Indian jewellers expand cash-for-gold schemes to protect festive margins
Kalyan Jewellers, Titan, Joyalukkas and others are widening gold-exchange programmes to secure lower-cost recycled supply as record prices pressure demand and profitability ahead of the festive and wedding season.
What happened
Kalyan Jewellers India · Indian organised jewellers are expanding cash-for-gold programmes to source discounted recycled gold and protect margins amid elevated
Key facts
- Kalyan's cash-for-gold share rose to double digits from single digits in the June quarter
- Kalyan recycled-gold share rose to 46% in the June quarter from 31% in the March quarter
- Titan rolled out cash-for-gold across all stores from June
- Joyalukkas operates over 200 stores
- Gold import duty increased to 15% from 6%
- 24-carat gold reached ₹1,60,480 per 10 gm on 21 August versus about ₹1,35,000 on 1 January
- Weddings account for 60% of Indian gold purchases, according to Jefferies
- Kalyan June-quarter EBITDA fell 14% sequentially; EBITDA margin contracted 100 basis points to 6%
Why this matters
Gold-exchange networks, refining capabilities and trusted local collection partners are becoming strategically valuable assets for jewellers seeking supply resilience and cost advantage.
What to watch
- Quarterly disclosure of recycled-gold mix, exchange-led sales contribution and gross-margin movement.
- Gold-price direction and volatility versus the festive-season purchasing window.
- Changes in exchange bonuses, making-charge discounts and buyback policies across Titan, Kalyan, Joyalukkas and regional chains.
- Same-store sales growth measured in value versus gram volume, indicating whether price-led revenue is masking demand erosion.
- Inventory days, working-capital intensity and fresh-gold procurement volumes.
- Organised jewellers' market-share gains versus independent stores with less formal exchange infrastructure.
- Expand in-store and mobile gold-appraisal capacity, with quicker settlement and transparent purity testing.
- Increase exchange bonuses during regional festive peaks while tying offers to new-jewellery purchases.
- Prioritise recycled gold for high-turnover, standardised designs and reduce fresh-gold inventory commitments.
- Promote lightweight, studded and lower-carat collections to preserve ticket affordability and making-charge revenue.
- Strengthen refining, traceability and supply-chain partnerships as recycled sourcing becomes a larger share of procurement.