Titan Company delivered robust financial results for Q1 FY27, with net profit surging 63% to ₹1,777 crore, significantly beating analyst estimates of ₹1,396 crore. According to latest reports, revenue from operations grew 29% year-on-year to ₹21,356 crore from ₹16,253 crore in the previous year, though this was slightly below the Bloomberg consensus estimate of ₹21,451 crore. The strong profitability was aided by a ₹407 crore benefit from increased customs duty on gold during the quarter, with ₹386 crore coming from the Tanishq, Mia and Zoya portfolio and ₹21 crore from CaratLane. EBITDA increased 58% year-on-year to ₹2,890 crore from ₹1,830 crore, with EBITDA margin improving to 13.5% from 11.1% in the corresponding quarter last year, ahead of the estimated 10.4%. The strong performance drove Titan shares to rise about 1.5% in early trade, with the stock trading at ₹5,010 around 9:35 am on NSE compared with its previous close of ₹4,941. The stock has gained over 7.78% in the past month and rallied more than 42% in the past one year, reflecting strong investor confidence in the company's growth trajectory.
A significant development in Titan's Q1 performance was the rare instance where diamond jewellery and gold jewellery both grew in the range of 34-35% during the quarter, as CFO Ashok Sonthalia revealed to NDTV Profit. This marked the first time in recent quarters that studded jewellery growth matched gold jewellery expansion, with Sonthalia noting that in previous quarters, studded jewellery growth had consistently trailed gold jewellery even when it was expanding. The shift was attributed to strong acceptance of lower-carat diamond jewellery, particularly in the 14-carat and 18-carat range, which has become "a sizable part" of overall jewellery sales and is lifting margins in the process. Buyer growth in studded jewellery had been "pretty encouraging," aided by new product launches at accessible price points across Titan's portfolio, with Sonthalia expecting the trend to continue in the second quarter coinciding with Titan's annual Festival of Diamonds. According to NDTV Profit, the combination of factors paints "a very attractive or encouraging picture for coming quarters."
The jewellery segment remained the primary growth driver, with revenue from Titan's jewellery business increasing 30% year-on-year to ₹19,002 crore. As reported by Mint, domestic jewellery income increased 38% to ₹16,943 crore, while Tanishq, Mia and Zoya together grew 38% to ₹15,502 crore. CaratLane recorded strong growth of 40% to ₹1,441 crore, and international jewellery income surged 136% to ₹1,309 crore. Jewellery buyer growth was around 5% during the quarter, with both plain and studded jewellery continuing to grow, and the recovery in studded jewellery from Q4 FY26 continuing into the June quarter. According to The Economic Times, growth was aided by festive purchases, Akshaya Tritiya demand and the company's gold exchange programmes, alongside a relatively stable gold-price environment through the quarter. The India jewellery business reported EBIT of ₹2,368 crore at a margin of 14%, while adjusted for customs duty gains, India jewellery EBIT stood at ₹1,961 crore with a margin of 11.6%. Looking ahead, Moneycontrol reports that Titan aims to double revenue from its jewellery business by FY30, while increasing domestic market share to around 11% from 8.5% currently, with growth levers including regionalisation, brand transformation, and core growth in both studded and gold in sub-₹1 lakh price points.
Titan continued its aggressive expansion strategy during the quarter, adding 33 jewellery stores on a net basis in India. This included four Tanishq stores, 17 Mia stores, one beYon store and 11 CaratLane stores, as reported by The Economic Times. Additionally, Tanishq opened two stores in the GCC region. The company's jewellery EBIT stood at ₹2,360 crore with a margin of 12.9%, while the India jewellery business reported EBIT of ₹2,368 crore at a margin of 14%. The watches business grew 21% YoY to ₹1,543 crore, led by premiumisation and demand for analog watches, with watches EBIT at ₹295 crore and a margin of 19.1%. The company added 34 net stores in the watches division during the quarter, including stores under Titan World, Fastrack, Helios and Helios Luxe. According to Moneycontrol, the company continues to target a doubling of revenue and earnings before interest and tax (EBIT) by FY30, implying around 20% annual growth over the next four years.
Managing Director Ajoy Chawla noted that the positive momentum witnessed in Q1 FY27 has continued into July, expressing optimism about the company's trajectory. As reported by Business Standard, Chawla stated that "The growth we have seen in the first quarter, and we are also seeing that July is not bad. I am seeing a certain positivity so far in the last four months." He emphasized that Titan remains on track to achieve the growth trajectory outlined at its investor day and could potentially outperform these targets in the current year given the strong start to FY27. According to Business Standard, Chawla said the company is "on trajectory for delivering the kind of growth that we had promised on the Investor Day, and we hope that we can, in fact, better it in the current year because we have started very well." On the jewellery business, which contributes around 90% of Titan's topline, Chawla reiterated commitment to delivering healthy double-digit value growth, stating it is essential to achieving Titan's FY30 goals. He cautioned against reading too much into short-term performance swings, whether positive or negative, while acknowledging that near-term performance would depend on external factors. According to ET Now, Chawla called the June quarter "another fantastic quarter" and said the performance was even stronger than previous quarters, with all-round growth across all businesses, all brands, subsidiaries, and good volume growth and buyer growth.
The international business remains a weak spot due to the war in West Asia, with Mint reporting that Damas has been impacted as jewellery purchases in Dubai, Saudi Arabia and other markets have fallen amid the conflict. Management indicated that excluding Damas, Titan expects its international jewellery portfolio to continue generating margins of around 5-6%, with the overall international business remaining profitable. According to The Economic Times, Damas contributed ₹396 crore in revenue during the quarter, with strong momentum for Tanishq in North America and double-digit growth in the GCC. The international jewellery growth of 136% was driven by these factors, while the company also benefits from differences between domestic and international gold prices, which added about 75-80 basis points to the jewellery margin. According to ET Now, Chawla expects these margins to remain sustainable, with most of the international portfolio, excluding UAE-based Damas, continuing to deliver mid-single-digit EBIT margins of 5-6%. The management pointed to a resurgence in studded jewellery demand, which began in Q4 FY26 and continued into Q1 FY27, with buyer growth in the studded segment rising since Q4 of last year. According to ET Now, Chawla said the company is benefiting from formalisation, India's broader growth story, rising participation from "middle India" and premiumisation, with significant room for growth across all businesses including jewellery, eyecare, watches, fragrances, bags and sarees.
