Titan Watches EBIT Rises 73% as Margin Reaches 21.9% in Q2FY27

Titan Company’s watches business reported earnings before interest and tax, or EBIT, of Rs 412 crore in the second quarter of financial year 2027 (Q2FY27), up 73.1% year on year, while its EBIT margin reached 21.9% from 16.1%. Titan linked domestic income growth of 27.2% to premiumisation and added a net 34 stores during the quarter.

What drove Titan’s watches revenue growth in Q2FY27?

Titan’s watches revenue growth was led by a 27.2% increase in domestic income to Rs 1,838 crore in Q2FY27, which management said reflected strong premiumisation trends. Domestic income was Rs 1,446 crore in the second quarter of financial year 2026 (Q2FY26), while total income rose to Rs 1,881 crore from Rs 1,477 crore.

The company said analogue watches grew in the late twenties, supported by both higher volumes and expansion in average selling price, or ASP. The Titan brand recorded double-digit growth, while Fastrack and Sonata each delivered healthy double-digit value growth. Smart watches returned to year-on-year growth in the late single digits, driven largely by premium Titan smartwatch sales and higher ASPs.

International income increased 37.6% to Rs 43 crore from Rs 31 crore, faster than domestic income in percentage terms. However, domestic income increased by Rs 392 crore, compared with a Rs 12 crore increase internationally, making the domestic business the main contributor to the Rs 404 crore rise in total income.

How did Titan’s watches profitability change?

Titan’s watches EBIT increased by Rs 174 crore to Rs 412 crore in Q2FY27 from Rs 238 crore in Q2FY26, a 73.1% rise that exceeded the 27.4% increase in total income. EBIT margin expanded by the reported 579 basis points to 21.9% from 16.1%; one basis point is one-hundredth of a percentage point.

Management said healthy revenue growth translated into operating-leverage gains for the watches business. Its stated drivers were premiumisation, volume growth and higher ASP in analogue watches, alongside premium Titan smartwatch sales. The presentation does not quantify the separate contribution of product mix, volumes or pricing to the Rs 174 crore increase in EBIT.

The reported difference between income and profit growth was substantial: total income rose by Rs 404 crore, while EBIT rose by Rs 174 crore. As a result, EBIT represented 21.9% of total income in Q2FY27, compared with 16.1% in Q2FY26, rather than remaining at the earlier margin as sales increased.

Which retail formats expanded and delivered like-to-like growth?

Titan added a net 34 watches stores in Q2FY27, comprising 17 Titan World stores, seven Fastrack stores, three Helios The Watch Store outlets, six Helios Luxe stores and one Nebula by Titan outlet. Titan World represented half of quarterly net additions, while Helios Luxe contributed six additions.

At Sep’26, Titan World had 781 domestic stores, up from 764 in Jun’26, and its area increased to 572,000 square feet from 554,000 square feet. Fastrack reached 274 stores from 267, Helios The Watch Store reached 307 from 304, and Helios Luxe reached 16 from 10. Nebula by Titan entered the network with one store and presence in one town.

Titan World recorded 26% overall retail growth and 20% like-to-like growth, while Helios The Watch Store reported 30% overall growth and 22% like-to-like growth. Fastrack posted 16% overall and 7% like-to-like growth. Large-format stores, or LFS, reported 19% overall growth and 18% like-to-like growth.

What new products and campaigns did Titan highlight?

Titan highlighted Titan Edge Squircle Titanium, combining the brand’s geometric design with Grade 5 titanium, and Titan Raga’s “Your Way Is Beautiful” campaign featuring Alia Bhatt. These initiatives accompanied the Titan brand’s reported double-digit growth in Q2FY27, although the presentation provides no product-level revenue or sales data for either launch.

Within premium brands, Nebula introduced Phool Chadar, a luxury watch collaboration with couturier Tarun Tahiliani under its “Her Moment” campaign. In the same quarter, Helios Luxe added six net stores to reach 16 at Sep’26, while Nebula by Titan added one store to reach one.

Fastrack introduced its Gelato Maxxing campaign featuring Siddhant Chaturvedi and a gelato-inspired collection, while Sonata debuted the Summit collection inspired by Ladakh’s peaks, glaciers and monasteries. Fastrack’s 16% overall retail growth and 7% like-to-like growth were reported alongside seven net store additions, taking its network to 274 stores at Sep’26.

Conclusion

Titan’s Q2FY27 watches results combined a 27.4% increase in total income to Rs 1,881 crore with a faster 73.1% increase in EBIT to Rs 412 crore. Management attributed the outcome to premiumisation, higher ASPs, analogue-watch volume growth and operating leverage, while each of the four reported retail formats recorded positive like-to-like growth.

The presentation discloses 34 net store additions but no forward store-opening target or scheduled watches-business update. The next results will show whether the 17 Titan World additions, six Helios Luxe additions and one Nebula by Titan outlet support further growth, and whether the 21.9% EBIT margin and late-single-digit smart-watch growth continue.