Kalyan Jewellers: Concerns about Manipulation Contrasted with Strong Q3 Performance and Trade Deal Rally

Kalyan Jewellers India Ltd has been through a rollercoaster of events, from allegations of market manipulation to a recent surge in stock price and robust Q3 FY25 results. Despite the challenges faced in early 2025, the company seems to be on a path to recovery and growth, fueled by positive macro-economic news and strong operational performance.
The company’s Q3 FY25 earnings report showcased impressive figures, with a 90% increase in net profit to ₹416 crore and a 42% rise in revenue to ₹10,343 crore. The EBITDA also saw a significant uptick of 74.3% to ₹750 crore, with margins expanding to 7.3%. These stellar results reflect a resilient consumer demand for jewellery, even amidst prior gold price fluctuations. The stock responded positively to these numbers, experiencing a substantial intraday rally on February 9, 2026, reaching an intraday high of ₹424.70, a nearly 10% increase. This surge was mainly driven by news of an India-US trade deal that alleviated tariff uncertainties for the jewellery sector, prompting renewed investor interest.
The positive sentiment in the jewellery sector, buoyed by the recent trade agreement between India and the US, has also benefited Kalyan Jewellers. This development led to an approximately 10% intraday surge in the stock price on February 9, 2026. Comparatively, sector leader Titan Company, with a market cap of around ₹3.7 lakh crore, exhibited a higher P/E ratio of approximately 89, as opposed to Kalyan Jewellers’ TTM P/E of about 42.8. While Titan enjoys a premium valuation and strong institutional support, Kalyan Jewellers’ current valuation may present an attractive opportunity for investors looking at growth potential against market challenges.
The aftermath of the market manipulation allegations from early 2025 continues to cast a shadow on Kalyan Jewellers’ stock. The company’s complaint to SEBI outlined concerns over unusual trading patterns, aggressive short-selling, and dissemination of misleading information, leading to a significant decline in stock price and market cap erosion. Despite the recent rally and strong Q3 results, the company’s P/E ratio of 42.8 suggests growth expectations that may be difficult to sustain under pressure from regulatory scrutiny or operational setbacks.
Looking ahead, with a solid Q3 performance and a favorable environment created by the India-US trade deal, Kalyan Jewellers seems to be on the path towards potential growth. However, maintaining operational efficiency and navigating through regulatory challenges will be crucial for the company’s future success.