Titan Company (TITAN) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw strong double-digit revenue growth, especially in jewellery and watches, after a muted Q1, with festive and wedding demand remaining robust.

• Profitability was impacted by customs duty reduction on gold, leading to a one-time loss and margin compression, but management remains optimistic for the rest of FY25.

• Analog watches experienced double-digit growth, driven by product innovation, premiumization, and strong execution.

• Store expansion continued across Tanishq, Mia, CaratLane, and internationally, with CaratLane surpassing 300 stores.

Financial highlights

• Q2 FY25 consolidated total income rose 26% YoY to ₹13,660 crore; standalone total income up 24.2% YoY to ₹12,458 crore.

• Q2 FY25 consolidated PAT declined 23.1% YoY to ₹704 crore; standalone PAT down 25% YoY to ₹705 crore.

• Q2 FY25 consolidated EBITDA margin fell to 9.9% from 14.2% YoY; standalone EBITDA margin dropped to 10.1% from 14.7%.

• Jewellery EBIT margin dropped to 8.7% from 14.1% YoY due to customs duty impact and investments; normalized margin at 11.4% excluding one-time loss.

• CaratLane EBIT margin improved to 7% from 4.1% YoY, attributed to sales growth and cost control.

Outlook and guidance

• FY25 jewellery EBIT margin guidance revised to 11%-11.5%, down from 11.5%-12.5%.

• Management expects continued competitiveness and growth across all business segments for the remainder of FY25, with H2 margins expected to improve over H1.

• Premiumization and product innovation expected to sustain growth in watches and other segments.