Titan Company Q2 FY27 Results (NSE: TITAN)
Signal: Margin expansion
The read
Q2FY27 sustained broad-based demand with revenue from operations up 10.1% YoY to ₹20,614 Cr and EBIT margin at 14.0%, but the 113.7% PAT increase to ₹2,393 Cr is not fully recurring because ₹536 Cr came from custom-duty gains and ₹671 Cr from an Ind-AS fair-value credit; the margin recovery remains intact after Q4FY26's 7% trough but was flat versus Q1FY27's 14%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹20,614 Cr | +10.1% | -3.5% |
| EBIT | ₹2,865 Cr | +59% | |
| Net profit | ₹2,393 Cr | +113.7% | |
| EPS | ₹26.96 | +113.4% | |
| EBIT margin | 14.0% |
P&L walk
Revenue from operations increased 10.1% YoY to ₹20,614 Cr and EBIT rose 59% to ₹2,865 Cr, with margin expanding to 14.0%; PAT growth to ₹2,393 Cr was amplified by ₹536 Cr of custom-duty gains and a ₹671 Cr non-operational Ind-AS credit.
Segments
Jewellery was the main earnings engine at ₹17,495 Cr of revenue and ₹2,300 Cr of EBIT, with watches adding ₹412 Cr of EBIT on 27% growth; Emerging Businesses dragged with a ₹6 Cr loss and international jewellery included Damas' ₹24 Cr loss.
Key positives
- Jewellery revenue rose 24% to ₹17,495 Cr, with studded growth in the early thirties and CaratLane revenue up 31% to ₹1,408 Cr, indicating improving premium and design-led mix.
- Watches revenue increased 27% to ₹1,881 Cr and EBIT reached ₹412 Cr at a 21.9% margin, supported by premiumisation and analog watches growing in the early thirties.
- EBIT increased 59% YoY to ₹2,865 Cr and reported EBIT margin expanded 299bps to 14.0%, extending the recovery from Q4FY26's 7% OPM.
Key concerns
- PAT rose 113.7% to ₹2,393 Cr, but ₹536 Cr of custom-duty gains and a ₹671 Cr fair-value credit were material contributors, making reported profit quality weaker than operating growth alone suggests.
- H1 operating cash flow was negative ₹11,177 Cr while H1 PAT was ₹4,170 Cr; inventory rose to ₹50,861 Cr from ₹42,743 Cr and trade receivables doubled to ₹1,836 Cr from ₹916 Cr.
- Finance costs increased 93.5% YoY to ₹536 Cr, alongside ₹24,191 Cr of current borrowings and ₹12,278 Cr of gold on loan.
- Damas reported a ₹24 Cr loss within international jewellery, and Emerging Businesses reported a ₹6 Cr loss.
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