Gold Sales Remain Robust Amid Resilient Consumer Demand, Jewelers Anticipate Strong Q4 Results

India's Gold Market Remains Unfazed by Global Turmoil

Consumers' appetite for gold has shown no signs of abating, driven by festive, wedding, and investment-led demand despite the ongoing Iran war. The fourth-quarter updates from leading jewellery retailers reveal revenue growth of 40-60 percent, partly supported by higher ticket sizes as consumers navigated volatile gold prices.

Gold Prices Retreat

As of April 10, gold prices retreated from late-January peaks of Rs 1.72-Rs 1.83 lakh for 10 grams to Rs 1,51,470 for 24-carat gold.

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The gold category saw significant growth, increasing by 27 percent year-over-year (YoY), while silver and diamond volumes rose 37 percent YoY and 125 percent YoY, respectively. This trend is reflected in the performance of top jewellery retailers.

Key Performers

Titan's revenue growth was driven by an increase in buyer growth, which improved to high-single digits after remaining largely flat in the previous three quarters. The company's secondary (consumer) sales, which represent the volume of jewellery actually purchased at retail counters, grew 52 percent YoY in Q4, led by Tanishq and its daily wear brand Mia.

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Lightweight Jewellery Gains Popularity

Though demand remained stable, consumers were increasingly gravitating towards lightweight jewellery, which allows them to maintain the tradition of buying gold for weddings and festivals while managing the impact of record-high prices. Lightweight jewellery brands such as Senco Gold Ltd's 9 karat collection, christened Cloud 9, have been particularly popular among consumers.

Upcoming Festive Season

Leading jewellers are gearing up for the upcoming auspicious occasion of Akshaya Tritiya, Poila Boishak, Baishakhi, Rath Yatra & Raja Parba in Odisha and the summer wedding season in Q1 FY27. Kalyan Jewellers, which reported more than 65 percent growth in Q4 revenue for India operations, flagged robust wedding and discretionary demand during the period.

Regional Variations

However, the West Asia conflict disrupted store footfalls in the region for Kalyan, impacting customer walk-ins during the first three weeks of March. The company reported revenue growth of approximately 39 percent YoY in the region in Q4, despite the challenges.

Expansion Plans

Jewellers have outlined a strong pipeline for store expansion in the first half of FY27, aiming to capture the market share being unlocked by the rapid formalisation of India's jewellery sector.