Titan Q2 Results: Net Profit Soars 59% to Rs 1,120 Crore

Introduction to Titan's Strong Quarter

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 significant 59% year-on-year (YoY) increase in consolidated profit after tax (PAT), reaching Rs 1,120 crore. This growth was fueled by a strong festive season and consistent demand across its primary business segments. The company's consolidated revenue from operations saw a substantial jump of 28.5%, climbing to Rs 18,837 crore from Rs 14,656 crore in the same quarter of the previous fiscal year. The positive results led to a 2.28% gain in the company's stock price following the announcement.

Detailed Financial Performance

Titan's operational efficiency was evident in its Q2 FY26 metrics. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by an impressive 46.3% YoY to Rs 1,987 crore. The EBITDA margin also saw a healthy improvement, expanding by 209 basis points to 12.1% from 10% in the corresponding period last year. Profit before tax (PBT) increased by 60.5% YoY to Rs 1,522 crore. Consequently, the profit after tax (PAT) margin improved by 163 basis points, settling at 6.8% for the quarter. These figures underscore the company's ability to manage costs effectively while scaling its operations during a high-demand period.

Jewellery Division Shines Bright

The jewellery business continued to be the primary growth engine for Titan. The segment's total income, excluding bullion and Digi-Gold sales, increased by 21% YoY to Rs 14,092 crore. The domestic jewellery brands, including Tanishq, Mia, and Zoya, collectively grew by 18% to Rs 12,460 crore. CaratLane, a key subsidiary, delivered a remarkable 32% YoY growth, with revenues reaching Rs 1,072 crore. The company's international jewellery operations also showed strong traction, with revenue nearly doubling to Rs 561 crore, driven by robust performance in the UAE and North America. This highlights the growing global acceptance of Titan's jewellery brands.

Growth in Watches and Eyecare

The watches and wearables segment also posted healthy growth, with revenue increasing by 13% YoY to Rs 1,477 crore. The segment's EBIT stood at Rs 238 crore, reflecting a strong margin of 16.1%. Management attributed this performance to a successful premiumization strategy and the continued popularity of the Fastrack and Titan brands. The eyecare division reported a 9% YoY revenue increase to Rs 220 crore, with an EBIT of Rs 12 crore and a margin of 5.3%. Within this segment, sunglasses sales outperformed prescription eyewear, indicating a shift in consumer spending patterns.

Emerging Businesses Gain Momentum

Titan's emerging businesses, which include Taneira (Indian dress wear), Fragrances, and Women’s Bags, showed promising growth. The combined portfolio grew by 34% YoY, generating Rs 142 crore in revenue. Notably, segment losses narrowed from Rs 29 crore to Rs 24 crore, signaling improving operational efficiency. The Women's Bags category grew by 90%, while Fragrances expanded by 47% YoY, led by strong sales of Skinn and Fastrack perfumes. Furthermore, Titan Engineering & Automation Ltd (TEAL) recorded exceptional growth, with its revenue more than doubling by 112.2% YoY to Rs 415 crore.

Management's Perspective and Strategy

C K Venkataraman, the Managing Director of Titan, commented on the quarterly performance. He noted that while the quarter had a slow start, performance improved progressively, especially with the early onset of the festive season in September. "The demand momentum in Navratri was particularly strong leading to a healthy 21% growth in Q2FY26," he stated. Venkataraman emphasized the enduring consumer affinity for brands like Tanishq, Mia, Zoya, and CaratLane. He also highlighted the strategic plan to acquire a controlling stake in 'Damas Jewellery' in the GCC region, a move aimed at strengthening Titan's global footprint and delivering value to customers worldwide.

Market Reaction and Stock Outlook

The market responded positively to Titan's strong earnings report. The company's stock gained 2.28% on the day of the announcement. However, looking at a broader timeline, Asian Paints Ltd, a peer in the consumer durables space, has lost 4.32% over the last month, while the BSE Consumer Durables index gained 1.08%. Over the past year, the BSE Consumer Durables index has declined by 5.65%, in stark contrast to the 9.45% surge in the benchmark SENSEX. Analysts remain optimistic about Titan's future. Nomura, for instance, has initiated coverage with a 'Buy' rating and a target price of ₹4,275, citing the company's strong market position. The upcoming wedding season is expected to further boost demand, offsetting any potential short-term moderation in sales.

Conclusion

Titan Company's Q2 FY26 results demonstrate a powerful combination of brand strength, diversified product portfolio, and effective execution. The 59% surge in net profit, driven by the flagship jewellery division and supported by steady growth in other segments, positions the company for a strong fiscal year. With strategic initiatives like the Damas acquisition and a focus on premiumization, Titan is well-equipped to capitalize on future growth opportunities, both in the domestic market and internationally. Investors will be closely watching the company's performance during the upcoming wedding season, which is expected to sustain the current growth momentum.