Festive demand boosts jewellery sector; Titan remains top analysts' pick

Titan has remained one of the strongest performers in the jewellery sector, delivering 22.72 per cent returns over the last one year, BSE data shows. 

 

The company is also the top pick in a Nuvama report dated November 20, 2025, which highlights how early festivals and resilient consumer demand drove strong growth across the industry in Q2FY26 and into October.

 

According to analysts, the early onset of Navratri and Dussehra played a key role in lifting sector performance. The advanced festive calendar helped companies offset a high base from Q2FY25, when jewellery demand had surged after customs duty cuts. Thus, overall value growth in Q2FY26 was healthy, supported by both improved footfalls and higher ticket sizes as gold prices rose sharply.

 

Titan delivered a strong quarter with its core jewellery business growing 18.8 per cent year-on-year (Y-o-Y), backed by 14 per cent like-to-like (LTL) growth. Analysts noted that the LTL gap between Titan and Kalyan narrowed once again, indicating stable competitive positioning. 

 

Other major players also reported robust trends. P N Gadgil posted record Navratri sales, up 66 per cent Y-o-Y, while its retail channel expanded 29 per cent. Kalyan Jewellers saw 31 per cent Y-o-Y growth driven by 16 per cent same-store sales growth. Among manufacturers, SkyGold reported a sharp 93 per cent rise in revenue led by a 58 per cent increase in volumes.

 

Lightweight and affordable jewellery continued to gain traction as consumers adjusted to higher gold prices. Brands such as Candere, CaratLane, and newly listed Bluestone reported strong momentum, reflecting a clear shift towards lower-carat and design-led products. 

 

While 22-carat gold remains the dominant choice, interest is rising in 18-carat, 14-carat, and even 9-carat jewellery. Senco highlighted increased customer preference for these lower-carat options to accommodate budgets without compromising on aesthetics.

 

Analysts said October was exceptionally strong for the sector. The combination of Diwali and the early wedding season boosted demand, with many jewellers achieving nearly their entire quarterly revenue during the month. Despite elevated prices, buyers continued to invest in festive and wedding jewellery, indicating resilient underlying demand.

 

Margins across the sector remained healthy, supported by improved productivity and operational leverage. Titan reported an 11.1 per cent earnings before interest and tax (Ebit) margin, slightly lower due to higher coin sales and a 34 per cent Y-o-Y increase in advertising and promotion spending. The company, however, maintained its 11 per cent margin guidance. SkyGold’s margins improved from 5 per cent to 7 per cent, while P N Gadgil benefited from a higher share of studded jewellery, guiding for 5.5-6 per cent Ebitda margins.

 

With festive-led momentum strong and structural demand intact, analysts remain positive on the jewellery sector. Titan, backed by consistent growth and stable margins, stands out as the preferred pick for investors.