Titan Company Q2 results preview: Profit may rise up to 27% YoY; jewellery growth, margins in focus

Titan Company is expected to report healthy revenue and profit growth in the September quarter, with brokerage estimates pointing to an 18.8-27% year-on-year (YoY) increase in revenue and a 26.8-27% rise in profit after tax (PAT). The Tata Group company will announce its financial results for the quarter ended September 30, 2026, on Thursday, November 5, 2026.

Brokerage estimates indicate that revenue could range between Rs 18,444.6 crore and Rs 22,243.8 crore, while PAT estimates range from Rs 1,274.4 crore to Rs 1,419.2 crore. Citi expects PAT to increase 27% YoY, while Motilal Oswal Financial Services (MOFSL) projects adjusted PAT growth of 26.8%.

Jewellery revenue growth, Tanishq's like-to-like (LTL) growth, segment margins, CaratLane's performance and growth in watches and eyewear are likely to remain key monitorables.

Revenue growth expectations remain healthy

Brokerages expect Titan to report continued revenue growth in Q2FY27, supported by its jewellery business and growth across other segments.

Citi estimates revenue at Rs 18,444.6 crore, compared with Rs 16,534 crore in the year-ago quarter, translating into 12% YoY growth.

MOFSL projects consolidated net sales at Rs 22,243.8 crore, up 18.8% YoY from Rs 18,725 crore in Q2FY26. MOFSL's estimates indicate that revenue could grow 20.6% to Rs 1,05,627.3 crore in FY27, compared with Rs 87,584 crore in FY26.

Jewellery business growth and margins in focus

The jewellery business is likely to remain a key contributor to Titan's performance, with brokerage estimates pointing to strong revenue growth.

Citi models 27% YoY revenue growth in jewellery and expects the segment's EBIT margin, excluding bullion, at 10.7%.

MOFSL expects standalone jewellery revenue, excluding bullion, to grow 28% YoY. It projects Tanishq's LTL growth at 23%.

On profitability, MOFSL expects standalone jewellery EBIT margin, excluding bullion and inventory gains following the customs duty increase, to remain flat YoY at 10.9%.

The movement in jewellery margins will be an important monitorable, particularly after excluding the impact of bullion and inventory gains.

CaratLane performance and margins

CaratLane is also expected to report healthy revenue growth.

MOFSL expects CaratLane's revenue to increase 28% YoY. However, its EBIT margin is projected to contract 20 basis points (bps) YoY to 10%.

The combination of revenue growth and margin movement will be important in assessing the segment's operating performance.

EBITDA growth expected to outpace revenue growth

Brokerage estimates point to higher growth in operating earnings compared with revenue growth.

Citi expects EBITDA to rise 23% YoY to Rs 1,990.9 crore, compared with Rs 1,620 crore in Q2FY26. It projects EBITDA margin at 10.8%, against 9.8% in the year-ago quarter, indicating an expansion of 100 bps.

MOFSL estimates consolidated EBITDA at Rs 2,324.7 crore, up 24% YoY from Rs 1,875 crore in Q2FY26.

It expects EBITDA margin at 10.5%, compared with 10% in the corresponding quarter last year, translating into an expansion of 50 bps.

MOFSL's full-year estimates indicate EBITDA growth of 25.4% to Rs 10,478.1 crore in FY27, compared with Rs 8,355 crore in FY26. EBITDA margin is projected to increase to 9.9% from 9.5%.

The operating performance and margin trajectory will be key factors to track in the quarterly results.

PAT growth estimates point to a 27% increase

Brokerages expect Titan to report strong profit growth in Q2FY27, with estimates pointing to an increase of around 27% YoY.

Citi projects PAT at Rs 1,274.4 crore, compared with Rs 1,006 crore in Q2FY26, representing growth of 27%.

MOFSL expects consolidated adjusted PAT at Rs 1,419.2 crore, up 26.8% YoY from Rs 1,119 crore in the year-ago quarter. MOFSL estimated adjusted PAT at Rs 6,483.2 crore for FY27, compared with Rs 5,151.3 crore in FY26, indicating growth of 25.9%. Its estimates for reported PAT stand at Rs 1,419.2 crore for Q2FY27, compared with Rs 1,119 crore in Q2FY26. For FY27, reported PAT is projected at Rs 6,788.5 crore, against Rs 5,075.5 crore in FY26. The brokerage also factors in an extraordinary income of Rs 114 crore in Q3FY26 and an extraordinary loss of Rs 305.3 crore in Q1FY27. No extraordinary income or expense has been factored into its Q2FY27 estimate.

Beyond jewellery, MOFSL expects healthy double-digit growth in watches, eyewear and other businesses. The performance of these segments, alongside jewellery and CaratLane, will provide further insight into the company's overall revenue growth.

Management commentary and segment performance in focus

Beyond the headline financial numbers, investors will track management commentary on jewellery demand, Tanishq's LTL growth, margins and the performance of other businesses.

The trajectory of jewellery EBIT margins, excluding bullion and inventory gains, will be particularly important. CaratLane's ability to sustain revenue growth while managing margin contraction will also remain a key monitorable.

MOFSL has a Buy rating on Titan with a target price of Rs 6,000, against a current market price of Rs 4,535, implying an upside of 32%. The brokerage has revised its FY27 earnings per share (EPS) estimate down by 1.1%, while raising its FY28 estimate by 0.6%.

Titan Company shares settled at Rs 4,562 apiece on the NSE on November 3, up 2% from the previous close of Rs 4,476.30. Year-to-date (YTD), the stock has gained nearly 13%, outperforming the benchmark Nifty 50, which has declined nearly 10% over the same period.

Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here