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India Ratings and Research (Ind-Ra) has said that India's organised jewellery industry is expected to witness revenue growth of 17 per cent in 2025-26 on wedding season and investment demand. The importance of gold in weddings, where it holds deep, sentimental, and cultural value, and as an adornment, will help largely maintain gold jewellery volumes, moreover, the investment demand is likely to be boosted by the prevailing global geopolitical and macro-economic uncertainty and the relative outperformance of the asset class. 

According to the report, organised jewellers' credit metrics in FY26 are expected to be supported by rising scale and absolute profit coupled with the adoption of a new model for expansion. In addition, improved funding availability will benefit the organised gems and jewellery industry, especially for players with high standards of corporate governance. It expects operating profit margins to be range-bound during the fiscal due to competitive pressures necessitating discounts, higher advertising spends to ensure customer acquisition and start-up costs for new stores. 

However, the report said as new stores ramp up and achieve breakeven, it will support the operating margin with better absorption of operating cost. Further, it said the expansion through franchise formats adopted by some players will result in improved credit metrics and help in deleveraging the balance sheets. It added that the increasing awareness among customers regarding hallmarked jewellery, growing reliance on trusted brands, and the ability of organised players to provide a variety of original designs have led to accelerated formalisation in the sector.