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Strong growth outlook across segments

We remain constructive on TTAN, supported by

1) healthy jewellery demand outlook for H2

2) jewellery margin guidance maintained at ~11% despite elevated competitive intensity

3) strong demand for studded jewellery (studded share at 35% up YoY)

4) robust order book in TEAL across machine automation and aerospace, with emerging opportunities in semiconductors. While the high gold price base and higher interest cost is likely to weigh on growth in 2H27, strong festive and wedding demand should provide an offset, given that we are heading towards a long wedding season till May2027. We expect 22% YoY growth in net jewellery sales in Q3, driven by strong festive demand. 2QFY27 performance was largely in line with our estimates (excustom duty gains), with healthy performance across segments.

TTAN’s long term outlook too remains positive given

1) likely uptick in consumer demand during upcoming wedding season as Gold prices remain benign

2) Success in light weight jewellery (9k and 14k) in Mia/Caratlane and 18k jewellery in Tanishq and Be-Yon in the LGD segment to cater to value seeking consumer

3) strong outlook in watches and improving economics in eyewear

4) TEAL emerging as third pillar of growth with rising opportunities and improving profitability. We estimate 19.7% EPS CAGR in standalone operations over FY27-29. We value Caratlane/TEAL at Rs278/183 per share and arrive at SOTP based target price of Rs5330. The stock trades at premium valuations of 51.1xFY29 and ~44.7xFY29 consol EPS. Cut to Accumulate.

Jewellery revenues grew by 5.4% YoY to Rs155.5bn; EBIT grew by 22.2% YoY to Rs16.9bn (Ex- Rs4.9bn gain amidst custom duty cut). Studded ratio at 35% increased YoY. Tanishq added 29 stores, taking the total to 539 stores. Gold jewellery sales increased by 5.4% while studded sales increased by 32%. Amid custom duty benefit of Rs4900mn, Tanishq witnessed strong traction in exchange led proposition led by higher average ticket size.

Watches and Wearables revenues grew by 27.1% YoY to Rs18.7bn; EBIT increased by 72.8% YoY to Rs4.1bn. Analog witnessed growth in late-twenties YoY driven by healthy volume and ASP expansion. Titan brand sustained double digit growth, while Fastrack and Helios witnessed slightly lower double digit value growth. Smart watches saw late single digit growth YoY, aided by higher ASP’s. The same store retail growth for Titan world/ Helios/ Fastrack/ LFS was 20%/ 22%/ 7%/ 18% respectively. Titan World/ Fastrack/ Helios/ Helios luxe added 17/ 7/3/6new stores respectively.

Eyewear revenues grew by 28% YoY to Rs2.87bn; EBIT grew by 108.3% YoY to Rs250mn; margins contracted by 346bps YoY to 9%. Titan eye + and Runway sustain the same store count during the quarter.

Emerging business sales grew 20.8%; losses narrowed to Rs60mn: Emerging Businesses (Taneira, Fragrances, Women's Bags) grew 18% to Rs1.71bn YoY. The combined losses narrowed to Rs60mn from Rs240mn in Q2FY26. Women’s Bags recorded growth in the high teens. Fragrances delivered another quarter of robust growth, supported by strong double digit volume growth and mid digit ASP expansion across Skinn and Fastrack. Taneira grew in high single digits for the quarter.

Caratlane - EBIT grew 27% to Rs1.38bn with 9.8% EBIT margin. Caratlane added 13 stores during the quarter, taking the total to 394. Caratlane had a total custom duty gain of Rs460mn.

TEAL - Teal reported 53% growth in sales to Rs6.36bn, while EBIT increased to Rs1.78bn. Teal business is expected to maintain momentum led by emerging opportunities in aerospace, electronics, semiconductors and new energy position the business for long - term growth.

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