Jewellery Stocks Rally Up To 40% As Strong Q1 FY27 Updates Offset Gold Price Concerns

India's listed jewellery companies have staged a sharp rally over the past month, as much as 40%, after stronger-than-expected June quarter business updates eased concerns over demand, despite a challenging start to FY27 marked by higher gold import duty, elevated gold prices and macroeconomic uncertainty.

As per data, Kalyan Jewellers has emerged as the biggest gainer with a 40% rise in one month. Sky Gold advanced 25%, followed by Thangamayil Jewellery at 24%, Goldiam International at 21%, PC Jeweller at 15%, Titan Company at 14% and Senco Gold at 9%. The gains came even as the industry entered the financial year facing several hurdles.

Sector Faced Multiple Challenges

The sector had to deal with:

• Higher crude oil prices and inflation concerns.

• Expectations of higher interest rates amid the West Asia crisis.

• Adhik Maas, which usually slows wedding-related jewellery purchases.

• Prime Minister Narendra Modi's appeal to reduce gold buying to help support the Indian rupee.

• Increase in customs duty on gold to 15% from 6%.

These developments had earlier weighed on sentiment towards jewellery companies. However, the latest quarterly updates show consumer demand remained stronger than market expectations.

Strong Q1 Business Updates Lift Sentiment

Jewellery retailers reported healthy same-store sales growth during the June quarter. This reflected resilient demand and continued market share gains by organised players.

Titan Company, the country's largest jewellery retailer, reported a 41% year-on-year (YoY) rise across its consumer businesses during the June quarter. Domestic business grew 37%, while its jewellery division recorded 39% growth.

The company said demand remained healthy during the festive season, particularly around Akshaya Tritiya, while store expansion and international operations also supported growth. Titan ended the quarter with 3,517 stores.

Other listed jewellery stocks also posted robust updates:

• Senco Gold reported 60% revenue growth and 38% same-store sales growth.

• Kalyan Jewellers recorded 38% growth.

• PC Jeweller reported 21% growth after reducing more than 90% of its settlement debt and guiding for a debt-free balance sheet during the current quarter.

Rally Backed By Fundamentals

Market experts said the June quarter updates suggest demand remained resilient despite concerns around Adhik Maas, high gold prices and broader macro uncertainty.

They noted that an around 18% correction from peak gold prices, followed by greater price stability, encouraged purchases across wedding, festive and investment categories. Organised jewellers also continued to gain market share as customers increasingly preferred branded retailers with wider product offerings and stronger trust.

Experts added that regular store expansion, healthy balance sheets and better return ratios have strengthened the investment case for organised jewellery companies. Premiumisation and rising demand for studded jewellery are also supporting revenue growth.

At the same time, they cautioned that valuations for several jewellery stocks have become richer after the recent rally. Future gains, they said, will depend on earnings growth rather than valuation expansion.

Outlook Remains Positive

Market experts said stable gold prices could support demand since consumers generally respond more to price volatility than absolute price levels. They also expect initiatives such as gold exchanges and recycling programmes to improve affordability over time.

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