Kalyan Jewellers shares extended their decline on Wednesday, with the scrip falling as much as 2.22% to hit an intraday low of ₹560.90 apiece. According to reports from Essential Business Intelligence, at 10:14 am, the stock was trading 1.48% lower at ₹565.15, while the BSE Sensex was trading 0.74% lower at 76,371 levels. The stock has now fallen 10.4% over the past four trading sessions, indicating sustained selling pressure amid broader market concerns. The stock has been under pressure over the past three sessions, with shares declining nearly 8%, as noted by Essential Business Intelligence, highlighting investor concerns specific to the jewellery sector.
Trading activity was notably elevated during the session, with 2.67 lakh shares worth ₹15.13 crore changing hands on the BSE and 22.50 lakh shares worth ₹138.67 crore traded on the NSE at the time of writing. As reported by Essential Business Intelligence, this increased trading volume suggests heightened investor interest and potential profit-taking activity amid the stock's decline. The sustained selling pressure over multiple sessions indicates broader market concerns about the jewellery sector's prospects, with the latest decline showing continued weakness despite the sector's overall strong performance.
Kalyan Jewellers reported 47% year-on-year growth in revenue during Q1 FY27, supported by a strong same-store sales growth of 28%, according to Nuvama Institutional Equities. The brokerage noted that value-led growth remained a key feature across the jewellery sector during Q1 FY27, with higher gold prices driving topline growth even as underlying volumes faced a more mixed environment. The increased focus on gold exchange was particularly notable after the import duty hike from 6% to 15%, with recycled gold accounted for more than 46% of Kalyan Jewellers' revenue during the quarter. For comparison, gold exchange contributed more than 50% of Tanishq's business, while Senco Gold's exchange accounted for 43% of sales' quantity.
Nuvama Institutional Equities reported that the jewellery industry sustained strong growth momentum during Q1 FY27, primarily supported by a nearly 60% year-on-year increase in average gold prices. The sector navigated several challenges including fewer wedding dates, the Adhik Maas period, intense summer heatwaves, regional elections in West Bengal and a customs duty increase to 15% in May 2026. Senco Gold and PNG Jewellers reported topline growth of 67% and 41% respectively, supported by same-store sales growth of around 39% and 46%. Titan reported standalone jewellery revenue growth of 38%, with Tanishq posting like-to-like growth of 33%, while BlueStone's revenue increased 49% backed by same-store sales growth of 39% across mature and younger stores.
Ravi Singh, Chief Research Officer at Master Capital Services, noted that Kalyan Jewellers has come under strong selling pressure over the last three sessions, with the stock declining nearly 8%. As reported by Essential Business Intelligence, Singh highlighted that concerns around gold demand could weigh on jewellery purchases, sales and the company's growth outlook. The analyst described the recent weakness as sentiment-driven and suggested the stock could decline towards ₹550 in the near term if selling pressure persists. With the stock facing sustained selling pressure, ₹550 has been identified as the key downside level by analysts, as noted by Essential Business Intelligence, with investors now watching whether the recent weakness stabilises or develops into a more prolonged pressure on the stock.
