Titan Q2 FY26 Results: Profit Soars 59%, Shares Gain 2.28%

Titan Shines with Strong Q2 FY26 Performance

Titan Company Ltd announced a robust financial performance for the second quarter of fiscal year 2026, ending September 30, 2025. The lifestyle major reported a consolidated net profit of ₹1,120 crore, marking a significant 59% year-on-year (YoY) increase. This impressive growth was driven by strong consumer demand during the early festive season, which boosted sales across its key business segments. Following the announcement, the company's stock gained 2.28% in a market where most sectoral indices were trading in the red.

Financial Highlights of the Quarter

The company's consolidated revenue from operations jumped 28.5% YoY to ₹18,837 crore from ₹14,656 crore in the same quarter of the previous fiscal year. This growth reflects the company's resilience and strong brand equity in a competitive market. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose by 46.3% YoY to ₹1,987 crore. Furthermore, the EBITDA margin saw a healthy improvement of 209 basis points, expanding to 12.1% from 10% a year earlier. The profit before tax (PBT) also showed strong growth, increasing by 60.5% YoY to ₹1,522 crore.

Jewellery Segment Remains the Crown Jewel

The jewellery division continued to be the primary growth driver for Titan. The segment's total income, excluding bullion and Digi-Gold, rose by 21% YoY to ₹14,092 crore. The domestic jewellery brands, including Tanishq, Mia, and Zoya, collectively grew by 18% to ₹12,460 crore. CaratLane delivered an exceptional performance with a 32% YoY growth, reaching ₹1,072 crore in revenue. The international jewellery business also showed remarkable traction, with revenue nearly doubling to ₹561 crore, fueled by strong demand in the UAE and North America.

Strong Growth Across Diversified Segments

Titan's other business verticals also contributed positively to the quarterly results. The watches and wearables segment recorded a revenue growth of 13% YoY to ₹1,477 crore, with an EBIT of ₹238 crore, reflecting a healthy margin of 16.1%. This growth was supported by a trend towards premium products and strong sales from the Fastrack and Titan brands.

The eyecare business saw its revenue increase by 9% YoY to ₹220 crore, with sunglasses outperforming prescription eyewear. The emerging businesses portfolio, which includes Taneira, Fragrances, and Women’s Bags, grew by a combined 34% YoY to ₹142 crore, with segment losses narrowing, indicating improved operational efficiency. Titan Engineering & Automation Ltd (TEAL) recorded stellar growth, with its revenue more than doubling by 112.2% YoY to ₹415 crore.

Management Commentary and Strategic Moves

C K Venkataraman, the Managing Director of Titan Company, stated that the quarter started slowly but performance improved progressively, with strong demand momentum during Navratri leading to healthy growth. He highlighted the jewellery business's benefit from this late surge, underscoring the strong consumer affinity for its brands. Venkataraman also mentioned the company's plan to acquire a controlling stake in 'Damas Jewellery' in the GCC region, a significant step in its global expansion strategy. The company remains focused on strengthening its brand presence and accelerating growth across all businesses, driven by positive consumer sentiment during the festive season.

Market Reaction and Brokerage Outlook

Despite a weak broader market where the S&P BSE Sensex declined by 0.62%, Titan Company's shares gained 2.28%. This positive movement reflects investor confidence in the company's strong earnings and future growth prospects. Leading brokerage firms have maintained a bullish outlook on the stock, reiterating their 'Buy' recommendations. JM Financial, for instance, has assigned a target price of ₹3,950 for the stock, citing strong festive season momentum and a favorable product mix.

Future Outlook

With the festive and wedding seasons ahead, Titan is well-positioned to capitalize on increased consumer spending. The company's strategy of expanding its retail footprint, with 55 new stores added in the quarter, along with its focus on premiumisation and international expansion, provides a solid foundation for sustained growth. The planned acquisition of Damas Jewellery is expected to further strengthen its global presence and contribute to long-term value creation for shareholders.