Titan Company

Titan Company reported a 'superlative Quarter 4 top-line growth,' described as potentially the best-ever in recent history, with all businesses demonstrating strong growth and enhancing brand visibility. For the full year FY26, the international business achieved profitability at the operating level, marking a significant milestone. Overall, the company expressed satisfaction with the performance across its diverse portfolio.

The Jewellery division experienced an 8% buyer growth in Q4, attributed to customers waiting for gold price stability and successful diamond activation campaigns. The gold exchange program, initiated in Q3, continued to perform very successfully, aiding in gold sourcing. While rising gold prices contributed to higher ticket sizes, the segment's margins faced pressure, resulting in a 10-20 bps loss due to changes in product mix and gold price volatility.

Titan's international business, including the recent Damas acquisition, recorded a loss of ₹82 crores in Q4 FY26, primarily due to market disturbances in the GCC region. However, the international operations were profitable at the operating level for the entire fiscal year. Management expressed strong confidence in the integration and operational improvements of Damas over the next two to three quarters, expecting enhanced revenue growth and margins in the future.

CaratLane achieved a growth of 22-23% for the full year. However, its Q4 performance and margin profile, which stood at 8.4% for the quarter compared to nearly 10% for the full year, were temporarily affected. This impact was attributed to operational challenges arising from a major ERP migration to Oracle Fusion in January and the first half of February, which management described as a 'blip' with recovery observed in April.

The Eyecare division reported a revenue growth of 16-17% for the quarter. As part of a network revamp aimed at enhancing overall appeal, the division saw 20 net store closures in Q4. EBIT margins were suppressed due to increased marketing spends and a one-off^📎 inventory recall of certain slow-moving stocks, which are considered temporary factors.

Titan launched the 'Hues' collection, a natural gemstone jewellery line, as a strategic move to expand the category and create a new growth engine. This initiative aims to offer new expressions in gold jewellery and make the category more exciting, rather than focusing solely on margin or entry-level price points. The collection features approximately 200 styles, with 50% priced between ₹40,000 and ₹2.5 lakhs, and is seen as the first of many such offerings.

The Taneira business is currently undergoing a comprehensive review of its store operating model, merchandise mix, price points, and consumer value proposition. The company is actively tracking key metrics such as same-store growth, buyer growth, stock turns, and product sell-throughs. Significant efforts are underway to boost buyer growth, particularly in the sub-₹10,000 price band, with initial results expected to materialize in the coming months.