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India’s Gem & Jewellery Exports Drop 11.72% in FY25 Amid Global Pressures

Studded gold and platinum jewellery buck trend with positive growth; CPD and silver exports see sharp declines

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India’s gem and jewellery (G&J) exports declined by 11.72% in the financial year 2024-25, totaling USD 28.5 billion, compared to USD 32.28 billion in FY24. The industry grappled with multiple global challenges including sluggish demand in key markets like the US and China, ongoing geopolitical tensions, and rising competition from lab-grown diamonds.

Despite the overall decline, exports of studded gold jewellery rose by 14% year-on-year to USD 6.1 billion, and platinum jewellery exports also saw an uptick of 11.79% to USD 182.75 million. In contrast, exports of cut and polished diamonds (CPD), the sector’s largest component, plummeted 16.75% to USD 13.2 billion, while silver jewellery exports dropped a staggering 40.58% to USD 962 million.

The imposition of a 26% US tariff on certain goods triggered a last-minute surge in exports, with over USD 1 billion worth of shipments sent in the 10 days prior to the tariff’s implementation — a sign of underlying global demand potential.

On the import front, gross G&J imports fell 11.96% to USD 19.6 billion, down from USD 22.2 billion in the previous fiscal year. Imports of rough diamonds, a key raw material, dropped 24.27% in value to USD 10.8 billion, while the volume declined 16.2% to 1,044.34 lakh carats.

Exports of lab-grown polished diamonds were also impacted, declining by 9.64% to USD 1.2 billion.

Gold jewellery exports were relatively stable, recording only a marginal decline of 0.11% to USD 11.21 billion. Of this, plain gold jewellery contributed USD 5.1 billion.

Signs of recovery were visible from January 2025 onwards, with month-on-month growth, although still trailing behind year-on-year figures. Exports in March 2025 were USD 2.5 billion, showing a modest 1.02% growth over February, but slightly below the USD 2.55 billion recorded in March 2024.

Industry players remain cautiously optimistic, citing stabilizing diamond prices and improving market sentiment as early indicators of a turnaround, despite ongoing global uncertainty.

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National News

P N Gadgil Jewellers Delivers Record Q1 FY27 Revenue Of 24,130 Mn; With 41% Revenue Growth, 57% EBITDA Growth & 52% PAT Growth; YoY

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P N Gadgil Jewellers Limited, one of the most reputed jewellers in the country, boasting 194 years of excellence in craftsmanship and trusted service in the retail business of gold, silver, and diamond jewellery, announced its unaudited financial results for the quarter ended 30th June 2026.

Key Financial & Operational Highlights:

  • Retail Contribution: Retail sales continued to strengthen, with the retail share of total revenue increasing to 78% in Q1 FY27 from 70% in Q1 FY26, reflecting the Company’s continued focus on expanding its high-margin retail business.
  • Strong Same-Store Performance: The Company delivered a robust Same-Store Sales Growth (SSSG) of 46.1% YoY, driven by healthy customer footfalls and higher transaction volumes.
  • Improving Product Mix: The retail stud ratio improved to 10.9% from 9.9% in the previous quarter. Notably, the recently launched stores across Northern and Central India are delivering a significantly higher stud ratio in the range of 15% to 18%, validating the Company’s expansion strategy into markets with structurally higher demand for studded jewellery. Additionally, LiteStyle by PNG recorded an impressive stud ratio of 32.9%, highlighting strong customer acceptance of the newly launched lightweight jewellery brand.
  • Healthy Gold Retail Mix: Retail sales of Gold vedhani, bars and coins (GBC) accounted for 21.7% of total retail revenue during the quarter, while the average gold purchase per invoice is 4.84 grams. The Company’s (GBC) strategy continues to strengthen customer acquisition and retention, with the conversion to jewellery ratio improving to 53% in Q1 FY27 from 46% in FY26, and reinforcing the long-term value of this customer lifecycle strategy.
  • Retail Product-wise Performance: During the quarter, the diamond category continued to witness exceptional momentum, delivering 29% growth in value and 26% growth in volume, underscoring increasing customer preference for studded jewellery and supporting the Company’s premiumization strategy. The gold category recorded a robust 54% growth in value, while volumes remained broadly stable with only a 1% YoY moderation, reflecting healthy demand despite elevated gold prices. The silver category registered 131% growth in value, even as volumes softened slightly by 7% YoY.
  • Outstanding Festive Performance: The Company delivered a strong Akshay Tritiya performance, with festive sales increasing 80.3% YoY to Rs 2,514.1 Mn, driven by robust consumer demand, effective festive campaigns and continued market share gains during the festive season.
  • Higher Customer Engagement: Healthy customer acquisition continued across markets, with footfalls increasing 25.9% YoY to 214,587, while maintaining a robust conversion rate of 91.8%, reflecting strong brand recall, healthy demand and the Company’s ability to consistently convert store visits into purchases.
  • Growth in Transactions & Spending: Transaction volumes increased 26.3% YoY, while the Average Transaction Value (ATV) is Rs 92,264, indicating healthy customer engagement and higher spending per visit.

  • Strengthened Hedging Framework: The Company further enhanced its risk management practices by increasing its overall hedge coverage to approximately 70%, significantly reducing exposure to gold price volatility. The Company intends to increase hedge coverage to 80%+ in the near term, with a long-term objective of achieving near-full inventory hedge coverage (~100%), thereby enhancing earnings stability and reducing commodity price risk.
  • Underlying Operating Performance: The remaining unhedged inventory resulted in a unhedged gain of Rs 97 Mn during Q1 FY27, compared to Rs 101 Mn in Q1 FY26. Excluding this unhedged gain, Adjusted EBITDA increased to Rs 1,827 Mn from Rs 1,128 Mn, with the Adjusted EBITDA Margin improving to 7.6% from 6.6% in the corresponding quarter last year.
  • Adjusted Profitability: Excluding the net impact of the unhedged gain, Adjusted PAT stood at Rs 981 Mn in Q1 FY27, compared to Rs 618 Mn in Q1 FY26, translating into an Adjusted PAT Margin of 4.1%, as against 3.6% in the corresponding quarter last year.
  • Expansion Pipeline on Track: During the quarter, the Company remained focused on enhancing the productivity of its existing network while progressing site identification, franchise partner onboarding and operational readiness for its upcoming expansion, with a significant focus on Northern and Central region, in line with its growth strategy.

As of 30th June 2026, the Company operated 78 stores (77 in India and 1 in the U.S.A.). A few store launches are planned during Q2 FY27, with the majority of the year’s expansion scheduled across Q3 and Q4 FY27, in line with the Company’s phased rollout.

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