Titan Q2 Results: Profit Falls 23%, Misses Estimates

Titan reported strong growth across its key business segments, driven by a rebound in domestic demand, particularly within the jewellery segment.

Jewellery revenue saw a 15% growth, reaching Rs 12,771 crore, with a 25% jump in domestic income to Rs 10,568 crore. A surge in demand, spurred by a reduction in customs duty on gold, bolstered buyer growth by around 12% and improved average selling prices by 10%.

The gold segment, including coins, grew nearly 30%, while the studded jewellery category rose 12%. CaratLane also contributed significantly, with revenue jumping 28% to Rs 829 crore, and studded jewellery sales surging by 41%.

The watches and wearables segment delivered a solid 19% revenue increase to Rs 1,304 crore, primarily driven by the analog watch category, where the Titan brand itself grew 32%.

Premiumisation continued to gain traction, evidenced by a 43% growth in the Helios channel, indicating robust consumer preference for premium brands. However, the wearables segment faced pressure on average selling prices, resulting in a 13% revenue decline despite double-digit volume growth.

Titan's Eyecare segment registered a 7% growth in revenue to Rs 202 crore, driven by healthy double-digit volume growth in frames and lenses, although sunglasses saw a seasonal dip. Notably, premiumisation in this segment was reflected in a 53% increase in sales of international brands, with lenses and frames seeing a good uptake.

In emerging businesses, Taneira grew by around 12% with the addition of new stores, expanding its footprint to 81 locations in 41 cities. The Fragrances segment saw revenue rise of 19%, led by a strong 26% growth in Skinn, supported by a 27% jump in volume, indicating steady consumer interest in Titan's expanding lifestyle offerings.