Jewellery stocks to buy: Titan, Sky Gold, Kalyan Jewellers - Where should you invest ahead of Q2 results?
Jewellery stock to buy: Jewellery stocks are entering the festive season with a mixed scorecard, as stronger-than-expected September-quarter business updates have supported sentiment towards select companies. Investors now await September quarter results for the jewellery stocks.
Investors are weighing the sustainability of recent rallies against elevated gold prices, inflationary pressures and uncertainty over interest rates amid the West Asia crisis. Festive demand, premiumisation and gains in the organised jewellery market have supported business momentum, although the shift in the festive calendar has affected quarterly comparisons.
Over the past three months, Sky Gold and Diamonds shares have surged 56%, while PC Jeweller has gained 40%. Kalyan Jewellers has advanced 20%. In contrast, Thangamayil Jewellery has declined 26%, Goldiam International has fallen 19%, Senco Gold has shed 8% and Titan Company has slipped 2%.
September-quarter business updates from leading jewellery companies indicated continued revenue growth, although the timing of festive demand influenced performance towards the end of the quarter. The updates also highlighted differences in operating momentum and balance-sheet progress, making company-level metrics important when comparing investment opportunities.
Kalyan Jewellers reported 26% year-on-year growth in consolidated revenue, supported by healthy operating momentum and same-store sales growth (SSSG). The company recorded this growth despite a high base, as all nine days of Navratri fell in the second quarter of the previous year.
Titan Company reported 25% growth across its consumer businesses, while its jewellery business grew approximately 21%. The company indicated that demand moderated towards the end of the quarter as the festive calendar shifted towards the third quarter.
PC Jeweller reported 28% year-on-year growth in consolidated revenue for the period ended September 30, 2026. It also achieved debt-free status after repaying all outstanding bank debt ahead of the scheduled due dates.
Motilal Oswal Financial Services expects its jewellery coverage companies to report sales, EBITDA and profit after tax growth of 23%, 26% and 27%, respectively, in Q2FY27. The brokerage said demand remained resilient despite gold prices rising approximately 45% year-on-year in the September quarter, following a roughly 60% increase in Q1FY27. Gold prices remained broadly flat sequentially.
“Despite elevated gold prices, jewelry demand remained resilient during the quarter. Sales growth was partly impacted by the shift in the Navratri festive period to October this year, compared with September last year, as well as the recent reiteration of the government’s stance to defer jewelry purchases,” Motilal Oswal said.
The brokerage expects the outlook for the second half of FY27 to remain strong, supported by the festive and wedding seasons.
The sharp divergence in share-price performance raises questions about valuations, earnings sustainability and the ability of jewellery companies to manage gold-price volatility.
Mayank Jain, market analyst at Share.Market by PhonePe, said investors should assess jewellery companies on operating performance, valuation and their ability to manage the impact of volatile gold prices. According to Jain, inventory turnover, same-store sales growth, gross-margin resilience and capital efficiency are key factors to evaluate when comparing companies in the sector.
“Investors should focus on inventory turnover, same-store sales growth and gross-margin resilience amid gold-price volatility, while also assessing capital efficiency. For companies that have rallied sharply, it is important to determine whether earnings growth and margin performance can justify elevated valuations,” Jain said.
According to Jain's factor-score assessment, Sky Gold and Diamonds scored 5 out of 5 for momentum and quality, 4 out of 5 for low volatility and 2 out of 5 for value. Following the stock's 56% rally over three months, Jain's assessment highlights the need to examine whether earnings and margins justify its valuation. B2B execution, inventory-holding costs and working-capital requirements are also important factors to monitor.
Jain said investors should look beyond the stock's recent performance and assess the sustainability of its operating execution and financial metrics. “For Sky Gold, investors should monitor B2B execution, inventory-holding costs and working-capital requirements, while assessing whether earnings and margins justify the elevated valuation following the sharp rally in the stock,” he said.
Jain's factor scores for Titan were 5 out of 5 for quality, low volatility and sentiment, and 4 out of 5 for momentum. The company's value score was 1 out of 5, categorised as “Very Expensive” in the assessment. Jain identified Tanishq's same-store sales growth, the mix between studded and gold jewellery, and CaratLane's omnichannel revenue as key indicators to track.
Meanwhile, Motilal Oswal has a Buy rating on Titan, with a target price of ₹6,000 against a cited market price of ₹4,535 in its October results preview, implying potential upside of approximately 32%. The brokerage expects Titan’s standalone jewellery revenue, excluding bullion, to grow 28% and Tanishq like-for-like growth to reach 23% in its estimates. It expects standalone jewellery EBIT margin, excluding bullion and inventory gains, to remain flat year-on-year at 10.9%.
“We expect a healthy double-digit growth in watches, eyewear, and other businesses. CaratLane business revenue is expected to grow 28% YoY, while EBIT margin is likely to contract 20bp YoY to 10%,” Motilal Oswal said.
Kalyan Jewellers scored 5 out of 5 for momentum, quality and sentiment, and 4 out of 5 for low volatility in Jain's assessment. Its value score stood at 2 out of 5. Jain highlighted same-store sales growth, franchised-store economics, margins, debt and capital efficiency as important factors for investors to monitor as the company expands.
Thangamayil Jewellery scored 5 out of 5 for quality, 4 out of 5 for momentum and 2 out of 5 for low volatility in Jain's assessment. Jain identified demand in Tier-II and Tier-III markets, inventory turnover, input costs and operating leverage as key considerations when evaluating the stock's outlook.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
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