Organized jewellers are expected to see revenue growth in the high teens by FY26, driven by steady demand and strategic expansions. The organized sector is projected to grow year-on-year in revenue by 20% in FY25 and 17% in FY26, according to a credit rating firm India Ratings and Research (Ind-Ra).

Further, it is expected to capture 50% of the Indian jewellery market in the next 5 years by FY29, up from 40% in FY24 and 30% in FY21, as per Ind-Ra.

Sharing insights and overall organized jewellery outlook, Preeti Kumaran, Senior Analyst, Corporate Ratings, Ind-Ra said, “We expect organised jewellers to continue to witness market share gains in FY26, owing to their trusted brand image, rising compliance costs and mandatory hallmarking."

"Ind-Ra believes the improved debt/equity funding environment will complement the government’s backing to the sector and will further unlock its growth potential,” she added.

As per Ind-Ra, the key drivers of growth include: Cultural significance - Gold’s deep cultural and sentimental value, especially in weddings, continues to underpin demand; Investment demand - Global geopolitical uncertainties and economic factors are expected to bolster gold's status as a safe haven investment.

Organised jewellers differentiate through corporate governance enhancements, offering a variety of designs, and leveraging transparent operations. This shift has led to improved funding avenues, with many players preparing for IPOs and exploring new financial routes.

Despite competitive pressures, the sector’s credit metrics are expected to improve due to rising absolute profits and an asset-light expansion model. The focus on regional preferences and innovative offerings will further strengthen their market position.

With strategic expansion into tier-2 and tier-3 cities, and a continued emphasis on quality and governance, the organised jewellery market is on a glittering path of sustained growth.

Courtesy: EconomicTimes