Organised jewellery industry to witness 17% revenue growth in FY26

The organized sector’s share in India’s jewellery market, valued at over ₹6 trillion, grew from 30% in FY21 to approximately 40% in FY24. This share is projected to increase by another 10%, reaching around 50% by FY29.

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India’s organized jewellery industry is expected to grow by 17% in revenue during FY26, fueled by strong wedding season demand and increased investment interest, according to a report by India Ratings. This growth will be driven by rising operational scales, improved profitability, and the adoption of innovative expansion models. Enhanced funding availability, especially for companies with robust corporate governance, will further support the sector.

“The importance of gold in weddings, where it holds deep, sentimental, and cultural value, and as an adornment, will help largely maintain gold jewellery volumes, moreover, the investment demand is likely to be boosted by the prevailing global geopolitical and macro-economic uncertainty and the relative outperformance of the asset class,” the report noted.

Operating profit margins, as per the report, are projected to remain steady due to competitive pressures, including discounts, higher advertising expenses, and costs associated with new store launches. However, as these stores achieve breakeven, margins are expected to improve through better cost management. Franchise-based expansion models adopted by some players will enhance credit metrics and facilitate balance sheet deleveraging.

India Ratings’ Senior Analyst – Corporate Ratings, Preeti Kumaran stated, “The share of the organised sector in the Indian jewellery industry, which is valued at over Rs 6 trillion, increased to about 40 per cent in FY24 from 30 per cent in FY21, with a further gain of 10 per cent in market share to reach about 50 per cent by FY29.” 

The report highlights the accelerated formalization in the sector, attributed to increased customer awareness of hallmarked jewellery, growing trust in established brands, and access to unique designs offered by organized players.