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India's B2B jewellery sector delivered a dominant performance in Q3FY26, characterised by solid revenue growth and significant margin expansion, despite challenges from record-high gold price. While the top-line figures across the industry were impressive, the underlying story was one of price-led growth, supported by volume uptick.

The aggregate revenue growth for the companies under our coverage was 86.6% YoY, supported by an aggregate volume increase of 15.3% YoY. Also, another B2B company Sky Gold reported a revenue growth of 77.1% YoY and volume growth of 41.2% YoY.

This stellar performance by the B2B jewellery sector was accelerated by the shift of demand from unorganised to organised B2B companies. Retailers increasingly sought compliant, high-quality manufacturers to manage the volatile price environment. Retail giants, such as Kalyan Jewellers and Senco Gold, reported Same-Store Sales Growth (SSSG) of 27% and 39%, respectively. This retail velocity forced a faster inventory turnover, benefiting B2B manufacturers.

The festival season of Dussehra, Dhanteras and Diwali in October/November 2025 boosted demand in Q3FY26, leading to a spike in consumption. Moreover, the quarter saw a high density of "shubh muhurats," leading to a surge in wedding related demand.

Going forward, we remain positive about the B2B jewellery sector driven by the rapid shift towards organised retail supported by expanding retail networks. Further, the expanding manufacturing capabilities, strong design agility, automation-driven production, flexibility to move across karat categories and compliance-led manufacturing are key positives.

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