Two things happened last year that helped Titan Company change its mind about lab-grown diamonds. The first one relates to gold. Its prices in 2025 shot through the roof — over 70% in the domestic market, according to some estimates. If gold gets that expensive, women — the biggest consumer cohort for gold jewellery — tend to look at it more as an investment instrument rather than something they would wear to a family function.
The second issue pertains to diamond. Customers of natural diamond treat them both as jewellery and as an investment. In 2025, the diamond market experienced significant volatility, with natural diamond prices showing a multi-year, albeit slowing, downtrend (down around 11% by late 2025).
Against this backdrop, Titan Company’s U-turn on lab-grown diamonds (LGD) — after resisting the trend for several quarters citing a lack of consumer demand and the desire to avoid brand dilution —might seem sudden but it was well-timed. In fact, the company’s stock surged 2.5% to a new 52-week high of `4,008 following the announcement of its beYon LGD store launch in Mumbai on December 29.
According to Ajoy Chawla, managing director, Titan Company, India’s studded diamond space is under-penetrated covering just 12-15% of the total jewellery market, and beYon, with its affordable price point, will help the company to woo new customers. “There was always this belief that perhaps lab-grown diamonds, because of its accessible price points, could be an opportunity to bring in many more customers into this category and therefore expand the pie,” Chawla had said during an analyst conference call when beYon was launched.
Indeed, at a 70-80% markdown per carat vis-a-vis natural diamonds, LGDs are challenging traditional notions of value and luxury, shifting what was aspirational into everyday territory. An LGD piece is no longer just an engagement ring or anniversary present — it’s workwear, a birthday present or even a self-purchase minus a cost-benefit analysis.
According to estimates, the LGD market is expected to grow at a 15% compound annual growth rate, while the natural diamond is projected to grow at just 5%. Though it is early days, Titan Company reported a stellar Q3 FY26, with consolidated revenue jumping 40% YoY to Rs 24,592 crore, and the jewellery segment leading the charge with 42% growth.
Catching them young
beYon is expected to help the house of brands at Titan Company to expand its margin play. While natural diamonds attract up to 20%-25% gross margins, LGD can attract margins slightly higher ranging between 30%-40%, says Surya Jain, founder & CEO, Aupulent Jewellery. “But then while an LGD brand will offer a higher margin compared to natural diamonds, revenue in rupee is far less since LGDs are cheaper than natural diamonds,” warns Jain.
So why a new brand since Titan has a presence in the premium and mid-range studded diamond and jewellery market with brands such as Tanishq, Mia, Zoya and CaratLane?
There are two obvious reasons. First, with gold prices climbing, it would become increasingly difficult for the youth-facing jewellery brands like Mia and Zoya to offer jewellery that is affordable. Second, it allows Tanishq to hold on to its premium positioning and higher margins. Rohan Agarwal, partner, Redseer Strategy Consultants, says it is younger consumers who will become the growth levers in the LGD space. “The younger cohort is more open to experimentation. The element of accessibility and affordability in LGDs will surely attract them to this space.”
Concurs Arun Narayan, CEO, jewellery, Titan Company. “The idea behind beYon is to bring consumers early into the category and bring them more often, and thereby start their journey in diamonds, after which we expect them to cross over to Mia or a CaratLane and then to Tanishq,” he says. A consumer survey by Redseer stresses that point: that Gen Zs and Gen Alpha will drive 30% of India’s LGD consumption by 2030.
beYon aims to hinge its growth on aggressive pricing. The brand has kept its prices starting from Rs 23,000 to Rs 25,000 per carat against the industry benchmark of Rs 30,000. In fact, some players are also charging customers at Rs 40,000 to Rs 50,000 per carat. The company plans to open eight to 10 stores mainly targeting metro cities like Mumbai and Delhi in the first phase before expanding its footprint.
What about the threat of cannibalisation? Titan dismisses the threat of cannibalism in the diamond space categorising the Indian market as an “and” and not “either/or” market where natural diamonds and LGDs can co-exist.
“The same question was asked to me: don’t you think Mia and CaratLane can eat into each other. But the reality is we’ve been able to grow both these brands and today as a powerful portfolio,” Chawla had said during the analyst call.
Disha Shah, founder & designer, DiAi Designs also believes that natural diamonds and LGDs can coexist in the Indian market as the country has a large population with varied needs. “Basic styles will continue to work well in lab-grown diamonds, but the more distinctive pieces such as fancy coloured diamonds, slightly yellowish diamonds, and rarer stones will continue to perform better in natural diamonds. These pieces are seen more as heirlooms rather than everyday jewellery, and there is a separate market for them,” says Shah.