Jewellery Stocks Soar: Indian Consumers Defy Record Gold Prices
Overview
Indian jewellery giants Titan, Kalyan, and PNG report surprisingly strong sales growth in the December 2025 quarter, overcoming record gold prices. While consumer demand remains robust, investors face high stock valuations, creating market uncertainty.
The paradox of record gold prices failing to deter Indian consumers is playing out robustly, with leading jewellery retailers reporting unexpectedly strong business updates for the December 2025 quarter. Global uncertainties have pushed gold prices to historic highs, yet organized chains like Titan Company, Kalyan Jewellers India, and P N Gadgil Jewellers are witnessing sustained demand.
Resilient Demand Defies Price Surge
Gold's popularity as an investment and hedge against currency fluctuations continues to grow among middle and upper-middle-class consumers. This trend is translating into impressive sales figures for major retailers, even as gold prices remain approximately 70% higher than a year prior. Investors, once cautious, are now shedding their apprehension for jewellery stocks.
Titan Leads the Pack
Titan Company, India's largest jewellery retailer, reported a 41% year-on-year growth in its jewellery division for the December 2025 quarter. The company saw gold coin sales double year-on-year in Q3FY26. Like-to-like (LTL) growth across its jewellery formats was in the low thirties. In the preceding September 2025 quarter, Titan's consolidated jewellery revenue grew 29.4% year-on-year to ₹16,522 crore, with LTL retail growth at nearly 14%. The retailer expanded its network significantly, adding 47 net new stores in the December 2025 quarter, bringing its total jewellery retail chain to 1,167 stores. Titan also launched 'beYon', its lab-grown diamond jewellery brand, targeting younger consumers.
Regional Giants Show Strength
Pune-based P N Gadgil Jewellers (PNG) posted a strong 46% year-on-year retail sales growth in the December 2025 quarter, a significant jump from 29% in the September 2025 quarter. Retail sales hit ₹3,169 crore for the quarter, up from ₹2,176 crore a year ago. Key drivers included a 64% year-on-year jump in Dussehera sales to ₹190 crore, and record October 2025 sales of ₹1,807 crore. PNG achieved a same-store sales growth (SSSG) of 32% for the quarter. The company added 3 new outlets, expanding its network to 66 stores.
Thrissur-based Kalyan Jewellers India mirrored this performance, with consolidated sales growing 42% in the December 2025 quarter. Same-store sales growth stood at a healthy 27%, driven by demand for plain gold and studded jewellery. Kalyan added 36 showrooms in India and overseas during the quarter, reaching a total of 469 outlets.
The Valuation Question
Despite the stellar sales performance, the market is grappling with the high valuations of these jewellery retail chains. Titan Company trades at a consolidated price-to-earnings (P/E) ratio of over 90 times, while Kalyan Jewellers India is valued at more than 50 times earnings. P N Gadgil Jewellers trades at a P/E of 27 times. These elevated multiples suggest that future growth opportunities may already be priced in. Investors must carefully assess the sector, considering potential gold price volatility and its impact on consumer purchasing patterns, against the backdrop of these steep valuations.
