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Informist, Saturday, May. 3, 2025

 

By Narayana Krishna

 

HYDERABAD – Even as high gold prices are expected to support Titan Co. Ltd.'s revenue growth in the March quarter, a decline in the share of studded jewellery sales and higher operating expenses are likely to weigh on the company's financials, according to analysts. 

 

The Tata group's flagship luxury jewellery and fashion retail company is expected to report a 4% year-on-year rise in its Jan-Mar net profit to INR 8.2 billion, based on the average of estimates from six brokerages.

 

Analysts' estimates for Titan's Jan-Mar net profit range from INR 7.7 billion, the lowest, by Nuvama Wealth Management Ltd., to INR 8.7 billion, the highest, by Morgan Stanley.

 

Titan's March quarter revenue is expected to rise 10% on year to INR 124.2 billion, according to the average of six estimates. Revenue projections range from INR 116.2 billion, the lowest, by Kotak Institutional Equities, to INR 142.4 billion, the highest, by MiraeAsset Sharekhan Ltd. Titan is scheduled to announce its Jan-Mar earnings Thursday.

 

In its quarterly disclosure to stock exchanges, Titan said its sales for the March quarter rose 25% on year, led by the jewellery segment and a significant increase in gold prices. The company reported 22% on-year growth in its watches division, 19% growth in the eye care division, and 22% revenue growth for the CaratLane division during the March quarter.

 

Kotak Institutional Equities said the share of studded jewellery sales may have declined by 200 basis points in the March quarter due to stronger demand for plain gold jewellery.

 

Morgan Stanley, in its pre-earnings note, said Titan's jewellery segment is likely to grow 22% on year, though higher gold prices may affect the revenue mix. The brokerage expects the jewellery segment's earnings before interest and tax margin for the quarter at 11.2%, compared to 12.1% a year ago.

 

Nuvama Wealth said the core jewellery business is likely to post 15.5% growth, with same-store sales growth in high single digits. 

 

Titan's ongoing investments in marketing and customer engagement initiatives are likely to have impacted margins, Nuvama added. It projects the company's March quarter earnings before interest, tax, depreciation, and amortisation to grow 15% on year to INR 12.7 billion. The average EBITDA estimate from five brokerages was INR 12.9 billion.

 

Analysts are keen to hear the company's commentary on the continued impact of high gold prices and the outlook for the eyewear and watches segments in the coming quarters.

 

on Friday, shares of Titan Co. ended at INR 3,341 on the National Stock Exchange, down 1.15% from its previous close. Titan has gained nearly 7% in the past 30 days, and is up nearly 3% so far in 2025.

 

Following are the Jan-Mar earnings estimates for Titan Co. Ltd., based on reports from six brokerages, in descending order of the the estimate of net profit:

 

Brokerage name	Net Sales	Net Profit	EBITDA
	--in INR million--
Morgan Stanley	1,21,548.00	8,663.00	13,282.00
Prabhudas Lilladher Pvt Ltd	1,28,161.00	8,533.00	13,374.00
Sharekhan Ltd	1,42,380.00	8,480.00	--
JM Financial Institutional Securities Pvt Ltd	1,19,926.00	7,920.00	12,411.00
Kotak Institutional Equities	1,16,173.00	7,917.00	12,627.00
Nuvama Wealth Management Ltd	1,17,006.00	7,689.00	12,765.00
Average	1,24,199.00	8,200.33	12,891.80

 

  End

 

Edited by Tanima Banerjee

 

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