Jewelry Stocks Plummet Following PM Modi's Comments
Significant Drop in Jewelry Stocks
On Monday, shares of Titan Company, Senko Gold, Kalyan Jewelers, and other jewelry firms saw a decline of up to 9%. This downturn was triggered by remarks made by Prime Minister Narendra Modi during a public event in Hyderabad, alongside the announcement of quarterly results by major companies in the sector. While addressing the audience, PM Modi urged citizens to refrain from purchasing gold for weddings over the next year. This appeal is part of a broader initiative aimed at conserving fuel and foreign currency reserves. Additionally, he encouraged a return to 'work from home' practices and advised people to limit unnecessary travel, particularly abroad.
Why Are Jewelry Stocks Falling?
Senko Gold experienced the most significant loss, with its shares dropping 9% to a low of ₹333 on the BSE. Kalyan Jewelers also followed suit, closing down 8% at ₹389. Shares of Titan Company, part of the Tata Group, fell by 5%, reaching a low of ₹4,273. These comments come at a time when India's gold imports are already under pressure. According to reports, gold imports in April could hit a nearly three-decade low due to unexpected tax demands faced by banks. India remains the world's second-largest consumer of gold, averaging 60 tons of gold imports monthly during the fiscal year 2026, resulting in a monthly import bill of approximately $6 billion.
Titan Company Reports Impressive Profit Growth
Moreover, shares of Titan Company and Kalyan Jewelers have been in the spotlight following the announcement of their fourth-quarter results for fiscal year 2026. Titan Company reported a net profit of ₹1,179 crore for the March quarter, marking a 35% increase compared to ₹871 crore in the same quarter last year. The total revenue for Titan in the fourth quarter of FY26 surged by 46% year-on-year to ₹20,300 crore, up from ₹13,891 crore in the previous fiscal year. The company's earnings before interest and taxes for this quarter stood at ₹1,875 crore, reflecting a 28% increase over the ₹1,470 crore reported in Q4FY25.
Kalyan Jewelers Also Sees Significant Profit
Meanwhile, Kalyan Jewelers India recorded a net profit of ₹409.5 crore for the March quarter of FY26, more than doubling from ₹187.6 crore in the same period last year, representing a growth of 118.2%. Revenue from operations for this quarter rose by 66.2% year-on-year to ₹10,274.9 crore, compared to ₹6,181.5 crore in the same quarter last year. EBITDA increased by 84.2% to ₹735.7 crore, up from ₹399.4 crore reported a year earlier. According to a regulatory filing made on Friday, the company also reported an improvement in EBITDA margin, which rose from 6.5% in the same quarter of the previous fiscal year to 7.2%.