The global economy is expected to remain on a moderated growth path in the near term, with the IMF projecting global GDP growth at 3.1% in 2026, as geopolitical tensions, elevated commodity prices, and tighter financial conditions weigh on activity. The IMF has also cautioned that, under a prolonged conflict scenario, global growth could weaken further to 2.5% while inflationary pressures may rise materially, highlighting the fragile nature of the current recovery. In addition to geopolitical risks, global growth continues to face headwinds from elevated public debt, residual trade policy uncertainty, and fragmented supply chains, even as technology-led investment and selective policy support provide some cushioning.
A key source of uncertainty during 2026 has been the conflict in West Asia, particularly its impact on energy markets, trade routes, and global supply chains. The Strait of Hormuz, one of the worlds most critical maritime chokepoints, carries around one quarter of global seaborne oil trade, along with significant volumes of liquefied petroleum gas, liquefied natural gas, chemicals, and fertilisers. UNCTAD has highlighted that disruptions in this corridor have sharply affected shipping flows, raised concerns over freight rates, marine fuel costs, and war-risk insurance premiums, and created second-order effects across global logistics and production networks. Such disruptions are not limited to energy alone; they also affect petrochemicals, aluminium, fertilisers, and containerised consumer goods, thereby increasing the cost and uncertainty of global trade.
For India, these global disruptions carry direct macroeconomic relevance because of the countrys high dependence on imported energy and precious metals. External pressure has been reflected in currency markets as well. The Indian rupee entered 2026 after posting its worst annual decline in three years in 2025, ending the year at 89.87 per US dollar, down 4.72% year-on-year. Continued energy market stress, capital-flow volatility, and trade uncertainty have kept the rupee under pressure in 2026, thereby raising the landed cost of imports and contributing to imported inflation. The World Gold Council also noted that domestic gold prices in India remained significantly influenced by currency weakness, with the rupees depreciation against the US dollar amplifying the impact of global bullion trends and import-duty changes on local prices.
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Trade policy uncertainty has also remained a major external variable. While the United States and India announced an interim trade framework in February 2026, under which the United States agreed to apply an 18% reciprocal tariff rate on certain Indian-origin goods and provide tariff relief on selected sectors subject to the successful conclusion of the agreement, the broader trade environment remains fluid. Several tariff actions, rules-of-origin provisions, and sectoral market-access issues are still linked to ongoing negotiations. As a result, export-oriented sectors continue to operate in an environment of elevated uncertainty, with the risk of policy shifts influencing sourcing decisions, supply-chain realignment, and investment planning.
The inflation outlook globally and domestically also warrants close monitoring. The IMF expects global headline inflation to rise to 4.4% in 2026 under its reference scenario, while warning that a broader or longer conflict could push inflation materially higher. For India, the risk transmission is evident through energy prices, freight costs, imported inputs, and currency weakness. In addition, disruptions in fertiliser and chemical flows through the Gulf region may create a broader cost-push effect across agricultural-linked supply chains and industrial inputs. These factors together could keep input costs elevated for businesses and reduce purchasing power in price-sensitive consumer categories.
The pricing environment for precious metals has further intensified these pressures for the jewellery industry. Gold prices in India remained at historically high levels through FY 2025-26 and into FY 2026-27. According to the World Gold Council, domestic gold prices averaged 151,108 per 10 grams in Q1 2026, up 81% year-on-year, and touched record highs during the quarter. The increase in Indias effective import duty on gold and silver to 15% in May 2026 added another layer of pressure, keeping domestic bullion prices elevated despite some easing in international markets. As of mid-June 2026, domestic gold prices were still up around 13.2% year-to-date, supported by the import-duty hike and rupee depreciation. This has materially altered consumer behaviour, driving a shift toward lighter-weight jewellery, exchange-led purchases, and investment formats such as bars, coins, and ETFs.
Other precious metals have also reflected heightened volatility. Silver prices have remained elevated, supported by both investment demand and industrial consumption, while platinum has continued to gain relative relevance owing to its pricing advantage versus gold. In India, platinum jewellery demand grew by 4% in 2025, indicating growing consumer acceptance despite broader macroeconomic headwinds. This reinforces a broader market trend in which sustained high gold prices are encouraging product innovation, metal substitution in select categories, and greater focus on affordability-led assortment planning.
Overall, the external environment remains characterised by a combination of slower global growth, inflation risk, tariff and trade uncertainty, supply-chain disruptions, logistics overhang, a weaker rupee, and elevated precious metal prices. For consumer-facing sectors such as gems and jewellery, these conditions create a more complex operating landscape, affecting affordability, inventory planning, input costs, and pricing strategy. At the same time, the environment also favours organised and agile players who can respond through prudent inventory management, faster product recalibration, exchange-led business models, and stronger customer trust.
pricing strategy. At the same time, the environment also favours organised and agile players who can respond through prudent inventory management, faster product recalibration, exchange-led business models, and stronger customer trust.
The Indian economy continued to demonstrate strong resilience during FY 2025-26 and remained one of the fastest-growing major economies globally despite an increasingly uncertain external environment. According to the latest Provisional Estimates released by the National Statistics Office (NSO), Indias real GDP grew by 7.7% in FY 2025-26, following 6.5% growth in FY 2024-25. Real GVA expanded by 7.9% in FY 2025-26, supported by broad-based strength in the secondary and tertiary sectors, including manufacturing, trade-related services, and financial and professional services. On the demand side, private final consumption expenditure (PFCE) and investment activity remained supportive of growth, reflecting the underlying strength of domestic demand
Indias growth outlook remains favourable, although moderation is expected from the high base of FY26. The Reserve Bank of India (RBI) had projected FY27 real GDP growth at 6.9% in April 2026, supported by services sector momentum, resilient private consumption, and continued investment activity; however, in its June 2026 policy review, the RBI revised the FY27 growth forecast to 6.6% in view of elevated commodity prices, prolonged tensions in West Asia, and supply-side disruptions. The IMF, in its April 2026 World Economic Outlook, projected Indias growth at 6.5% in 2026, once again placing the country among the fastest-growing major economies in the world.
Domestic demand continues to remain the principal anchor of economic activity. Consumption has been supported by improving labour-market conditions, rising incomes, and sustained government emphasis on public investment and infrastructure creation. The Union Budget 2026-27 reinforced this growth strategy by increasing the Centres capital expenditure outlay to 12.2 lakh crore, underscoring the governments continued commitment to infrastructure-led growth and crowding in private investment. This policy thrust, together with healthy corporate and banking sector balance sheets, is expected to support medium-term economic expansion even amid a weaker global environment.
Inflation remained relatively continued through much of FY26, although price risks have become more pronounced in recent months. As per MoSPIs official release, headline CPI inflation stood at 3.40% in March 2026, with rural inflation at 3.63% and urban inflation at 3.11%, remaining below the RBIs medium-term target of 4% but showing a modest uptick from February. In response to growing external uncertainties, the
RBI maintained the repo rate at 5.25% in both its April 2026 and June 2026 policy reviews, while retaining a neutral stance. The central bank has highlighted upside inflation risks arising from higher global energy prices, supply disruptions, and weather-related food-price pressures.
Precise metal prices in India remained elevated and volatile during FY 2025-26 and thereafter, driven by global uncertainty, safe-haven demand, rupee weakness, and policy tightening. Gold prices remained at historically high levels, with domestic prices averaging 151,108 per 10 grams in Q1 2026, up 81% year-on-year, while also touching record highs during the quarter. The increase in the effective import duty on gold and silver to 15% in May 2026 further supported elevated domestic prices and affected affordability. As a result, consumer demand increasingly shifted toward lighter-weight jewellery, exchange-led purchases, and investment products such as bars, coins, and ETFs.
Silver also remained highly volatile, supported by both investment and industrial demand, while platinum continued to gain relevance due to its comparative price advantage versus gold. Indias platinum jewellery demand grew 4% in 2025, indicating growing acceptance of the category despite broader market pressures. Overall, the pricing scenario across precious metals is reinforcing the need for product innovation, prudent inventory management, and category diversification across the jewellery sector.
A key near-term macro risk remains the evolving monsoon and commodity price environment. The India Meteorological Department (IMD), in its updated forecast dated 29 May 2026, projected the southwest monsoon at 90% of the Long Period Average (LPA), indicating below-normal rainfall, including weaker rainfall prospects for the Monsoon Core Zone, which comprises much of Indias rainfed agricultural area. A weaker monsoon, if sustained, could affect agricultural output, rural incomes, and food inflation. At the same time, geopolitical tensions in West Asia continue to keep energy and logistics markets volatile, potentially raising input costs across the economy.
Indias external sector remains broadly resilient, although it is not insulated from global trade tensions and geopolitical shifts. The RBI noted in its 2025-26 Annual Report that the countrys macroeconomic fundamentals remain sound, supported by manageable external balances and healthy foreign exchange reserves. Meanwhile, the India-US interim trade framework announced on 6 February 2026 provides a supportive signal for external trade, with the United States agreeing to apply an 18% reciprocal tariff rate on certain Indian-origin goods while providing for tariff removal on sectors such as gems and diamonds upon successful conclusion of the interim pact. Although negotiations remain part of a broader trade
process, such developments are positive for Indias export competitiveness in select sectors.
Household financial behaviour also points to an economy in transition. The RBIs Annual Report for 2024-25 noted that gross financial savings of households improved to 11.2% of GNDI in 2023-24 from 10.7% in the previous year, while household financial liabilities increased to 6.1% of GNDI, reflecting stronger borrowing as well as greater financial intermediation. As of March 2026, households continued to remain the largest contributors to the deposit base of scheduled commercial banks. This suggests that while leverage has risen, the underlying financial depth of household participation in the economy continues to improve.
Overall, India remains one of the most resilient large economies in the world, supported by robust domestic demand, continued public investment, improving financial intermediation, and policy stability. While FY27 may see some moderation due to external headwinds such as elevated energy prices, geopolitical tensions, and the risk of a weaker monsoon, the medium-term outlook remains favourable. For consumer-facing sectors such as jewellery, continued growth in incomes, urbanisation, formalisation, and aspiration-led spending should provide structural support, even as businesses remain mindful of inflation, rural demand variability, and evolving global trade conditions
The global gems and jewellery industry continue to evolve in response to changing consumer preferences, fashion trends, and macroeconomic developments. Jewellery is increasingly being viewed not only as an occasion-led purchase but also as an everyday fashion and lifestyle accessory. Consumers across markets are adopting products such as rings, chains, bracelets, anklets, and other adornments for regular wear, while gifting demand for occasions such as birthdays, anniversaries, and celebrations continues to support category growth. At the same time, modern aesthetics, innovative designs, and greater experimentation with materials and styling are expanding the appeal of jewellery across age groups and geographies.
Global Gems and Jewellery Market Size (CY20-CY30P) (In USD Billion)
Source: IMARC Group, CareEdge Research
In CY25, the global gems and jewellery market is estimated to have reached around USD 254 billion, recording a CAGR of 5.5% during CY20 to CY25. Growth during this period was influenced by a combination of post-pandemic recovery, economic uncertainty, fluctuations in discretionary spending, and changing consumer priorities. After a stronger rebound in the earlier phase, the market witnessed some moderation in CY23 compared to CY22 due to economic slowdown, geopolitical tensions, and regional conflicts, which affected sentiment and purchase behaviour. However, the market is expected to regain momentum and is projected to reach around USD 332 billion by CY29P, supported by economic recovery, rising disposable incomes in emerging economies, and growing demand for differentiated, innovative, and ethically sourced jewellery.
Gold and diamond jewellery are expected to remain the dominant segments of the global market, supported by their enduring appeal, emotional value, and long-standing association with wealth, celebration, and investment. Gold continues to benefit from its perception as a safe-haven asset and long-term store of value, especially during periods of financial market volatility and geopolitical uncertainty. In parallel, diamond-studded jewellery continues to see strong traction in several developed markets, particularly where branded, certified, and premium jewellery categories command a higher share of consumer preference.
The industry is also witnessing a rise in demand for contemporary and design-led products, driven by evolving lifestyle trends and growing premiumisation. Coloured gemstones and distinctive jewellery formats are increasingly being incorporated into collections to provide freshness, individuality, and aesthetic variety. In addition, alternative materials and product categories are expected to witness rising acceptance in the coming years, supported by growing consumer focus on affordability, sustainability, and ethical sourcing.
Another important factor shaping the global jewellery market is the continued expansion of e-commerce and digital retail platforms. Online discovery, digital engagement, virtual consultations, and technology-enabled customisation are increasingly influencing the customer journey. Innovations in jewellery design and manufacturing technology are also expected to support product development, improve responsiveness to fashion trends, and strengthen overall market expansion.
Overall, the global gems and jewellery industry remain well positioned for long-term growth. Backed by recovering economic conditions, rising aspirational-led consumption, expanding digital retail ecosystems, and increasing demand for innovative and responsibly sourced products, the sector is expected to continue evolving while preserving its traditional role as a symbol of beauty, personal expression, and long-term value.
The Indian gems and jewellery industry remains a vital contributor to the national economy, accounting for a meaningful share of the countrys GDP and merchandise exports. The sector continues to benefit from Indias strong domestic consumption base, skilled craftsmanship, and established position in the global value chain, particularly in diamond cutting and polishing. India continues to hold a dominant position in the global polished diamond market and remains one of the most important centres for jewellery manufacture and trade.
In CY25, the domestic retail gems and jewellery industry was valued at around Rs. 7,204 billion, with a CAGR of 10.6% during CY20-CY25. Further, the retail gems and jewellery market is expected to grow at a CAGR of 12.2% between CY25 and CY30. The growth is supported by rising gold prices (driving value growth), increasing disposable income, rapid urbanisation, and evolving consumer preference toward branded and design-oriented jewellery, along with a gradual shift toward organized retail channels. The shift from unorganized to organised retail, driven by mandatory hallmarking, transparent pricing, and growing trust in branded products is accelerating industry formalisation. Strong demand for lightweight, contemporary designs, particularly among younger consumers, along with omnichannel retail expansion, virtual try-ons, and digital engagement tools, is further enhancing market growth. In addition, sustained wedding- and festival-led demand, expansion of organised players into Tier II and Tier III cities, and growing interest in categories such as diamond jewellery and lab-grown diamonds are contributing to the sectors growth.
Indian Retail Gems & Jewellery Industry Market Size (CY20-CY30P)
The industry comprises a diversified portfolio of segments, including gold jewellery, diamond jewellery, coloured gemstones, and diamond-studded gold jewellery. Among these, gold jewellery continues to hold the largest share owing to its deep-rooted cultural, social, and religious significance in India. Jewellery remains closely associated with weddings, festivals, and traditional ceremonies, thereby ensuring consistent underlying demand across geographies and consumer categories. The manufacturing base of the industry remains concentrated in key states such as Maharashtra, Gujarat, and Tamil Nadu, which together form the backbone of the countrys gems and jewellery ecosystem.
Indian Retail Gems and Jewellery Industry Breakup by Region (% share) in CY25
Gems and Jewellery Industry Breakup by Material Type (% share) in CY25
Within this broader industry landscape, the retail jewellery segment has emerged as a major growth driver. Historically dominated by unorganised and family-run jewelers, the retail market is now witnessing a structural shift towards organised and branded players. This transition is being driven by rising
consumer preference for certified products, transparent pricing, wider design choices, and the increasing importance of trust and quality assurance. Mandatory hallmarking and stronger regulatory oversight are further accelerating this shift toward formalisation.
Organised national and regional jewellery retailers are steadily expanding their presence beyond metropolitan markets into Tier II and Tier III cities, where rising aspirations, improving purchasing power, and brand awareness are creating significant opportunities. At the same time, the increasing adoption of digital platforms, omni-channel retailing, and technology-enabled customer engagement tools such as virtual try-ons is transforming the jewellery buying experience. These changes are particularly relevant for younger and urban consumers, who are increasingly gravitating toward lightweight, contemporary, and daily-wear jewellery.
The industry also continues to benefit from a vibrant trade ecosystem supported by exhibitions, trade fairs, and industry events that promote innovation, networking, and business development. Such platforms help manufacturers, wholesalers, exporters, and retailers showcase new collections, strengthen market linkages, and create domestic as well as international business opportunities.
Demand in the domestic market is being supported by rising disposable incomes, urbanisation, and evolving lifestyle preferences, while export demand continues to draw support from major international markets. In parallel, favourable policy initiatives, trade agreements, and export-promotion efforts are helping enhance Indias competitiveness in the global gems and jewellery market.
At the same time, the sector remains exposed to certain challenges, including volatility in gold prices, dependence on imported raw materials, competitive pressure from synthetic and lab-grown alternatives, and evolving regulatory requirements. However, these risks are increasingly being addressed through policy support, better compliance systems, product diversification, and gradual adoption of technology across the value chain. Emerging tools such as digital retail platforms and traceability-led systems are expected to improve transparency, efficiency, and competitiveness over time.
Overall, the Indian gems and jewellery industry continue to demonstrate resilience and long-term growth potential. Backed by strong cultural affinity, skilled human capital, supportive policy measures, and the ongoing shift toward organised retail, the sector remains well positioned to sustain growth and create value over the long term.
India continues to permit 100% Foreign Direct Investment (FDI) under the automatic route in the gems and jewellery sector, including gold and diamond processing and trading, subject to applicable regulatory conditions. This policy has supported investment inflows, encouraged technology upgradation, improved supply-chain formalisation, and strengthened the organised jewellery segment. The sector also continues to remain a key focus area for export promotion and global branding of Indian jewellery.
GST continues to play a significant role in improving tax transparency and uniformity across the jewellery value chain. The current GST framework provides for a special rate of 3% on gold, silver, diamond and jewellery, while cut and polished diamonds attract GST 1.5%. In addition, job work services relating to products under Chapter 71, which includes jewellery, continue to attract 5% GST, thereby supporting outsourcing and manufacturing activity in the sector. The GST regime has also facilitated smoother interstate trade, reduced cascading of taxes, and strengthened compliance in the organised market.
Gold continues to remain an important component of Indias reserve-management strategy. As per RBIs latest disclosure, the Reserve Banks total gold holdings stood at 880.52 metric tonnes as on March 31, 2026, compared with 879.58 metric tonnes as on March 31, 2025. RBI also clarified in June 2026 that there has been no sale of gold, and the physical stock remains unchanged at 880.52 tonnes. The increase in golds share within Indias foreign exchange reserves reflects both valuation gains and continued reserve diversification in an uncertain global environment.
The customs and import framework for the sector saw notable changes during the period. Under the Union Budget 2025-26, the basic customs duty on articles of jewellery and parts thereof (HS 7113) was rationalised to 20%, while specific concessional rates were prescribed for jewellery findings, including 1% on gold findings, 1% on silver findings, and 1.4% on platinum findings. These changes were effective from 2 February 2025. Subsequently, after the close of FY26, India significantly tightened the gold import regime. In May 2026, the government raised the effective import duty on gold and silver to 15% from 6% to curb imports and support the rupee. In addition, restrictions had earlier been imposed on certain precious-metal alloys containing gold and certain colloidal metal compounds to prevent misuse of import channels. These measures may improve regulatory oversight, but they also raise landed costs, increase working capital needs, and can affect affordability across the jewellery sector.
The hallmarking regime continued to strengthen and remains one of the most important formalisation measures for the industry. Mandatory hallmarking, which had already expanded in phases to 343 districts, was further extended to 361 districts from November 2024, and was subsequently expanded again in 2026 to 385 districts. The BIS hallmarking system continues to be supported by the 6-digit alphanumeric HUID (Hallmark Unique Identification) code, which enables traceability and consumer verification through the BIS Care App. The expanding hallmarking ecosystem is enhancing purity assurance, strengthening customer trust, and increasing the competitive advantage of organised jewellery.
The Prevention of Money Laundering Act (PMLA) and the allied record-maintenance rules continue to impose significant compliance responsibilities on the jewellery trade. Dealers in precious metals and precious stones are required to maintain records, verify client identity, and comply with reporting obligations under the FIU-India framework. FIU-Indias guidance for dealers remains relevant and covers customer due diligence, enhanced due diligence, sanctions screening, risk-based assessment, appointment of a Designated Director and Principal Officer, and reporting obligations. Institutional coordination strengthened further in April 2025, when FIU-IND and RBI signed an MoU to enhance information sharing and supervision for effective implementation of AML requirements.
The earlier export-related framework should now be viewed in the context of broader customs digitisation and trade facilitation. From 1 May 2025, CBIC introduced electronic processing of import/export documents for gems and jewellery through personal carriage by air passengers at specified airports. This was later expanded through DGFTs amendment in December 2025, which also included Ahmedabad Airport under the personal carriage framework. These reforms are expected to improve ease of doing business, reduce procedural friction, and support exporters and trade participants dealing in high-value consignments.
A major policy change took place in the Gold Monetisation Scheme during FY 2025-26. The Government of India discontinued the Medium-Term Government Deposit (5-7 years) and Long-Term Government Deposit (12-15 years) components of GMS with effect from 26 March 2025. Under the revised framework, only Short-Term Bank Deposits (1-3 years) may continue at the discretion of designated banks. No new deposits or renewals are permitted under the discontinued categories, while existing deposits mobilised up to 25 March 2025 will continue until redemption in accordance with extant guidelines. This change reflects a more selective and commercially driven approach to gold mobilisation.
FY 2025-26 was a year of resilience, recalibration, and structural change for the Indian jewellery market. The sector continued to benefit from long-term drivers such as formalisation, brand-led consumer trust, expansion of organised retail, and growing digital engagement. At the same time, record-high gold prices, changing buying behaviour, tariff-related export disruptions, and rising working capital intensity altered the demand mix materially. Jewellery demand by volume remained under pressure, but value growth stayed strong due to elevated gold prices, while investment demand for bars, coins, and ETFs gained significant momentum. Organised retailers with strong balance sheets, trusted brands, efficient inventory systems, and regional relevance remain best placed to capture the next phase of growth
Jewellery demand in India continues to be strongly linked to weddings, festivals, and other auspicious occasions, making seasonality one of the most important demand drivers for the sector. Purchases typically strengthen during the wedding months and festive periods such as Akshaya Tritiya, Dhanteras, and Diwali, while rural post-harvest cash flows also support jewellery spending in several markets. Even in a high-gold-price environment, wedding-related buying remained relatively resilient, with consumers continuing needs-based purchases, although product selection became more budget-conscious and grammage-sensitive.
Indias jewellery market continues to benefit from rising household income levels, urbanisation, and aspirational consumption, especially among middle-income and emerging affluent consumers. While elevated gold prices can temporarily reduce purchase volumes, rising disposable income and expanding consumer aspirations continue to support long-term demand for branded,
The Indian jewellery sector is witnessing an accelerated shift toward organised and branded players, supported by tighter regulatory compliance, hallmarking expansion, and increased consumer awareness regarding purity and transparency. Mandatory hallmarking coverage has continued to expand, and by May 2026 the number of districts under the hallmarking regime had increased to 385, strengthening trust in certified products and favouring organised retailers over informal operators. Consumers are also increasingly valuing authenticity, transparent pricing, quality assurance, and after-sales confidence all of which support the growth of branded jewellery.
A notable development during FY 2025-26 was the shift in consumer preference from weight-led purchases to design-led, lightweight, and versatile jewellery. High gold prices encouraged customers to stay within fixed spending budgets by opting for lighter pieces, exchange-based purchases, and solutions that offered better utility and repeat wear. This has created significant opportunities for organised jewelers to innovate in lightweight bridal, festive, office-wear, gifting, and everyday-wear collections. Retailers that combine contemporary aesthetics with affordability and design efficiency are likely to gain market share in this changing demand environment.
Penetration into smaller cities remains one of the biggest structural opportunities for organised jewelers. CRISIL noted that despite pressure on volumes in FY26, organised gold jewellery retailers are still expected to deliver healthy revenue growth supported by premium realisations, continued formalisation, and deeper expansion in Tier II and Tier III cities. These markets continue to offer meaningful headroom for store expansion, particularly for players with regional brand recall, strong local engagement, and assortments tailored to cultural preferences and affordability levels.
Consumer purchase journeys in jewellery are increasingly influenced by digital discovery, social media visibility, online catalogues, and store-assisted omni-channel experiences. While final conversion in jewellery continues to be trust-led and store-centric, digital engagement is now playing a larger role in design exploration, appointment booking, product comparison, and customer education. This creates opportunities for organised players to deepen customer engagement, improve conversion, and broaden their addressable market through integrated physical and digital retail models.
The market is also opening up new growth avenues through coins, savings-linked products, gifting categories, silver jewellery, and alternative fine-jewellery segments. At the same time, export-oriented opportunities may improve over the medium term through trade facilitation and market diversification. The India-UK trade agreement signed in July 2023 is expected to improve access for Indian gems and jewellery exports, while electronic processing for import/export through personal carriage at designated airports has supported ease of doing business. These developments can contribute to broader sectoral growth, even though domestic consumption remains the primary driver for most jewellery retailers.
The biggest challenge for the jewellery market in FY 2025-26 was the steep increase in gold prices. The World Gold Council reported that domestic gold prices in India rose sharply, and jewellery demand by volume remained under pressure even as value growth stayed strong. Higher prices affect affordability, reduce grammage, defer discretionary purchases, and increase exchange-led transactions. For the industry, this creates a difficult operating equation where demand sentiment remains positive, but actual purchase volumes become more selective and price sensitive.
The jewellery business remains inherently working-capital intensive, and the rise in bullion prices has significantly increased inventory carrying costs across the sector. CRISIL highlighted that higher gold prices are increasing working capital requirements for both existing stores and new store additions, even though higher realisations have supported revenues. Retailers therefore face the challenge of maintaining adequate assortment and display stock while preserving liquidity, controlling borrowing costs, and avoiding product mix mismatches in a rapidly changing demand environment.
The sector remains highly sensitive to policy changes relating to imports, taxation, disclosure, and compliance. After the close of FY26, India raised import tariffs on gold and silver to 15% in May 2026 from 6% earlier, in order to curb imports and support the rupee. While such measures may address macroeconomic concerns, they can raise landed cost, impact consumer affordability, and potentially encourage unofficial supply channels. Continued regulatory tightening around precious-metal imports and compliance norms also increases operating complexity for sector participants.
A significant portion of Indias jewellery demand continues to come from rural and semi-urban markets, where agricultural income, monsoon performance, and crop realisations influence buying behaviour. As of May 2026, forecasts indicated a weaker monsoon outlook compared to the previous year, raising concerns regarding rural income growth and discretionary spending. Any prolonged softness in farm sentiment or rise in food inflation can affect festive and wedding-linked purchases in rural markets, particularly in weight-sensitive gold categories.
Consumer preferences are changing faster than before, especially among younger buyers. Demand is increasingly shifting toward lightweight jewellery, contemporary designs, daily wear, self-purchase categories, and products offering greater perceived value. Additionally, part of discretionary spending is moving toward lab-grown diamonds, silver, digital gold, and gold-linked investment products. This forces jewelers to refresh collections more frequently, reduce slow-moving inventory, and strike a balance between traditional assortment and modern consumer preferences.
Although organised players continue to gain share, the unorganised sector remains a strong competitive force in many markets due to flexible pricing, local relationships, and lower apparent making charges. At the same time, branded chains are also competing more aggressively for wallet share through promotions, design differentiation, loyalty programs, and regional expansion. This creates a dual challenge for organised jewelers: competing with informal players on value perception while also defending margins against intensifying competition from other branded retailers.
loyalty programs, and regional expansion. This creates a dual challenge for organised jewelers: competing with informal players on value perception while also defending margins against intensifying competition from other branded retailers.
The industry continues to depend on skilled karigars, designers, and trained store personnel for manufacturing quality, product innovation, and customer service. However, availability of skilled artisans remains a challenge, particularly as design complexity rises and customer expectations increase. In addition, fragmented supply chains and longer replenishment cycles can affect speed-to-market, assortment freshness, and operational efficiency especially for retailers scaling across multiple regions and store formats.
Although the domestic market remains the mainstay of the Indian jewellery industry, export-linked volatility continues to influence the broader ecosystem. Indias gem and jewellery exports fell 3.3% in FY 2025-26 to a five-year low, largely due to a sharp decline in exports to the US amid tariff-related disruptions. While alternative markets such as the UAE, Hong Kong, Australia, and Canada showed resilience and trade agreements may support recovery over time, geopolitical uncertainty, tariff changes, and currency volatility remain material external risks for the sector.
Overall, the long-term outlook for the Indian jewellery market remains favourable, supported by cultural relevance, rising aspirations, formalisation, and increasing preference for trusted organised brands. However, FY 2025-26 also demonstrated that growth in the sector is becoming more nuanced, with success increasingly dependent on design agility, inventory discipline, digital engagement, regional understanding, and prudent capital management. Companies that respond effectively to affordability concerns, evolving consumer behaviour, and regulatory changes will be better positioned to sustain growth and strengthen market share in the coming years.
The Company has in place an adequate system of internal financial controls, commensurate with the size, scale, and complexity of its business operations. These controls are designed to provide reasonable assurance regarding the orderly and efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information in compliance with
applicable accounting standards, statutory requirements, and regulatory norms.
During the financial year ended March 31, 2026, the Companys internal financial control framework was reviewed and evaluated through a detailed assessment carried out by an independent external agency. The scope of the review included the adequacy of design and the operating effectiveness of key controls over financial reporting. Based on the outcome of such evaluation, along with the reviews undertaken by the management and the Audit Committee, the Board of Directors is of the opinion that the Companys internal financial controls over financial reporting were adequate and operating effectively as of March 31, 2026.
The Company continues to strengthen its internal control environment through periodic reviews, process standardization, and continuous monitoring mechanisms to ensure transparency, reliability, and integrity in financial reporting and disclosures.
The financial statements of the Company for the financial year ended March 31, 2026, have been prepared in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with the applicable rules framed thereunder, as amended from time to time, along with other relevant statutory provisions.
The key highlights of the Companys financial performance during the year under review, as compared with the previous financial year, are set out below:
Financial Highlights:
| Particulars | FY 2025-26 | FY 2024-25 |
| Standalone | ||
| Revenue from Operations | 4,06,512.83 | 3,31,079.01 |
| Other Income | 519.81 | 155.52 |
| Total Income | 4,07,032.63 | 3,31,234.54 |
| Less: Total Expenses Before Depreciation, Finance Cost and Tax | 3,76,065.24 | 3,13,781.80 |
| Profit Before Depreciation, Finance Cost and Tax | 30,967.41 | 17,452.74 |
| Less: Depreciation | 1,075.61 | 911.18 |
| Less: Finance Cost | 1,621.90 | 1,443.92 |
| Profit Before Tax | 28,269.89 | 15,097.65 |
| Less: Current Tax | 7,110.76 | 3,881.12 |
| Less: Current Tax Expenses | 7.62 | 16.28 |
| Relating to Prior Years | ||
| Less: Deferred Tax Liability (Asset) | -32.54 | -69.3 |
| Profit After Tax | 21,184.04 | 11,269.55 |
Key Financial Ratios:
| Key Ratios | Units | FY 2025-26 | FY 2024-25 | % Change | Explanations |
| Current Ratio | Times | 2.14 | 1.84 | 16.43% | The Current Ratio improved during the year, indicating better liquidity and a stronger ability of the Company to meet its short-term obligations. The increase reflects improved working capital management and adequate coverage of current liabilities. |
| Debt Equity Ratio | Times | 0.45 | 0.41 | 11.29% | The Debt Equity Ratio declined significantly during the year, reflecting lower dependence on external borrowings and an improvement in the capital structure. This indicates a stronger balance sheet and reduces financial risk. |
| Inventory Turnover Ratio | Times | 4.72 | 5.64 | -16.33% | The marginal decline in Inventory Turnover Ratio indicates relatively slower movement of inventory as compared to the previous year. This may be attributable to higher average inventory levels maintained during the year. |
| Net Profit Ratio | % | 5.21% | 3.40% | 181 (in Bps) | The Net Profit Ratio improved during the year, reflecting enhanced overall profitability. The increase was primarily driven by better revenue performance, improved cost control, and higher operational efficiency. |
| Key Ratios | Units | FY 2025-26 | % Change | Explanations | |
| Interest Coverage Ratio | Times | 18.43 | 11.46 | 60.88% | The Interest Coverage Ratio improved substantially during the year, indicating a stronger ability of the Company to service its finance costs out of operating earnings. The increase reflects improved profitability and lower financial burden. |
| Operating Profit Margin | % | 9.97% | 7.68% | 229 (in Bps) | The increase in Operating Profit Margin reflects improvement in core operating performance of the Company, supported by better cost management and improved operating leverage. |
| Return on Net Worth | Times | 9.28 | 4.97 | 86.60% | Return on Net Worth improved during the year, indicating better returns generated on shareholders funds. The increase was mainly supported by higher profitability and more efficient utilization of equity capital. |
DP Abhushan Limited continues to recognize its people as the foundation of its sustained growth and long-term success. The Company is supported by a dynamic and committed team of professionals who bring together deep industry expertise, creativity, and a strong sense of ownership. Guided by a deep affiliation with the DP Jewellers brand, employees consistently uphold the highest standards of integrity, craftsmanship, and customer-centricity. Their collective expertise enables the Company to deliver distinctive jewellery offerings that seamlessly integrate traditional artistry with evolving consumer preferences.
The organization is steered by visionary leadership that fosters a performance-driven and empowering work culture. The leadership team promotes transparency, accountability, and continuous improvement, ensuring alignment between individual goals and the Companys strategic objectives. This approach has not only strengthened the brands market position but has also contributed to building a cohesive, agile, and high-performing workforce.
As a progressive and growth-oriented organization, DP Abhushan offers diverse career opportunities across jewellery design, manufacturing, retail operations, sales, marketing, and corporate functions. The Companys human resource philosophy is centered on attracting, nurturing, and retaining talent by fostering a culture that values innovation, collaboration, and excellence. A supportive work environment encourages continuous learning, skill enhancement, and professional development across all levels.
As of March 31, 2026, the Company employed 847 full-time employees. During the year, the Company continued to invest significantly in employee development through structured training programs, leadership initiatives, and capability-building interventions. Focus remained on enhancing competencies, driving operational excellence, and preparing the workforce for future growth opportunities.
Industrial relations remained cordial and harmonious throughout the year, reflecting a high degree of mutual trust, respect, and transparent communication between management and employees. The Company maintains strong employee engagement practices, adheres to fair labour standards, and promotes an inclusive workplace culture. These measures have resulted in a motivated workforce that actively contributes to the Companys growth and operational efficiency.
Looking ahead, DP Abhushan Limited remains committed to strengthening its human capital through progressive HR initiatives and strategic talent management practices. The Company will continue to focus on building an agile, innovative, and future-ready workforce capable of supporting its long-term growth ambitions.
The statements provided in this section reflect the companys goals, forecasts, expectations, and estimates, which may constitute forward-looking statements under the purview of applicable securities laws and regulations. These statements are based on current beliefs, assumptions, expectations, and projections, all of which involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements. The company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. It is advised that readers not place undue reliance on these forward-looking statements, which speak only as of the date they are made
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