According to reports from The Economic Times, Kalyan Jewellers shares have plummeted over 40% from their peak, wiping out significant investor wealth. The stock hit a fresh 52-week low on Wednesday, extending its steep correction to over 40% in less than 10 months. Between Kalyan Jewellers, Thangamayil Jewellery, Sky Gold, Senco Gold and Titan Company, investors' wealth has eroded by nearly ₹60,000 crore. The market capitalisation has fallen by ₹7,229 crore between May 8 and 13, while investors have suffered losses of ₹27,130 crore from the 52-week peak of ₹617.70 which the stock hit on July 24, 2025.
According to India Today, Ashok Lahiri, NITI Aayog Vice Chairman, has provided strong backing for curbing gold imports, arguing that India's deep-rooted obsession with gold hurts foreign exchange reserves. Lahiri stated that savings invested in banks or markets could generate far better returns for the economy, emphasizing that conserving foreign exchange is more important, even if higher import duties impact the gold industry and employment in the short term. This official endorsement from NITI Aayog adds significant weight to the government's austerity drive, with the policy intervention being seen as part of a wider effort to conserve foreign exchange reserves amid pressure from the West Asia crisis and rising crude oil prices.
According to recent reports from Enrichwise, the government has raised gold import duty from 6% to 15% as part of measures to conserve foreign exchange reserves. The analysis suggests that $38 billion in forex reserves have been depleted in just 10 weeks, highlighting the urgent need for policy intervention. This dramatic increase in import duties reflects the government's concern over the rapid depletion of foreign exchange reserves, which has been accelerated by the combination of rising gold prices and increased domestic demand. The duty hike represents a significant policy shift aimed at reducing gold imports and conserving precious forex reserves amid mounting economic pressures.
Recent market developments show that gold ETFs have experienced a 6% overnight surge following the government's decision to increase gold import duties. As reported by Instagram user cs.ujjawalpahwa, investors holding gold in any form, whether ETFs or funds, have seen their values increase significantly due to the policy change. This surge in gold ETF demand reflects investor behavior as they seek alternatives to physical gold purchases amid the increased import duties and policy uncertainty surrounding gold imports.
As reported by The Economic Times, the recent developments have taken away the sheen of the company's stellar Q4FY26 results declared on Friday. The company reported a net profit of ₹410 crore for the March quarter of FY26, more than doubling (118.2%) from ₹187.6 crore recorded in the corresponding period last year. Revenue from operations rose 66% year-on-year to ₹10,275 crore, compared with ₹6,182 crore in the year-ago quarter. EBITDA increased 84.2% to ₹735.7 crore versus ₹399.4 crore reported a year earlier, while the EBITDA margin also improved to 7.2% from 6.5% in the corresponding quarter last year.
