Omnichannel jewellery retailer CaratLane is positioning itself for significant growth by expanding beyond its traditional affordable diamond positioning. According to CEO Saumen Bhaumik in an interview with Mint, the company has been operating in the lower affordable price point segment only, focusing on diamonds priced below ₹40,000 to ₹50,000. However, customer demand is now shifting toward higher price points, with customers asking for diamonds priced at ₹1 lakh or ₹2 lakh, which the company is ready to offer. As reported by Mint, this strategic shift represents a move from serving just 10% of the diamond industry to targeting a broader customer base across diamonds, precious stones, and semi-precious stones.
Titan has established ambitious growth plans for CaratLane, targeting revenue growth to 2.3x current levels and earnings before interest and taxes (EBIT) to 2.5x by FY30. According to the company's investor day presentation on 4 June, these are among the steepest growth targets set by Titan. The company currently operates 380+ stores in India and two in the US, closing FY26 with revenue of ₹4,702 crore, representing a 34% increase from ₹3,501 crore in FY25. EBIT rose 60% year-on-year to ₹466 crore in FY26.
The affordable jewellery segment is becoming increasingly competitive, with competitors strengthening their presence through strategic acquisitions. According to Mint, Senco Gold Ltd approved a ₹68 crore investment in January to acquire a 68% stake in August Jewellery Pvt. Ltd (popularly known as Melorra), while P.N. Gadgil Jewellers approved the ₹27.96 crore acquisition of Silvostyle Jewellers in August. The organized segment's share has nearly doubled to 40-45% of the roughly ₹8.5 trillion jewellery market in FY26, from 20-25% in FY19, as reported by Motilal Oswal Financial Services.
Despite 90% of sales being closed in brick-and-mortar stores, CaratLane recognizes the importance of digital presence for customer engagement. According to Mint, 75-80% of buyers complete their product research online before visiting stores, with customers typically using online catalogues to shortlist products before purchasing. The company exports to 30 countries and primarily serves online customers in markets including the US, Canada, Australia, and UK. However, international store expansion plans are on hold until geopolitical issues subside in major markets such as the US and West Asia.
Despite sector uncertainty following the Union government's decision to raise gold and silver import tariffs to 15% from 6% in May, analysts remain optimistic about Titan's prospects. According to Mirae Asset Sharekhan in an 11 August report, the company continues to see strong headroom from formalization, regional market share gains, studded jewellery, retail transformation, portfolio expansion, and growth in sub-₹50,000 and sub-₹1 lakh price points. Titan shares were up 35.98% from a year ago on the National Stock Exchange, compared with a 3.81% decline in the benchmark Nifty 50 over the same period.
