Top 5 Luxury Stocks to Keep an Eye on in 2025

India's luxury sector is no longer for the ultra-rich.

These companies are profiting on the basis of rising trends, primarily driven by rising income levels, aspirational lifestyles, and growing consumption trends in the country.

India's luxury firms are not just selling dreams they're delivering solid returns to investors.

This editorial highlights the key trends driving India's luxury market, how these companies are positioned, and why investors are eyeing this space as the next big story.

Here are 5 luxury stocks to watch out for in 2025.

These stocks are filtered using Equitymaster's powerful stock screener - Best Luxury Stocks in India

Read on...

#1 Titan

First on the list is Titan Company Ltd.

Titan is among India's most respected lifestyle companies. It has established leadership positions in watches, jewellery, and eyewear.

The company's revenue mix includes:

• Jewellery: Includes brands Tanishq, Mia, Zoya, and Caratlane.
• Watches & Wearables: It owns brands like TITAN, FASTRACK, Sonata, Anne Klein, etc.
• Eye care: It owns the Fastrack and Titan Eye+ brands.

The company is planning to open 40-50 new Tanishq stores in FY26 as well as renovate 50-60 stores.

Coming to the financials, the company's revenue has grown at a CAGR of 20.9% in the last five years, while its net profit has grown at a CAGR of 20.3%.

The five-year average return on equity (RoE) is 24.8%, and return on capital employed (RoCE) is 33.9%.

The company is aiming for double-digit growth in FY26 with a margin of 11-11.5%.

Titan is planning for portfolio innovation in the lower-carat, lightweight, and affordable jewellery through its brand CaratLane due to the increasing popularity of lower-carat jewellery.

To know more, check out Titan's financial factsheet and quarterly results.

#2 DLF

Next on the list is DLF Ltd.

DLF is engaged in real estate development, from the identification and acquisition of land to planning, execution, construction, and marketing of projects.

The company has established a strong and diversified business:

• Development: It includes well-known urban colonies in Delhi, and one of Asia’s largest private townships, DLF City, in Gurgaon, Haryana.
• Rental: The company develops and leases commercial projects like cyber cities, IT Parks / IT SEZs, corporate parks, retail projects, etc.
• Others: The company also operates a hospitality division consisting of recreational clubs and two hotel properties.

The management is highly confident about demand, especially in NCR (North Central Region), and sees significant upside in both residential pricing and commercial rentals.

In the development business, the company focuses on margin-accretive products and penetrates key markets, including Gurugram, Delhi NCR, Chandigarh Tri-city, Goa, and Mumbai.

Coming to the financials, the company's revenue has fallen at a CAGR of -5.1% in the last five years, while its net profit has grown at a CAGR of 34.7%.

The five-year average return on equity (RoE) is 2.1%, and return on capital employed (RoCE) is 5.1%.

DLF gave a sales guidance of Rs 200-220 billion (bn) for FY26.

To know more, check out DLF's financial factsheet and quarterly results.

#3 Eicher Motors

Next on the list is Eicher Motors Ltd.

Eicher Motors, incorporated in 1982, is a leading player in the Indian automobile industry and the global leader in middleweight motorcycles.

Eicher's joint venture with Sweden's AB Volvo - Volvo Eicher Commercial Vehicles Limited (VECV) - is engaged in truck and bus operations, auto components, and technical consulting services.

The company has two major business verticals:

• Royal Enfield: The company manufactures and markets motorcycles under the ‘Royal Enfield’ brand. It comprises motorcycles like the Classic 350, Bullet 350, Meteor 350, Hunter 350, Scram 411, Himalayan 450, etc.
• VE Commercial Vehicles (VECV): This JV (Joint venture) oversees the company's truck and bus operations, its auto components business, and technical consulting services.

The company is widening its reach through spares (RE essentials), services (Royal Enfield roadside assistance), and genuine motorcycle accessories. The company has also launched its apparel brand store in Gurgaon for rider-focused apparel offerings.

The company is planning for Rs 12-13 bn capital expenditure with a significant allocation to the EV manufacturing facility and product development.

Coming to the financials, the company's revenue has grown at a CAGR of 11% in the last five years, while its net profit has grown at a CAGR of 12.5%.

The five-year average return on equity (RoE) is 17.1%, and return on capital employed (RoCE) is 22.4%.

To know more, check out Eicher Motors' financial factsheet and quarterly results.

#4 Indian Hotels

Next on the list is Indian Hotels Company Ltd (IHCL).

IHCL is one of India's leading hospitality companies. The company operates its hotels under four main brands, which include the Taj Hotels, Vivanta, SeleQtions, and Ginger.

IHCL and its subsidiaries comprise a diversified portfolio across luxury, upscale/upper upscale, and lean luxury/midscale segments.

The company is targeting 30-plus hotel openings in FY26 to remain focused on scaling new businesses and prudent capital allocation.

The company has given FY26 capital expenditure guidance of more than Rs 12 bn. The management is confident about doubling revenue by FY30 (about 11.5% CAGR).

Coming to the financials, the company's revenue has grown at a CAGR of 8.5% in the last five years, while its net profit has grown at a CAGR of 37.5%.

The five-year average return on equity (RoE) is 6.6%, and return on capital employed (RoCE) is 8.8%.

To know more, check out Indian Hotels' financial factsheet and quarterly results.

#5 Kalyan Jewellers India

Last on the list is Kalyan Jewellers India Ltd.

Kalyan Jewellers designs, manufactures, and sells a range of gold-studded and other jewellery products across various price points. The company has more than 7% share of the organised jewellery market.

The company's product offerings include wedding jewellery (Mahurat), aspirational jewellery (Mudhra, Rang etc), staple regional jewellery (Aishwaryam), studded (Ziah, Hera, etc.).

It also owns a digital-first lifestyle jewellery brand called Candere, a fully commercial e-commerce website. Embracing e-commerce allows the company to reach a broader audience, stay competitive, and meet the growing demand for online shopping.

The company is transitioning to a Franchisee Owned Company Operated (FOCO) model to optimize capital investment and enhance operational margins.

The management has given FY26 capital expenditure guidance of Rs 2 bn. The company's expansion strategy includes 80 new stores to be opened in FY26. It's planning to expand its Candere showroom network through FOCO showrooms in FY26.

The management expects the profit before tax (PBT) margin to exceed 5% in FY26, citing interest savings from debt reduction and normalisation of inventory impacts.

Coming to the financials, the company's revenue has grown at a CAGR of 13.7% in the last five years. The five-year average return on equity (RoE) is 8%, and return on capital employed (RoCE) is 23.7%.

To know more, check out Kalyan Jewellers' financial factsheet and quarterly results.

Snapshot of Best Luxury Stocks in India on Equitymaster's Stock Screener

Here's a table that shows the Best Luxury Stocks in India across various parameters.

Conclusion

As the luxury sector in India is evolving, these companies are not just riding this wave - they're helping shape it.

The five firms highlighted in this editorial promise not just aspirational value, but also solid fundamentals, brand loyalty, and long-term growth potential.

Keeping an eye on these companies could offer a long-term investing opportunities.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making an investment decision.

Happy Investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...