Kalyan Jewellers Shares Rise on UBS ₹900 Target: What Are the Earnings Prospects?

Shares of Kalyan Jewellers India gained more than 2% in early trade on Tuesday, outperforming the broader mid-cap segment, after UBS initiated coverage on the jewellery retailer with a Buy rating and a ₹900 price target.

The stock rose as much as 2.5% to ₹578 during early trading, according to the market data cited in the report. UBS expects Kalyan Jewellers to maintain strong growth momentum, supported by continued store expansion and its capital-light franchise-owned, company-operated (FOCO) model.

Kalyan Jewellers share price target: What did UBS say?

UBS has assigned a ₹900 target price to Kalyan Jewellers and initiated coverage with a Buy rating. The brokerage sees continued potential for growth as the company expands its store network across India.

According to UBS, Kalyan Jewellers has established itself as a pan-India jewellery retailer and is adding stores at a faster pace than Titan. The brokerage highlighted the FOCO model as an important factor supporting network expansion while requiring comparatively less capital.

What are Kalyan Jewellers' earnings prospects?

UBS expects Kalyan Jewellers' revenue and earnings to compound at around 23% annually over the next five years. The brokerage sees continued network expansion as a key driver of this growth.

Kalyan Jewellers' revenue had grown at around 35% CAGR between FY22 and FY26, according to UBS. The company's FY26 consolidated investor presentation also shows substantial growth in revenue and profitability, with FY26 revenue of ₹3,57,429 million and profit after tax of ₹13,504 million.

Gold prices and jewellery demand

UBS also highlighted the differing impact of higher gold prices across customer segments. Changes in gold prices can affect consumer demand as well as average ticket sizes, while exchange activity remains an important component of jewellery sales.

The brokerage expects Kalyan Jewellers to continue benefiting from its expanding store network and its ability to adapt its product offering to different regional markets.

Gold savings scheme offers demand visibility

Kalyan Jewellers' gold savings scheme is another factor highlighted in the brokerage's assessment. Such schemes can provide useful indicators of customer engagement and help the company monitor trends in same-store growth.

UBS also expects gold exchange activity to remain strong while Kalyan manages the potential impact of elevated gold prices on margins.

FOCO model remains a key growth driver

The franchise-owned, company-operated (FOCO) model is central to Kalyan Jewellers' expansion strategy.

UBS said the model allows the company to accelerate its store rollout while following a more capital-light expansion approach. The brokerage noted that Kalyan's store additions have been running at nearly twice the pace of Titan.

Kalyan's own FY26 investor presentation also identifies the FOCO model as a major contributor to faster expansion and improved returns.