Fuelled by a rise in gold prices in the March quarter (Q4 FY25), Titan, the country’s largest organised jewellery retailer, reported a 25% year-on-year (YoY) increase in jewellery revenue, according to its latest business update. Domestic operations grew 24% YoY, driven by strong demand for plain gold jewellery and gold coins, indicating a higher consumer preference for gold over other precious metals.
But there is a catch. Elevated gold prices have resulted in sluggish consumer demand at lower price points, leading to single-digit buyer growth, Titan said. In contrast, higher price bands have been resilient in terms of demand. This point has been reiterated by rival Kalyan Jewellers too, who said in its business update on Monday that there was volatility on account of higher gold prices.
The price of the yellow metal has risen by about 45% in a year, according to bullion market experts. Between January and March this year, the price of gold per 10 grams (24-carat) increased by close to 20%, touching Rs 93,000. It is currently hovering at about Rs 90,000 per 10 grams. With ongoing trade and tariff tensions, prices could rise further, experts warn.
Executives at PN Gadgil Jewellers, which also released its business update this week, say that the preference for the precious metal in times of uncertainty will be higher among consumers.
In a recent conversation with FE, Kiran Prakash Firodiya, Group CFO and executive director of PN Gadgil Jewellers, said the demand for gold jewellery at its stores in the last few months had been strong on the back of festivals as well as weddings.
In its business update released Tuesday, PN Gadgil said its retail segment, which contributes 81.5% to revenue, saw a 50% year-on-year growth (in topline) in Q4. Festive sales were the key growth driver.
“We achieved our highest-ever single-day festive sales on Gudi Padwa (held on March 30), amounting to Rs 123.5 crore, with a 40.4% increase over last year,” the company said.
Titan, however, remains circumspect, saying there will be churn among buyers, with demand at higher price bands remaining firm. While price-sensitive consumers will keep off gold purchases for now as they wait for prices to moderate.
Kalyan Jewellers, on the other hand, remains bullish about the market.
“We are upbeat about the ongoing quarter (April-June period). We are witnessing encouraging trends in the advance collections for both Akshaya Tritiya as well as for wedding purchases for the festive/wedding season,” the company said.
In the March quarter, Kalyan Jewellers said it had recorded a year-on-year consolidated revenue growth of nearly 37%. The company’s India operations witnessed revenue growth of nearly 39% in Q4, driven by robust wedding demand. The quarter recorded healthy same-store-sales-growth of approximately 21%. But digital platform Candere saw a 22% revenue decline in Q4. The firm launched 25 Kalyan showrooms in India in Q4, and another 3 showrooms in the first week of April 2025.
Tanishq expanded its international network to new markets of Sharjah in UAE and Atlanta and Seattle in the US. Of the 16 new store additions (net) in India, 4 stores were added in Tanishq and 12 stores in Mia.