Titan Company (TITAN) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw strong double-digit revenue growth across jewelry and watches, with robust buyer growth and continued investments in business expansion.

• Profitability was impacted by customs duty reduction on gold, leading to a significant one-time loss and margin compression.

• Management remains optimistic for the rest of FY25, citing festive and wedding demand, new store openings, and brand expansion.

• Premiumization and innovation in watches and jewelry continued to drive higher value product sales.

• Store expansion progressed as planned across Tanishq, Mia, CaratLane, and international markets.

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%.

• Jewelry EBIT margin dropped by 270 bps YoY, mainly due to customs duty loss, lower studded mix, and higher gold coin sales.

• CaratLane reported 28% YoY income growth and margin improvement, aided by cost control and stable studded margins.

Outlook and guidance

• FY25 jewelry EBIT margin expected between 11-11.5%, with potential to return to 11.5-12.5% in future years.

• H2 expected to outperform H1, driven by festive and wedding demand, and improved margins in diamond jewelry.

• Management expects continued competitiveness and growth across all business segments for the remainder of FY25.

• Continued focus on growth over margin in emerging businesses, with profitability expected to improve as scale increases.

• Revival in consumer interest in jewelry is expected to sustain, supported by new store openings and brand expansion.