Gold prices have hit levels once thought unimaginable — hovering around Rs 1.26 lakh per 10 grams. Yet India’s branded jewellers are turning in some of their best numbers ever. The September quarter (Q2FY26) saw Titan Company, Kalyan Jewellers and other major retailers reporting strong revenue and profit growth. According to analysts tracking the sector, this unexpected resilience reflects a combination of shifting consumer preferences, premiumisation, and deeper formalisation in the jewellery market.

Consumers are trading up, not walking away

Analysts say the Indian jewellery buyer is evolving. Instead of reducing overall spending, many consumers — particularly in the mid-to-premium segment — are choosing fewer but higher-value purchases.

Titan’s jewellery division grew 27 percent year on year (YoY) in Q2 FY26, helped by a surge in solitaires and studded jewellery. CaratLane, Titan’s subsidiary, saw a 32 percent increase in sales and a 78 percent rise in profit.

Kalyan Jewellers reported a 30 percent jump in consolidated revenue to Rs 7,856 crore, with profit after tax doubling to Rs 261 crore. The company added 32 stores in the quarter, expanding its footprint to 436 showrooms across India, the Middle East and the US.

Analysts believe the brand’s performance reflects consumers’ preference for trusted national names and design-led offerings. “Even at these price levels, consumers are not stepping back from buying jewellery,” said an analyst at a domestic brokerage. “They are simply buying smarter — prioritising craftsmanship, brand trust and long-term value over weight.”

Festive and wedding spending underpin demand

The early onset of Navratri and a longer festive season this year helped sustain footfall. Brokerage notes suggest that both Titan and Kalyan benefitted from shoppers advancing their purchases in anticipation of further price hikes. Analysts add that weddings — a structural driver of Indian jewellery demand — continued to perform strongly, cushioning the impact of weaker discretionary spending elsewhere. “The festive and wedding calendars together created a perfect demand window,” said another analyst. “Consumers were willing to absorb higher prices because of the cultural and emotional value of gold purchases.”

Studded jewellery offsets gold price pressure

A recurring theme in analyst commentaries is the growing share of studded jewellery in overall sales. Since its value depends less on gold and more on design and diamond content, it provides a buffer against volatile bullion prices. Titan’s data show gold jewellery buyers declined by 11 percent in Q2, but studded jewellery buyers increased by 3 percent. Analysts note that brands are capitalising on this shift by expanding into lightweight, 14-carat and 18-carat categories aimed at younger, urban consumers. “Studded jewellery is becoming an everyday-wear category rather than an occasional luxury,” said an analyst at Elara Securities. “It’s helping brands preserve margins even as gold costs rise.”

Formalisation and brand trust reshape industry

The jewellery industry’s rapid formalisation continues to benefit organised players. Stricter hallmarking norms and stronger consumer awareness are pushing buyers towards established brands. According to analysts referencing Kalyan’s investor presentation, the share of organised retail in the Indian jewellery market is expected to rise to 40 percent by 2025, up from 32 percent in 2020. Titan’s steady store expansion — 510 Tanishq outlets at last count — and Kalyan’s growing ‘My Kalyan’ network are also cited as evidence of this consolidation trend. “Formalisation has become a moat for large players,” said an analyst at PL Capital. “Brands with scale, compliance and credibility are capturing the space once held by local jewellers.”

Volumes remain the weak spot

Despite impressive top-line numbers, analysts caution that volume growth remains soft. Titan’s management disclosed a 2 percent decline in total buyers, and brokerages note similar trends across the industry. Gold’s 60 percent price surge since January — from around Rs 79,000 to more than Rs 1.26 lakh per 10 grams — has made affordability a growing concern. “Value growth is being driven by higher prices and premium products, not by volume,” said a Mumbai-based analyst. “Unless gold stabilises or household incomes rise faster, mass-market demand is likely to stay subdued.”

Still, the consensus among analysts is that the long-term story remains intact. The combination of brand trust, premiumisation, and structural formalisation has given India’s jewellery sector a resilience few expected.