Organized gold jewellery retailers in India are poised for a significant revenue boost in the fiscal year 2024-25, driven by higher realisations amid rising gold prices, according to a recent report by CRISIL Ratings.

The report, released on Wednesday, projects a 17-19% year-on-year revenue growth for these retailers, despite expectations of stagnant volume growth. The surge in gold prices is a key factor behind the anticipated revenue increase, as it boosts the value of sales even if the quantity of gold sold remains steady.

CRISIL Ratings highlighted that while the revenue outlook is positive, the retailers’ working capital requirements are likely to rise. This increase is attributed to the need for higher inventory levels due to the escalating gold prices and the expansion of new store additions.

However, the report assures that despite the higher working capital needs, the credit profiles of organized gold jewellers should remain stable. This stability is expected to be maintained through prudent financial management and the robust demand for gold jewellery in the Indian market.

The optimistic revenue forecast comes at a time when the gold jewellery sector is experiencing significant transformations, with organized retailers capturing a larger market share due to their scale, brand trust, and adherence to regulatory standards.

For more detailed insights, the full CRISIL Ratings report on the gold jewellery sector is available on their official website.