Titan Company, a prominent player in the jewellery and watch industry, has reported a significant 13% increase in its consolidated profit after tax, reaching ₹871 crore for the fourth quarter of the financial year 2024-25. This notable rise in profits was largely attributed to robust sales across its various business segments, including jewellery, watches, and eyewear.
In comparison, the company had posted a profit of ₹771 crore during the same period last year. The positive earnings report led to a surge in Titan's stock price, which climbed as much as 4.76% to ₹3,530 per share on the National Stock Exchange (NSE) on May 9, 2025. At 10:50 AM, the stock was trading at ₹3,497.9, reflecting a 3.82% increase from the previous close.
Titan's total income for the quarter reached ₹14,049 crore, marking a 22.46% increase from ₹11,472 crore during the same quarter last year. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a substantial rise of 29.7%, amounting to ₹1,438 crore compared to ₹1,109 crore in the previous fiscal year.
C K Venkataraman, the managing director of Titan, commented on the company's performance, stating, "While FY25 was marked by multiple external events that had varying impacts on the businesses in general, Titan's businesses clocked yet another year of strong 22% revenue growth, resulting in the company crossing the impressive milestone of ₹50,000-plus crore of revenues for the full year." This growth trajectory is particularly impressive given the challenges posed by fluctuating gold prices and changing consumer sentiments.
In terms of segment performance, the jewellery division was a standout, contributing a significant ₹11,232 crore in revenue, which reflects a 25% year-on-year increase. The CaratLane Trading Private Limited, another of Titan's subsidiaries, reported ₹883 crore in income, up 23% year-on-year. The company's income from watches and wearables also grew by 20% year-on-year, reaching ₹1,126 crore, while the Eyecare business posted a 16% increase to ₹192 crore.
Titan's Board of Directors has recommended a dividend of ₹11 per share, pending approval from shareholders at the upcoming annual general meeting. This dividend announcement is likely to be well-received by investors, further bolstering confidence in the company's financial health.
Despite the challenges posed by elevated gold prices, which have affected consumer sentiment, Titan's management remains optimistic about the future. They project a 15-20% growth in the jewellery business in the near term, driven by a focus on market share expansion and catering to changing consumer needs. The company's store count reached 3,312 as of March 2025, and plans for further expansion are in place.
Brokerage firms have responded positively to Titan's quarterly results, with Motilal Oswal assigning a price target of ₹4,000, indicating a potential upside of 19% from the previous close. They noted that Titan's superior competitive positioning, particularly in sourcing and design, continues to set it apart from other players in the market. Nuvama has also raised its target price to ₹4,541, highlighting the company's strong operational leverage and anticipated growth in the upcoming quarters.
Analysts have noted that Titan's jewellery segment has shown resilience despite the high gold prices, with demand remaining robust during the wedding and festive seasons. This has led to a significant increase in average ticket sizes, although the growth in studded jewellery has been comparatively lower at 12% year-on-year.
As the company looks ahead to fiscal year 2026, all divisions are focused on expanding their market share and adapting to evolving consumer preferences. Venkataraman emphasized this commitment, stating, "As we look forward to FY26, all businesses of Titan Company are focusing on market share expansion in their respective categories and catering to the changing needs of our consumers."
The broader market context shows that Titan's stock price has performed well, gaining 9% over the past year and showing an 8.37% increase since the beginning of 2025. The stock has been a top gainer in the Nifty 50 index, reflecting investor confidence in the company's strategic direction and growth potential.
In summary, Titan Company's latest financial results underscore its strong market position and growth trajectory, driven by robust sales across its diverse product lines. With a clear focus on expansion and innovation, Titan is well-positioned to navigate the challenges of the current economic landscape and continue delivering value to its shareholders.
