Synopsis: Rising gold prices touching ₹1,55,000 on MCX Future, have pressured jewellery demand, but organised players like Kalyan, Senco and P N Gadgil sustained 40–50% revenue growth by focusing on lightweight, studded jewellery, store expansion and value-led sales.
Rising gold prices have created a challenging environment for jewellery companies in India, affecting both consumer demand and business planning. As gold becomes more expensive, buyers tend to be more cautious, postpone purchases, or look for alternatives, while jewellers have to balance affordability, margins, and inventory risks.
In this backdrop, companies such as Kalyan Jewellers, P N Gadgil, Senco Gold, and others are operating in a market where customer preferences are evolving and cost pressures are higher, making the overall jewellery business more complex and competitive than before.
Record Gold Prices in Q3
Gold prices surged sharply during Q3FY26, touching around Rs. 1,40,000 by the end of the quarter, marking a rise of nearly 20 percent over Q2FY26 and about 75 percent compared with Q3FY25. Despite this steep increase, jewellery demand in India remained resilient, supported by the festive season and strong wedding demand.
Indian households continue to hold nearly 34,600 tonnes of gold valued at over $5 trillion, exceeding India’s nominal GDP of $4.1 trillion, underlining the deep-rooted demand for gold. India also accounts for around 26 percent of global gold demand, second only to China.
Currently Gold price in MCX Future is Rs. 1,55,762, giving a return of 12.73 percent in 1 month, 58 percent in 6 months, 96.12 percent in 1 year and 215.58 percent in 5 years.
Shift Towards Organised Players and Value-Led Growth
Higher gold prices have accelerated the shift from unorganised to organised jewellery players. The organised segment’s market share has increased to 40 percent in FY25 from 32 percent in FY20, while unorganised players have steadily lost share. Rising prices have boosted value growth for listed jewellery companies even as volume growth moderated slightly.
To manage affordability, companies have increasingly focused on lightweight jewellery in 9-karat, 14-karat and 18-karat formats instead of traditional 22-karat gold, allowing them to cater to lower ticket-size demand without heavy discounting. Studded and diamond jewellery demand increased as it offers better value compared to plain gold at high prices.
Senco Gold Ltd
Senco Gold delivered the strongest performance among peers, reporting a 51 percent year-on-year increase in standalone revenue in Q3FY26. This followed a relatively weak Q2, where revenue grew only 6.5 percent due to flooding in eastern India, GST-related deferments, and a high base. In Q3, same-store sales growth stood at around 39 percent, reflecting a sharp recovery in demand.
Over the first nine months of FY26, Senco posted 31 percent revenue growth, well above its historical range of 18–20 percent. Diamond jewellery sales rose 36 percent during the quarter, driven by wedding demand and a higher studded mix. The company added four showrooms in Q3, taking its total store count to 196, with plans to reach around 200 stores by the end of Q4FY26.
Kalyan Jewellers India Ltd
Kalyan Jewellers reported consolidated revenue growth of 42 percent year-on-year in Q3FY26, supported by same-store sales growth of around 27 percent. India revenues rose 42 percent, driven by festive demand, wedding purchases, and growth in both plain gold and studded jewellery. International operations recorded 36 percent revenue growth, with Middle East revenues up 28 percent. Kalyan’s digital platform, Candere, saw a sharp 147 percent increase in revenue, reflecting rising acceptance of online jewellery, particularly in lightweight and gifting categories. During the quarter, Kalyan added 21 stores in India and opened its first UK showroom, taking its global store count to 469 by December 2025.
Titan Company Ltd
Titan Company’s jewellery business, which includes Tanishq, Mia and Zoya, recorded 4. percent year-on-year revenue growth in Q3FY26. Growth was driven largely by higher average selling prices and value-led purchases rather than volumes. Sales of gold coins nearly doubled during the quarter, while plain gold jewellery sales increased by around 30 percent. The studded jewellery segment delivered its best performance of FY26, with growth in the mid-twenties.
Titan’s international jewellery business grew 81 percent, supported by new store openings in Boston and Orlando. The company also expanded its retail network by adding 49 stores during the quarter in Jewellery Segment, 47 in India and other 2 internationally.
P N Gadgil Jewellers
P N Gadgil Jewellers reported 46 percent year-on-year revenue growth in Q3FY26, with jewellery revenues reaching Rs. 3,169 crore, excluding other segments. Same-store sales growth stood at 32 percent, supported by strong festive and wedding demand. E-commerce revenues increased 138 percent, albeit on a smaller base, while studded jewellery contribution rose 52 percent over the first nine months of FY26, helping support margin stability.
The company achieved its highest-ever monthly revenue of Rs. 1,807 crore in October 2025 and recorded Dhanteras sales of Rs. 277 crore in a single day. P N Gadgil added three stores during the quarter, taking its total store count to 66 (65 in India and 1 in the U.S.A.), and plans to reach 78–80 stores by the end of FY26.
Valuations Reflect Diverging Expectations
Despite strong operating performance, valuations across jewellery companies remain divergent. Titan trades at around 87x Price to earnings, while Kalyan Jewellers is valued at about 41x. In comparison, P N Gadgil trades at around 25.6x and Senco Gold at about 19.8x earnings. With revenues scaling rapidly and the studded jewellery mix improving, expectations remain that profitability could strengthen further, potentially narrowing these valuation gaps over time.
Despite very high gold prices, organised jewellery companies are coping well by selling lighter and studded jewellery and benefiting from strong wedding and festive demand. Brand trust, store expansion and online sales are helping them grow, while unorganised players are losing share. Over time, these factors should continue to support organised jewellers even if gold prices remain volatile.
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