National News
Rising gold prices to shave a tenth off organised retailers’ volumes
Revenues to still grow in double digits; credit profiles supported by higher operating margins
The continued rise in retail gold prices to an all-time high is expected to reduce the sales volume of organised gold jewellery retailers by 9-11% in fiscal 2026. However, with prices and realisations expected to be significantly higher on- year, revenues will still grow 13-15%.
This comes on the back of four straight years of more than 20% revenue growth, which has seen the industry grow 2.5 times since fiscal 2021. Volume, however, has remained subdued with consumers purchasing smaller quantities amid budget constraints due to higher prices.
An interplay of multiple factors is visible amid the continually rising gold prices. For one, as demand wanes, retailers are pushing sales through promotions and discounts amid increasing penetration in Tier 2 and 3 cities. The resultant increase in costs, however, will be more than covered by jewellery getting sold at prices higher than the purchase and making prices. Thus, operating profitability will rise 30-40 basis points (bps) on-year, driven by inventory gains.
The higher prices will also push up working capital borrowings for purchasing inventory for existing and planned stores. Nonetheless, leverage will remain under control and debt protection metrics healthy, supporting credit profiles.
A Crisil Ratings analysis of 60 gold jewellery retailers, which account for a third of the revenue of the organised jewellery sector, indicates as much.
In fiscal 2025, retailers took a 4-5% hit to volume as gold prices soared ~25% on-year (refer to Chart 1) amid geopolitical and economic concerns. As of mid-April 2025, gold prices are already ~20% higher than the average price in fiscal 2025. Thus, even if the prices move up only 4-5% from here, the average price will still be up 22-24% on-year for fiscal 2026.
Says Himank Sharma, Director, Crisil Ratings, “The recent jump in prices came just before the start of the festive and marriage seasons in the first half of April 2025, limiting the impact on demand thus far. However, as ticket sizes for buyers are likely to remain constant, caratage and grammage may reduce, as seen in the last four fiscals, impacting volumes. The demand, though lower, remains supported by duty cuts on gold imports announced last year.”
As such the implementation of Goods and Services Tax and Bureau of Indian Standards hallmark continue to push customers towards organised retailers, supporting revenue growth. Higher realisations will push another year of double- digit revenue growth for organised retailers, resulting in revenues of Rs.4.5-5.0 lakh crore for the industry.
Says Gaurav Arora, Associate Director, Crisil Ratings, “Despite the increasing debt, the capital structure of gold jewellery retailers will remain comfortable. Improved revenues and operating profitability will absorb the impact on debt protection metrics as well with median interest coverage seen healthy, over 6 times in fiscal 2026.”
The higher prices will have a two-way impact on retailers. One, with jewellery sold at prices higher than the purchase prices, resulting in an inventory gain of 20-30 bps, we expect the operating margin to break the declining trend of the last two fiscals and inch closer to the seven-year average of 7.8-8.0% in fiscal 2026 (refer to Chart 2). Two, the debt of gold jewellery retailers rated by Crisil Ratings will rise as the cost of inventory replenishment as well as new store inventory rises with higher prices, although higher revenue and profitability will provide cash flow towards store expansion.
That said, any sharp volatility in gold prices, changes in government regulations and import duties on gold, and consumer sentiment will bear watching.
BrandBuzz
PNG Jewellers Expands Presence with New Store Launch in Jalgaon with Inauguration by Marathi Industry Superstar Swapnil Joshi
Spread across 4,500 sq. ft., this large format store inaugurated by Marathi Industry Superstar Swapnil Joshi will showcase PNG Jewellers’ complete range of offerings, including exquisite collections in gold, natural diamond, silver and platinum jewellery
PNG Jewellers, one of India’s most trusted and iconic legacy jewellery brands, proudly announced the grand opening of its new store in Jalgaon, Maharashtra. The new store was inaugurated by Marathi film industry superstar Swapnil Joshi, marking yet another milestone in the brand’s ongoing expansion journey driven by strong customer demand for its jewellery.
Spread across 4,500 sq. ft., the store will showcase the very best of PNG Jewellers stunning collections like Saptam, Pratha, Katha and Eiina. Located in the fast developing suburb of Ajay Colony, Ring Road, the new space has been designed to deliver an exceptional shopping experience, blending PNG’s heritage of trust and craftsmanship with modern retail elegance and top notch service.
To celebrate the launch, PNG Jewellers has announced special inaugural offers from the 15th of August to 29th of August 2025. Customers can enjoy upto 20% off on gold jewellery making charges and upto 50% off on diamond jewellery making charges, making it the perfect opportunity to explore and own timeless designs right at the beginning of the festive season.
Sharing his excitement about the launch, actor Swapnil Joshi said, “It’s always a delight to be a part of PNG Jewellers’ milestone celebrations. This one is truly special as it is the launch of PNG’s first store in the city of Jalgaon! The people of Maharashtra deserve nothing but the best and I am so glad that PNG Jewellers has now entered this wonderful city with its amazing jewellery with such a grand showroom.”
Speaking at the launch, Dr. Saurabh Gadgil, Chairman and Managing Director of PNG Jewellers, said, “Jalgaon has been a high-potential market for us, and the decision to open a store here is a direct response to the growing demand from our customers in the region. This new store allows us to bring our complete range of products and our signature shopping experience closer to our valued patrons. We are committed to serving the people of Jalgaon with the same trust, transparency, and quality that PNG Jewellers has stood for since its inception in 1832.”
The Jalgaon store launch reinforces PNG Jewellers’ vision of expanding its footprint as Maharashtra’s strongest jewellery player while staying deeply connected to the needs of its customers. With this addition, the brand continues to tap high potential markets in India as it embarks up a nationwide expansion.
BrandBuzz
Bhima Jewellery Relaunches Its Trivandrum Flagship Showroom with Grandeur – Inaugurated by Cine Star Kajal Aggarwal
Bhima Jewellery celebrated the grand relaunch of its flagship Trivandrum showroom, inaugurated by actress Kajal Aggarwal, marking a new chapter in its century-long legacy of purity and craftsmanship.
Bhima Jewellery, India’s trusted name in purity, craftsmanship, and heritage for over a century, marked a spectacular new chapter today with the grand relaunch of its flagship showroom in Trivandrum. The much-awaited event was graced by leading cine artist Kajal Aggarwal, who inaugurated the revamped store amidst an enthusiastic and vibrant gathering of customers and well-wishers.
The ceremony witnessed the presence of prominent members of the Bhima Jewellery leadership team, including Dr. B. Govindan (Chairman), M.S. Suhas (Managing Director), Jaya Govindan, Gayathri Suhas, Navya Suhas (Directors), and Aarthi Govindan.
The redesigned showroom offers an elevated luxury experience, blending Bhima’s timeless traditions with modern elegance. Spread across multiple levels, the flagship store showcases an extensive range of jewellery – from exquisite bridal collections, traditional Kerala designs, antique treasures, diamond masterpieces, Silver and contemporary lightweight pieces, to a special curated section for platinum and precious gemstones.
Speaking on the occasion, Chairman Dr. B Govindan and Suhas MS Managing Director, Bhima Jewellery, said: “Trivandrum holds a special place in Bhima’s legacy. This flagship showroom is more than just a retail space
It’s an celebration of our 100-year journey of trust, purity, and artistry. With this relaunch, we are offering our customers not just jewellery, but a world-class shopping experience.”
Kajal Aggarwal, the guest of honour, shared her excitement: “Bhima Jewellery has been a household name for generations. I’m delighted to be part of this beautiful milestone and witness the exceptional designs and craftsmanship that truly reflect India’s rich heritage.”
The relaunch also unveiled exclusive inaugural offers for customers, valid for a limited time, as a gesture of gratitude for the unwavering support of Trivandrum’s jewellery lovers.
DiamondBuzz
BlueStone Jewellery Rs 1,541 crore IPO subscribed 66%
BlueStone Jewellery and Lifestyle’s ₹1,541 crore IPO has reached 66% subscription on the final bidding day, with QIBs leading at 85% of their allotted quota.
BlueStone Jewellery and Lifestyle’s Rs 1,541 crore IPO has been subscribed 66% overall as per the latest update on the third and final day of bidding. Among investor segments, Qualified Institutional Buyers (QIBs) have shown relatively stronger interest, having subscribed to 85% of their allotted portion.
BlueStone plans to raise up to Rs 1,541 crore via its IPO, comprising a fresh equity issue of Rs 820 crore and an OFS of 1.39 crore shares by existing investors, including Accel India III, Saama Capital II, Kalaari Capital, Iron Pillar, and Sunil Kant Munjal.
Ahead of the IPO launch, BlueStone secured Rs 693 crore from anchor investors. In the grey market, the response to the issue has been lukewarm, with the IPO trading at a modest premium of just 0.4% over its issue price of Rs 517 per share.
The latest Grey Market Premium (GMP) for BlueStone Jewellery’s IPO is hovering between Rs 2-4 above the issue price of Rs 517 per share. This points to a potential listing price of around Rs 520, implying a modest estimated gain of about 0.4% per share.
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