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Titan Q1 FY26 Profit Surges 52.5% YoY on Robust Jewellery Demand, Beats Street Estimates

  • nvshah0610
  • 2 days ago
  • 2 min read
ree

Titan Company delivered a stellar performance in Q1 FY26, reporting a consolidated net profit of ₹1,091 crore—marking a sharp 52.5% year-on-year jump—driven by strong jewellery sales and steady growth across all business verticals. Consolidated revenue rose by 24.6% to ₹16,523 crore, surpassing analyst expectations. The company’s flagship jewellery segment remained the primary growth engine, while its watches, wearables, and emerging businesses also posted impressive gains. Despite challenges from rising gold prices, Titan maintained strong margins and hinted at global expansion plans, including a potential manufacturing hub in the Gulf to tap into the U.S. market.

1. Jewellery Segment Strength

Titan’s jewellery business—fuelling over 80% of revenue—posted a 19% sales growth to ₹12,797 crore (excluding bullion and digi-gold) Within that:

  • Domestic brands Tanishq, Mia, and Zoya grew 18% to ₹11,217 crore.

  • CaratLane soared 39% to ₹1,026 crore.

  • International jewellery grew a striking 49%, contributing ₹554 crore

3. Watches & Emerging Businesses

  • The watches and wearables segment recorded revenue of ₹1,273 crore—a 24% jump YoY—with notably strong margins

  • Engineering & Automation business grew 56% YoY to ₹307 crore, delivering ₹75 crore in EBIT (24.4% margin)

  • The Emerging Businesses (including Taneira, fragrances, and accessories) posted ₹108 crore in income—up 35% YoY—with operating losses narrowing to ₹14 crore from ₹26 crore

4. Margins & Strategic Insights

  • EBITDA rose 46.7% YoY to ₹1,830 crore; EBITDA margin expanded by ~170 bps to 11.1%

  • EBIT margin in jewellery improved to around 11% ; Reuters reported an overall EBIT margin of ~11.8%, up from 9.8% a year ago.

  • The increase in gold prices (approx. 5.5% during the quarter) both boosted revenues and weighed on margins, but consumer appetite—especially for lower-carat jewellery and gold coins—remains strong

  • Titan is evaluating the establishment of a manufacturing facility in the Gulf region to enhance access to the U.S. market

Summary Table

Metric

Q1 FY26

YoY Growth / Insight

Consolidated PAT

₹1,091 crore

↑ ~52.5%

Consolidated Revenue

₹16,523 crore

↑ ~24.6%

Jewellery Revenue

₹12,797 crore

↑ ~19%; Domestic +18%, CaratLane +39%, Intl +49%

Watches Revenue

₹1,273 crore

↑ 24%

Engineering & Automation

₹307 crore (EBIT ₹75 cr)

↑ 56%; EBIT margin 24.4%

Emerging Businesses

₹108 crore (loss ₹14 cr)

↑ 35%; Loss narrowed

Margins (EBITDA/EBIT)

~11.1–11.8%

Expanded by ~170–200 bps

Strategic Move

Considering Gulf manufacturing

To boost U.S. access

Titan delivered a strong Q1 with stellar growth, across its core jewellery, watches, and newer business segments. While elevated gold prices pose margin challenges, consumer confidence and diversified strength continue to drive performance.



source:-economic times,mint

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