Titan Q2 Update: Consumer Business Rises 20%, 55 New Stores Added

Titan Co. announced on Tuesday that its consumer business saw a growth of 20% in the second quarter ended September.

The Tata Group-managed jewellery and watchmaker added 55 stores during the July-September quarter, taking its combined retail network presence to 3,377 stores, according to an exchange filing on Tuesday.

Its jewellery division, which contributes over three-fourths of its revenue, reported an 19% growth in the domestic market and added 34 stores. The growth in the quarter was on the back of large ticket size amid the surge in gold prices. This also helped offset marginal year-on-year decline in buyer counts.

"The impact of Q2FY25’s high base (due to custom duty reduction) was offset by early onset of festive season in September this year, compared to October in FY25," the company said in its exchange filing.

The growth of studded jewellery in Tanishq, Mia and Zoya was in mid-teens and outpaced plain gold jewellery growth. On the other hand, growth in gold coins continued to be strong reflecting investment sentiments of customers.

The like-to-like domestic sales for Tanishq and CaratLane were in double digit, Titan added. Caratlane in the quarter ended September saw a growth of 30%.

The watches and wearables division’s domestic business grew 12% on a year-on-year basis driven by 17% growth in analog segment. The growth was anchored by Titan brands strong double-digit growth and healthy volume offtake for the festive season. However, smart wearables category declines 23% year-on-year mirroring the broader stress in the segment. The segment added 15 new stores with seven in Helios, five in Titan World and three in Fastrack.

In the quarter, domestic revenue from the EyeCare Division grew 9% year-on-year, led by healthy performance from international brands, sunglasses and e-commerce channel.

In the emerging businesses, fragrances saw the highest year-on-year growth of 48% on the back of volume growth in Skinn and Fastrack. Women's bag segment rose 90% year-on-year and Taneira was up 13% year-on-year.

The international business in the September quarter grew 86% year-on-year, led by more than doubling of Tanishq's business in the US market and clocking strong double-digit growth in the GCC market. Tanishq added new stores in Virginia in the second quarter.

The business update was shared after market hours. The stock settled 0.21% lower at Rs 3,418.20 apiece on the NSE, compared to a 0.12% advance in the benchmark Nifty 50. The shares earlier during the day rose as much as 0.60% to Rs 3,445.90 per share.

Titan's shares have fallen 4.77% in the last 12 months and risen 5.07% year-to-date.

Out of 38 analysts tracking the company, 29 maintains a 'buy' rating, six recommend a 'hold' and three suggests 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 3,948.03 implies an upside of 15.5%.