Consumer (Jewellery) – Sector Update – Wedding season enables strong value growth
Published on 16 Dec 2025
Elevated gold prices are accelerating rapid industry consolidation with easing competitive intensity for national chains. Unorganized jewelers (~53% of the market) are under pressure due to outright inventory buying, lack of hedging, and limited liquidity, leading to delay in design refreshes and store expansions. Our Channel checks suggest many regional players have deferred FY26 rollouts. We believe this is likely to benefit large, organized players which have stronger sourcing, working-capital structures and can maintain design breadth. With easing discounting pressure, we believe Titan’s jewellery margins have likely bottomed out and expect the company to deliver Sales/EPS CAGR of 16.1%/20.6% over FY26–FY28. We reiterate our Buy rating on the stock with TP of Rs4,397 (Unchanged)
