Shares of Kalyan Jewellers India Ltd. experienced a sharp decline in Monday's trade, falling over 9%, despite the company reporting a robust set of fourth-quarter earnings. The jewellery retailer's consolidated net profit more than doubled year-on-year, but market sentiment was overshadowed by a significant statement from Prime Minister Narendra Modi.
Strong Q4 Performance Overshadowed
For the fourth quarter of the financial year 2026 (Q4 FY26), Kalyan Jewellers reported a consolidated net profit of Rs 409.5 crore. This marks an impressive 118.28% increase from Rs 187.6 crore recorded in the corresponding quarter of the previous year.
Revenue from operations also saw substantial growth, surging 66.2% year-on-year to Rs 10,274.9 crore in the March 2026 quarter, compared to Rs 6,181.5 crore in the year-ago period. The company's international operations contributed significantly, with revenue reaching Rs 1,157 crore during Q4 FY26, a 43% rise from Rs 807 crore a year earlier. The international business posted a profit after tax (PAT) of Rs 29 crore for the quarter, up from Rs 14 crore in the same period last year.
Alongside the strong earnings announcement, Kalyan Jewellers' board recommended a final dividend of Rs 2.5 per equity share of face value Rs 10 each for the financial year ended March 31, 2026. This proposed dividend is subject to shareholder approval at the upcoming annual general meeting (AGM).
Why Kalyan Jewellers Stock Slid
Despite these strong financial results, Kalyan Jewellers stock came under considerable pressure. The shares were last seen trading 9.30% lower at Rs 385.15 in fag-end trade on Monday, May 11, 2026.
The primary reason cited for the broad-based selling in jewellery stocks, including Kalyan, was Prime Minister Narendra Modi's recent appeal to citizens. PM Modi urged Indians to avoid unnecessary gold purchases for the next one year. He emphasized the need to conserve fuel consumption and reduce gold imports to help protect India's foreign exchange reserves, highlighting that gold and crude oil constitute a major share of the country's import bill.
Historical Context and Market Reaction
Analysts at Systematix Institutional Equities noted that PM Modi's appeal to postpone gold purchases carries a strong sense of déjà vu. They drew parallels to 2013, when then-Finance Minister P Chidambaram persuaded the government to impose restrictions on gold imports. This measure was taken to curb a widening current account deficit, as India faced intense currency pressure amid rising global crude prices and was labeled one of the 'Fragile Five' economies. During that period, the government also launched an NRI deposit scheme, successfully mobilizing around $25 billion.
The Prime Minister's current call has clearly impacted investor sentiment, leading to a sell-off in jewellery stocks despite individual company strengths. Investors are reacting to the potential for reduced demand in the domestic market, anticipating a direct consequence of the government's efforts to manage the national import bill and foreign exchange reserves.