Jewellery Stocks to Watch: India’s organised jewellery retailers delivered another solid quarter in Q4FY26 despite gold prices soaring more than 80 per cent year-on-year. According to Nuvama’s latest earnings review, the sector’s momentum remained intact as consumers continued to purchase jewellery and gold coins even amid elevated prices. However, companies remain watchful of near-term challenges, including the Adhik Maas period between May 16 and June 15 and the government’s decision to raise customs duty on gold imports from 6 per cent to 15 per cent.
Among listed jewellery players, Nuvama continues to favour Titan as its top investment pick, citing its improving buyer growth, strong brand positioning and strategic focus on gold exchange programmes.
Strong revenue growth across the sector
Jewellery companies posted impressive revenue growth during the March quarter, largely supported by the sharp rise in gold prices. The surge also encouraged consumers to increase purchases of gold coins as a store of value.
Titan emerged as one of the standout performers. Excluding bullion sales, the company recorded a 45 per cent year-on-year increase in revenue during Q4FY26. More importantly, buyer growth rebounded strongly, rising 8 per cent after remaining largely flat in previous quarters. Its flagship brands, including Tanishq, Mia and Zoya, delivered like-to-like growth of 50 per cent.
CaratLane registered revenue growth of 20.7 per cent compared with the previous year. However, the pace was relatively slower as the company faced temporary disruptions caused by ERP migration during the peak Valentine’s Day period.
Kalyan Jewellers continued its strong run, reporting a 68 per cent jump in revenue, supported by same-store sales growth of 45 per cent.
P N Gadgil Jewellers posted one of the strongest performances in the sector, with revenue surging 126 per cent in Q4FY26. The growth was aided by robust consumer response during Gudi Padwa celebrations and the company’s Foundation Day sales campaigns.
Senco Gold reported a 45 per cent rise in revenue, driven by healthy same-store sales growth of 35 per cent. Bluestone’s revenue increased 48 per cent year-on-year to Rs 680 crore, backed by same-store sales growth of 34 per cent. Meanwhile, Sky Gold maintained its strong growth trajectory, recording an 80.6 per cent rise in revenue, supported by a 41 per cent increase in volumes.
Demand resilient, but headwinds remain
The positive trend has continued into the early part of Q1FY27, with festive occasions and wedding purchases supporting demand despite elevated gold prices.
That said, the recent increase in import duty on gold presents an additional challenge for the industry. Apart from higher prices, the duty hike is expected to put some pressure on demand as the government seeks to curb fresh gold imports and contain the country’s widening current account deficit.
To navigate this environment, retailers are increasingly encouraging customers to exchange old jewellery for new purchases. Titan has been particularly successful in this strategy, with recycled gold now accounting for nearly half of its gold sourcing requirements. Other players have also highlighted a similar approach as customers increasingly opt for exchange schemes instead of fresh purchases.
Jewellery stock: Margins
While revenue growth remained robust, profitability trends varied across companies.
Titan’s margins continued to face pressure due to a higher contribution from lower-margin gold coins and an increasing share of gold in its studded jewellery portfolio as prices climbed.
P N Gadgil also reported margin compression, attributing it to changes in product mix and elevated promotional spending.
Bluestone’s profitability was similarly impacted. Excluding inventory gains of Rs 52.4 crore, the company’s gross margin declined by around 290 basis points as the contribution from higher-margin studded jewellery moderated.
Despite margin pressures across parts of the sector, Nuvama believes organised jewellers remain well placed to benefit from resilient consumer demand, with Titan continuing to stand out as its preferred bet in the space.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions)
