Even though gold prices have climbed nearly 36% over the past year, demand for gold jewellery has remained firm. This resilience was evident in the strong performance reported by jewellery companies in the first quarter of the current fiscal.
While overall volumes have slowed, value growth continues to hold up. Buyers are also shifting towards lower karat jewellery, and in some cases diamond pieces, which is helping companies improve both value and margins.
The real test, however, lies ahead. The festive season, traditionally the strongest quarter for jewellers, has just begun. This often acts like a catalyst for jewellery companies. With that in mind, here’s a look at three companies that are well placed to benefit.
Titan Company: The Undisputed Market Leader
Titan, a Tata Group company, is one of India’s most prestigious jewellery companies, with a market share of around 8% (as of 30 June 2025). Titan’s flagship jewellery brand Tanishq has 504 domestic stores, while its Mia brand operates 239. The company’s luxury label, Zoya (12 stores), is also among India’s largest in the segment.
Titan is also a leader in the watches and wearable devices segment, with a market share of 27%. Apart from this, it also operates in other business areas, including eyecare, and emerging businesses (fragrances, women’s bags, and dresswear). But the jewellery business is its primary revenue driver.
Strong Q1 performance lifts consolidated financials.
In Q1FY26, Titan consolidated revenue rose 24.2% year-on-year (YoY) to ₹166.3 billion, driven by strong performance across business segments. Earnings before interest and tax (EBIT) rose 45.6% to ₹17.5 billion, while margin expanded 200 basis points (bps) to 11.8%.
As a result, profit after tax (PAT) grew 52.6% to ₹10.9 billion. Jewellery contributed 73.6% to the revenue mix, followed by watches at 7.5%.
Jewellery business holds firm despite gold price headwinds
Domestic Jewellery revenue grew 16.6% YoY to ₹112.2 billion, with same-store sales growth (SSSG) of 12%. This came despite challenging market conditions. Gold portfolio recorded a growth of 15%, while the studded rose 11%. This increase was entirely due to a 16% increase in ticket size, which offset the impact of higher gold prices.
As a result, the domestic division posted EBIT of ₹13.2 billion, up 11.3% (excluding one-time impact of 50 bps). Titan also added 10 stores (net), taking the total number of domestic stores to 755.
It also operates 22 Tanishq, 1 CaratLane, and 1 Mia stores internationally. CaratLane’s revenue grew 39% to ₹10.3 billion, and EBIT margin stood at 6.6% (+96 bps). International business revenue grew to ₹5.5 billion, and margin stood at 3.4%.
Overall, jewellery division revenue rose 19.3% to ₹127.9 billion, with EBIT margin at 11% (+56 bps). Studded items contributed 29% (against 30%), while gold, coins, and other items accounted for 71%.
Watches segment benefits from operating leverage
The Watches (Domestic) business recorded revenue growth of 24% YoY, reaching ₹12.4 billion. This growth was driven by a 28% increase in both volume and value of analog watches. Brand-wise, brands such as Titan, Sonata, and Fastract witnessed double-digit growth.
Further, international Business (Helios) revenue rose 39% to ₹340 million, reflecting consumer preference towards premium watches. Overall, the watch segment’s revenue grew 24.4% to ₹12.7 billion. Strong revenue growth translated into significant operating leverage.
This led to margins expanding 770 bps to 18.6% (excluding one-time gains of 400 bps). The segment’s retail network spans 1,244 stores, including Titan World (724), Helios (231), and Fastrack (239).
Eyecare and emerging categories expand Presence
Eyecare total income rose 13% YoY to ₹2.3 billion, driven by seasonal trends wherein sunglasses growth outpaces prescription products (lenses and frames). EBIT grew 4.5% to ₹200 million, while margin declined 70 bps to 8.4%.
Eyecare retail network stands at 879 (net).
New avenues beckon
The company also entered emerging businesses, including women’s bags and fragrance products. Total revenue grew 35% to ₹1.0 billion, while EBIT loss fell 46.2% to ₹140 million. The loss will gradually narrow as the businesses mature.
Looking ahead, Titan expects some softness in Q2 due to the high base effect of last year. Margin is estimated to be between 11-11.5% in FY26. The company also expects high-margin growth to accelerate going forward. To mitigate the impact of rising gold prices, Titan has also launched 9-carat diamond jewellery.
From a valuation perspective, Titan trades at a price-to-earnings (P/E) multiple of 87x, about a 13% premium to its 10-year median of 77x. The valuation is about threefold higher than the 1-year median industry P/E of 29.3x.
Kalyan Jewellers: Catching Up with Titan
Kalyan is one of India’s largest and fastest-growing jewellery companies with a pan-India presence and extensive operations in the Middle East. The company follows a hyperlocal business model that enables localization at a large scale.
The company today operates 368 showrooms in India, including 287 Kalyan and 81 Candere showrooms. In addition, it also has 36 Kalyan showrooms in the Middle East and 2 Kalyan showrooms in the US.
Aggressive expansion drives strong topline growth.
In Q1FY26, Kalyan’s domestic revenue grew 31% YoY to ₹61.4 billion, primarily led by a strong same-store sales growth (SSSG) of 18%. The company also added 10 new stores in the quarter and 70 new stores in the past one year. This aggressive store expansion has been a key factor in Kalyan’s growth.
The company’s EBITDA also surged 41% to ₹4.3 billion, driven by operating leverage, procurement gains from the pilot lean credit procurement project, and metal gains in platinum and silver. EBITDA margin expanded by 50 bps to 7.1%. Consequently, PAT rose 55% to ₹2.5 billion.
Revenue from South grew 30% to ₹31.1 billion, with SSSG accounting for 20%. In contrast, non-South revenue rose 33% to ₹30.3 billion, with SSSG accounting for 16%. Its studded share stood at 30.3%, compared to 30.4% in the same quarter last year.
In addition, revenue from the Middle East rose 27% to ₹10.3 billion, aided by the relocation of 8 showrooms in the last 12 months. This region also recorded a high studded share of 18.4%, against 16.4% last year. However, despite a higher studded ratio, EBITDA margin declined 60 bps to 7.1%. Still, PAT rose 18% to ₹221 million.
On a consolidated basis, revenue rose 31.5% to ₹72.7 billion. Of which, 84.4% came from India, and the remaining from the international market. EBITDA margin 30 bps to 7.1%, leading to a 49% jump in PAT to ₹2.6 billion.
What lies ahead for Kalyan
Looking ahead, Kalyan expects strong growth in the upcoming quarters. Kalyan has not seen any decline in footfalls in tier 3 and tier 4 cities. The company expects operating leverage to continue improving, which will help margins. Kalyan believes that the entire jewellery market will become 100% organised in the next 5 years.
Candere, a segment focused on lightweight lifestyle jewellery, is estimated to turn PAT positive neutral by FY26 end. The company plans to open 80 Candere showrooms in India this year. Kalyan is also launching a new unit to house regional brands, with 5 stores expected to be launched in the next 12 months.
From a valuation perspective, Kalyan trades at a P/E of 66x, at a premium to its 4-year median of 45x. This valuation is more than double the one-year median industry P/E of 29.3x.
P N Gadgil Jewellers: Maharashtra’s Most Trusted Jewellers
P N Gadgil is the second largest among the prominent organised jewellery players in Maharashtra, in terms of stores. It is also the fastest-growing brand amongst the key organised jewellers in India. Its store count stands at 55, with 16 stores added during the last one year.
In Q1FY26, P N’s revenue grew 2.8% YoY to ₹17.1 billion, with SSSG growing 8%. This subdued revenue growth was due to the absence of the Gudi Padwa festival in the quarter. Volume growth remained almost flat due to high gold prices, while value growth was in the range of 20-25%.
Margins shine on studded jewellery mix.
However, margins expanded 320 bps to 7.2%, leading to a 96.3% rise in PAT to ₹693 million. Studded jewellery sales grew 41.6%, taking the proportion of studded jewellery to 10% of retail sales. Notably, the company’s gross margin on studded is around 33%, compared to non-studded (7-8%).
This sharp growth of studded led to an increase in margins and PAT. The company aims to further increase this studded ratio to 12-13%. In FY26, P N is on track to achieve a top-line of ₹90-95 billion, about 20% YoY growth over FY25. It expects H2 growth to be much stronger, driven by festive seasons.
Expansion beyond Maharashtra gains pace
Volume growth is expected to remain flat, but value growth is estimated to be in the range of 20-25%. The company plans to take the number of stores to 80 by FY26 and 100 by FY28, from 55 currently. It’s also diversifying beyond Maharashtra to Indore, Kanpur, and Lucknow with an aim to become a pan-India player.
From a valuation perspective, P N Gadgil trades at a P/E multiple of 31x. This is a newly listed company, so it is challenging to assess its valuation historically. The valuation is almost in line with the 1-year median industry P/E of 29.3x
Conclusion
With the festive season underway, jewellery demand is set to get a further boost, and companies like Titan, Kalyan, and P N Gadgil are well-positioned to capitalise. While volume growth could remain subdued, value growth is expected to stay strong.
While each follows a different growth strategy, Titan’s dominance, Kalyan’s aggressive expansion, and P N Gadgil’s regional strength, the common thread is stronger margins, higher studded ratio, and low-carat jewellery. With the industry moving towards complete formalisation in the coming years, listed jewellers stand to gain the most.
Disclaimer
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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