PC Jeweller Ltd reported a 17% rise in consolidated net profit, posting earnings of Rs 2.1 billion (approx. $23.89 million) for the quarter ended September 30. The increase came even as gold prices remained elevated through the July–September period.

Revenue from operations surged 63% year-on-year to Rs 8.25 billion, driven by higher transaction values despite shifts in consumer behaviour. According to the Reuters report, spot gold prices climbed 16.4% during the quarter, leading many shoppers to adjust their purchases by opting for lighter-carat jewellery and gold coins, which typically generate lower margins for retailers.

Reuters highlighted that while high gold prices ordinarily challenge jewellery demand, Indian consumers remained resilient. The company’s performance reflects stable festive-season buying sentiment and continued preference for gold as both adornment and investment.

However, the shift toward lightweight categories exerted pressure on profit margins, as these formats carry reduced profitability compared to heavier, higher-karat gold jewellery. Despite this, PC Jeweller’s topline growth outpaced expectations, helped by an increase in average bill values.

The quarter’s strong numbers underscore a broader trend in India’s jewellery sector — elevated gold prices are reshaping purchasing patterns but not deterring overall demand. With the crucial wedding and festive season underway, analysts expect momentum to continue, although margin sensitivity may persist as consumers stay cautious on weight and purity levels.

Source: Reuters