What higher gold prices have meant for Titan's Q4 performance

Consumers still want gold, but within budget; they are looking for lower-carat jewellery or lower making charges

- Pallavi Pengonda

Gold prices are flirting with the ₹100,000 per 10gm mark, making many Indian consumers rethink their jewellery purchases, a trend that can impact retailers like Titan Co. Ltd. In its fourth quarter (Q4FY25) earnings call, the management noted consumer sentiment in the sub-₹50,000 price band was affected, especially for gold items, with impact seen in studded jewellery as well.

One reason is that as gold prices rise, some products previously priced under ₹50,000 shift to a higher bracket. Against this backdrop, the company expects "more and more customers to be open to lower caratage, simply because the price point has become quite a bit."

In higher price bands, some consumers are adjusting by opting for simpler products. In other words, while they're still purchasing gold at a set value, they're opting for items with lower making charges. Overall, consumers still want gold, but within budget; and are looking for solutions such as light-weight or lower-carat jewellery, along with possibly lower making charges, Titan said.