Jewellery Firms Defy High Gold Prices with Strong Q3 Performance
India's love for gold continues to surprise everyone. Even as prices hit record highs, the festive season kept demand strong. Organized jewellery players gained more market share. The third quarter of FY26 showed why this sector refuses to slow down.
Gold Holdings and Market Dynamics
Indian households hold a massive amount of gold. A Morgan Stanley report from October 2025 says they have nearly 34,600 tonnes. This stock is valued at over $5 trillion. It is larger than India's nominal GDP of $4.1 trillion, as estimated by the International Monetary Fund.
India is the world's second-largest consumer of gold. It accounts for around 26% of global demand. Only China consumes more at 28%. Demand remains robust despite record-high prices. Sales show limited signs of weakening.
Higher prices are accelerating a shift from unorganized to organized players. The share of organized players in the jewellery market reached 40% in FY25. This is up from 32% in FY20. Unorganized players are steadily losing ground.
Q3FY26 Performance Overview
The December quarter reaffirmed the structural strength of India's organized jewellery space. Gold prices touched ₹140,000 at the end of Q3FY26. This is up around 20% from the end of Q2FY26 and 75% from Q3FY25.
The surge led to stronger value growth for jewellery companies. Volumes saw only a marginal slowdown. To deal with higher gold prices, companies are focusing on 9-karat, 14-karat, and 18-karat jewellery. They are moving away from traditional 22-karat options. This helps meet consumer demand for products at lower price points.
Company-Specific Growth Stories
Senco Gold was the fastest grower in the quarter. Its standalone revenue increased 51% year-on-year. Growth was subdued in Q2 due to heavy rains and flooding in eastern India. Same-store sales growth (SSSG) was around 39% in Q3. Over the first nine months of FY26, Senco reported 31% revenue growth. This is well ahead of its long-term guidance of 18-20%.
Demand for studded jewellery and diamonds increased with rising gold prices. Diamond jewellery sales grew by 36% during the quarter. Senco navigated gold price volatility by focusing on lightweight karat options and value-led designs. It added four new showrooms in Q3, taking the total to 196 stores. Plans include opening 3-4 more stores in Q4.
Kalyan Jewellers reported consolidated revenue growth of 42% year-on-year. SSSG was around 27%. India revenues increased 42%, supported by festive and wedding demand. Higher gold prices made diamond jewellery more attractive. A focus on regional designs in the South helped offset price impacts.
International operations revenue increased by 36%. The Middle East saw 28% growth. Kalyan's digital platform, Candere, saw 147% revenue growth. The company added 21 stores in India and opened its first showroom in the UK. Its global network reached 469 stores by December-end.
Titan Company, the market leader, reported strong performance. Its jewellery portfolio recorded 41% year-on-year revenue growth. Growth was driven by higher average selling prices and value-led purchases. A gold exchange program also aided growth.
Sales of gold coins nearly doubled. Plain gold sales increased by around 30%. The studded jewellery segment delivered its best performance in FY26 with mid-twenties growth. Titan's international jewellery business grew 81%. New Tanishq stores opened in Boston and Orlando.
Titan ventured into lab-grown diamond jewellery with the launch of beYon. It added 56 stores during the quarter, taking the total retail network to 3,433 stores.
P N Gadgil Jewellers saw total revenue grow by 46% year-on-year to ₹3,169 crore. SSSG was 32%. Growth was driven by festive and wedding season demand. E-commerce revenues increased 138%, albeit on a smaller base.
Studded jewellery contribution rose 52% over the nine months of the fiscal year. This supported margin stability. PNG achieved several milestones in Q3. It had its highest-ever monthly revenue of ₹1,807 crore in October 2025. Record Dhanteras sales of ₹277 crore occurred in a single day.
The company added 3 stores this quarter, taking its network to 66 by December 2025. It plans to open 12-14 new stores and reach 78-80 stores by the end of FY26.
Industry Trends and Future Outlook
Overall, jewellery companies performed strongly in Q3FY26. Value-led growth drove results even as volume growth moderated amid high gold prices. Higher prices are accelerating formalization across the industry. Consumers are steadily moving toward branded and organized players.
With revenues scaling at this pace, expectations are high for strong profitability growth. Operating leverage and an improving studded mix should support this.
Valuations and Profitability
Valuations remain divergent across companies. Titan trades at a premium of around 99 times price-to-earnings multiple. Kalyan trades at 56, while P N Gadgil (28) and Senco Gold (23) trade at lower multiples.
If profitability improves, these valuations could compress meaningfully. This makes the sector worth watching for a potential rebound.
