Titan Q1 Results Beat Estimates with 34% Profit Surge—But Will Rising Gold Prices Dent the Shine?
- 8th August 2025
- 01:40 PM
- 4 min read
Mumbai | August 8 – Titan Company (NSE: TTAN) posted a better-than-expected 33.8% jump in net profit to ₹1,030 crore for Q1FY26, riding on strong momentum in its watches and jewellery segments and a favourable one-time gain. Revenue rose 20.8% YoY to ₹14,564 crore, backed by growth across key verticals including CaratLane, TEAL, and emerging lifestyle categories.
However, the upbeat performance masks near-term risks. Elevated gold prices, a shift in product mix, and global uncertainties including tariff tensions could pose challenges for the rest of FY26. Even so, Prabhudas Lilladher (PL Capital) remains bullish, retaining a Buy rating on Titan with a revised target price of ₹3,901.
“While near-term pressures exist, Titan’s calibrated strategy of expanding light-weight jewellery and premium watches is yielding results. The long-term margin profile remains intact,” said Amnish Aggarwal, Head of Research at PL Capital.
Titan Q1FY26 Financial Snapshot
| Metric | Q1 FY26 | Q1 FY25 | YoY Change |
| Revenue | ₹14,564 Cr | ₹12,053 Cr | 20.80% |
| EBITDA | ₹1,632 Cr | ₹1,211 Cr | 34.80% |
| EBITDA Margin | 11.20% | 10.00% | +120 bps |
| Net Profit (Adj. PAT) | ₹1,030 Cr | ₹770 Cr | 33.80% |
| Jewellery Revenue | ₹12,797 Cr | ₹10,787 Cr | 18.60% |
| Watches Revenue | ₹1,273 Cr | ₹1,021 Cr | 24.70% |
| Eyewear Revenue | ₹238 Cr | ₹209 Cr | 13.90% |
| CaratLane Revenue | ₹1,026 Cr | ₹754 Cr | 36.10% |
Jewellery Shines—But Not Without Warnings
Titan’s jewellery segment delivered 18.6% growth, aided by high gold prices and improving ticket sizes. EBIT for the segment rose 27.7% to ₹1,408 crore with an 11% margin. However, a key concern was the fall in studded jewellery share to 29% (down 100 bps YoY), as consumers preferred gold coins and plain jewellery over high-margin diamond pieces.
“Margins in jewellery were boosted by a ₹50 crore MTM gain which will reverse in Q2 and Q3. Sustained pressure from gold prices and changing consumer behaviour makes the mix less favourable,” added , Analyst at PL Capital.
To counter this, management is aggressively pushing 9K and 14K lightweight offerings priced under ₹50,000 to retain middle-income buyers.
Watches and CaratLane Power Ahead
The watches segment saw a robust 24.7% revenue growth, with EBIT margins soaring to 22.5% (up 1,128 bps YoY), thanks to premiumisation and a ₹50 crore one-time gain. CaratLane, now a core growth engine, reported a 39% rise in sales and 78% jump in EBIT, driven by 60% growth in solitaire jewellery.
Titan also opened 9 CaratLane stores and 4 Titan World outlets, expanding its footprint as demand from both aspirational and luxury consumers remains strong.
Management Commentary: Gold Prices, Festive Outlook, Tariffs
In its earnings call, the management flagged high gold prices and shifting consumer preferences as key near-term concerns. “While gold remains at record highs, our light-weight and value-focused strategy is helping offset volume pressures,” said a senior Titan executive.
Other key highlights:
- Studded ratio dipped as buyers opted for coins and basic gold pieces.
- Average ticket size improved, helping offset footfall dips.
- International business in UAE and North America saw double-digit growth.
- Festive demand in Q2 is expected to support watches and jewellery sales.
On tariffs, Titan acknowledged global uncertainty but expressed confidence in domestic resilience.
Should Investors Worry? Or Accumulate on Dips?
While Titan’s Q1 results were optically strong, investors should be watchful of the reversal of one-off gains, margin volatility from gold, and macro disruptions. Yet, its consistent retail expansion, premium product positioning, and consumer loyalty make it a structurally attractive play.
With earnings visibility improving post-festive season and margins guided to remain steady, the stock, currently trading at ₹3,416, offers potential upside for long-term investors. Despite acknowledging challenges like inventory cost pressure and rising interest burden from higher gold holdings (₹75 billion YoY), PL Capital maintains a bullish view. “We estimate 27.5% PAT CAGR over FY25–27. The business continues to gain share and build premium salience. Our SOTP-based TP is revised to ₹3,901. Buy on dips,” the PL note stated.
