Saurabh Gadgil, CMD of PNG Jewellers, expects a strong second half of 2025, driven by festive and wedding season demand. With consumers now more comfortable with elevated prices, he expects robust growth across both gold and diamond segments.

India’s diamond market has ample room to grow, said Saurabh Gadgil, Chairman and Managing Director of PNG Jewellers. He pointed out that diamond penetration in India is just 11–12%, far below the 60–70% seen in Western markets.

“Diamond jewellery here is considered to be a step up after your gold jewellery purchase,” Gadgil explained, pointing to growing consumer aspirations and increasing exposure to global trends.

Urbanisation is a key factor driving demand, as city dwellers increasingly choose diamonds for both daily and bridal wear. “We are seeing some cannibalising happening from gold jewellery and moving into diamond jewellery,” he said, especially since diamonds set in 18kt gold are roughly 15% cheaper than traditional 22kt gold jewellery.

Diamonds outperformed gold in the April–June quarter of 2025 (Q1FY26). While gold demand was muted due to high price volatility, diamond sales remained steady, with no drop in average ticket sizes. Gadgil said that although gold prices have stayed elevated and unpredictable, consumer sentiment is starting to recover. “Gold prices are here to stay,” he added, stating that buyers are slowly firming up purchase decisions after a hesitant start to the year.

Looking ahead, Gadgil expects a strong second half in 2025, led by festive and wedding-related demand. With consumers more accustomed to higher price levels, he anticipates solid growth in both gold and diamond categories.

PN Gadgil Jewellers has a market capitalisation of around ₹7,830.37 crore, with its shares down nearly 25% over the past six months.

Courtesy: CNBC TV 18