Titan Q2 profit jumps 54% as ₹536 crore customs duty gain lifts earnings; board clears ₹2,500 crore NCD plan

Titan Company reported a 54% year-on-year increase in consolidated profit after tax (PAT) to ₹1,722 crore for the September quarter of FY27, although a substantial customs duty-related benefit contributed to the reported growth. Profit before tax (PBT) rose 53% to ₹2,329 crore, including a one-time benefit of ₹536 crore relating to gold, while adjusted PBT growth was considerably lower at 18%.

The customs duty benefit comprised ₹490 crore for Tanishq, Mia and Zoya and ₹46 crore for CaratLane. Excluding this benefit, Titan's PBT stood at approximately ₹1,793 crore, with a margin of 8.7%, against reported PBT of ₹2,329 crore at an 11.3% margin.

Total income, excluding bullion and digital-gold sales, increased 25% to ₹20,533 crore. Earnings before interest and tax (EBIT) grew 59% to ₹2,865 crore, with margins expanding to 14% from 11% a year earlier.

Titan's reported earnings exclude a separate ₹671 crore accounting gain from the revaluation of a liability linked to its Damas acquisition. This was a notional gain arising from a reduction in the estimated amount Titan may have to pay to acquire the remaining stake in Damas, rather than income generated from its business operations. Including this gain, Titan's statutory consolidated PAT stood at ₹2,393 crore, compared with the ₹1,722 crore figure presented in its earnings highlights.

Studded jewellery drives growth; international business doubles

Titan's jewellery business, which accounts for the bulk of its revenue, grew 24% to ₹17,495 crore. Domestic jewellery income increased 21% to ₹16,343 crore, with studded jewellery sales rising approximately 32% and plain gold jewellery growing around 20%.

Buyer growth for Tanishq, Mia and Zoya remained flat year-on-year, with higher average ticket sizes driving much of the increase. CaratLane's revenue rose 31% to ₹1,408 crore, although its EBIT, after excluding the ₹46 crore customs duty benefit, declined approximately 15% to ₹92 crore.

The international jewellery business more than doubled, growing 105% to ₹1,152 crore. Tanishq, Mia and CaratLane recorded combined growth of 41%, while Damas reported revenue of ₹364 crore during the quarter. However, the international business reported EBIT of just ₹20 crore, with Damas recording a loss of ₹24 crore.

Commenting on the performance, Ajoy Chawla, managing director, said consumer demand held up despite a strong base quarter and the shift in the festive calendar into the December quarter.

"Our Jewellery business grew well with design-led collections and attractive consumer offers resonating across markets and age groups," Chawla said. He added that premiumisation and design differentiation supported watches, while improved execution and customer experience sustained EyeCare's momentum.

Noel Tata to retire; board approves NCD fundraising

Separately, the statement said that Noel N. Tata will retire as vice-chairman and non-executive, non-independent director with effect from November 12, 2026, in accordance with Tata Group Governance Guidelines. Tata has been associated with the company since August 2003. The board placed on record its appreciation for his contributions over 23 years.

The board also approved a proposal to raise up to ₹2,500 crore through rated, listed, redeemable, unsecured non-convertible debentures (NCDs) on a private-placement basis. A board committee has been authorised to finalise the issuance terms and allotment. The fundraising proposal has been approved but the debentures have not yet been issued.