bengaluru/mumbai, July 18 -- Consumers in India's smaller towns are increasingly buying jewellery from organized retailers, drawn by brand trust, better designs, and transparent pricing. This has brightened prospects for PN Gadgil Jewellers Ltd and Senco Gold Ltd, which are targeting 20% revenue growth to $1 billion. The shift in shopping preferences has also prompted many unorganized jewellers to become franchisees of organised chains that offer a readymade platform for growth. "Franchisees see value in aligning with an established brand as it offers instant credibility and access to a scalable business model," said Bhavya Gandhi, an equity research analyst at Dalal and Broacha. "With rising per capita incomes in tier-II and tier-III cities, consumers are no longer just buying gold-they're choosing branded jewellery for its perceived quality, reliability and aspirational appeal." The positive outlook for jewellery retailers is driven by gold exchange schemes, rising gold prices, store expansion and new product lines. PN Gadgil Jewellers, the third-largest jewellery retailer, posted revenue of Rs.7,630.5 crore in FY25. The company is targeting younger buyers through its new lightweight jewellery line. Saurabh Gadgil, chairman of PN Gadgil, said in the company's June quarter update that jewellery is increasingly becoming a form of everyday self-expression rather than just a traditional purchase. Senco Gold, the fourth-largest jewellery retailer, ended FY25 with Rs.6,263 crore in revenue and expects to cross the $1 billion (Rs.8,597 crore) mark in FY27. "Senco expects to grow its topline by 19-20% every year," said Sanjay Banka, the company's chief financial officer. In comparison, Titan Ltd, India's largest gold jeweller, posted Rs.47,501 crore in jewellery revenue and is targeting 15-20% annual growth. Kalyan Jewellers, the second-largest company with Rs.25,045 crore in jewellery revenue, hasn't provided growth guidance this year. The company reported a 31% jump in revenue in the June quarter. Titan and Kalyan Jewellers did not respond to queries emailed on Tuesday afternoon. Jewellery company stocks ended higher even as the benchmark BSE Sensex fell 0.45% to 82,259.24 at the close on Thursday. Senco Gold shares climbed 5% to Rs.372.75, while PN Gadgil shares advanced 3.8% to Rs.623.70. Kalyan Jewellers added 1.8% to Rs.600.20 and Titan Company shares rose 0.45%. Investors are looking forward to the Q1 results of listed jewellery companies including PC Jeweller, Senco Gold, and Kalyan Jewellers. Traditionally, this quarter benefits from festive buying during Akshaya Tritiya and the wedding season. The optimistic outlook for gold jewellers contrasts with the soft prospects for other sectors, including the auto and fast-moving consumer goods industries. "Our outlook for jewellery, not just for the year but for the next few years, continues to be bullish," Ajoy Chawla, chief executive officer of Titan's jewellery division, said in the company's June quarter update. Chawla attributed the upbeat outlook to steady wedding demand, a diversified product portfolio catering to traditional and modern buyers, and the company's continued expansion through new stores and digital channels like CaratLane. "There are a couple of reasons why gold jewellers are quite bullish," said Gandhi of Dalal and Broacha, adding that store expansion alone contributes about 10% to growth and existing stores add another 5-7%. PN Gadgil and Senco have distinct approaches to the business. Last year, PN Gadgil received about 90% of its business from company-owned stores and the remaining from its 12 franchise-owned stores. At Senco, franchise-owned stores, which invest in both setting up the outlets and managing inventory but sell Senco's jewellery, accounted for one-third of revenue. Senco's expansion strategy hinges on a hybrid store model, with franchises in smaller towns and company-owned outlets in metros. Senco has 72 franchise showrooms of the 175 stores it operates and it may add more than than 10 franchisee outlets in the future....