Major Indian jewellery chains recorded 22% to 28% revenue growth in the September quarter despite a shift in the festive calendar. Companies are improving profitability by prioritizing higher-margin studded jewellery over lower-margin gold coins. Investors are now observing how this momentum carries into the upcoming peak festive and wedding season.
Indian jewellery retailers demonstrated strong resilience during the September quarter, defying a challenging shift in the cultural calendar. While key festive events like Navratri moved to the December quarter this year, leading retail brands still managed to report significant revenue growth ranging from 22% to 28%. This performance signals that branded jewellery retail demand remains robust despite seasonal timing adjustments.
Strategic Pivot Toward High-Margin Products
A critical factor driving this growth is the changing revenue mix within the industry. Companies are actively reducing their reliance on low-margin gold coins and bars to focus on higher-value products. For instance, P N Gadgil Jewellers reported a 22.4% year-on-year revenue increase. The company reduced its revenue share from gold coins and bars to 15.8%, down from 23.3% in the previous year. This strategic move toward studded jewellery and lifestyle brands allows retailers to capture better profit margins on each transaction.
Performance Across Major Retail Brands
Market leaders showed consistent performance across the sector. Titan Company, which manages Tanishq and CaratLane, recorded a 21% expansion in its jewellery division. Titan saw studded jewellery sales growth in the low thirties percentage, which helped offset the slower demand for pure investment-focused gold coins. Kalyan Jewellers also posted a 27% growth in its domestic operations, while its digital brand, Candere, saw a 64% surge in activity. Meanwhile, PC Jeweller reported consolidated revenue growth of approximately 28% for the quarter. These results indicate that consumer preference for established retail brands continues to rise regardless of the festive calendar.
Risks and Market Monitorables
While the sector is showing growth, investors should remain aware of potential risks. The most significant factor is the volatility in gold prices. If prices remain elevated or rise sharply, it may lead to demand destruction, where customers reduce or delay their purchases. Furthermore, the jewellery retail space is highly competitive, with significant pressure from unorganized local players who often operate at different price points.
Profitability in this sector is also sensitive to inventory costs and the availability of raw gold. Investors may monitor whether these companies can maintain their higher-margin product mix if consumer spending cools down during an economic slowdown. The next important update to track will be the third-quarter performance, which includes the peak Diwali and wedding season, to see if the momentum sustains through the entire festive period.