Jewellery retailers defy gold-tax hike: Titan +39%, Senco +60% at 9x earnings
Indian jewellery chains posted strong Q1FY27 growth despite gold import tax rising to 15% and gold prices up 41% y-o-y. Titan's domestic jewellery grew 39% and international 128% aided by Damas; Kalyan grew ~38% with SSSG near 28%. Senco Gold outpaced peers at 60% while trading at just 9x earnings.
What happened
Indian jewellery retailers posted strong Q1FY27 growth despite higher gold import taxes. Titan's domestic jewellery grew 39%, international 128% aided by Damas.
Key facts
- Titan domestic jewellery +39% y-o-y
- international business +128% y-o-y
- 1,227 domestic outlets
- 163 international outlets
- 33 net domestic stores added
- Kalyan revenue +38% y-o-y, SSSG ~28%
- Senco Gold +60% y-o-y, 9x earnings
- gold import tax raised to 15% from 6%
- gold avg Rs 1.44 lakh/10g, +41% y-o-y
Why this matters
Titan's Damas acquisition already driving 128% international growth validates M&A as the growth lever, and fragmented regional players trading below 9x offer attractive consolidation targets to capture share in a demand-resilient market.
What to watch
- Q2FY27 SSSG prints and studded-jewellery mix trends
- Gold price trajectory and any further import-duty changes
- Wedding/festive season (Diwali) footfall and per-store throughput
- Titan Damas integration and international margin disclosures
- Senco re-rating vs continued discount to peers
- Re-rating case for Senco given 9x vs Titan/Kalyan premium multiples draws value buyers
- Titan international push via Damas expands margin narrative beyond domestic
- Peers accelerate store additions and franchise-led expansion to capture unorganized share
- Analysts raise FY27 revenue estimates but flag margin caution on gold hedging