Titan Company Limited — Q2 FY26 earnings call

Call held 4 Nov 2025

Management summary

Titan Company reported a strong Q2 FY26 with satisfying growth across most segments, driven by a positive festive season and strategic initiatives like the gold exchange program. While gold jewellery buyer growth saw a slight decline, studded jewellery and watches performed well. The company provided specific guidance for store expansion, eyewear growth, and watch margins, though acknowledged challenges in forecasting overall EBIT growth due to gold price volatility.

Highlights

  • Overall Q2 FY26 growth described as 'very satisfying' across businesses and markets.

  • Jewellery buyer growth: overall -2%, gold (sub INR 1 lakh) -11%, studded +3%.

  • Eyewear division expects to close FY26 with 13-14% growth, exceeding estimated industry growth of 7-8%.

  • Targeting 35-40 new Tanishq stores and 70-80 store renovations for FY26.

  • High-value studded (above INR 2 lakhs) contributed 14% to Q2 jewellery business, up 1 percentage point YoY.

  • Solitaire jewellery contributed 3.5-4% to overall business, showing growth.

  • CaratLane margins expanded 250 bps to 10%.

Concerns

  • Gold Price Volatility

What they filed

Q1 FY27: revenue up 24.3%, net profit up 65.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue13,215 16,097 13,477 14,564 16,534 +25%22,522 +40%23,934 +78%18,101 +24%
EBITDA1,133 1,510 1,438 1,632 1,620 +43%2,336 +55%1,715 +19%2,564 +57%
Net profit705 990 870 1,030 1,006 +43%1,470 +48%1,124 +29%1,699 +65%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Jewellery (Overall)
    -2% Buyer Growth
  • Jewellery (Gold, sub INR 1 lakh)
    -11% Buyer Growth
  • Jewellery (Studded)
    3% Buyer Growth
  • Watches (Festive Period)
    16% Growth
  • High-Value Studded (above INR 2 lakhs)
    14% Contribution to Business1% Contribution Growth
  • Solitaire
    3.5% Contribution to Business4% Contribution Range
  • CaratLane
    10% Margin250 bps Margin Expansion

Guidance & targets

Distribution

  • New Tanishq Store Openings Distribution · FY26 · Medium confidence 35-40
    purely from new stores on Tanishq, I think 35 to 40 is a reasonable range to expect. 40 is the target.

    — Ajoy Chawla

  • Tanishq Store Renovations/Expansions Distribution · FY26 · Medium confidence 70-80
    overall, for the renovations, etcetera, 70 to 80 may be the orders that may happen for the year.

    — Ajoy Chawla

Margin

  • Watches EBIT Margin Margin · 1-2 year time frame · Medium confidence 15-16%
    on a long term, I would say the kind of investments are required, mid-teen is a good number to aim for, 15% to 16% for the business, at least in the 1-year, 2-year time frame.

    — Ashok Sonthalia

Revenue

  • Eyewear Revenue Growth Revenue · FY26 · High confidence 13-14%
    we believe that we should be closing this year at a slightly higher number than what you are seeing, anywhere between 13% to 14%. So that is what our outlook would be.

    — N. S. Raghavan

Profitability

  • Jewellery EBIT Growth Profitability · Low confidence Better than imagined
    as a business head, I would simply say, we will aim for that. We will aim to see that EBIT growth also is better than what we might have imagined.

    — Ajoy Chawla

Volume

  • Studded Buyer Growth Volume · Medium confidence Continue pushing upwards
    we are certainly hoping to continue pushing the studded buyer growth... we think we will want to continue to aggressively push for studded buyer growth, certainly in the INR 1 lakh space, sub INR 1 lakh space as well because that's where we see a lot of new customers get recruited.

    — Ajoy Chawla

Risks & concerns

  • Gold Price Volatility

    high

    It is 'increasingly difficult to kind of project gold price trajectory and consequently, its impact on margin.'

    Management acknowledged

  • Middle Class Economic Pressures

    medium

    The 'buyer growth challenge is not going to go away that easily, notwithstanding how the industry actually creates new innovations.'

    Management acknowledged

  • Increased Competitive Intensity

    medium

    Jewelers with inventory gains on gold tend to reduce making charges or offer significant discounts, leading to 'competitive intensity going up.'

    Management acknowledged

  • Lab-Grown Diamonds (LGD) Market Development

    low

    The LGD market is 'developing slowly and steadily with many players coming in' and the company 'expect[s] increased investments in LGD.'

    Management acknowledged

Areas of evasion (1)

  • Precise overall EBIT growth guidance for the year due to gold price volatility.

Q&A highlights

3 direct
Impact of high gold prices on consumer behavior, 18-carat inventory, studded mix, and October volumes. Direct
there's been a certain holdback which consumers had during the meteoric rise of gold. But then when they didn't see it come down and continue to remain high during festive, a lot of fence-sitters jumped in.

Provides granular insight into consumer response to gold price volatility and segment-wise demand trends, including the performance of 18-carat and studded jewellery.

Asked by Manoj Menon

Strategies to revive buyer growth, margin implications of gold exchange offers and 18-carat products, and store opening targets. Direct
to really stimulate buyer growth, we unleashed a very powerful gold exchange campaign, not just an offer... we directed all of that towards certain rupees per gram benefit on the gold price since gold price was very high on their minds.

Details specific tactical and strategic initiatives to drive growth and addresses potential margin pressures from these actions, alongside concrete store expansion plans.

Asked by Mihir Shah

CaratLane margin expansion sustainability, consolidated vs. standalone jewellery EBIT growth, and the strategic rationale for retaining TEAL (Titan Engineering Automation Limited) within the group. Direct
no, there is no real synergy between TEAL and the consumer businesses... there is no plan to demerge, as you said, at the moment.

Clarifies the company's stance on a potential demerger of a non-core asset and provides color on CaratLane's profitability drivers and the challenges in forecasting overall EBIT growth.

Asked by Arnab Mitra

2 min read 7 chapters

Detailed narrative

Q2 FY26 Overall Performance and Festive Demand

Titan Company reported a 'very satisfying' Q2 FY26, with growth observed across virtually all businesses, markets, and subsidiaries. The festive season saw a positive response, with many 'fence-sitters' entering the market as gold prices remained high. October sales were also described as 'very good' for both the industry and Titan, partly attributed to a powerful exchange offer and Diwali collection launches.

Jewellery Segment Performance and Initiatives

The jewellery segment experienced mixed buyer growth: overall buyer growth was down 2%, with gold jewellery (sub INR 1 lakh) declining by 11%, while studded jewellery buyer growth was positive at 3%. To stimulate demand, Titan is focusing on populating price points below INR 1 lakh and increasing 14-carat offerings. High-value studded jewellery (above INR 2 lakhs) contributed 14% to Q2 business, a 1 percentage point increase YoY, and solitaire jewellery contributed 3.5-4%.

Watches & Wearables Division Growth

The Watches & Wearables division demonstrated strong performance during the festive period, achieving a 16% year-on-year growth. This growth is driven by new product launches and a strategic focus on premiumization, including the Jalsa, Stellar, and Edge Ultraslim collections. Management aims for the division's EBIT margins to gradually stabilize and target a 15-16% band within the next 1-2 years.

Eyewear Division Strategy and Outlook

Titan's Eyewear division operates in an estimated INR 30,000 crores market, growing at 7-8%, where Titan holds less than 12% market share, indicating significant growth potential. The company projects a 13-14% revenue growth for this division in FY26. The strategy emphasizes vertical integration, an omni-channel approach, and marketing investments to enhance brand aspiration, with 90% of retail volumes produced locally.

Store Expansion and Renovation Plans

For FY26, Titan plans to open 35-40 new Tanishq stores and undertake 70-80 store renovations and expansions. In October, 8 new stores were added. The company has already completed renovations and expansions for approximately 35 stores in the first half of the year, which are reportedly yielding 'very good results' and contributing to overall performance.

Gold Exchange Program and Margin Management

The gold exchange program is a strategic tool for customer acquisition and trust-building, offering transparency and purity. While it has 'a certain impact on margins,' management stated they have managed it effectively to minimize negative effects. However, the 'unabated' rise in gold prices makes it 'increasingly difficult' to project gold price trajectory and its consequent impact on overall margins, leading to cautious EBIT growth guidance.

TEAL Business and Strategic Alignment

Titan Engineering & Automation Limited (TEAL) is a global B2B tech manufacturing business that has 'no real synergy' with Titan's consumer-facing operations. Management confirmed there is 'no plan to demerge' TEAL, highlighting that the company has adequately staffed and created the right capabilities for TEAL's board to maximize its opportunities independently within the broader Titan Group structure.

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