Even as gold prices remained volatile with sharp price swings, India’s organised jewellery retailers had a strong December quarter, with demand holding up into January, as per a report by JM Financial.
JM Financial, in a sector note dated 17 February, said jewellery continued to lead growth across consumer discretionary companies in the December quarter (3QFY26), helped by strong same-store sales and new store additions.
Titan, Kalyan keep the momentum despite gold price volatility
The brokerage said jewellery players “highlighted that Q3’s demand momentum sustained into Jan’26 despite volatility in gold prices.” Titan’s jewellery business (excluding bullion) reported 40% year-on-year revenue growth in the quarter, with like-to-like growth of 32%.
Kalyan Jewellers posted 42% year-on-year revenue growth, driven by 27% same-store sales growth, with its India business revenue rising to Rs 90 billion. JM Financial also pointed to a sharp rise in gold prices, about 65% year-on-year, as part of the backdrop to the quarter’s jewellery performance.
Big-ticket buying is taking priority
One reason jewellery is standing out, JM Financial said, is that consumers appear to be prioritising big-ticket purchases, especially categories where GST cuts have a larger impact. “Benefits anticipated from the cut in GST rates are yet to be realised as customers prioritised big-ticket purchases with higher GST cuts,” the note said.
The brokerage expects these benefits to eventually “flow through to small-ticket discretionary items” as well.
JM Financial said its consumer discretionary universe clocked 24% revenue growth, 27% EBITDA growth and 31% PAT growth year-on-year in the December quarter, with jewellery emerging as the strongest driver.
The brokerage said the quarter’s performance was boosted by the festive and wedding season, though it noted the latter half saw some slowdown due to delayed winter, fewer weddings in January and regional disruptions.
Even so, jewellery retailers stood out, with JM Financial pointing to a combination of store additions, strong same-store sales growth, and a ~65% year-on-year rise in gold prices as the key tailwinds.
Gold prices rose, but demand didn’t fade
JM Financial said jewellery players reported strong year-on-year revenue growth, supported by same-store sales growth in the range of 12–39% across key listed and unlisted players it tracked.
While gold prices were volatile, the brokerage said most jewellers indicated that demand momentum continued into January 2026, suggesting consumers were still willing to spend on gold and jewellery despite price fluctuations.
JM Financial said it expects strong demand traction to sustain in jewellery, and continues to prefer the segment within the overall retail space.