Titan Company Ltd reported fourth-quarter profit below market expectations on Tuesday, as rising costs offset strong demand for gold ornaments and coins during the quarter ended March 31.
The company, which operates jewellery brands including Tanishq and CaratLane, posted a profit of 11.79 billion rupees ($124.60 million), compared with 8.71 billion rupees reported a year earlier.
However, the earnings figure fell short of analysts’ average estimate of 13.92 billion rupees, according to LSEG data.
Rising costs weigh on margins
Gold prices rallied sharply over the last 12 months amid geopolitical tensions and macroeconomic uncertainty, contributing to inflation concerns and fears of weaker global growth.
While demand for gold ornaments and coins remained steady and consumer footfalls increased across Titan’s retail network, the surge in gold prices pressured margins.
Titan said its total expenses rose 85% year-on-year to 255.79 billion rupees, primarily due to higher raw material costs and increased advertising spending.
Despite the pressure on profitability, sales of products increased significantly to 206.07 billion rupees during the quarter, compared with 138.97 billion rupees in the same period last year.
Jewellery business records strong growth
Titan’s jewellery business delivered around 46% year-on-year growth during the fourth quarter of FY26.
The company said secondary consumer sales grew approximately 52% year-on-year, led by strong performances from Tanishq and Mia.
Despite the sharp increase in gold prices, Titan recorded high single-digit buyer growth during the quarter after witnessing nearly flat buyer growth during the previous three quarters of FY26.
The company also noted a considerable rise in average ticket sizes, which contributed to revenue growth.
Within the jewellery segment, studded jewellery posted strong growth in the early thirties percentage range, while plain gold jewellery grew in the mid-thirties.
Titan added 27 net new jewellery stores in India during the quarter, including eight Tanishq stores, 14 Mia stores, and five CaratLane stores.
Watches segment sees mixed performance
Titan’s watches division reported around 7% year-on-year growth during the quarter.
The growth was driven by a 16% increase in analog watches, while the smart watches category declined 53% year-on-year.
The company said analog watch growth was led by Titan, Sonata, and international brands, reflecting continued consumer demand across premium and entry-level categories.
Premiumisation trends also supported healthy increases in average ticket sizes.
The division added 30 net new stores during the quarter, including 17 Titan World outlets, seven Fastrack stores, four Helios stores, and two Helios Luxe stores.
Eyecare and emerging businesses maintain momentum
Titan’s EyeCare business grew approximately 16% year-on-year, supported by demand for international brands across sunglasses, lenses, and frames categories.
During the quarter, the division renovated 37 stores, closed 32 stores, and added 12 new outlets.
Among emerging businesses, fragrances grew around 30% year-on-year, led by double-digit volume growth in Fastrack and Skinn products.
Women’s bags business expanded 47% year-on-year due to new store additions and healthy volume growth in Irth and Fastrack brands.
However, Taneira’s sales declined around 1% year-on-year during the quarter.
International business posts robust expansion
Titan’s North America business continued strong momentum with approximately 50% year-on-year growth during the quarter.
As part of its strategy to leverage Damas’ existing GCC network, four Damas stores were converted into Tanishq outlets during Q4FY26.
The company said March witnessed significant disruptions in the Middle East region because of the war, which impacted sales across both Tanishq and Damas stores.
Despite these disruptions, Tanishq’s GCC business recorded healthy growth of around 37% year-on-year during the quarter.
Titan’s overall international business, including Damas, grew approximately 156% year-on-year.
As of March 2026, Titan’s international network included 149 stores in the GCC region, 12 stores in North America, and one Tanishq store in Singapore.
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