Titan Company reported a strong performance for Q3 FY26, driven by robust festive demand, despite gold price volatility. Management highlighted the completion of a 67% stake acquisition in Damas, effective January 1st, which will be consolidated in Q4 results. Key areas discussed included sustained consumer demand, navigating gold price fluctuations through nimble product mix adjustments (like increased focus on 18-carat and lightweight jewellery), and maintaining margin discipline.
Titan Q3 FY26 Performance Overview
Titan Company Limited shared the transcript from its Earnings Conference Call held on February 11, 2026, covering the performance for the third quarter of FY26 (October–December 2025). MD Mr. Ajoy Chawla noted it was a great festive quarter achieved on a high base, complimenting teams for strong execution amidst volatility and competitive intensity.
CFO Commentary and Accounting Updates
CFO Mr. Ashok Sonthalia highlighted several key accounting and business points:
- The company completed a 67% stake acquisition of Damas. Its consolidation into Titan’s books begins from January 1st, meaning Q4 results will include Damas.
- Management urged stakeholders to focus on the consolidated performance view, incorporating CaratLane International, TEAL, and now Damas.
- An exceptional item impacting Q3 consolidated financials was the provision for the labour code impact, amounting to INR152 crores.
- Bullion and Digi-gold sales are always disclosed separately in notes and are excluded from performance-related metrics.
Jewellery Segment Insights
Mr. Arun Narayan (CEO, Jewellery) addressed growth trends and consumer behavior:
- January saw a good start, but ongoing gold rate volatility makes forecasting the rest of Q4 difficult.
- The old-gold exchange campaign intensity and the old-gold mix have sustained at high levels.
- New buyer contribution stood at 45% for the quarter, showing consistency, though overall buyer growth was flat, suggesting increased frequency from existing loyalty members (Encircle program, Tata Neu).
- In terms of ticket size, plain gold ticket size grew by 44%, while studded grew by only 15%, due to the higher impact of gold content price increase on plain gold.
- Overall average ticket size hovered around ₹1.9 lakhs for the quarter, noted as potentially the highest ever.
Margin Management Amid Rising Gold Prices
Discussions on margins revealed complex factors:
- The Jewellery gross margin (standalone) dipped by about 200 basis points, partially offset by 150 basis points of operating leverage.
- Profitability focus is shifting toward absolute EBIT/PBT growth rather than just profitability margin due to rising gold prices creating margin pressure.
- Jewellery’s increased weight in the portfolio mix (40% growth) suppressed overall TCL consolidated margins slightly, as it is a lower-margin segment relative to others.
- CaratLane’s EBIT margin is nearing the targeted low double-digit level earlier than anticipated, supported by operating leverage and a shift towards lower-carat/lightweight studded offerings (including 9-carat introduction).
Eyewear Performance
Mr. N. S. Raghavan (CEO, Eyecare) commented on the Eyewear division:
- Domestic growth for Eyewear was almost 17.5% in Q3.
- Volume growth was around 9%, with ASP contributing about 5-6% to revenue growth.
- The ASP increase was driven by premiumization and collaborations with 15 to 20 international brands offered by Titan Eye Plus.
Future Outlook and Competitive Positioning
Management confirmed that consumer interest in gold remains positive, particularly among younger generations viewing it as both investment and adornment. The strategic focus remains on creating excitement through product innovation and leveraging the exchange platform to maintain customer engagement despite inflationary pressures.
Source: BSE
