Earnings Outlook
Watches, eyewear sales to add shine to Titan's Q1 earnings growth
This story was originally published at 23:02 IST on 5 August 2025
Register to read our real-time news.Informist, Tuesday, Aug. 5, 2025
By Narayana Krishna
HYDERABAD - Growth in domestic jewellery sales coupled with a healthy double-digit on-year rise in sales of watches, eyewear, and other products is likely to help Titan Co. Ltd. report strong earnings for the June quarter, according to analysts tracking the company. The Tata group company is also expected to report improved margins, in line with the overall operational performance, they said.
Analysts projected Titan's net profit for the June quarter to grow 20% on year to INR 9.2 billion, with revenue growth of a little over 19% to INR 143.5 billion, according to the average of estimates from 11 brokerages. On a trailing basis, the net profit is projected to rise nearly 6% and revenue around 7%, the estimates show.
Among the earnings projections available with Informist, Antique Stock Broking Ltd. has the highest net profit estimate for Titan at INR 9.97 billion while InCred Research Services Pvt. Ltd. has the lowest at INR 8.45 billion. For revenue, the highest estimate is INR 158.60 billion by InCred Research and the lowest is INR 130.92 billion by Kotak Institutional Equities. The company is scheduled to announce its June quarter earnings on Thursday.
In its quarterly update, Titan said sales from all its consumer businesses grew 20% on year for Apr-Jun. This was similar to the growth seen in the March quarter but sharply higher than the 10% growth recorded in the June quarter last year. Domestic jewellery sales rose 18% on year in the June quarter, slower than the 23% growth seen in the March quarter.
HDFC Securities Ltd. said that while buyer growth was muted during the quarter due to high gold prices, a higher ticket size helped Titan report growth in jewellery sales. InCred said Titan is expected to post 19.6% on-year sales growth in Apr-Jun, led by an 18% growth in jewellery segment sales and a 23% growth in the watches segment. Eyecare and emerging business sales are expected to grow 12% and 36%, respectively, InCred said.
Kotak said revenue from Titan's jewellery segment is expected to rise 17.5% on year in the reporting quarter, largely due to a sharp surge in gold prices. Sales in the watches and eyewear divisions are expected to report 15% on-year growth each during the quarter, Kotak said.
Nuvama Wealth Management Ltd. expects Titan to post strong growth of 21% in its jewellery business and overall revenue growth of 12% in the June quarter, given strong demand during the wedding season.
On the margins front, most analysts expect Titan's earnings before interest, tax, depreciation, and amortisation margin to improve on a year-on-year basis, led by the jewellery, watches, and eyewear segments.
Nuvama expects Titan's EBITDA margin for June quarter at 11.2%, up from 9.4% in the year-ago quarter. Motilal Oswal sees it at 10.2% while Kotak expects it at 10.8%. InCred said Titan's EBITDA margin is expected to expand 30 bps on year to 9.7% but may fall 60 bps on quarter.
Kotak said the recent surge in gold loan interest rates is expected to impact profit after tax for the quarter. The average of estimates from 10 brokerages for Titan's June quarter EBITDA is pegged at INR 15.10 billion. Analysts are looking for the company's commentary on the outlook for demand, particularly in the southern markets and the trend of interest rates on gold loans.
On Tuesday, shares of Titan ended at INR 3,418.20 on the National Stock Exchange, up 1.8%. The stock has risen nearly 1.5% since the company announced its March quarter earnings.
Of the 14 brokerage reports on the company available with Informist, 10 have a 'buy' rating with an average target price of INR 4,023 and four brokerages have a 'sell' rating with a target price of INR 3,417 per share.
Following are the Apr-Jun earnings estimates for Titan Co. Ltd. based on reports from 11 brokerage firms in the descending order by the estimate of net profit:
|
Brokerage name |
Net Sales |
Net Profit |
EBITDA |
|
|
--in INR million-- |
||
|
Antique Stock Broking Ltd |
1,49,782.00 |
9,965.00 |
15,887.00 |
|
Dolat Capital Market Pvt Ltd |
1,33,289.00 |
8,735.00 |
14,072.00 |
|
Motilal Oswal Financial Services Ltd |
1,56,868.00 |
9,747.00 |
15,950.00 |
|
Sharekhan Ltd |
1,56,580.00 |
9,630.00 |
-- |
|
JM Financial Institutional Securities Pvt Ltd |
1,35,211.00 |
9,582.00 |
15,140.00 |
|
Prabhudas Lilladher Pvt Ltd |
1,43,431.00 |
9,310.00 |
14,773.00 |
|
Nuvama Wealth Management Ltd |
1,34,497.00 |
9,278.00 |
15,016.00 |
|
HDFC Securities Ltd |
1,32,700.00 |
9,200.00 |
16,100.00 |
|
Kotak Institutional Equities |
1,30,916.00 |
8,804.00 |
14,128.00 |
|
Emkay Global Financial Services Ltd |
1,47,032.00 |
8,543.00 |
14,596.00 |
|
InCred Research Services Pvt Ltd |
1,58,601.00 |
8,447.00 |
15,384.00 |
|
Average |
1,43,537.00 |
9,203.73 |
15,104.60 |
End
Edited by Tanima Banerjee
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