Titan misses Q2 revenue estimates but beats profit view as jewellery demand holds up

Softer gold prices are drawing jewellery buyers back to stores, giving Titan Co. a boost during the festive season even as demand for gold coins and investment products remains subdued.

The Bengaluru-based company is also seeing faster adoption of lower-caratage jewellery as it seeks to make its products more affordable and widen its customer base.

The first phase of Navratri, between 11 and 22 October, saw positive consumer sentiment and good store traffic, Arun Narayan, chief executive of Titan's jewellery division, said during the company's post-results call. However, volatility after Vijayadashami kept customers away for a few days before they returned from 31 October.

Quick answers to key questions

•5 QUESTIONS

1

How did Titan perform in Q2?⌵

Titan’s revenue from operations rose 10.1% year on year to ₹20,614 crore, below the analysts’ consensus estimate of ₹22,453 crore. Net profit was ₹2,393 crore, including a ₹671 crore non-operational gain.

2

Why did Titan’s Q2 profit rise, and what was profit excluding the one-time gain?⌵

Profit included a ₹671 crore gain from revaluing a liability linked to the second tranche of Titan’s Damas acquisition. Excluding that gain, net profit was ₹1,722 crore, up 54% year on year.

3

Why did jewellery demand improve for Titan during the festive season?⌵

Gold prices fell by nearly ₹5,000 per 10 grams between 16 and 27 October, easing the cost for jewellery buyers. Titan said softer prices helped bring customers back to stores, although demand for coins and investment products remained subdued.

4

How is Titan making jewellery more affordable?⌵

Titan is expanding its lower-caratage ranges, including 18-carat wedding and daily-wear jewellery, 14-carat studded jewellery at Tanishq and products of up to 9 carats at Mia. The company describes this as a long-term strategy to give customers more choice.

5

Which parts of Titan’s jewellery business grew in Q2?⌵

Titan’s jewellery portfolio grew 24% year on year to ₹17,495 crore. CaratLane grew 31% to ₹1,408 crore, international jewellery revenue rose 105% to ₹1,152 crore, and studded jewellery grew about 32%.

“From the start of the festive season till today, gold is kind of softer which is bringing back customers in,” Narayan said, adding that the company expected a strong finish to the season through 10 November.

Gold prices corrected by nearly ₹5,000 per 10 grams between 16 and 27 October, offering some relief to buyers after a prolonged period of elevated prices and helping revive jewellery demand.

While jewellery buying remained healthy, demand for coins and investment products continued to be soft, a trend that began in August and September, he said. CaratLane also reported healthy growth in revenue and buyer numbers during the festive period.

Titan's revenue from operations rose 10.1% year-on-year to ₹20,614 crore in the September quarter, falling short of the consensus estimate of ₹22,453 crore based on estimates from 10 analysts polled by Bloomberg.

Net profit rose to ₹2,393 crore, beating the estimate of ₹1,420 crore based on estimates from four analysts polled by Bloomberg. However, the reported profit included a ₹671 crore non-operational gain from the revaluation of a liability linked to the second tranche of its Damas acquisition. Excluding this, net profit stood at ₹1,722 crore, up 54% from a year earlier and still ahead of estimates.

Titan said the ₹671 crore adjustment reflected a reassessment of the put-option liability, previously valued at ₹1,668 crore. The liability will be reassessed every quarter based on Damas' expected performance over the relevant period and could move in either direction. The company reiterated its confidence in Damas' long-term prospects.

Excluding bullion and digital-gold sales and the Damas accounting gain, Titan's total income rose 25% to ₹20,533 crore.

The company also reported customs-duty gains of ₹490 crore in its jewellery division and ₹46 crore at CaratLane. Excluding the customs-duty benefit, the jewellery business' margin was 11.1%. Reversing the impact of mark-to-market gains recorded in the previous quarter would take the margin to 11.7%.

Titan is expanding its lower-caratage portfolio across categories. Its offerings include 18-carat gold jewellery in wedding and daily-wear collections, 14-carat studded jewellery at Tanishq and products of up to 9 carats at Mia.

“As a market leader, the objective is to give choices to customers and leave it to customers as to what to buy,” Ajoy Chawla, managing director of Titan, said. He added that lower caratage was a long-term strategic decision rather than an initiative that would be reversed in response to short-term gold-price movements.

The strategy comes as the company navigates elevated gold prices and changing consumer preferences, while competition in the organized jewellery market intensifies.

Chawla said more organized players were expanding and additional capital was entering the sector. Titan said it was responding to competitive pressure through initiatives tailored to the local markets surrounding individual stores, rather than adopting a uniform approach across locations. It retained its jewellery-margin guidance for fiscal year 2027 (FY27) at around 11%.

“We can confidently deliver margin which is anchored around 11% and we don't want in a hurry to either change that,” Chawla said, adding that the company would review its margin outlook after the financial year.

Titan's jewellery portfolio grew 24% year-on-year to ₹17,495 crore. Its India business rose 21% to ₹16,343 crore, with Tanishq, Mia and Zoya growing 20% to ₹14,935 crore.

CaratLane grew 31% to ₹1,408 crore, while international jewellery revenue increased 105% to ₹1,152 crore. Studded jewellery grew about 32%, while plain gold jewellery rose 20%.

Management said buyer growth in the September quarter was partly affected by the shift in the festival calendar, which pushed some shopping activity into the December quarter, as well as subdued demand for gold coins and investment products. In contrast, studded jewellery saw stronger buyer growth, reflecting demand from both diamond buyers and existing gold customers moving towards diamond purchases.

Beyond jewellery, Titan's other businesses also performed well during the quarter. The watches division grew 27% to ₹1,881 crore, while EyeCare rose 28% to ₹281 crore.

Chawla said October watch growth was better than in the September quarter, particularly in the ₹25,000– ₹1 lakh price segment. He also flagged improving traction in fragrances, fashion accessories and Taneira, alongside growth in international jewellery and engineering business TEAL.

Management said non-jewellery businesses were making a meaningful contribution to consolidated performance and bringing higher operating leverage.

It also clarified that the proposed ₹2,500 crore non-convertible debenture issue was intended to replenish some existing borrowings rather than raise additional debt.

Vaeshnavi reports on the business of consumption from Bengaluru, tracking how India shops, eats, and clicks. As a correspondent with Mint’s consumer economy team, she covers sectors ranging from retail and food and beverage to the rapid rise of quick commerce. She is a 2025 graduate of the Asian College of Journalism’s Bloomberg Business and Finance programme. She joined the Mint newsroom in May 2025 and this is her first stint in journalism. She holds a bachelor's degree in accounting and finance from the University of Madras. Vaeshnavi loves storytelling and breaking down complex jargon and numbers to bring out insightful yet simple-to-understand narratives. She is a Malayali but has spent most of her life living in Chennai. During her school days, she was an avid debater and loved participating in anything that involved holding a mic and standing on stage talking to a room filled with people. A diehard SRK fan, she can be found vibing to Indie music and Bollywood songs in her free time. She is a self-confessed cold coffee addict who won’t let a day pass without one, and is always café-hopping in search of the city’s best brew.

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