Caratlane reported ₹4,690 crore revenue for FY26, a 18% jump, as India becomes the world’s second-largest diamond consumer. The brand is expanding its retail presence and manufacturing capacity to capture the growing preference for diamond-studded jewelry over traditional investments.
India’s retail jewelry market is witnessing a notable shift in consumer behavior, with diamond jewelry gaining significant traction alongside gold. According to recent data, India has now become the world’s second-largest consumer of diamonds, capturing a 12% global market share. This transition is marked by a move away from purchasing jewelry strictly for investment purposes toward buying pieces for daily wear and aesthetic appeal.
Caratlane, a prominent player in this organized retail space, has reported revenue of ₹4,690 crore for the fiscal year ending March 2026. This figure represents an 18% increase compared to the previous year. The company’s focus on diamond-studded jewelry is evident, with over 90% of its total revenue coming from natural diamond sales. To meet this rising demand, the company has tripled its production output at its Chennai manufacturing facility.
Strategic Expansion and Retail Reach
Caratlane currently operates 381 retail stores across more than 160 cities in India. While online platforms continue to contribute to the company's revenue, the physical store network remains the primary driver of sales. By expanding its manufacturing capabilities and retail footprint, the company aims to tap into the large but relatively untapped diamond jewelry market in India. Currently, diamond jewelry penetration in the country is estimated at only 10% to 12%, suggesting that organized retailers may see further room for growth as more consumers transition to branded jewelry.
Market Dynamics and Consumer Preferences
Unlike traditional jewelry buying, which was historically tied to gold as a hedge against inflation, younger demographics are increasingly purchasing smaller diamond pieces for personal enjoyment. Caratlane has adapted to this trend by diversifying its product offerings, including lower-carat collections and silver-based diamond jewelry under its brand, Shaya.
The Indian jewelry sector, which has an overall market size estimated between $80 billion and $90 billion, continues to see high competition between legacy jewelers and organized retail chains. While the rise in diamond consumption is a positive sign for the sector, the profitability of such growth will depend on the company's ability to manage raw material costs and maintain margins amidst shifting consumer preferences. Investors may track future updates on the utilization of the expanded Chennai facility, store-addition targets, and the company's ability to maintain its revenue growth trajectory in the coming quarters.