiterating its buy rating and raising FY 2027-2028 earnings estimates by 3-4% on margin expansion in the third quarter.

“We are extremely excited about the way the current year has gone so far. The current quarter has started very well despite the volatility in gold prices,” said Ramesh Kalyanaraman, Executive Director, Kalyan Jewelers India. “We are optimistic about the ongoing wedding season and expect to end the financial year on a strong note.”

Motilal Oswal highlighted the company’s successful franchise scale-up, with the company now accounting for more than 45% of sales, and expansion beyond southern markets, improving its studded jewelery mix. The asset-light model supports healthy cash flow generation for debt repayment while improving profitability through lower interest costs. The brokerage expects a compound annual growth rate of 21%/18%/22% revenue/EBITDA/net profit during the financial year 2026-28. The company’s digital brand Candere turned net profit positive this quarter, meeting expectations, while management remains on track to be net debt-free by the end of 2027 through a combination of non-core asset sales and cash flows, JM Financial said.

The regional brand is expected to open four to five stores in the coming year, with some openings planned for the fourth quarter of fiscal 2026.