Q3FY25 updates point to strong growth ahead for jewellery companies

Two leading listed jewellers, Titan and Kalyan, have just released their pre-quarterly updates for the third quarter of the current financial year (Q3FY25). The market has responded positively to Titan and negatively to Kalyan but the trends are strong for both companies.

 

Titan’s standalone revenue may grow by 24 per cent year-on-year (Y-o-Y) in Q3FY25 due to 26 per cent growth in the jewellery segment. The strong recovery was driven by pickup in consumer demand from the festive and wedding season and supported by reductions in custom duty on gold. More A&P (advertising and promotional) activity could compress margins. Titan may maintain revenue growth of close to 20 per cent or better.

 

The Watches & Wearables (W&W) revenue grew 13 per cent driven by 19 per cent growth in analog watches and premiumisation. The Eyecare segment saw double-digit growth (18 per cent Y-o-Y) on a low base. Emerging businesses grew 5 per cent with weak performances in Fashion accessories and Taneira. The CaratLane revenue grew 25 per cent.

 

Titan added 69 stores across segments during the quarter, bringing its total retail presence (including CaratLane) to 3,240 stores by the end of Q3FY25. Tanishq (international) added a new store each in Seattle, USA, and Gold Souk, Dubai. Of the 24 new store additions (net) in India, 11 were added in Tanishq and 13 were Mia. 

 

Notably, gold coin sales grew 48 per cent Y-o-Y, reflecting investment interest. Studded items grew 21 per cent Y-o-Y, with like-to-like (L2L) stores sales growth of 22 per cent Y-o-Y. There were multiple brand campaigns driving L2L growth.

 

The Watches & Wearables domestic growth was 13 per cent Y-o-Y, with analog watches clocking a robust 19 per cent growth. But wearables declined 20 per cent Y-o-Y, reflecting stress in smart wearables segment. The W&W division added 23 new stores during the quarter, with 12 stores in Titan World, 10 in Helios, and one in Fastrack.

 

Eyecare domestic growth was 17 per cent Y-o-Y. Titan Eye+ closed three stores (net) in India during the quarter. In emerging businesses, Fragrances clocked strong growth of 27 per cent, Fashion accessories was down 20 per cent and Taneira was flat Y-o-Y. Taneira added a store in Salem, Tamil Nadu, during the quarter.

 

CaratLane grew 25 per cent Y-o-Y, with buyer numbers up 8 per cent and L2L growth of 16 per cent. This was driven by 26 per cent Y-o-Y growth in studded portfolio. CaratLane added 19 domestic stores with total India presence of 305 stores. “IRTH” launched its first women’s bags outlet in Mumbai, and opened one store in Chennai.

 

The pre-quarterly update for Q3FY25 of Kalyan estimated consolidated revenue growth of 39 per cent Y-o-Y. Domestic operations witnessed revenue growth of 41 per cent Y-o-Y during Q3FY25 led by very strong festive and wedding demand across gold and studded categories. The quarter recorded L2L sales growth of approximately 24 per cent.

 

Kalyan launched 24 new showrooms in India, with a strong pipeline of showrooms set to open over the course of Q4FY25. The Middle East saw revenue growth of approximately 22 per cent Y-o-Y and contributed 11 per cent to consolidated revenue. The quarter also saw the launch of the first showroom (company owned, company operated, or COCO) in the US.

 

Digital-first jewellery platform Candere recorded a revenue growth of approximately 89 per cent and 23 Candere showrooms were opened during Q3FY25. The company plans to launch 30 Kalyan showrooms and 15 Candere showrooms in India as part of the guided rollout plan of 80 Kalyan showrooms and 50 Candere showrooms in India for FY25. In FY26, there are plans to launch 170 showrooms across Kalyan and Candere — 75 Kalyan showrooms (all franchise-owned, company-operated, or FOCO) in non-South India, 15 Kalyan showrooms (all FOCO) across South India and international markets, and 80 Candere showrooms in India. Kalyan is setting up LOIs for FOCO showrooms.