Titan, Kalyan, and PNG: Can sales outrun sky-high valuations?

It is a paradox that is difficult to explain – gold prices have soared to record levels of Rs 1.44 lakh levels per 10 grams in Mumbai, given the global uncertainties emanating from the Trump administration and the Russia-Ukraine war.

As a result, there was a widespread perception on Dalal Street that leading jewellery chains would be adversely hit by ‘negative’ consumer sentiment for this precious metal.

However, organised retailers have reported strong business updates for the December 2025 quarter. The December 2025 quarterly updates by jewellery retailers once again highlights that high prices for gold are no deterrent for the Indian consumer.

Investors have also shed their earlier caution for jewellery retailer stocks. Titan Company, the largest jewellery retailer, was broadly flat in mid-Tuesday trade at Rs 4,223 and hovering just below its 52-week high of Rs 4,312 that was reached on 7 January, 2026.

Kalyan Jewellers India was down 1.65% to Rs 493 in late Tuesday trade, and it is hovering not too far from its 52-week high of Rs 617.3 that was reached on 24 July 2025.

Strong business updates from jewellery chains

Titan Company in its December 2025 quarter business update has highlighted that its jewellery division clocked a 41% y-o-y growth in the quarter under review.

Gold, as a standalone investment and a hedge against the weakening rupee vis-à-vis dollar and euro, has gained in popularity amongst middle and upper middle class.

The Bangalore-based retailer has pointed out to strong sales of gold coins, which doubled on a y-o-y basis in Q3FY26 from a year earlier.

And with gold prices at record levels and almost 70% higher than a year earlier, the retailer’s extended gold exchange offer, also helped to ensure strong demand for design-led, aesthetic premium offerings during the festive and wedding season.

The retailer has also highlighted like-to-like growth (secondary) across all of its jewellery retail formats (combined) were in the low-thirties in the third quarter of FY26.

Titan’s strategic pivot: Lab-grown diamonds

The Bangalore-based retailer had also launched ‘beYon’, Titan’s lab-grown diamond jewellery brand in the December 2025 quarter at a time when Gen Z and younger consumers are globally shifting to jewellery in this segment.

Investors will be closely monitoring this category as it could be the next growth driver for Titan Company over the next few quarters.

Regional powerhouses: PNG and Kalyan

Meanwhile, Pune-based P N Gadgil Jewellers also reported a strong growth in Q3FY26 – it has highlighted its retail sales grew a strong 46% y-o-y in the quarter under review, and it was higher than the 29% y-o-y growth in its retail segment in the September 2025 quarter.

The retail segment accounted for 83.2% of its Q3FY26 revenues vis-à-vis 72.2% in the September 2025 quarter. It has highlighted retail sales of Rs 3,169 crore in the December 2025 quarter vis-à-vis Rs 2,176 crore a year earlier.

The key factors that have contributed to its strong sales momentum in Q3FY26 include Dussehera 2025 sales that jumped 64% y-o-y to Rs 190 crore, and that was thanks to surging demand for studded jewellery. Also, in October 2025, the company saw highest ever sales of Rs 1,807 crore, a jump of 72% y-o-y.

This strong sales momentum resulted in the Pune-based player reporting a same-store sales growth (SSSG) for the quarter of 32%. In its presentation for 9 months of FY25, the company has highlighted SSSG of 25.7% for its 22 stores. This chain had got listed in mid-September 2024.

However, store growth expansion slowed in the December 2025 quarter – it added 3 exclusive company owned outlets, to take its store network to 66. In the September 2025 quarter, this retailer added 8 exclusive showrooms.

And Thrissur-based Kalyan Jewellers India also witnessed a similar growth trend – it has highlighted consolidated sales grew 42% in Q3FY26, vis-à-vis 29.7% y-o-y growth in consolidated sales to Rs 7,856 crore in the September 2025 quarter.

Of equal importance was same-store sales growth of 27% in Q3FY26, and that was thanks to strong demand for plain gold and studded categories. It had SSSG of approximately 16% in the September 2025 quarter.

It added 36 showrooms in India and overseas in Q3FY26, with its store network reaching 469 showrooms, and this higher than 32 new showrooms added in the September 2025 quarter.

Efficiency kings – Return on equity (RoE)

Titan Company had a consolidated RoE of 31.8% in the current financial year, according to Screener.in, while it was 21% for P N Gadgil Jewellers, and 16% for Kalyan Jewellers India.

Sky-high valuations of jewellery retail chains

Titan Company trades at a consolidated P/E of more than 90 times, according to Screener.in, while Kalyan Jewellers India trades at more than 50 times and P N Gadgil trades at 27 times.

It does appear that jewellery retailer stocks have factored in the growth opportunities over the next few quarters.

Also, with global gold prices showing an upward bias over the next few months and their potential impact on consumer purchase patterns, investors need to evaluate this space very carefully.

Amriteshwar Mathur is a financial journalist with over 20 years of experience.

Disclosure: The writer and his family have no shareholding in any of the stocks mentioned in the article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.