Titan Company, the Tata-Group's jewellery and watch maker, reported strong earnings for the first quarter of FY27, beating analysts' estimates, boosted by festive demand despite volatility in gold prices.
Titan's jewellery business remained the main growth driver, while the Watches and Eyecare segments also witnessed decent growth.
Most analysts have maintained their bullish outlook on the company, with some raising their target price on Titan shares after the announcement of Q1 results.
Here's a look at Titan Q1 results:
Titan Q1 Results
Titan reported a consolidated net profit of Rs 1,777 crore in the June quarter, registering a growth of 63% from Rs 1,091 crore in the year-ago quarter. The company's total income in Q1FY27 rose 40% year-on-year (YoY) to Rs 20,753 crore.
Titan's Jewellery business grew 43% YoY to Rs 18,253 crore, while it achieved an EBIT of Rs 2,360 crore at a margin of 12.9%.
The Watches business reported a total Income of Rs 1,543 crores for the quarter growing 21% YoY. The segment's EBIT was at Rs 295 crore at 19.1% margin.
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Eyecare segment's total income grew 21% YoY to Rs 289 crore in Q1FY27, and recorded an EBIT of Rs 24 crore at 8.3% margin.
Brokerages have maintained their positive outlook on the stock, led by the company's strong execution and stable margins.
Here's what brokerages said on Titan Q1 results:
JP Morgan
- Maintained ‘Overweight' rating; Target price raised to Rs 5,465 from Rs 5,400
- Strong Q1 print despite volatility.
- Demand durability remains the debate, but execution drivers reassure.
- Multiple levers in place for Jewellery segment to sustain revenue and EBIT growth ambitions.
Morgan Stanley
- Maintained ‘Overweight' call, with a target price of Rs 5,483
- Q1 broadly in line, with headline margins boosted by one-off gains.
- Adjusted TMZ EBIT margin at 10.9%, with inventory gains and gold procurement benefits masking underlying margins.
- Buyer growth at 5%, while studded growth remained strong at 34% YoY.
- Margin outlook remains constructive with jewellery EBIT margins targeted at ~11% and gross-margin initiatives expected to benefit H2.
- Strong execution, stable margins and improving buyer/studded mix support continued stock outperformance.
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Macquarie
- Maintained ‘Outperform' rating, with a target price of Rs 5,400
- Q1 EBITDA beat was led by sharp CaratLane margin improvement and strong TEAL performance.
- Jewellery demand remains healthy, with management confident of sustaining double-digit sales growth even if gold price inflation moderates.
- Tanishq margin stood at 10.9% adjusted for one-off MTM gains, limiting scope to extrapolate Q1 margins.
- Studded jewellery growth continued to improve, while CaratLane margins expanded sharply to 10.1%.
- Turnaround potential in Damas and Titan's ability to balance strong growth with margins remain key positives.
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Jefferies
- Maintained ‘Hold' rating, and hiked Titan share price target to Rs 5,000 from Rs 4,800
- Strong Q1 momentum, with jewellery revenue grew 38% ex-bullion despite gold price volatility.
- Reported jewellery EBIT margin rose to 14.2%, but normalized margin at 10.9% was broadly in line with guidance.
- One-off inventory and MTM gains were boosted Q1 profitability, with MTM gains expected to reverse in coming quarters.
- Management remains confident of double-digit jewellery growth, driven by buyer acquisition and market-share gains.
On Friday, Titan share price ended 0.82% lower at Rs 4,943.00 apiece on the BSE.
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