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In spite of soaring gold prices and global economic uncertainties, India’s gold jewellery industry has demonstrated resilience, adaptability, and robust growth in FY25. Driven by cultural demand, strategic retail expansion, innovative product design, and a push toward international markets, the industry’s key players are not just surviving but thriving.
Recent earnings reports, expansion strategies, and acquisition moves by various industry players paint a clear picture of an industry that is redefining itself to meet modern consumer needs while holding on to centuries-old traditions.
Titan’s Global Expansion: Damas Acquisition
In a landmark move, Titan Company, part of the Tata Group, is looking to acquire a 72% stake in Dubai-based Damas International for ₹2,500 crore. The acquisition—currently in the due diligence phase—would significantly bolster Titan’s international portfolio and retail presence in the Gulf Cooperation Council (GCC) region, where Damas operates 251 outlets.
The deal is expected to follow a phased acquisition model similar to Titan’s approach with CaratLane. If successful, it will allow Titan to tap into a luxury-conscious, high-spending consumer base in the Middle East—aligning with its long-term vision of becoming a global jewellery brand.
Titan’s existing portfolio includes premium brands like Tanishq, Zoya, CaratLane, and Mia by Tanishq, and the acquisition of Damas would represent one of its most significant foreign investments.
The acquisition could lead to the rebranding of Damas outlets under “Damas by Titan,” expanding Titan’s international identity and setting the stage for further global expansion.
A Strong Season for Senco Gold
Kolkata-based Senco Gold Ltd showcased a stellar performance in the last quarter of FY25, reporting a 94% surge in net profit to ₹62.44 crore, compared to ₹32.17 crore in Q4FY24. The jewellery retailer’s operational revenue grew 21% year-on-year, reaching ₹1,377.71 crore from ₹1,137.28 crore a year earlier.
Much of this performance was attributed to seasonal buying trends during the wedding season and Valentine’s Day, which significantly boosted footfall and sales. Senco reported a 38% increase in diamond jewellery sales, indicating that the Indian consumer—especially younger demographics like millennials and Gen Z—is shifting toward high-value, design-centric purchases.
“The season of weddings and Valentine’s Day drove a 38% surge in diamond jewellery sales and a 6% increase in invoices,” said CEO Suvankar Sen. “Gen Z and millennials played a key role in celebrating the season of love.”
Despite a slight decline in full-year net profit—₹159.31 crore in FY25 compared to ₹181 crore in FY24—the company’s annual revenue rose significantly to ₹6,328.07 crore, up from ₹5,241.44 crore. In FY25 alone, Senco launched over 32,400 new gold designs and 25,000 new diamond designs, while expanding its physical footprint by opening 16 new showrooms, including six franchises.
With FY26 already off to a strong start, Senco has recorded 18% value growth in Q1 and plans to open 18 to 20 more stores during the fiscal year. This strategy of rapid expansion combined with focused product innovation positions the company well for sustained growth despite market volatility.
Malabar Gold & Diamonds Eyes Global IPO and Growth
In parallel, Malabar Gold & Diamonds, another heavyweight in the Indian jewellery retail space, is preparing for its Initial Public Offering (IPO) in FY28, marking a pivotal step in its corporate journey. The Kerala-based company is undergoing a structural overhaul to consolidate subsidiaries and limited liability partnerships (LLPs) under a single entity before the public listing.
“We are 100% focused on listing Malabar Gold on the stock market,” said founder and chairman M P Ahammed. “The legal process is underway, but it will take time. We’re targeting FY28 for the IPO.”
Despite high gold prices, Malabar remains bullish, projecting 20% revenue growth in FY26, following ₹62,000 crore in revenue recorded in FY25. The company has announced aggressive expansion plans—60 new stores in India and 30 overseas in FY26—to add to its existing 391 showrooms across 19 Indian states and various international markets.
In response to price-sensitive consumer behavior, Malabar is also innovating product lines with lighter caratage and new design formats that maintain the aesthetic of traditional gold jewellery while being more affordable. “We’re offering products that retain the look and feel of traditional gold while being more accessible,” said O Asher, MD of India operations.
This product innovation and market segmentation strategy is allowing Malabar to offset declining volume sales while expanding its customer base—particularly among the younger, aspirational middle class and international buyers.
Value of gold jewellery consumption expected to increase: ICRA
A recent ICRA report adds context to these company-level successes, offering a sector-wide view of the challenges and opportunities facing the Indian gold industry.
According to ICRA, gold jewellery consumption volume in India is projected to decline by 9–10% in FY26, largely due to a 33% rise in gold prices over the last fiscal year. However, the value of gold jewellery consumption is expected to increase by 12–14% year-on-year, driven by higher prices, festive demand, and consumer resilience. Organised retailers are likely to outperform the overall market, with expected revenue growth of 14–16% in FY26, due to expansion into new geographies and increased share from the unorganised sector. The operating margin for the sector is projected to improve by 30 basis points to 7.2%, though net margins may see limited growth due to high financing costs, such as increased Gold Metal Loan (GML) interest rates and higher working capital needs.
Interestingly, the report also noted a shift in demand toward investment gold. Gold bars and coins saw a 17% and 25% increase in demand, respectively, during FY24 and FY25. This trend is expected to continue in FY26, with investment gold (bars and coins) forecasted to account for 35% of total gold demand, up from previous levels. This growth stems from rising geopolitical tensions and the role of gold as a safe-haven asset.
Ruling the ‘gold’en roost
India remains one of the largest consumers of gold globally, accounting for approximately 20% of global gold demand. Gold is deeply embedded in Indian culture, seen not only as a fashion statement but also as a symbol of wealth, investment, and tradition.
While the Indian gold industry remains fundamentally strong, it will have to navigate a complex landscape marked by:
- Price volatility: High gold prices can deter budget-conscious buyers, leading to lower volume sales.
- Rising financing costs: Increasing GML rates and working capital borrowings could squeeze net margins.
- Shift to organised retail: While this presents opportunities for growth, it also increases competition among major players.
- Consumer behavior: Younger consumers are demanding innovative, personalized, and lightweight jewellery designs—pushing brands to reinvent their traditional product lines.
Yet, the industry is responding with strategic foresight. Expansion into Tier-2 and Tier-3 cities, focus on digital and omnichannel strategies, product innovation, and international acquisitions signal a sector that is dynamic and forward-looking.
Gold paving the way ahead
India’s gold jewellery industry is undergoing a quiet transformation—balancing the weight of tradition with the velocity of modern commerce. From Senco’s strong seasonal surge to Malabar’s IPO ambitions and Titan’s Middle East expansion, the sector is proving that gold remains not just a precious metal, but a critical pillar of India’s retail and cultural economy.
In the face of challenges such as high prices and global uncertainty, the industry’s pivot toward value-driven growth, organised retail consolidation, and global presence marks a new chapter. If current trends continue, India will not only remain a top consumer of gold—but also emerge as a global powerhouse in jewellery retail and design.
