Titan's Q1 profit jumps 63% to ₹1,777 crore as jewellery business shines despite overseas drag

Titan Company began FY27 on a strong footing, reporting a 63% year on year rise in consolidated net profit to ₹1,777 crore for the quarter ended June 30, as robust festive demand, higher ticket sizes and continued premiumisation across its consumer businesses lifted performance.

Revenue, excluding bullion and digi gold sales, rose 40% to ₹20,753 crore, led by a sharp jump in jewellery sales, while watches and eyewear also delivered double digit growth. 

The Tata Group company said profit before tax increased 64% to ₹2,429 crore. Adjusted for the impact of the increase in customs duty on gold, profit before tax rose 37% over the year ago quarter. The reported profit included customs duty gains of ₹407 crore. 

The jewellery business continued to drive growth, with revenue rising 43% to ₹18,253 crore, supported by healthy demand during Akshaya Tritiya and a relatively stable gold price environment. The company said double digit buyer growth, coupled with higher average ticket sizes, helped lift both plain and studded jewellery sales. 

Within India, jewellery revenue climbed 38% to ₹16,943 crore. The combined Tanishq, Mia and Zoya brands generated ₹15,502 crore, while CaratLane grew 40% to ₹1,441 crore. International jewellery revenue more than doubled, rising 136% to ₹1,309 crore, driven by strong traction for Tanishq in North America and double-digit growth in the Gulf.

The recently acquired Damas business, however, remained under pressure.

International business faces pressure despite strong consumer demand

Despite the strong top line performance, Titan's international jewellery business continued to weigh on profitability. The segment reported an EBIT loss of ₹8 crore, with the Damas business alone posting a loss of ₹67 crore during the quarter, even as Titan's own international brands generated an EBIT of ₹59 crore. 

The watches business also delivered a healthy performance, with revenue increasing 21% to ₹1,543 crore and EBIT reaching ₹295 crore. Growth was led by analogue watches, while the smart watches category declined in single digits. Titan added 34 net watch stores during the quarter. 

EyeCare maintained its momentum, posting 21% revenue growth to ₹289 crore, helped by premium products and marketing investments. EBIT stood at ₹24 crore, while the company expanded its network with seven new stores. 

Among emerging businesses, fragrances and women's bags performed well, but Taneira's revenue remained flat. Collectively, the segment grew 18% to ₹128 crore but reported a loss of ₹39 crore during the quarter. Meanwhile, Titan Engineering & Automation Ltd recorded 43% growth in revenue to ₹438 crore and an EBIT of ₹143 crore. 

Managing director Ajoy Chawla said, "Q1FY27 was a strong opening quarter for us, with our Consumer Businesses registering 40% YoY growth. Through innovation and design led differentiation, our portfolio of brands across Jewellery, Watches, EyeCare and Emerging businesses continue to deliver exceptional value to customers seeking premium offerings." 

He added that while the quarter delivered broad based growth, it also required "significant agility" in responding to fluctuations in gold prices, changes in customs duty and geopolitical headwinds affecting international operations.

"We continue to remain focused on brand investment, customer engagement, and disciplined execution that has defined Titan's growth journey," Chawla said.