Gold Jewellery Sales Volume To Fall 4-6% In FY27, Revenue Seen Rising 21-23%

Revenue growth is expected to remain strong as gold prices are projected to average 25-27 per cent higher than last fiscal. (File Photo)

India's organised gold jewellery sector is expected to see a relatively smaller contraction in sales volumes in the current financial year, even as high gold prices continue to weigh on consumer demand. However, retailers are likely to maintain strong revenue growth, with Crisil Ratings projecting a 21-23 per cent increase in FY27. The rating agency expects the credit health of organised jewellery retailers to remain stable, supported by healthy cash flows, disciplined inventory management and a cautious approach towards store expansion.

The assessment is based on an analysis of 76 organised gold jewellery retailers, which together account for nearly 33 per cent of the industry's revenue. According to the report, jewellery sales volumes could decline by 4-6 per cent this fiscal, an improvement over the 8 per cent contraction recorded last fiscal after gold prices jumped 56 per cent.

Gold Prices Continue To Weigh On Jewellery Demand

Despite the anticipated moderation in volume decline, elevated gold prices are expected to support revenue growth. Gold prices are projected to average 25-27 per cent higher in FY27 compared with…

Original source: https://www.timesnownews.com/business-economy