Titan's June quarter profit surges 63% YoY, income up 40%

Titan Company reported a 63% year-on-year increase in consolidated net profit for the first quarter of this financial year, supported by strong Akshaya Tritiya-led demand for jewellery, premiumisation across categories and robust growth in its consumer businesses.

Consolidated total income went up 40% year-on-year to about `20,753 crore in April-June, while profit before tax (PBT) surged 64% to `2,429 crore, translating into a margin of 11.7%. Adjusting for the impact of the increase in customs duty on gold, PBT growth stood at 37% over the year-ago period.Jewellery remained the key growth engine, with the portfolio, excluding bullion and digital gold sales, expanding 43% to `18,253 crore.

“The broad-based performance notwithstanding, the quarter demanded significant agility on multiple fronts from navigating gold prices to the sharp changes in the duty structure and to managing geopolitical headwinds across our international operations,” said Ajoy Chawla, managing director, Titan Company.


The company said its exchange programmes continued to support jewellery demand, while a relatively stable gold price environment aided consumer confidence. Tanishq saw strong traction in North America and double-digit growth in the Gulf Cooperation Council countries. Titan’s jewellery revenue in India increased 38% to `16,943 crore, with Tanishq, Mia and Zoya together growing 38% to `15,502 crore.

CaratLane posted a 40% growth to `1,441 crore. The company’s international jewellery business surged 136% to Rs 1,309 crore, The jewellery business reported earnings before interest and taxes (EBIT) of ` 2,360 crore at a 12.9% margin.

Excluding customs duty gains, EBIT on jewellery sales in India stood at `1,961 crore, with a margin of 11.6%. Titan continued its retail expansion, adding 33 net jewellery stores in India during the quarter, including four Tanishq, 17 Mia, one beYon and 11 CaratLane stores.

The watches business also delivered a strong performance, with total income increasing 21% to `1,543 crore. Sales of analogue watches grew in the mid-twenties, offsetting a single-digit decline in smartwatches. EBIT stood at `295 crore, with a margin of 19.1%.

EyeCare revenue increased 21% to `289 crore, while EBIT rose to `24 crore. Titan added six Titan Eye Plus and one Runway store during the quarter.

Emerging businesses, including SKINN, IRTH and Taneira, grew 18% collectively to Rs 128 crore, but reported a loss of `39 crore. Titan Engineering & Automation recorded 43% revenue growth to `438 crore, with EBIT at `143 crore.

Chawla added that the company remained focused on brand investments, customer engagement and disciplined execution amid changing gold duties and geopolitical challenges.