Analyst Concall
Titan to focus on light gold pdts, gold exchange for growth
This story was originally published at 10:51 IST on 4 November 2025
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--Titan: Have introduced pdts in lower price bands to push buyer growth
--CONTEXT: Titan management's comments at conference call with analysts
--Titan: Offerings in 14 carat gold pdts gone up in stores
--Titan: Will offer more lighter gold pdts to drive demand going forward
--Titan: Increasingly difficult to project margins owing to high gold prices
--Titan: Target to open 40 stores in FY26, renovate 70-80 stores
--Titan: Introduced sub-INR 100,000 pdts in Jul-Sept to push demand
--Titan: See growth in top line, profits in Q3 if gold prices stabilise
--Titan: Not sure if we can hit margin highs of 3-4 yrs ago right now
--Titan: Gold exchange driving demand in wedding season
--Titan: See Apr-Dec growth rate better than H1
--Titan: N America business continues to grow despite price hikes
--Titan: Have not seen much growth in demand for lab-grown diamonds for now
--Titan:Aim to push buyer growth in sub INR 100,000 studded jewellery segment
--Titan: EBIT growth might be slower than revenue growth in FY26
By Avishek Rakshit & Anshul Choudhary
KOLKATA/MUMBAI – Targeting higher top line growth in the December quarter compared with what it registered in the first half of the current financial year, Titan Co. Ltd. is increasingly pushing sales of value products in the sub-INR 100,000 segment and step up its gold exchange programme, a senior company official said Tuesday.
The company expects that these strategies will help reinforce consumer demand at a time when gold prices are exorbitantly high resulting in lower jewellery demand. At the same time, the company is also increasingly focussing on pushing sales of studded jewellery, which accounts for 34% of the company jewellery business, in the sub-INR 100,000 price points.
In the first half of the current financial year, Titan's net profit rose 38% on year to INR 20.4 billion on the back of a 23% growth in its revenue from operations to INR 311 billion. The EBIT of the jewellery segment jumped 48% on year to INR 13.8 billion in the September quarter, with the EBIT margin expanding to 11% from 8.7% a year ago.
"We have done a lot more work in terms of populating price points in the sub INR 100,000 bracket. We've been doing a lot more introductions and lower grammages, certainly 14 carat offering in the stores has gone up," C.K. Venkataraman, the managing director at Titan told sector analysts in a post-earnings call Tuesday morning.
Venkataraman said that apart from introducing lower priced jewellery, the company also introduced a "very powerful" gold exchange campaign which helped drive sales in the festival period. Usually, when gold prices are high, some consumers prefer to melt down old gold and exchange it for new jewellery instead of making new gold purchases. Such exchanges, while it benefits the consumer to get a new product, also helps the company to improve its profits as the jeweller charges jewellery making charges from the consumer.
The company official said that while gold exchange had helped revive consumer demand to some extent, such scheme is also driving sales in the upcoming wedding season.
Venkataraman said that Titan is hoping of a higher top line and bottom line growth in the December quarter which will be better than the first half of the ongoing financial year and in the Apr-Dec period taken together, if gold prices stabilise.
"Nine months will be better than first half," he said.
However, it is increasingly difficult to predict the margins given the volatility in gold prices, he said later adding that the company is not sure if it can hit high margins like it did 3-4 years back. Also, the EBIT growth going for 2025-26 (Apr-Mar) may be lower than the top line growth, Venkataraman said. During the September quarter, the earnings before interest and tax margins increased to 11.1% as compared with 8.8% in the year-ago period.
However, in an investors' presentation, the company said that EBIT margins were under pressure on account of skewed product mix resulting from higher gold coin sales, reduced studded margins on account of gold price jump, and investments in exchange offers and campaigns to drive growth.
During the current financial year, Titan is aiming to open 40 new jewellery stores and renovate 70-80 jewellery stores to drive growth.
A second company official said that the company's operations in North America have been doing well despite the sharp surge in gold prices.
"The North American market continues to power ahead much faster...And whereas in the Middle-East (West Asia), we are in a way, challenger, because we've come in late, but we've nevertheless seen healthy (growth)," the second official said later adding that the company till now have not seen much demand for laboratory grown artificial diamonds.
For its watches business, Titan will focus on expanding the Helios branded store network which primarily sells high-value and luxury products.
At 1025 IST, shares of Titan traded 1.7% higher at INR 3,788.50 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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