Titan, Senco Gold, Kalyan Jewellers, PC Jeweller: What makes this festive season different?

The festive season is already underway, with Navratri in progress, while Diwali, Dhanteras and the wedding season lie ahead. Gold and jewellery stocks are likely to remain in focus as the yellow metal holds cultural and emotional significance for Indian households, particularly during festivals and weddings.

Business updates for the September quarter (Q2 FY27) from several listed jewellers have reinforced optimism about demand, with companies also expressing confidence in the upcoming festive and wedding season. However, this year’s festive period comes with a few additional factors for investors to consider.

Gold prices have corrected from their August highs and remain volatile. Rising inflation could weigh on household budgets, while Prime Minister Narendra Modi’s appeal to defer gold purchases for a year could influence consumer buying decisions.

In addition, the shift in the festive calendar has moved some demand from Q2 into Q3 compared with last year, making the October-December quarter particularly important for jewellery companies.

Gold prices remain volatile

Gold prices in the national capital fell for the third consecutive session on Wednesday, declining by ₹1,800 to ₹1,50,800 per 10 grams for 99.9% pure gold, inclusive of taxes, according to the All India Sarafa Association. Prices stood at ₹1,52,600 per 10 grams in the previous session.

Silver prices also extended their decline, falling ₹5,000 to ₹2.21 lakh per kilogram from the previous close of ₹2.26 lakh per kilogram.

The latest declines add to the correction in domestic bullion prices from their August highs. Gold has seen bouts of volatility in recent sessions, with a stronger rupee adding to the pressure on domestic prices.

Traders said a stronger rupee makes dollar-priced bullion cheaper to import, weighing on domestic prices. For jewellery retailers, the key question is whether the correction improves affordability enough to encourage consumers to make festive and wedding-related purchases.

However, falling gold prices do not necessarily translate into an immediate increase in jewellery demand. Consumer buying decisions will also depend on household budgets, expectations about further price movements and the timing of purchases.

Inflation and gold affordability

Rising inflation could add to the pressure on household budgets during the festive season. India's retail inflation rose to 5.54% in September 2026 from 4.83% in August, while food inflation climbed to 7.74%, according to government data.

Higher living costs could make consumers more cautious about discretionary spending, including jewellery purchases. However, wedding-related buying and traditional demand during festivals could provide some support to the sector.

PM Modi's appeal to defer gold purchases

Prime Minister Narendra Modi's appeal to Indians to avoid buying gold for a year, including for weddings, is another factor to watch this festive season.

In May 2026, stressing the need to save foreign exchange due to the crisis, PM Modi called for postponing the purchase of gold and foreign travel for one year. "We have to save foreign exchange by any means," he said, adding that due to the West Asia conflict, prices of petrol and fertilisers had increased significantly.

When there is pressure on the supply chain, difficulties increase despite various government measures to address the situation, he said. "That's why, during a global crisis, keeping the country above all else, we have to take resolutions," he added.

For listed jewellers, the key monitorable will be whether traditional festive and wedding-related purchases remain resilient despite the appeal.

Strong Q2 business updates

Several listed jewellery companies reported healthy year-on-year growth in their Q2 FY27 business updates, despite some moderation in demand towards the end of the quarter as the festive calendar shifted into Q3.

Titan's jewellery business grew 21% year-on-year, Kalyan Jewellers' India revenue rose 27%, Senco Gold's revenue increased 31%, and PC Jeweller reported 28% growth in consolidated revenue.

Optimism on festive and wedding demand

Jewellery companies remain optimistic about the October-December quarter, with Diwali, Dhanteras and the wedding season expected to support demand. Kalyan Jewellers and Senco Gold have expressed confidence in the upcoming season, while the shift in the festive calendar could support a stronger contribution from Q3 compared with last year.

However, whether this optimism translates into higher sales volumes remains to be seen, particularly amid volatile gold prices and affordability concerns.

How key jewellery stocks have fared over the past six months

Shares of Titan Company have fallen 2% over the past six months, while PC Jeweller has jumped over 50%. Kalyan Jewellers India has rallied over 27%, and Thangamayil Jewellery shares have surged nearly 13%. Senco Gold has remained flat, while Sky Gold and Diamonds have skyrocketed 139%. P N Gadgil Jewellers have slipped over 9% during the period.