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Studded shines; buyer growth awaited

Titan Company’s (TTAN IN) consolidated revenue (ex-billion and digi-gold) grew 23.5%% YoY to INR 203.4bn, as estimated. Domestic jewelry grew 20.8% (excl. Bullion and Digi-gold sales), even though part of the festival calendar moved to Q3. International business grew by 40% (excluding DAMAS). Plain gold demand slowed in September as customers waited for prices to settle. Studded jewelry grew 32% YoY (35% ofdomestic sales),ledby promotions. Domestic jewelry EBIT grew 52.7% YoY, due to customs duty gains (INR 5.4bn), adjusting for which, EBIT grew by 17.1% YoY,with normalizedEBIT margin down 40bps YoY to 10.6%. Buyer growth was flat for Tanishq Mia, Zoya and Beyon and in double digits for CaratLane. Management indicated buyer growthasa key priority to sustain revenue momentum as benefit of gold prices inflation on ticket size begin to wane. We tweak our estimates to factor in custom duty gain in FY27 and maintain our estimates for FY28E/29E. We retain our TP at INR 5,300 on 60x (unchanged) March ’28E P/E and maintain Accumulate.

Studded carries Q2 as buyer growth stalls: Consolidated revenue (ex-billion and digi-gold) grew 23.5%% YoY to INR 203.4bn, in-line. Growth was resilient against a high base and the partial shift of the festival season into Q3. Tanishq, Mia and Zoya grew 20% YoY to INR 149bn, with SSSG at 15% YoY. Growth was entirely ticket-size-led, as portfolio buyer growth was flat YoY. CaratLane, delivered double-digit buyer growth. The studded portfolio grew 32% YoY, led by promotions, and studded mix was up 300bp YoY to 35%. CaratLane’sEBIT margin stood at 6.6% vs. 10.1% in Q2FY26. International business grew 105% YoY to INR 11.5bn, led by 41% growth in Tanishq, Mia and CaratLane, while Damas revenue stood at INR 3.64bn. Management expects buyers to return if gold prices hold at corrected levels. However, as highlighted in our recent report (Differentiation key as formalization accelerates, dated 25 September 2026), rising competition is making plain gold buyer acquisition structurally harder, especially in small-ticket segment. With ticket-size gains fading, buyer growth is the key metric to track, and TTAN is focusing on driving this

Watches, eyecare, and emerging businesses – Steady performance:

The watches division grew 27% YoY to INR 18.8bn, led by late-twenties growth in analog, supported by volume /ASP gains. Fastrack and Sonata delivered healthy double-digit growth. Titan World and Helios posted double-digit same-store growth, and smartwatches recovered to late single-digit growth. The eyecare business grew 27.7% YoY to INR 2.8bn, led by lenses, frames and sunglasses. Emerging businesses grew 20.8% YoY to INR 1.7bn, propelled by volume-led growth in SKINN and Fastrack fragrances and high-teens growth in Irth and Fastrack bags. Taneira grew in high single digit

Customs duty gains lift Q2 margins:

EBIT margin for the jewelry segment stood at 13.2%, up 420bpsYoY, on customs duty gains of INR 5.4bn. NormalizedEBIT margin for Tanishq, Mia and Zoya stood at 11.0% while CaratLane came in at 6.6%. Watches EBIT margin at 21.9% rose 579bps, while eyecare EBIT came in at 8.2%, up 273bps YoY.For jewelry,management retained its ~11% EBIT margin guidance.

Maintain Accumulate with TP of INR 5,300:

We tweak our FY27E estimates by 9% to factor in custom duty gain and strong operating performance in other businesses (ex-jewelry). We expect Q3 growth to be led by the shift in the festival season and the return of buyers if gold prices remain stable at corrected levels. Maintain Accumulate with TP at INR 5,300 on 60x March ’28E P/E.

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