India’s organised jewellery sector is poised for a 17% revenue growth in 2025-26, driven by strong demand during the wedding season and increasing interest in gold as an investment, according to a report by India Ratings released Wednesday.
Gold’s cultural and sentimental significance in weddings, along with its appeal as a long-term investment, is expected to sustain jewellery volumes. Additionally, the current global geopolitical and economic uncertainties are likely to further drive demand for gold, reinforcing its position as a preferred asset, the report noted.
For the organised jewellers, credit profiles are anticipated to improve in FY26, supported by stronger growth, higher profits, and the adoption of new expansion strategies. Enhanced access to funding will also benefit established players, particularly those with strong corporate governance practices.
While the industry faces competitive pressures, resulting in the need for discounts and higher marketing spends, operating profit margins are expected to stay relatively stable. The costs associated with launching new stores will also weigh on margins. However, as these stores become profitable, the operating margins are likely to improve with better cost management.
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The growing trend of franchise-based expansion will also help jewellers strengthen their balance sheets and improve their credit metrics. The organised sector is expected to continue capturing more market share in FY26, bolstered by trusted brand reputations, rising compliance requirements, and mandatory hallmarking.
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The share of the organised jewellery market, which was valued at over ₹6 trillion, grew from 30% in FY21 to 40% in FY24. It’s projected to reach nearly 50% by FY29, driven by increasing customer confidence and stricter regulations, according to Preeti Kumaran, Senior Analyst at Ind-Ra Corporate Ratings.
