Jewellery Stocks Surge Up to 16% on US Trade Deal & Q3 Results

Jewellery Sector Shines on Dual Catalysts

Indian jewellery stocks experienced a significant rally, with some shares surging up to 16% in intraday trading. The sector's strong performance was driven by two major positive developments: a favorable interim trade deal between India and the United States, and robust business updates for the third quarter of fiscal year 2026. Companies like Titan Company, Kalyan Jewellers, and Senco Gold saw substantial investor interest as strong festive season demand and improved export prospects boosted market sentiment.

US Trade Deal Unlocks Export Potential

The interim trade agreement between India and the US provided a significant boost to the gems and jewellery sector. Under the new framework, the US agreed to reduce reciprocal tariffs on a wide range of Indian goods. For cut and polished diamonds, the tariff was slashed to 18% from a prohibitive 50%. This move is expected to be a key growth driver, as the US is one of the largest export markets for Indian jewellery, accounting for a substantial portion of industry sales. The tariff clarity is poised to restore confidence among manufacturers and exporters who had been grappling with shrinking exports. The reduction in duties is anticipated to increase export volumes and improve the pricing outlook for Indian jewellery products in the international market.

Robust Q3 Earnings Fuel Investor Confidence

Alongside the positive trade news, jewellery companies reported impressive performance for the October-December 2025 quarter. The period, which includes major festivals like Dhanteras and Diwali, saw resilient consumer demand despite record-high gold prices. Retailers successfully navigated market conditions by focusing on targeted campaigns, new design launches, and intensive customer engagement. The strong quarterly updates from key players reassured investors about the sector's underlying health and growth trajectory, leading to broad-based buying in jewellery stocks.

Senco Gold Leads with Stellar Growth

Senco Gold emerged as a top performer, with its stock surging nearly 14% after announcing a remarkable 51% year-on-year (YoY) revenue growth in Q3 FY26. The company's retail business grew by approximately 49%, supported by a strong same-store sales growth (SSSG) of 39%. This performance took its trailing twelve-month revenue to around ₹8,000 crore. Senco Gold also continued its retail expansion, adding four new franchise showrooms during the quarter. Management expressed confidence in achieving over 25% growth for the full fiscal year, building on the 31% growth recorded in the first nine months.

Kalyan Jewellers Reports Strong All-Round Performance

Kalyan Jewellers also delivered an encouraging Q3 update, reporting a 42% YoY growth in consolidated revenue, which reached ₹10,343.4 crore. The company's net profit surged by 90% to ₹416.29 crore for the quarter. Growth was broad-based, with its India operations growing by 42% and international business expanding by 36%. A key highlight was the performance of its digital-first platform, Candere, which saw its revenue grow by 147% and turned profitable. The company aggressively expanded its footprint, launching 21 new showrooms in India and one in the United Kingdom, bringing its global showroom count to 469.

Market Leaders Gain Momentum

Titan Company, a market leader in the organised jewellery space, also participated in the rally. Its shares climbed about 4%, touching a fresh 52-week high. The company's strong brand positioning and consistent performance have made it a bellwether for the sector. The positive sentiment surrounding the entire industry, driven by both policy and performance, helped lift its stock alongside its peers.

Stock Performance Snapshot

A broad-based rally was witnessed across the sector following the trade deal announcement. Here is a summary of how key jewellery stocks performed during the intraday session on February 9.

Navigating the Challenge of High Gold Prices

One of the key challenges for the sector has been the sharp rise in gold prices, which reached record highs in early 2026. While higher prices impacted sales volumes, overall consumer spending remained robust. Retailers adapted by promoting lightweight and budget-friendly collections and leveraging old gold exchange schemes. The ability of companies like Kalyan Jewellers and Senco Gold to post strong revenue growth in such an environment highlights their strategic focus on customer acquisition and managing price sensitivity effectively.

Valuation and Sector Outlook

The Indian jewellery market continues to present a compelling growth story, projected to reach USD 100 billion in 2025. The sector benefits from strong cultural drivers, such as weddings, and rising disposable incomes. While valuations differ across companies, with Titan trading at a high P/E ratio of around 90x and Kalyan Jewellers at a more moderate 41-54x, the overall analyst sentiment remains positive. The combination of a stable domestic economy, favorable government policies, and strong brand-led growth positions the organised jewellery sector for sustained expansion.

Conclusion

The recent surge in Indian jewellery stocks is a direct result of powerful dual catalysts: a landmark trade deal with the US and exceptional quarterly earnings. These factors have significantly improved the outlook for both domestic sales and international exports. Despite challenges like volatile gold prices, the sector has demonstrated remarkable resilience, driven by strong consumer demand and strategic business execution. This positions leading players well to capture further market share in a growing industry.