Titan Company Ltd.₹407 Cr Duty Gain, Normalised Margin 10.9%

Titan said Q1 FY27 was even better than previous quarters, with all-round growth across businesses and volume and buyer growth.

The quarter was reshaped by a customs duty rise from 6% to 15%, which produced a ₹407 Cr realised gain, ₹386 Cr in Tanishq, Mia and Zoya and ₹21 Cr in CaratLane, while inventory mark-to-market added 75-80 bps to jewellery EBIT; both should reverse over the next two to three quarters. The normalised Tanishq, Mia and Zoya EBIT margin was 10.9% against 11.3% a year ago after adjusting a one-time item, and management kept 11% as the margin centre of gravity.

Watches normalised EBIT margin was 17.8% against 18.6%. Demand dipped for about three weeks in May on a government call-out, the duty change and Adhik Maas, then recovered in June. Damas in the Gulf lost money because of the war, while the rest of international earns 5-6% EBIT. Management targets double-digit jewellery growth and says it is on trajectory for its Investor Day goals, while giving no revenue or profit figures on the call.