The gold industry in India
Gold is an important part of Indian culture. People often buy gold for weddings, festivals, and as gifts. Many families also consider it a way to save money. Some people buy gold coins and bars as an investment.
Gold became much more expensive in early 2026. According to the World Gold Council, the average domestic gold price touched ₹1.51 lakh per 10 grams (one tola) in the first quarter of 2026. That’s 81% higher than in the same period the previous year. Spending on gold also rose to ₹2.28 lakh crore, almost twice the year earlier.
The rising prices have also affected demand. Demand fell by 19% by weight, even as spending on jewelry rose 47%. Many buyers chose lighter designs. The trend continued into the second quarter, when jewelry demand dropped 15% to 75 tonnes. Total gold demand also dropped 6% to 131 tonnes.
What does this mean for gold stocks?
Jewelers may earn more money from sales even when customers buy fewer grams of gold. But expensive jewelry can also put off buyers. If fewer people visit stores or delay purchases, companies may feel the impact.
For gold loan companies, the situation is slightly different. When gold prices rise, customers may be able to borrow more against their jewelry. However, the company still needs borrowers to repay their loans on time.
Overview of top 5 gold stocks
Here’s a quick look at the 5 companies in India with businesses linked to gold and consumer durables
Titan
Titan Company Limited owns jewelry brands such as Tanishq, Mia, and CaratLane. It also sells watches and eyewear. Jewelry is its biggest business. In the 4th quarter of FY26, its jewelry business reported revenue of ₹18,195 crore, excluding bullion and digital gold sales. Titan also bought a 67% stake in Damas Jewelry in FY26.
Muthoot Finance
Muthoot Finance gives loans to people who pledge their gold jewelry. Customers pledge their gold to get a loan and repay the amount with interest. In FY26, its goal loan portfolio grew by 50% to reach ₹1.54 lakh crore. Higher gold prices can allow customers to borrow more against their jewelry. However, Muthoot also needs to manage overdue loans and make sure borrowers repay their dues.
Kalyan Jewelers
Kalyan Jewelers sells gold, diamonds, and other jewelry through stores in India and overseas. It also runs Candere, its online jewelry business. The company reported consolidated revenue of around ₹35,743 crore in FY26, up 43% from the previous year. It has also been adding stores.
Thangamayil Jewelry
Thangamayil Jewelry is a brand based in Tamil Nadu. It sells gold, silver, and diamond jewelry. Its sales largely depend on wedding purchases and demand in the local market. The company is also adding more stores to expand its reach.
Sky Gold and Diamonds
Sky Gold and Diamonds makes gold jewelry for businesses in the organized retail market. Its product range includes plain gold jewelry and pieces with gemstones. Unlike a jewelry retailer, it mainly depends on orders from other businesses.
How to pick the right gold stocks?
Don’t buy gold stocks just because gold prices are rising or someone has recommended a company. Check these points first.
- Sales and profits: Look at how the company’s sales and profits have changed over the last few years. Higher sales don’t always lead to higher profits, especially when costs rise sharply.
- Valuation: Compare the PE ratio with the company’s past valuations and its expected growth. Even a good company can have an overpriced stock.
The bottom line
Gold stocks can be worth exploring if you want to invest in businesses linked to gold. But investing in one company’s stock can be risky. If the stock price falls, your entire investment can fall in value. A better way is to invest in a diversified product with a focus on gold stocks.
One such product is mutual funds. You can explore schemes that invest in jewelry or gold loan companies. On the Millions app, you can set up an SIP for regular investing in those schemes. Later, you can explore other sectors and schemes to diversify your portfolio. This way, you can participate in the sector’s growth while keeping your risk balanced.
