Jewellery firms may lose some of the Q3 shine after Omicron rub-off

Structural growth story, demand recovery, and market-share gains for Titan, Kalyan Jewellers may persist

Aided by a healthy festival and wedding season demand, listed jewellery companies reported robust domestic sales growth in the October-December quarter (third quarter, or Q3) of 2021-22 (FY22).
 
While the largest listed retailer, Titan Company (Titan), saw 37 per cent year-on-year (YoY) increase in sales, Kalyan Jewellers posted a 15 per cent uptick in the quarter. The rise in sales is significant, given the high base of the year-ago quarter, with Titan posting 16 per cent growth, while Kalyan Jewellers’ growth was in double digits.
 
The Titan management indicated that the festival purchases in October and November were