Jewellery stocks have made a strong comeback in the past week after a challenging three-month period marked by concerns over rising gold prices and their potential impact on demand. While higher gold prices have weighed on volume growth, jewellery companies are staying optimistic, anticipating continued top-line growth in the March quarter, driven by expansion plans and higher average transaction values.

Stocks of listed jewellery companies such as Titan Company, Kalyan Jewellers, PN Gadgil Jewellers, Thangamayil Jewellery, and Senco Gold have gained between 2% and 20% in the last week, recovering from the 4% to 40% drop seen over the past three months. Although fluctuating gold prices remain a challenge, their dual effect on revenues and affordability continues to be a major consideration for retailers. While higher gold prices boost revenue, they also reduce customer purchasing power, leading to slower volume growth. Seasonal factors, such as weddings and festivals, also play a key role in shaping demand.

Despite short-term pressures, jewellery retailers are doubling down on their expansion strategies. Kalyan Jewellers, for instance, plans to open 170 new stores in FY26, with 45 of them expected to be launched by the end of the March 2025 quarter. Titan Company added 46 new stores in the December quarter, bringing their total store count to 1,055. PN Gadgil Jewellers is also targeting 25 new stores in FY26, including 10 under its new format, LiteStyle by PNG, designed to appeal to younger customers with modern designs.

These expansion efforts signal the sector’s confidence in long-term demand for jewellery, despite the challenges posed by fluctuating gold prices.