Titan Company reported an impressive 81 per cent year-on-year consolidated revenue growth in Q4 FY26, largely fuelled by a sixfold surge in bullion and digital gold sales, even as its profit margins faced pressure from a shifting product mix and increased marketing investments.
Photograph: Amit Dave/Reuters
Key Points
- Titan Company reported an 81 per cent year-on-year consolidated revenue growth in Q4 FY26, primarily driven by its jewellery segment.
- Sales of bullion and digital gold surged sixfold, accounting for approximately a quarter of Titan’s consolidated sales in the quarter.
- Despite strong revenue, Titan’s gross and operating profit margins were impacted by a negative product mix, with a higher share of gold coins and increased marketing spends.
- Kalyan Jewellers also posted strong Q4 FY26 results, with 66 per cent year-on-year consolidated revenue growth, supported by robust same-store sales and store additions.
- Brokerages maintain a positive outlook on Titan, but highlight the company’s ability to maintain and improve margins as a key factor for future performance.
Jewellery majors Titan Company and Kalyan Jewellers posted strong numbers for the fourth quarter (January-March/Q4) of 2025-26 (FY26).
Powered by the jewellery segment, Titan posted 81 per cent year-on-year (Y-o-Y) growth in consolidated revenue for the quarter.
The jewellery segment, which accounted for over 90 per cent of Titan’s consolidated revenue and operating profit, grew 89 per cent, including sales of bullion and digital gold.
Sales of bullion and digital gold surged sixfold Y-o-Y in the quarter and accounted for about a quarter of consolidated sales.
Kalyan Jewellers’ Performance and Market Demand
Kalyan posted 66 per cent Y-o-Y growth in consolidated revenue, aided by its India business, which recorded industry-leading growth of 68 per cent Y-o-Y.
The company registered robust same-store sales growth of 47 per cent, supported by healthy store additions across Kalyan and Candere outlets.
The company said on-ground demand momentum remained healthy in Q4FY26, driven by strong festival and wedding demand.
Akshaya Tritiya sales were robust, and the company is witnessing encouraging demand in the current quarter as well.
Margin Pressures Amidst Strong Growth
Even as Titan’s top-line growth remained strong, margins at both the gross and operating profit levels came under pressure.
While brokerages remain positive on the outlook, the company’s ability to maintain and improve margins will be a key trigger going ahead.
At the current price, the stock, which has gained about 14 per cent since the start of April, is trading at 60x its 2026-27 (FY27) earnings estimates.
Kalyan, too, has gained by a similar extent since April and is trading at 25x its FY27 estimates.
Titan pointed out that secondary jewellery sales in the domestic market grew 54 per cent Y-o-Y, driven by broad-based consumer interest in the category despite record-high gold prices.
In addition to strong buyer growth of 8 per cent, there was a 40 per cent Y-o-Y increase in average ticket sizes.
Given higher gold prices, demand for exchange purchases remained strong, and Q4 saw double-digit growth in this category, driving higher-value consumer purchases.
There was strong buying interest in gold coins as well. For the second consecutive quarter, coin sales grew sharply and nearly trebled in value compared to Q4 of 2024-25.
Impact of Product Mix on Profitability
While this lifted overall sales, the rising share of bullion sales skewed the product mix negatively and weighed on margins.
The share of higher-margin studded jewellery in the domestic market, including CaratLane, stood at 31 per cent compared to 34 per cent in the year-ago quarter.
Even though the jewellery segment profit for the domestic business grew 41 per cent in the quarter, jewellery segment margins fell 42 basis points (bps) to 11.1 per cent due to the higher mix of gold coins and increased marketing spends.
Though CaratLane’s segment margin expanded 130 bps to 8.3 per cent, it was below expectations because of lower revenue growth and continued investment in campaigns.
Outlook and Brokerage Views
The company indicated that sustaining jewellery segment margins at current levels of 11-11.5 per cent would become challenging if gold prices continue to rise, as that would affect the product mix.
It is, however, aiming to sustain healthy segment profit growth going ahead. Motilal Oswal Financial Services Research has a “buy” rating on the stock with a target price of Rs 5,300.
The brokerage remains constructive on jewellery segment growth for leading players and believes Titan, with initiatives such as the exchange programme, will remain competitive.
While Q4 profitability was impacted by losses in the international business and higher spending at CaratLane, analysts at the brokerage, led by Naveen Trivedi, expect healthy domestic demand momentum to continue. Apart from industry formalisation, stability in gold prices could further improve margin visibility for the company.
Morgan Stanley Research has an “overweight” rating on the stock.
While higher-than-expected new customer acquisitions and market-share gains are positives for the company, volatility in gold prices could hurt near-term jewellery demand.
