Buy Kalyan Jewellers India; target of Rs 670: ICICI Securities

BUY

ICICI Securities's research report on Kalyan Jewellers India

Kalyan reported a strong Q2FY26 with broad-based growth across India and the Middle East, supported by healthy SSSG and continued FOCO-led expansion. Margin performance was ahead of our expectations, aided by mix stability and operating leverage, while underlying profitability remained firm after normalising for last year’s custom-duty impact. With festive trends tracking strongly (>30% SSSG in 30-days into Diwali) and return metrics improving (ROCE ~23%), we believe there is clear visibility on sustained revenue momentum and stable margin delivery over the medium term. It maintained FY26–27 rollout plans, with a largely FOCO-driven pipeline (approaching ~50% of India revenue), which improves execution visibility, supports consistency in performance and reinforces capital-efficient scale-up (see our recent upgrade note). BUY

Outlook

Maintain BUY with DCF-based unchanged target price of INR 670, as we roll forward to Sep’27E. At our TP, the stock would trade at 38x Sep’27E EPS.

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Kalyan Jewellers India _10112025_ICICI Securities