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As per its Q2 business update, TTAN has exceeded our growth expectations across most business segments. Importantly, jewelry has reported a significant improvement with 26% growth in Q2 vs our 15% expectation and 9% growth in Q1. LTL growth has also inched upwards to the mid-teens vs 3% in Q1, likely triggered by a big 900bps duty cut. Revenue mix is likely a tad weaker with lowdouble-digits growth in the high-margin studded segment (vs ~25% overall growth). However, TTAN is comfortably placed to meet its ~12% jewelry EBIT margin guidance in FY25, in our view. Q2 outperformance should address investor concerns around potential moderation in growth for TTAN and drive a 4-5% increase in our earnings estimates. We recommend BUY with revised TP of Rs4,400/share (based on 65x Sep-26E EPS).

Significant growth pick-up in jewelry segment: TTAN has surprised positively with 25% growth in domestic jewelry business vs our expectation of 15% growth in Q2. Basis the historical difference of 5-6% between LTL and consumer sales, we believe the growth in consumer sales (secondary/retail sales) is closer to 20-21% as Q2 LTL is in mid-teens and the rest has been contributed by higher primary sales (likely festive-led) to franchisees. Still, this is a significant improvement vs Q1 LTL/secondary sales growth of 3%/9% and has likely been triggered by the big 900bps duty cut. Revenue mix is likely a tad weaker with low-double-digits growth in studded and high-double-digits growth (Emkay: ~30%) in plain gold. Encouragingly, lower studded growth is due to decline in solitaires which is a relatively lower margin segment within the overall studded business. In our view, TTAN is comfortably placed to meet its ~12% EBIT margin guidance in FY25.

Other business segments also deliver better growth: Watches segment also grew faster at 20% (vs expectation of 15%), led by 25% growth in analog watches and doubledigits decline in wearables (industry-wide challenges). Eyewear growth at 6% is in line with expectations. Caratlane/Emerging segments also saw pick up with 28%/14% growth in Q2 (18%/4% in Q1).

Store additions are in line for most segments: The store additions were in line with 75 additions across segments. TTAN added 11/11/1 stores for Tanishq/Mia/Zoya, 18/14/2 for Titan World/Helios/Fastrack, 2 for Eyewear, and 4 for Taneira. Caratlane added 11 stores (net) in Q1, taking the total to 286 stores.

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