CaratLane rides diamond demand to 32% revenue jump in Q2; sees steady momentum ahead

Even as bullion prices swung sharply in the lead-up to the season, the Titan Company-owned omnichannel jewellery brand managed to pull off another strong quarter on the back of well-timed launches, smart promotions, and sharper storytelling.

“We had multiple new collections such as F.R.I.E.N.D.S, Peepal, Maaya that came right in time. Our CRM tools fired well, and we had a good customer turnout through the quarter, which continued into the festival season,” said Saumen Bhaumik, Managing Director, CaratLane. He added that despite volatility in gold rates, early festive offers like a “free gold” scheme, and targeted campaigns in regional languages helped draw customers in.

CaratLane posted a strong second quarter with revenue rising 32% year-on-year to ₹1,072 crore, compared to ₹811 crore in the same period last year. Sequentially, revenue grew 5% from ₹1,026 crore in Q1 FY26. The company’s EBIT surged 78% to ₹109 crore, while margins expanded 262 basis points to 10.1%, driven by broad-based growth across categories.

The company launched four jewellery collections and rolled out 10 new stores in the quarter, taking its total count to 341 stores across 149 cities. Bhaumik said CaratLane is taking a measured approach to expansion. “We are not in a rush to open many doors. Each store has to deliver a minimum yield for it to be viable. We are expanding selectively into new catchments that create the right impact,” he said.

While the brand continues to see traction across both online and retail channels, Bhaumik noted that retail growth outpaced online this quarter. “Domestically, we had high single-digit online sales growth, and retail growth was even higher,” he said.

The diamond-led brand saw particularly strong momentum in its studded jewellery segment, which grew 24% year-on-year. Diamonds now contribute nearly 90% of CaratLane’s turnover. “We are a diamond destination, not a full-service jeweller,” Bhaumik said, adding that larger stones have seen better traction this year.

India’s Gems & Jewellery market size stood at ₹7,31,255 crore ($ 85 billion) in January 2025 and is projected to expand to ₹11,18,390 crore ($ 130 billion) by 2030, according to IBEF report. Of that, the Indian natural diamond jewelry market was valued at approximately $6.2 billion in FY2025, and is projected to reach $8.6 billion by 2028. CaratLane's total revenue was about ₹3,500 crore in FY25, up 20% from previous year.

Innovation-led growth

One of CaratLane’s key moves during the quarter was its early adoption of 9-carat jewellery, which uses less gold content, an innovation that helped cushion the impact of rising gold prices. “We anticipated that gold rates might continue to rise, so we experimented with 9-carat jewellery long before hallmarking came in. The response has been very encouraging,” Bhaumik said, calling October one of the company’s best months.

CaratLane is also expanding its Shaya line of silver jewellery, which now has around 10–11 standalone stores and will soon be available across all CaratLane outlets. “We’ve just launched Shaya Diamond, a natural diamond embedded in 92.5% silver. It addresses some of the issues around rising gold prices,” Bhaumik said.

On international expansion, Bhaumik said CaratLane operates one store in New Jersey and is set to open a second outlet in Dallas by December. The brand also serves over 30 countries online, with the US and Canada as key markets. Currently, international business accounts for less than ₹100 crore or 2% of the total revenue.

While the lab-grown diamond (LGD) trend has generated buzz globally, Bhaumik said it has not affected CaratLane’s business. “There’s a lot more noise than consumption. Indian customers are value-oriented, and we haven’t seen any real impact on natural diamond sales yet,” he said.

Looking ahead, Bhaumik expects demand to stay steady through the wedding season despite gold price volatility. “Gold rates have stabilised somewhat, and the wedding season is a tailwind. We expect the demand to hold on,” he said.

For the rest of the year, CaratLane plans to maintain its growth trajectory, adding 10–12 more stores while consolidating its brand positioning as a digital-first diamond destination.