Jewellery stocks shine despite weak market as strong demand, policy support lift sentiment

Shares of leading jewellery companies surged in Tuesday’s trading session, defying a broader market downturn as strong business updates and supportive policy measures boosted investor confidence.

Stocks such as Senco Gold, Kalyan Jewellers and PC Jeweller gained up to 10 per cent, supported by healthy March quarter (Q4) performance and a recent reduction in base import prices for gold and silver, which is expected to ease input costs for the sector.

PC Jeweller led the rally, with its shares climbing nearly 10 per cent to Rs 9.29. The sharp rise followed a robust operational update, with the company reporting a 32 per cent year-on-year increase in standalone revenue for the March quarter. For the full financial year, revenue grew by approximately 49 per cent, reflecting a sustained recovery in business performance.

The company also highlighted progress in deleveraging, noting a reduction of around 23 per cent in its outstanding bank debt during the quarter under a joint settlement agreement. It reiterated its commitment to becoming debt-free in the near term, a factor that has improved investor sentiment.

Kalyan Jewellers also posted strong gains, rising close to 4 per cent after reporting a 64 per cent year-on-year increase in quarterly revenue. For FY2026, the company recorded overall growth of around 42 per cent, driven largely by wedding-related purchases and discretionary spending despite elevated gold prices.

Its India operations performed particularly well, with revenue growth exceeding 65 per cent in the quarter, supported by strong same-store sales growth across key markets. International operations, including the West Asia, also delivered solid results, contributing meaningfully to consolidated performance despite temporary disruptions to footfall amid geopolitical tensions.

Senco Gold shares extended gains from the previous session after the company reported a 46 per cent year-on-year rise in Q4 revenue, driven by strong wedding season demand. For the full year, revenue growth stood at approximately 35 per cent, marking an improvement over the previous year.

The company continued its expansion strategy, adding new showrooms and crossing the milestone of 200 stores. It has outlined plans to open 20–25 additional outlets in the next financial year, while targeting steady revenue growth and stable margins.

Sector-wide sentiment has also been lifted by the government’s recent decision to reduce base import prices for precious metals, moneycontrol reported. The move is expected to lower customs duties and improve margins for jewellers, providing a structural boost to profitability.

Looking ahead, industry players remain optimistic about the coming quarter, with the summer wedding season and festivals such as Akshaya Tritiya expected to sustain demand momentum. Analysts note that strong same-store sales, an improving product mix — particularly in higher-margin studded jewellery — and operating leverage have contributed to the sector’s re-rating.

Despite high gold prices, which have risen significantly in recent months, demand has remained resilient, underlining the sector’s strong fundamentals and cultural significance in the Indian market.

While broader equity markets remained under pressure, the rally in jewellery stocks highlights investor preference for consumption-driven sectors with visible growth triggers and supportive policy tailwinds.

With PTI, IANS inputs