The report stated that higher jewellery prices are expected to result in some moderation in the same store volumes; however, the volumes generated from new stores could largely compensate for the same
In view of the strong structural tailwinds and increasing market share of organised players, revenue growth for organised jewellers is expected to be healthy in the high teens in the financial year 2026 (FY26), on the back of steady demand prospects, according to a report by India Ratings and Research (Ind-Ra). The report stated that the organised jewellery industry’s revenue growth is projected at 20 per cent year-on-year (YoY) and 17 per cent YoY in FY25 and FY26, respectively.
Higher jewellery prices are expected to result in some moderation in the same store volumes; however, the volumes generated from new stores could largely compensate for the same, the report added. The organised industry revenue growth is likely to be higher than the overall industry by 600 and 400 basis points (bs) YoY in FY25 and FY26, respectively owing to the structural tailwinds.
Organised jewellers’ credit metrics in FY26 are expected to be supported by their rising scale and absolute profit coupled with the adoption of asset light model for expansion. The agency has expected operating profit margins to be range-bound during the fiscal, due to competitive pressures necessitating discounts, higher advertising spends to ensure customer acquisition and start-up costs for new stores.
Ind-Ra has expected gold prices to remain elevated in the short term amid the geo-political/macro-economic uncertainties, given its safe-haven characteristic. Over the medium term, a de-escalation of global political tensions and a rising interest rate scenario could result in some moderation in the gold prices.
The share of organised sector in the Indian jewellery industry, which is valued over Rs six trillion, increased to about 40 per cent in FY24 from 30 per cent in FY21, with a further gain of 10 per cent in market share to reach about 50 per cent by FY29. Ind-Ra believes the improved debt/equity funding environment will complement the government’s backing to the sector and will further unlock its growth potential,” said Preeti Kumaran, Senior Analyst, Corporate Ratings, Ind-Ra.
The increasing awareness among customers regarding hallmarked jewellery, growing reliance on trusted brands, and the ability of organised players to provide a variety of original designs have led to accelerated formalisation in the sector. As per the report, the trend of organised players gaining market share in the retail jewellery industry is expected to continue.
