Titan Company Ltd is expected to post a strong year-on-year rise in profit for the July–September quarter (Q2 FY26), aided by a low base and steady performance across its core businesses. According to an average of six brokerages, the Tata Group consumer giant’s revenue is expected to grow around 10% year-on-year, while net profit could jump 38%, helped by one-time adjustments in the base quarter linked to last year’s customs duty cut on gold.

Despite the healthy headline numbers, analysts expect the company’s underlying growth in the jewellery business, which contributes nearly 88% of overall revenue, to moderate sequentially as higher gold prices and delayed festive purchases weigh on demand.

Brokerages largely expect Titan to report consolidated revenue growth in the range of 10–13% YoY, with standalone jewellery sales ex-bullion rising around 12–14%. The watches and eyewear divisions are also expected to post double-digit growth, reflecting steady consumer demand.

JM Financial estimates standalone sales growth of about 6% YoY, or 13% excluding bullion, driven primarily by a 12% increase in jewellery sales (ex-bullion), an 18% rise in watches, and a 12% gain in eyewear. The brokerage expects the standalone jewellery EBIT margin to come in at 11.1%, about 30 basis points lower than last year, given the impact of elevated gold prices and a slower studded jewellery mix.

Still, overall standalone EBITDA and PAT are projected to rise 43% and 46% YoY, respectively, largely due to the weak base effect from last year’s customs duty-related losses.

Kotak Equities also expects jewellery revenue to grow around 14% YoY, slower than the 25% growth seen a year ago. The firm attributed this moderation to a sharp surge in gold prices between August and September, up 18% in just six weeks, which likely postponed some festive-season purchases. However, early festive demand in southern markets is expected to have cushioned the impact.

Kotak estimates the share of studded jewellery to stay flat YoY at around 30%, marking the first sign of recovery in this segment after four quarters of decline. The brokerage expects 22% growth in watches, driven by sustained demand for analogue models, and 14% growth in eyewear, supported by expanding retail presence and improving footfall.

On the margin front, Kotak projects the standalone jewellery EBIT margin (ex-bullion) to hold steady at 11.3%, aided by cost efficiencies and a balanced product mix, offset by gold price inflation. Margins for the watches and eyewear segments are estimated at 16.5% and 10%, respectively.

Nuvama sees Titan’s overall revenue rising 13% YoY, led by 8% growth in core jewellery sales and double-digit growth across other verticals. It expects jewellery EBIT margins near 11%, reflecting subdued productivity amid high gold prices and a delayed festive demand cycle.

Motilal Oswal, meanwhile, models a 14% YoY increase in standalone revenue (ex-bullion) and expects Tanishq’s like-for-like sales to rise around 11%. The brokerage anticipates stable EBIT margins of about 11.5% in the jewellery segment and sees continued strength in CaratLane, whose revenue is projected to climb 25% YoY with flat margins of 7%.

While gold price volatility and delayed festive spending could limit near-term upside, brokerages remain positive on Titan’s long-term growth trajectory, citing its strong balance sheet, brand equity, and diversified product portfolio.

Courtesy : ET