Titan Q2 Results Preview: Consolidated revenue expected at Rs 14,430 crore, PAT seen rising to Rs 1,080 crore

Titan Company, part of the Tata Group, is set to release its Q2FY25 results today, with market anticipation high for strong year-over-year growth figures across its segments.

According to Zee Business estimates, Titan is projected to report a consolidated revenue of Rs 14,430 crore, marking a 15 per cent increase from Rs 12,530 crore in Q2FY24.

Additionally, EBITDA is expected to rise 16.4 per cent to Rs 1,640 crore, improving margins slightly to 11.4 per cent from 11.3 per cent. PAT is anticipated to grow by 18.4 per cent year-over-year to Rs 1,080 crore.

Segmental performance and store expansion

Titan's standalone performance for Q2FY25 is estimated to reflect a robust 25 per cent growth, with jewellery leading at 26 per cent, followed by watches at 19 per cent, eyewear at 6 per cent, and emerging businesses at 14 per cent. The CaratLane division, specifically, is expected to have grown by 28 per cent year-over-year. Additionally, Titan has expanded its retail footprint, adding a net total of 75 stores, which brings the company’s total to 3,171 outlets. The recent cut in customs duty has notably boosted short-term demand, enhancing sales in Titan’s core segments.

Impact of One-Time Inventory Loss and Exceptional Charges

Analysts, including Kotak Institutional Equities, foresee a one-time inventory loss estimated at Rs 325 crore due to the impact of the custom duty cut. This is part of a broader inventory adjustment, which could involve an exceptional charge estimated at Rs 3,250 crore. For Q2FY25, standalone jewellery sales are projected to grow around 21 per cent, excluding bullion. However, the jewellery EBIT margin may face an 80 basis points decline year-over-year, influenced by a three per cent drop in studded jewellery’s share, with continued pricing adjustments in the gold and diamond segments. 

As of early trading on November 5, Titan shares have shown slight gains, but the stock remains down over 11 per cent year-to-date, reflecting ongoing pressures despite strong operational performance. Investors will closely watch how today’s earnings announcement aligns with the market’s projections.