Titan Q3 Results: Profit Soars 61% to Rs 1,684 Crore

Introduction to Titan's Strong Quarter

Titan Company Limited announced a remarkable performance for the third quarter of the financial year 2025-26, ending December 31, 2025. The consumer discretionary giant reported a consolidated net profit of Rs 1,684 crore, marking a significant 60.8% year-on-year increase. This growth was largely fueled by strong consumer spending during the festive season, particularly within its dominant jewellery segment, which showed impressive resilience despite surging gold prices.

Detailed Financial Performance

The company's financial statements reflect robust growth across key metrics. Revenue from operations for the quarter rose by 43% year-on-year to Rs 25,416 crore, compared to Rs 17,740 crore in the same period of the previous year. This substantial top-line growth translated directly to improved profitability. Earnings Before Interest and Tax (EBIT) stood at Rs 2,657 crore, a notable increase from Rs 1,627 crore in Q3FY25. Consequently, the company's earnings per share (EPS) improved to Rs 18.98 from Rs 11.80 in the corresponding quarter of the previous year, highlighting enhanced value for shareholders.

Jewellery Division Leads the Charge

The jewellery division, the cornerstone of Titan's business, delivered an exceptional performance, with its portfolio growing by 42% to Rs 22,517 crore, excluding bullion and digital gold sales. This growth is particularly noteworthy given the high gold price environment during the quarter. The company attributed this success to blockbuster festive collections, impactful brand campaigns, and effective exchange programs that resonated with consumers. Brands like Tanishq, Mia, and Zoya collectively grew by 40%. The demand was broad-based, with plain gold jewellery growing in the high-thirties and studded jewellery recording its best performance of the fiscal year with mid-twenties growth.

Strategic Retail Expansion

Titan continued its aggressive retail expansion strategy. The jewellery segment saw a net addition of 49 new stores in the third quarter. This included 24 new Caratlane stores, 11 Mia stores, and 10 Tanishq outlets in India. The company also expanded its international footprint, with Tanishq opening two new stores in the United States, located in Boston and Orlando. This expansion is a key part of Titan's strategy to capture new markets and demographics.

Watches and Wearables Segment Growth

The watches and wearables division also posted healthy growth, with revenue increasing by 14% to Rs 1,295 crore. The demand was primarily driven by the analog watch segment, which grew by 20%, fueled by festive gifting and a continued consumer preference for classic timepieces. The company's premiumization strategy proved effective, with brands like Titan, Fastrack, and Sonata all recording double-digit growth. However, the smartwatch category faced headwinds, with volumes declining by 27% year-on-year amid stable pricing.

Performance of Other Business Verticals

Titan's other business segments also contributed positively to the overall performance. The Eyecare division saw healthy demand, with lenses and sunglasses achieving double-digit growth. Emerging businesses showed strong momentum, with the women's bags segment recording double-digit growth and the fragrances business surging by 24%. Taneira, the company's ethnic wear brand, saw its consumer business grow by 7%, led by an increase in average selling prices.

Management Commentary

Ajoy Chawla, Managing Director of Titan, commented on the results, stating, "We marked a stellar third quarter of 40% growth characterized by a strong performance across our key businesses. The festive period spurred broad-based consumer interest across our portfolios, underscoring resilience in premium and accessible segments alike." He emphasized the success of the jewellery business's customer engagement strategies and the sustained growth trajectories of the watches and eyecare businesses.

Market Reaction and Outlook

Following the announcement of the strong quarterly numbers, Titan's shares performed positively. On February 10, the stock closed 0.24% higher at Rs 4,267 per share on the BSE, with a market capitalization of Rs 3,78,822.79 crore. The robust performance across multiple segments, coupled with strategic initiatives like the recent acquisition of a majority stake in Damas Jewellery, positions Titan well for continued growth. The company's ability to navigate challenges like high commodity prices while driving strong consumer demand underscores its market leadership and operational strength.