Shares of Titan, Tata Group’s jewelry-to-eyewear brand, gained nearly 3% in Tuesday’s trade, November 4, hitting a one-year high of ₹3,823 apiece, as investors reacted positively to the company’s September quarter performance, which was released post-market hours on Monday, coming in line with Street estimates.
Titan Q2 performance
The company reported a strong 59% year-on-year (YoY) jump in consolidated net profit to ₹1,120 crore, beating analysts’ estimates, driven by healthy growth across segments. The company’s consolidated revenue from operations during the reporting quarter stood at ₹16,649 crore, up 22% from ₹13,661 crore in the same period last year.
The jewellery segment, which accounts for over ₹14,092 crore”>80% of the company’s revenue, recorded a growth of 21% YoY to ₹14,092 crore (excluding bullion and digi-gold sales), driven by healthy growth in its India business.
Tanishq, Mia, and Zoya together recorded an 18% YoY growth to ₹12,640 crore, while CaratLane posted a strong 32% YoY growth to ₹1,072 crore during the same period.
The international jewellery business grew even stronger, with revenue nearly doubling to ₹561 crore. The Jewellery portfolio (Tanishq, Mia, and Zoya) recorded an EBIT at ₹1,381 crore for the quarter at a margin of 11.1%.
In the watches segment, the business recorded a growth of 13% over Q2FY25, with total revenue reaching ₹1477 crore.
The eyewear business posted a total income of ₹220 crore in Q2, reflecting a 09% YoY growth, and the emerging businesses segment, which includes Indian dress wear under Taneira, fragrances, and women’s fashion accessories (F&FA), recorded a total revenue of ₹142 crore, marking a 34% growth compared to Q1FY25.
Brokerages stay bullish on Titan after Q2
Nomura has a ‘Buy’ rating with a price target of ₹4,275 per share, noting that Q2 sales trends were strong and largely in line with earlier business updates.
Morgan Stanley maintained an ‘Overweight’ call with a target price of ₹3,953 per share, highlighting that Q2 revenue, EBITDA, and net profit were ahead of expectations.
The brokerage said demand accelerated through the quarter, with domestic jewellery witnessing strong Navratri traction. It cited Tanishq’s gold exchange program as a key growth driver despite elevated gold prices and said CaratLane recorded over 32% top-line growth, Moneycontrol reported.
Titan share price trend
The shares of Tata Group company have recovered nearly 30% from the March low of ₹2,985 to trade at the current level of ₹3,808.
Year to date, the stock has delivered a return of 17.10%. Since 2017, the stock has closed each calendar year in the positive zone, barring CY24, when it lost 11.5%.
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