Jewellery Stocks Surge Amid Positive Market Trends
Jewellery Sector Sees Significant Gains
On Tuesday, shares of prominent jewellery firms experienced a notable upswing, contrasting with a generally weak market. Companies like PC Jeweller, Kalyan Jewellers, and Senco Gold enjoyed gains of up to 10%, fueled by positive quarterly earnings and favorable trends in precious metal prices. Investor confidence was bolstered by expectations of sustained demand, particularly with the wedding season and festive shopping anticipated to enhance revenues in the upcoming months.
The surge in jewellery stocks follows strong operational reports for the March quarter, which indicated consistent demand despite high gold prices. Firms reported impressive sales growth, especially from wedding-related purchases and higher-margin studded jewellery. Harshal Dasani, Business Head at INVasset PMS, noted, "Jewellery stocks have experienced a significant rerating following Q4 business updates that highlighted resilient demand despite elevated gold prices. Companies reported robust same-store sales growth, wedding-driven demand, and an improved mix of studded jewellery, which typically offers higher margins, aiding operating leverage."
Among the top performers, PC Jeweller distinguished itself, with its shares climbing sharply after announcing a substantial rise in standalone revenue and progress in debt reduction.
Company Quarterly Updates
PC Jeweller reported a 32% year-on-year increase in standalone revenue for the March quarter, contributing to an overall annual growth of nearly 49%. The company also made significant strides in reducing its debt load. According to an exchange filing, "During the quarter, the company successfully reduced its outstanding bank debt by approximately 23% under the Joint Settlement Agreement terms."
Kalyan Jewellers also posted impressive figures, with quarterly revenue increasing by around 64% year-on-year and annual growth reaching about 42%. The company's performance in India was particularly strong, driven by robust same-store sales in key markets. "In the Middle East, we saw revenue growth of approximately 39% for Q4 FY2026 compared to Q4 FY2025, primarily due to same-store sales growth. Although the geopolitical situation affected customer walk-ins in the first three weeks of March, excellent Ramadan sales during the last ten days compensated for this impact," Kalyan stated, adding that for FY26, international business recorded a revenue growth of approximately 33% year-on-year.
Meanwhile, Senco Gold achieved a 46% year-on-year growth during the March quarter, largely driven by wedding demand. The company also expanded its retail presence, surpassing the 200-store mark. "We have a strong pipeline for store expansion in H1 FY27 across both franchise and company-owned categories, planning to open 20-25 stores in FY27, with a focus on increasing franchise locations. We aim for a minimum of 20-25% value growth while maintaining our EBITDA margin target of 7.5%-7.8% as previously outlined," the company announced.
Future Outlook for the Sector
Looking ahead, the outlook for the jewellery sector remains optimistic. Seasonal demand associated with weddings, along with significant buying occasions like Akshay Tritiya, is expected to drive sales growth in the near future. Additionally, reports indicating a decrease in base import prices of precious metals have further fueled investor optimism, as this could enhance margins for jewellers.