Shares of Kalyan Jewellers India Ltd fell sharply in Monday's trade despite the company reporting a strong set of fourth-quarter earnings, with profit more than doubling year-on-year (YoY).

The jewellery retailer reported a consolidated net profit of Rs 409.5 crore for Q4 FY26, marking a 118.28 per cent rise from Rs 187.6 crore posted in the corresponding quarter last year.

Revenue from operations surged 66.2 per cent YoY to Rs 10,274.9 crore in the March 2026 quarter against Rs 6,181.5 crore in the year-ago period.

Revenue from international operations stood at Rs 1,157 crore during Q4 FY26, up 43 per cent from Rs 807 crore recorded a year earlier. The international business posted a profit after tax (PAT) of Rs 29 crore for the quarter compared with Rs 14 crore in the same period last year.

Alongside its earnings announcement, the company's 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. The proposed dividend is subject to shareholders' approval at the upcoming annual general meeting (AGM).

Despite the robust earnings performance, Kalyan Jewellers shares came under pressure. The stock was last seen trading 9.30 per cent lower at Rs 385.15 in fag-end trade.

Jewellery stocks, including Kalyan, witnessed broad-based selling after Prime Minister Narendra Modi appealed to citizens to avoid unnecessary gold purchases for the next one year.

He also urged people to conserve fuel consumption to help protect India's foreign exchange reserves, noting that gold and crude oil account for a major share of the country's import bill.

"PM Modi is urging Indians to postpone gold purchases, carries a strong sense of déjà vu. In 2013, then Finance Minister P Chidambaram persuaded the government to impose restrictions on gold imports to curb the widening current account deficit," said Systematix Institutional Equities.

"At the time, India faced intense currency pressure amid a resurgence in global crude prices to $100–110 per barrel and was labelled one of the 'Fragile Five' economies. The government had also launched an NRI deposit scheme that successfully mobilised around $25 billion," it added.

Meanwhile, Motilal Oswal Financial Services Ltd (MOFSL) has reiterated its 'Buy' rating on the counter with a target price of Rs 575.