Titan Expects Margins To Grow In Watches And Wearables Segment

Titan Co. is confident of “substantially” improving its gross margins in the watches and wearables category in calendar year 2025 and fiscal year 2026, fueled by robust sales growth, the company’s Managing Director C K Venkataraman told NDTV Profit.

In the December quarter, Titan reported a 14.9% year-on-year increase in total income from watches and wearables segment to Rs 1,128 crore, while its segmental EBIT margin expanded by 424 basis points to 9.8%. However, on an overall basis, the EBIT margin contracted to 9.3% from 11% a year ago.

Venkataraman said that the watches and wearables business of the company has been under pressure. "Gross margins have been under pressure because of deep customer discounts in the category and what we have to do. Obsolescence is not an easy thing to control.”

The Titan MD said that margins will improve in the near-term amid positive sales growth.

“We expect the gross margin in the wearables business to substantially improve in calendar 2025 as well as FY26 and sales growth also to sort of come back,” he said.

Talking about the margins on an overall basis, Venkataraman noted that the company will try not to let them fall below 11% in fiscal 2025, powered by the “multiple levers” available to it.

Despite a rally in gold prices that can affect the business, the margins will not fall below 11%, Venkataraman added.

Shares of Titan on Wednesday closed 3% lower at Rs 3,490.5 apiece on the BSE, compared to a 0.4% decline in the benchmark Sensex.