Titan posts strong Q2 with 10% revenue growth

TITAN posted its Q2 results with revenue rising 10 percent year-on-year. The core jewellery business grew 24 percent excluding bullion and digi gold, though overall jewellery growth was held to 7 percent due to a sharp drop in digi gold and bullion sales to Rs 226 crore. Tanishq, Mia, Zoya, and beYon reported a combined growth of 20 percent to Rs 14,935 crore with a same store sales growth of 15 percent. This matters because margins benefited from a Rs 536 crore inventory gain due to the customs duty hike on gold from 6 percent to 15 percent in May 2026. While headline net profits more than doubled, adjusted jewellery EBIT margins remained flat year-on-year at 11 percent once inventory and hedge impacts were stripped out. Studded jewellery outperformed with 32 percent growth, while plain gold grew 20 percent. The headline figures miss the contraction in low-margin bullion sales and the underlying margin reality, which is currently driven by inventory valuation changes rather than operational expansion alone. However, softer gold prices are aiding new buyer growth, and non-jewellery segments like watches and eyewear delivered 27 percent growth while emerging categories jumped 45 percent. Investors should watch festive demand sustainability following Navratri, Dhanteras, and Deepawali, along with the non-jewellery segment ramp-up and buyer acquisition trends as gold prices fluctuate. At the current market price of Rs 4,835, the stock trades at a P/E of 60 times FY28 projected earnings. Call: Add.