The company’s profit after tax (PAT) rose to Rs 1,030 crore, compared to Rs 770 crore in the corresponding quarter of the previous financial year. The figure comfortably beat Street estimates, which had pegged PAT at Rs 925 crore.
The upbeat performance was driven by robust demand in its core jewellery segment and better operating efficiency. Revenue from operations stood at Rs 13,192 crore, registering a 17% YoY growth over Rs 11,263 crore reported in Q1FY25.
Titan’s earnings before interest and taxes (EBIT) also saw strong growth, rising 33% to Rs 1,596 crore from Rs 1,203 crore in the year-ago period.
On a consolidated basis, the company’s PAT rose sharply by 53% to Rs 1,091 crore, compared to Rs 715 crore in the same quarter last year. Consolidated revenue rose 21% to Rs 14,966 crore from Rs 12,386 crore in Q1FY25.
The standalone profit margin improved by 97 basis points to 7.8%, while on a consolidated level, it stood at 7.3%, up 151 basis points YoY.Titan’s core jewellery business, which continues to be its largest revenue contributor, reported a 19% growth to Rs 12,797 crore (excluding bullion and gold-on-digital sales). The growth came despite elevated gold prices and challenging market conditions.
After its Q1 results, here’s what brokerage firms say:
Avendus: Buy | Target price: Rs 4,100
Avendus has trimmed its target price on Titan to Rs 4,100 from Rs 4,250 but maintained a ‘Buy’ rating on the stock.
The brokerage expects the company’s healthy growth momentum to continue. EBITDA margins are guided in the range of approximately 11–11.5%. Avendus highlighted Titan’s strong return on equity (ROE) of over 20% and robust liquidity position as key factors supporting its valuation.
The management remains confident about medium-term growth, driven by expectations of a strong second half. However, Avendus noted that near-term growth may face some impact due to a high base effect. The valuation has been revised to 60x FY27E EPS, up from 58x, to derive the new target price.
Motilal Oswal: Buy | Target price: Rs 4,150
Motilal Oswal has cut its target price on Titan to Rs 4,150 from Rs 4,250 but retained its ‘Buy’ rating.
The brokerage noted that FY26 has started strong, with margin guidance remaining intact. The growth trend is expected to continue, supported by operating margin expansion. Despite weak footfalls caused by elevated gold prices, overall growth was driven by an estimated 16% YoY increase in average ticket size. FY26 EBIT margin guidance for the watches segment remains in the mid-teens. MOFSL has left its FY26/FY27 EPS estimates unchanged and expects Titan to post a CAGR of 16% in revenue, 19% in EBITDA, and 23% in PAT over FY25–FY27.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)