Despite facing several headwinds, India's listed jewellery stocks have experienced a remarkable rally, surging up to 40% in just one month. This growth is backed by stronger-than-expected business updates for the June quarter, indicating resilient demand and a shift towards organised players in the sector.
Data from ACE Equity highlights Kalyan Jewellers leading with a 40% gain, followed by Sky Gold at 25%, Thangamayil Jewellery at 24%, Goldiam International at 21%, PC Jeweller at 15%, Titan Company at 14%, and Senco Gold at 9%. Jewellery companies reported healthy same-store sales growth during the June quarter, signalling robust demand despite previous corrections due to adverse government policies. Titan, India's largest jewellery retailer, saw a 41% year-on-year rise in its consumer businesses, driven by strong jewellery demand, retail expansion, and growth in international operations.
Senco Gold posted 60% revenue growth with 38% same-store sales growth, while Kalyan Jewellers reported 38% growth. PC Jeweller recorded 21% growth after significantly reducing its settlement debt. Analysts attribute the rally to improving fundamentals, with organised jewellers gaining market share from unorganised players. The industry is also benefiting from premiumisation and higher penetration of studded jewellery.
“The Q1 FY27 business updates from jewellers point towards demand resilience despite concerns around Adhik Maas, gold prices and macro uncertainty.”
Anil R, Senior Research Analyst, Geojit Investments
The outlook beyond the June quarter remains positive, with leading players projecting strong long-term demand. Market leaders like Titan and Bluestone Jewellery are preferred picks for the next 12–18 months. Stable gold prices are expected to support demand, and initiatives such as gold exchange programmes are likely to improve affordability and customer engagement.
International brokerage Nomura maintains a Buy rating for Titan Company, citing its potential to benefit from India's rising affluent population. Citi is bullish on Kalyan Jewellers, expecting its franchise-led expansion strategy to support future growth. ICICI Securities also maintains a Buy rating on Kalyan Jewellers, highlighting its robust performance despite multiple headwinds.
Background
The jewellery sector had previously corrected following adverse government policy measures and advisories. However, the demand has remained resilient, and the long-term structural tailwinds for organised jewellers remain intact. The sector is benefiting from a shift towards organised players, premiumisation, and higher penetration of studded jewellery.
The jewellery sector's performance in the coming quarters will be closely monitored, with attention on management commentary, festive season demand, and store expansion pace. If gold prices remain stable, organised jewellery retailers are expected to continue delivering healthy growth.
