Timex Group India closes FY2025-26 with record revenue and sharper margins

Timex Group India Limited (TGIL) ended FY2025-26 with its strongest financial performance to date. The company reported total income of Rs. 80,063 lakhs for the year ended March 31, 2026, up 48 percent from Rs. 53,982 lakhs in FY2024-25. Profitability rose faster than revenue. EBITDA before exceptional items increased to Rs. 11,614 lakhs from Rs. 4,968 lakhs, taking the EBITDA margin to 14.5 percent from 9.2 percent.

The momentum accelerated in the March quarter. Q4 FY2025-26 total income came in at Rs. 23,583 lakhs versus Rs. 13,611 lakhs in Q4 FY2024-25, a 73 percent year-on-year increase. EBITDA before exceptional items rose to Rs. 4,100 lakhs from Rs. 1,508 lakhs, and the quarterly EBITDA margin expanded to 17.4 percent from 11.1 percent.

Management attributes the performance to a combination of premiumisation, strong brand resonance across its portfolio, and rapid growth in e-commerce and trade channels. The company also highlighted increasing consumer engagement through culture-led collaborations and a broader push to reinforce Timex as a lifestyle and fashion-linked brand.

FY2025-26 performance: growth with operating leverage

The audited financial statement shows profit before tax of Rs. 10,194 lakhs for FY2025-26 versus Rs. 4,277 lakhs in FY2024-25. Profit before exceptional items and tax was Rs. 10,725 lakhs, reflecting a one-time exceptional charge related to India’s new Labour Codes.

TGIL recognised an exceptional item of Rs. 531 lakhs for FY2025-26 towards incremental gratuity and leave encashment liabilities arising from the notified Labour Codes. The company classified this as non-recurring and regulatory-driven and stated that core operating performance remained unaffected excluding this impact.

Operating cost lines also show a business scaling up rapidly. Advertising and sales promotion spend rose to Rs. 6,603 lakhs in FY2025-26 from Rs. 4,390 lakhs in FY2024-25. Royalty expenses increased to Rs. 2,772 lakhs from Rs. 2,154 lakhs.

What changed in the quarter: premium push and channel acceleration

Beyond financial metrics, the investor presentation leaned heavily into brand building and consumer relevance. TGIL positioned the Timex brand as a “cultural constant” and showcased multiple collaborations and marketing platforms. The company cited rising acceptance of premium franchises and stronger engagement with fresh, culture-led collaborations as key drivers behind Timex-led portfolio growth, with Guess described as the next strongest growth contributor.

A notable product initiative in FY2025-26 was the launch of Timex Signio. The company described Signio as a new franchise to strengthen its premium occasion-wear portfolio for men in India. The collection includes automatic, slim, and multifunction variants designed to address evolving preferences in the premium analog segment.

The quarter also underlined the company’s channel momentum. Management commentary in the presentation refers to robust growth across e-commerce and trade channels. In the press release included in the filing, TGIL stated that e-commerce grew 90 percent in FY2025-26 and 158 percent in Q4 FY2025-26 versus the prior year period. The trade channel growth is stated at 32 percent for the year and 52 percent for the quarter, while retail is stated to have delivered 112 percent year-on-year growth in the quarter.

Manufacturing and scale: Baddi plant capacity raised to 6 million units

TGIL’s growth push is backed by its manufacturing footprint in India. The investor presentation highlights the Baddi, Himachal Pradesh assembly unit as a state-of-the-art facility with SA8000:2014 and ISO 45001:2018 certifications. The plant assembles watches from piece parts to completed products and handles more than 150 movement types across analog quartz, mechanical, digital, ana-digi, and connected categories.

The company stated that the unit produced about 4 million units last year and that capacity has been increased to 6 million units in a single-shift operation in FY2025-26. The press release further notes a roadmap to scale capacity to 10 million units to support sustained growth and improve supply agility, though it does not specify a commissioning timeline.

The balance sheet reflects a business preparing for higher volumes. Inventories increased to Rs. 19,693 lakhs as of March 31, 2026, from Rs. 15,131 lakhs a year earlier. Trade payables also rose, including MSME dues of Rs. 2,347 lakhs and other creditor dues of Rs. 9,732 lakhs. The cash flow statement shows that while inventories absorbed Rs. 4,562 lakhs in FY2025-26, operating cash generation improved significantly. Cash generated from operations was Rs. 11,907 lakhs, and net cash from operating activities was Rs. 9,099 lakhs.

Capital structure actions and regulatory disclosures

The board meeting outcome filing includes decisions that add context to FY2025-26 cash flows. The company reported redemption of 13.88 percent cumulative redeemable non-convertible preference shares amounting to Rs. 2,290 lakhs, and multiple preference dividend payments and recommendations, including payment of accumulated unpaid dividends for earlier years.

The company also disclosed the re-appointment of Grant Thornton Bharat LLP as internal auditors for FY2026-27, and Deloitte Haskins and Sells LLP issued an unmodified opinion on the audited financial results for FY2025-26.

Takeaways

TGIL’s FY2025-26 performance shows a sharp step-up in scale, profitability, and operating leverage. Total income reached about Rs. 800 crore, EBITDA margin expanded to 14.5 percent, and Q4 delivered an even stronger 17.4 percent EBITDA margin as the company accelerated premiumisation and channel execution.

The next phase will be judged on whether this growth remains durable as the company invests in brand building and carries higher working capital to support scale. Management’s stated focus remains on expanding the portfolio, sharpening the brand mix, scaling manufacturing capabilities, and deepening consumer relevance through design and cultural partnerships, with capacity expansion at Baddi positioned as a key enabler.