Kalyan Jewellers' Share Price Plunges Amid Gold Price Volatility

Kalyan Jewellers' share price has taken a hit, falling by 10.4% in four trading sessions through September 2. This decline is puzzling given the strong Q1 FY27 results from the jewellery sector.

The company reported a 46% year-on-year revenue growth, with same-store sales growing 28%. However, this growth was largely driven by recycled gold, which accounted for over 46% of Kalyan Jewellers' revenue. While gold exchange supported sales volumes, it also put pressure on margins.

The sector's performance was strong overall, with Senco Gold and PNG Jewellers posting significant gains in Q1 FY27. However, the recent decline in gold prices and Prime Minister Narendra Modi's appeal to avoid non-essential gold purchases have added to the pressure on jewellery stocks.