Jewellers' revenue rises as gold demand by weight falls in India
According to Moody's, organised jewellery retailers posted strong Q2 revenue growth on high gold prices, while buying by weight keeps declining.
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what happened
Organised jewellery retailers in India posted strong revenue growth in the July-September quarter, but high gold prices are masking a drop in the volume of gold consumers buy. According to the World Gold Council, gold jewellery demand by weight fell 20% year on year, while its value rose 16%.
Crisil Ratings expects sector revenue to grow 21-23% in FY27, while sales volumes decline 4-6%. The price of 24-karat gold fell from Rs 1,63,437 to Rs 1,38,192 per 10 grams between August 24 and November 12, driven by hotter US inflation, strong jobs data and expectations that the Federal Reserve would hold or raise rates.
Titan reported 24% growth in its jewellery business to Rs 17,495 crore, while Kalyan Jewellers' revenue rose 32% to Rs 10,323 crore and its same-store sales grew about 20%. Crisil also expects sector operating margins to slip to 8.5-8.7% in FY27 from 9.3%.
why it matters
For markets, the revenue gains rest on expensive gold rather than physical demand. Lower volumes and higher inventory values raise the need for working-capital borrowing, which matters for sector debt levels. For the gold market the signal is mixed: high prices support retailers' sales, but purchases by weight are weakening.
market impact
Gold and India's jewellery sector: weaker demand by weight, revenue held up by prices
tags
instruments
sources
- Jewellers' strong Q2 growth masks a continued drop in gold volumes — Moody's, 13 November 2026 at 03:33 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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