Jewellery Stocks Surge on Strong Q3 Festive Performance

Titan Company's stock reached an all-time high, while Senco Gold had an impressive increase, and Kalyan Jewellers experienced steady gains during early trading on Wednesday. These companies' quarterly results FY26 were declared on Tuesday. The festive season has helped stimulate broad based growth in gold, studded and accessories.

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Titan's Portfolio Powers Ahead

The jewellery division of Titan company is expanding rapidly as a result of increased average selling prices more than offsetting a consistent trend in buyers. Gold coin sales nearly doubled, while plain gold sales were up in the late thirties and studded jewellery saw double-digit growth due to strong buying interest from customers. All the formats saw solid like-for-like sales growth. 
Titan launched a lab-grown diamond brand called beYon, targeted at the everyday fashion customer, alongside its natural diamond brands Tanishq and CaratLane. Titan's store base has grown with many new stores added both domestically and internationally, including North America. The watches division experienced approximately 13% growth, driven by festive demand for analogue watches and a premiumisation trend.

Senco Gold's Retail Momentum

During the festive season, Senco Gold experienced an exceptional amount of growth in their standalone sales, due to their various marketing campaigns (both through retail stores and through their online store) that encouraged customers' purchases of jewellery items. Senco Gold's diamond jewellery continues to show significant growth and development.

The company's showroom base has expanded due to the opening of new franchise locations, bringing the total to almost 200 showrooms in operation. Gold prices reached record highs, increasing 23% in the current quarter and providing a catalyst for investor demand. In addition to the current strong performance, the company is targeting for the wedding season and also targeting 25%+ growth in FY26.

Kalyan Jewellers' Broad Strength

On the strength of post-Diwali resilience, Kalyan jewellers reported a significant consolidated revenue pickup due in part to higher contributions from domestic India operations, which are reflective of negative volatility in gold. Both plain and studded gold jewellery displayed positive sales trends with healthy same-store sales volume growth relative to the previous period. 
Kalyan's International operations are progressing well and its digital platform, Candere, experienced explosive growth this past quarter. Kalyan has opened dozens of new outlets throughout India, the Middle East, the UK and the USA with an overall count approaching 470 stores. 

Gold Rally Drivers

The festive tailwinds of weddings and gold exchanges during Q3 of the year were able to overcome 65% YOY increases in gold prices and to validate the shift towards more organised retailing of gold and diamond jewellery. Companies manufacturing and selling lab-created diamonds such as beYon are tapping into the growing affordability of this segment with an anticipated 20% CAGR.