💰 Gold Hits Historical Price Levels Yet Retail Demand Remains Resilient
The gold price in India reached all-time highs of ₹1,20,000 per 10 grams and has nearly tripled in a year’s time. With the sharp sudden rise, jewellery retailers have come through to witness strong Q2 sales, in spite of heavy market challenges during the festive demand, store expansion, and brand strength.
Thus, prices at first served as a deterrent against the purchase of big-ticket items, whereas an early start to the festive season induced a rush in gold jewellery purchases nationwide.
💎 Titan, Kalyan, and P N Gadgil Propelling Sector Growth
Titan Company, the country’s largest jewellery brand, declared a 19% year-on-year growth in its domestic jewellery business in the second quarter of FY26. They have added 34 more stores to raise the outlet count in India to 1,120. Both the Tanishq and CaratLane brands have registered strong double-digit growth on the back of renewed consumer sentiment.
In 2024, the P N Gadgil Jewellers listed on the stock markets. Retail revenue rose by 29% in Q2 due to appealing festival demand and eight new exclusive showrooms. Gold sales soared 24% in value and 15% in volume, with an SSSG of 29%, thereby reflecting a healthy 29% market growth. The brand now has in operation 63 outlets in India.
Kalyan Jewellers India, with its headquarters in Thrissur, registered a 30% year- on-year growth in consolidated revenues during the quarter. The company opened 32 new showrooms, taking the total up to 436 outlets across India and the Middle East. The company recorded an SSSG of 16%, whereas it was 23% last year; hence, growth is in a steady yet subdued form.
🪙 Senco Gold Lags Behind Peers
Kolkata-based Senco Gold has posted a tepid 6.5% year-on-year growth for Q2 revenues, whereas in the same quarter, another 5 stores were set up (taking the number to a cumulative 184 outlets). The H1 FY26 SSSG stood at 7.5% against 12% last year during the same period—signaling slower momentum amid heavy competition and price-conscious consumers.
📉 Market Reaction: Stocks Lose Shine on Dalal Street
Despite an impressive sales performance, jewellery stocks have been facing corrections as valuations remain lofty and gold prices soar:
Senco Gold: ₹326 (−54% YoY)
Kalyan Jewellers: ₹485 (−32%)
PC Jeweller: ₹13 (−16%)
Thangamayil Jewellery: ₹2,020 (−17%)
Titan Company: ₹3,531 (+2% YoY)
However, with Titan being a lone bright performer, most jewellery stocks have grappled in maintaining investor confidence.
📊 High Valuations Limit Upside
At current levels, jewellery stocks remain expensively valued:
Titan Company trades at 60x FY26 estimated earnings (excluding its Damas LLC acquisition).
An analyst’s view has it that or the junior chain and the sublysics of the Indian gold market, Senco Gold trades at about 15x FY26 earnings.
Kalyan Jewellers is valued at over 45x FY26 earnings.
Analysts caution that sustained high gold prices and inflationary pressures could weigh on consumer sentiment and moderate sales growth in the coming quarters.
🔮 Outlook: Glitter with Caution
Despite the large-scale macroeconomic disruptions, India’s jewellery sector continues to shine. Major growth drivers are festive spending, expanding retail footprints, and strong brand loyalty. Nevertheless, with valuations on the higher side and gold prices being all-time high, investors may find the upside to be limited in the near term.
Long-term investors may play safe investing with companies such as Titan, which are reputed, well managed, and diversified; however, those who are a bit risk-averse should proceed cautiously with uncertainty lingering in the market at the present moment.
