Why are NSE Jewellery Stocks Suddenly Shining?

Nitin R
@finallynitin · Feb 9
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In early February 2026, the Indian stock market is witnessing a sudden upmove in the gems and jewellery sector. Shares of leading players like Kalyan Jewellers, Senco Gold, and Goldiam International surged between 7% and 18% in a single session, significantly outperforming the broader indices. This “sudden shine” is the result of a powerful convergence of geopolitical breakthroughs, record-breaking earnings, and a structural shift toward organized retail.

1. The India-US Trade Deal: A “Momentous” Turning Point

The single most significant catalyst for the recent rally is the announcement of a framework for an Interim Trade Agreement (ITA) between India and the United States.

The US is India’s largest market for gems and jewellery, accounting for roughly 30% of total industry sales. However, the sector had been reeling under a 50% reciprocal tariff imposed by the US, which caused cut-and-polished diamond (CPD) exports to collapse by over 60% between April and December 2025.

Key Relief Measures:

  • Immediate Tariff Reduction: The new framework slashes tariffs on Indian jewellery from 50% to 18%.
  • Path to Zero Duty: The agreement outlines an explicit pathway to zero-duty access for diamonds and colored gemstones once the deal is finalized.
  • Competitive Edge: At 18%, Indian exports now face lower tariffs than regional rivals like China (34%), Pakistan (19%), and Vietnam (20%), restoring India’s global competitiveness.

2. Explosive Q3 FY26 Earnings

While the trade deal provided the sentiment boost, the fundamental strength was confirmed by “stellar” third-quarter financial results for the period ending December 2025.

  • Kalyan Jewellers: Reported a staggering 90% year-on-year increase in consolidated Profit After Tax (PAT) to ₹416.3 crore, driven by a 42% jump in revenue.
  • Titan Company: Tanishq’s parent company saw its jewellery portfolio grow 41% YoY, even in a high-gold-price environment, with shares nearing all-time highs.
  • Goldiam International: Recorded an 18% revenue rise and a 37.4% jump in PAT, with lab-grown diamond jewellery now accounting for over 90% of its sales mix.

3. Structural Tailwinds: Premiumisation and Formalization

Beyond the headlines, several structural factors are fueling long-term investor interest:

  • The “Brutal Base” Effect: Having survived a period of shrinking orders and squeezed margins due to global trade tensions, companies are now operating from a “brutal base,” where any recovery leads to massive mean-reversion in stock prices.
  • Shift to Organized Retail: Branded players like P N Gadgil and Thangamayil are capturing market share from unorganized family-owned businesses, a trend expected to push organized retail’s share to 45% by 2028.
  • Resilient Consumer Demand: Despite gold prices reaching record highs of ₹1.40 lakh per 10 grams, wedding-related demand and festive buying remained robust, with consumers shifting toward studded and modern designs.

A Practical business‑model classification

It helps to bucket the stocks by business model and geography:

1. Pure / Predominantly Retail Jewellers (Domestic‑focused)

Customer‑facing chains with showrooms; revenue largely from selling jewellery to Indian consumers.

  • Titan (Tanishq, Mia, CaratLane) – largest organised jewellery retailer; multi‑brand, pan‑India; some online and export, but core is domestic retail.
  • Kalyan Jewellers – large‑format showrooms across India plus a few overseas; wedding‑heavy, franchise/asset‑light expansion.
  • Thangamayil Jewellery – strong regional chain in Tamil Nadu, focused on tier‑2/3 towns and value‑conscious customers.
  • Senco Gold – leading retailer in East India, now expanding nationally; mix of company‑owned and franchise stores.
  • D P Abhushan (DPABHUSHAN) – regional retailer with a focus on central/west India.
  • PC Jeweller – historically a large national chain; now smaller but still primarily a domestic retail player with some residual export activity.
  • Bluestone Jewellery & Lifestyle – new‑age omnichannel brand combining online sales with small “studio” outlets.
  • Shringar House of Mangalsutra, Khazanchi Jewellers, Ethos – niche/specialty retail players (mangalsutras, regional brands, luxury watches/jewellery).

Common traits:
High working capital due to gold inventory, margins driven by making charges and brand, strong seasonality around weddings/festivals, and high sensitivity to store expansion and footfalls.

2. Export‑Oriented Manufacturers / B2B Jewellery

Manufacture and export jewellery (mostly to US/Europe/Middle East), selling to international retailers or via own TV/online channels.

  • Goldiam International – diamond and lab‑grown diamond jewellery exporter supplying global retailers.
  • Vaibhav Global – manufactures fashion jewellery and lifestyle products, selling through its own TV shopping channels and e‑commerce platforms in the US, UK and Europe.
  • Rajesh Exports – large gold refiner and jewellery exporter; B2B, thin‑margin, very high‑turnover model.
  • Sky Gold – one of the larger listed lightweight gold jewellery manufacturers, supplying to organised retail chains.
  • Asian Star and other diamond exporters – primarily cutting, polishing and manufacturing diamond jewellery for export.

Common traits:
Limited direct brand with end‑customers; margins driven by manufacturing efficiency and order execution; high sensitivity to global demand, FX and trade policy; working capital locked in receivables and gold/diamond stocks.

3. Hybrid Models (Retail + Manufacturing/Export)

Operate both manufacturing and own‑brand retail networks; may also have some export business.

  • PC Jeweller – manufactures in‑house, sells through its own retail stores, and has historically done B2B exports.
  • D P Abhushan – combines in‑house manufacturing with its regional DP Jewellers retail brand.
  • P N Gadgil Jewellers – designs and manufactures a significant share of products for its stores, and selectively supplies B2B/overseas.
  • Thangamayil Jewellery – runs its own manufacturing facility near Madurai to support its retail network.

Common traits:
Capture both manufacturing and retail margins, more complex operations, but potentially more scalable and better control over design, quality and supply chain.

4. Large Diversified Consumer Companies with Major Jewellery Arms

Not pure jewellery companies, but jewellery is a major profit driver.

  • Titan Company – jewellery (Tanishq, Mia, Zoya, CaratLane) is the largest contributor to earnings, alongside watches, wearables, eyewear and other consumer businesses.

Technical view

A quick way to gauge which of these are currently the strongest on the charts is to look at the distance from 52‑week highs.

Closest to 52‑week highs:

THANGAMAYL, SKYGOLD, and PNGJL are all within the mid‑teens of their 52‑week highs.

Mid‑distance laggards (~30% below highs):

KALYANKJIL, SENCO, DPABHUSHAN, VAIBHAVGBL, GOLDIAM – strong moves off lows but still substantial room before retesting highs.

Deep laggards (>35% below highs):

MOTISONS, PCJEWELLER – still far from reclaiming prior level

Outlook: Can the Sparkle Last?

While the trade deal provides “vital relief,” the industry still faces challenges such as gold price volatility and global economic uncertainty. However, for now, the combination of tariff clarity and robust earnings has reinstated the sparkle in the business, with market participants eyeing the full signing of the US-India agreement as the next major trigger.