Record Gold Prices, Rising Sales: India’s Jewellery Stocks Shine Amid Market Uncertainty

Gold Prices at Record Highs, Yet Festive Demand Lifts Sales

Gold has nearly tripled over the last year with a jump of 49% in prices to ₹1,20,000 for 10 grams, posing a challenge to the Indian jewellery sector. Consumers have not gotten into the buying mode for big-ticket purchases this year, thereby forcing the jewellery retailers to steer with utmost caution during the festive quarter.

Despite the problems prevailing in the sector, however, several listed jewellery companies have reported above-the-expectations sales for the September 2025 quarter, aided by an earlier festive season this year (September vs October in 2024).

Titan, Kalyan, and P N Gadgil Lead the Charge

Titan Company, India’s largest jewellery retailer, reported 19% growth in its domestic jewellery business during Q2 FY26, along with the addition of 34 stores, bringing its total count to 1,120 outlets. The company noted double-digit like-for-like growth in both its Tanishq and CaratLane brands.

P N Gadgil Jewellers, listed in September 2024, posted a 29% year-on-year increase in its retail segment, supported by strong festive demand and eight new exclusive showrooms. Gold category sales rose 24% in value and 15% in volume, with same-store sales growth (SSSG) of 29% for the quarter. Its store count reached 63 by the end of September 2025.

Focusing on buying jewels during wedding and festive seasons, there was a 30% year-on-year rise in consolidated revenues for Kalyan Jewellers India, Thrissur. It launched 32 showrooms in Q2, taking the total to 436 outlets in India and the Middle East. The Company achieved a SSSG of 16% as compared to 23% in the corresponding quarter.

Senco Gold Trails Peers

While other jewellers reported double-digit growth, Kolkata-based Senco Gold posted a more modest 6.5% year-on-year increase in total revenues for Q2, alongside five new store launches (total 184 stores). For the first half of FY26, Senco’s SSSG stood at 7.5%, compared to 12% a year earlier.

Dalal Street Turns Cautious

Despite robust operational updates, jewellery stocks have faced sharp corrections on Dalal Street:

• Senco Gold: ₹326, down 54% in one year
• Kalyan Jewellers: ₹485, down 32%
• PC Jeweller: ₹13, down 16%
• Thangamayil Jewellery: ₹2,020, down 17%
• Titan Company: ₹3,531, up 2% year-on-year

While Titan has managed to stay resilient, most peers have struggled to maintain investor confidence amid high valuations and rising gold prices.

Valuations Remain Elevated

Titan Company trades at a P/E ratio of over 60x FY26 estimated earnings (excluding its Damas LLC acquisition).

Kalyan Jewellers trades above 45x estimated FY26 earnings.

Senco Gold trades above 15x FY26 earnings.

At these levels, jewellery stocks appear expensive, already factoring in strong growth expectations for the next few quarters.

With global gold prices expected to remain elevated, analysts warn that sustained inflation could weigh on consumer sentiment and impact sales momentum in the coming months.

Outlook

While festive demand and brand expansion continue to drive growth, investors should remain cautious. The high gold price environment, coupled with premium stock valuations, suggests limited room for near-term upside. Long-term investors may find opportunities in well-managed, diversified players such as Titan, but risk appetite should be measured.