Titan: Non-Jewelry Segment Beat Expectations in June Quarter

Consolidated jewelry sales (ex-bullion and Digi-gold sales) grew 19.3% YoY to INR 128 billion (bn) (HSIE’s estimate was: INR129bn). This increase was driven by ticket size growth. Domestic jewelry (ex-bullion and Digi-gold sales) grew 18.2% YoY (consolidated topline growth stood at 24.6% YoY at INR 165.2bn; HSIE estimate was : 159.6bn). Jewelry EBIT Margin (EBITM) (consolidated) expanded by 73bps to 11% (HSIE estimate was : 10%), led by a one-time 50bps hedging MTM (Mark-to-Market gains, which will unwind over the next six months.

Non-jewelry segment beat expectations. Sales in this segment grew 27.5% YoY to INR 19.3bn (HSIE estimate was : 18.7bn). While Q1 print was a reasonable one; Titan may have to deal with a high base effect for a couple of quarters and potentially price undercutting from unhedged jewelers in an elevated gold price environment (factored in).

We largely maintain our FY27/28 EPS estimates and our REDUCE rating with an unchanged DCF (Discounted Cash flow-based) Target Price (TP) of INR3,200/share (implying 50x Jun-27 P/E).

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Source: HDFC Securities Institutional Equities

Full Report: https://www.hdfcsec.com/hsl.docs/HSIE%20Results%20Daily%20-%2008%20Aug%2025%20-%20HSIE-202508080706568870240.pdf?t=88202571257260