Titan Company (TITAN) Q2 25/26 earnings summary

Executive summary

• Q2FY26 saw consolidated total income rise to ₹16,649 crore, up 22% YoY, with profit after tax up 59% to ₹1,120 crore, driven by strong festive demand and robust growth across all businesses and markets.

• Jewellery business grew 21% to ₹14,092 crore, with CaratLane up 32% and international jewellery nearly doubling; watches grew 13% to ₹1,477 crore, and EyeCare rose 9%.

• Acquisition of a 67% stake in Damas Jewellery in the GCC region was announced, marking a significant international expansion.

• Retail network expanded with multiple new store additions and significant investment in store renovations.

• Board approved appointment of Mr. Ajoy Chawla as Managing Director effective January 2026.

Financial highlights

• Consolidated EBIT for Q2FY26 was ₹1,799 crore (up 51% YoY), with EBIT margin improving by 211 bps to 10.8%; EBITDA margin improved to 12.1% (consolidated), up 209 bps YoY.

• Standalone Q2FY26 total income (excl. bullion) was ₹14,684 crore, up 17.9% YoY; PAT up 42.9% YoY to ₹1,006 crore.

• Jewellery EBIT margin rose to 11.0% (consolidated), up 220 bps YoY; Watches EBIT margin improved to 16.1%.

• CaratLane margins expanded by 250 bps to 10% YoY, driven by product mix and operational improvements.

• Consolidated inventory increased by INR 9,500 crore, mainly due to higher gold prices and seasonal upstocking.

Outlook and guidance

• Management remains optimistic, expecting growth rates by YTD December to surpass first half growth, with continued strong performance anticipated in the wedding season.

• International expansion, especially in the GCC, is a strategic priority following the Damas acquisition.

• Margin guidance remains unchanged, but volatility in gold prices poses ongoing challenges; EBIT growth expected to be in line with revenue, though margin pressure persists.

• Store opening target for Tanishq remains at 40 for the year, with 70-80 store renovations expected.