Indian jewellery stocks are heading into the September-quarter earnings season with mixed market performance. Strong festive demand, premium jewellery purchases and the expansion of organised retailers have supported business growth, but rising gold prices and changing festival dates have created challenges for some companies.
Investors are now assessing whether recent share-price rallies can be sustained by earnings growth. Sky Gold and Diamonds, PC Jeweller and Kalyan Jewellers have recorded gains over the past three months, while Titan Company and several other jewellery stocks have delivered weaker returns.
The September-quarter business updates offer insights into sales momentum, profitability and balance-sheet strength. However, valuations and the ability to manage volatile gold prices remain important considerations when comparing investment opportunities.
Jewellery Stocks: How Have Shares Performed in Recent Months?
Jewellery stocks have moved in different directions over the past three months, reflecting variations in business performance, investor sentiment and valuations.
- Sky Gold and Diamonds: Shares gained 56%.
- PC Jeweller: Shares advanced 40%.
- Kalyan Jewellers: Shares rose 20%.
- Thangamayil Jewellery: Shares declined 26%.
- Goldiam International: Shares fell 19%.
- Senco Gold: Shares slipped 8%.
- Titan Company: Shares edged down 2%.
These movements show that the sector’s performance has been uneven. While some companies have benefited from positive business updates and strong investor interest, others have faced selling pressure despite operating in the same broader industry.
Recent returns alone, however, do not establish whether a stock is attractively valued. Investors also need to assess earnings growth, profit margins, working-capital requirements and the sustainability of demand.
Q2 Business Updates: What Titan, Kalyan Jewellers and PC Jeweller Reported
The September-quarter updates from major jewellery companies indicate continued revenue growth, although the timing of festive demand affected comparisons with the previous year.
Kalyan Jewellers reported 26% year-on-year growth in consolidated revenue. The company recorded healthy operating momentum and same-store sales growth despite a relatively high comparison base. All nine days of Navratri fell in the second quarter of the previous financial year, influencing the year-on-year comparison.
Titan Company reported 25% growth across its consumer businesses, while its jewellery business expanded by approximately 21%. The company noted that demand moderated towards the end of the quarter as the festive calendar shifted some activity into the third quarter.
PC Jeweller reported 28% year-on-year growth in consolidated revenue for the period ended September 30, 2026. It also announced that it had become debt-free after repaying all outstanding bank debt ahead of the scheduled repayment dates.
These updates highlight three different investment considerations: Kalyan’s sales momentum, Titan’s performance across consumer categories and PC Jeweller’s progress in reducing its debt burden.
Jewellery Sector Outlook: Strong Demand Despite High Gold Prices
Motilal Oswal Financial Services expects the jewellery companies covered by its research to report year-on-year growth of 23% in sales, 26% in earnings before interest, taxes, depreciation and amortisation (EBITDA), and 27% in profit after tax during Q2FY27.
The brokerage said jewellery demand remained resilient despite gold prices rising approximately 45% year-on-year during the September quarter, following an increase of around 60% in the first quarter of FY27. Gold prices were broadly flat compared with the preceding quarter.
However, the shift in the Navratri calendar and calls to defer jewellery purchases affected the timing of demand. The brokerage expects the second half of FY27 to benefit from the festive and wedding seasons.
Investors will therefore be watching whether strong sales translate into sustained profit growth, particularly as elevated gold prices can influence purchasing decisions, inventory costs and margins.
Sky Gold and Diamonds: Strong Momentum, Valuation in Focus
Sky Gold and Diamonds has been among the strongest performers in the sector, with its shares gaining 56% over three months. Its recent rally has increased attention on whether future earnings can support its valuation.
Market analyst Mayank Jain’s factor assessment gave the stock 5 out of 5 for momentum and quality, 4 out of 5 for low volatility and 2 out of 5 for value.
Investors should also monitor the company’s business-to-business execution, inventory-holding costs and working-capital requirements. These factors can influence cash flow and financial performance as the business grows.
The key consideration is whether earnings and margins can justify the valuation following the sharp share-price increase.
Titan Company: Strong Business Quality but a Premium Valuation
Titan remains an important company to watch because of its established jewellery business and presence across other consumer categories.
In Jain’s assessment, Titan scored 5 out of 5 for quality, low volatility and sentiment, and 4 out of 5 for momentum. Its value score was 1 out of 5, indicating that the assessment considered the stock very expensive.
Investors will be looking at Tanishq’s same-store sales growth, the contribution of studded jewellery compared with gold jewellery, and CaratLane’s omnichannel revenue performance.
Motilal Oswal maintained a Buy rating on Titan in its October results preview, with a target price of ₹6,000 against a cited market price of ₹4,535. This represented an estimated upside of approximately 32% from that reference price, not a guaranteed return.
The brokerage expected Titan’s standalone jewellery revenue, excluding bullion, to grow 28%, with Tanishq’s like-for-like growth estimated at 23%. It also expected the standalone jewellery EBIT margin, excluding bullion and inventory gains, to remain flat year-on-year at 10.9%.
For the company’s other businesses, the brokerage anticipated healthy double-digit growth in watches, eyewear and other categories. CaratLane revenue was expected to rise 28%, while its EBIT margin was projected to contract by 20 basis points year-on-year to 10%.
These are brokerage estimates, and actual results may differ.
Kalyan Jewellers: Sales Growth and Expansion Efficiency Matter
Kalyan Jewellers reported 26% revenue growth in the September quarter, supported by healthy operating momentum and same-store sales performance.
Jain’s factor assessment awarded the company 5 out of 5 for momentum, quality and sentiment, and 4 out of 5 for low volatility. Its value score stood at 2 out of 5.
Going forward, investors may focus on same-store sales growth, the economics of franchised stores, margins, debt levels and capital efficiency. These indicators will help show whether the company can maintain growth while managing the financial requirements of expansion.
The recent share-price gain of 20% over three months also makes valuation an important part of the assessment.
Thangamayil Jewellery: What Investors Should Monitor
Thangamayil Jewellery has underperformed several peers, with its shares falling 26% over the past three months. Despite this decline, the company’s operating prospects need to be evaluated separately from its recent market performance.
Jain’s assessment gave the stock 5 out of 5 for quality, 4 out of 5 for momentum and 2 out of 5 for low volatility.
Key factors to watch include demand in Tier-II and Tier-III markets, inventory turnover, input costs and operating leverage. These indicators can help investors understand how effectively the company converts demand into revenue and profits.
A falling share price alone does not establish that a stock is undervalued, making a review of financial performance and valuation particularly important.
Which Jewellery Stocks Should Investors Watch Before Q2 Results?
The latest business updates point to continued demand for jewellery, but the investment case varies across companies.
- Titan Company offers exposure to an established jewellery business and multiple consumer categories, although valuation remains a key consideration.
- Kalyan Jewellers has reported healthy revenue growth, making same-store sales, margins and expansion efficiency important indicators to track.
- Sky Gold and Diamonds has strong recent share-price momentum, but investors should examine earnings visibility, working capital and valuation after its rally.
- PC Jeweller has reported revenue growth and the repayment of its outstanding bank debt, making its future operating performance an important focus.
- Thangamayil Jewellery requires closer assessment of demand trends, inventory management and profitability following its recent share-price decline.
The choice between these stocks depends on an investor’s risk tolerance, investment horizon and valuation expectations. Investors should compare the companies’ actual Q2 results with market expectations rather than relying solely on recent share-price movements.
Elevated gold prices, changes in festive demand and broader economic uncertainty remain important risks for the sector. Although the festive and wedding seasons could support demand in the second half of FY27, the extent of the benefit will depend on consumer spending and individual company performance.
