Tata Group’s Titan, India’s leading jewellery retailer under the Tanishq brand, recently reported its Q3 FY25 earnings, showcasing robust revenue growth but a slight dip in profitability due to external economic factors. Despite posting a marginal decline in net profit, the company’s strong festive sales and consumer demand for gold fueled significant top-line expansion.
Titan’s Financial Performance in Q3 FY25
Revenue Growth Despite Profit Dip
Titan’s total income surged by 25.5%, reaching ₹17,723 crore in Q3 FY25, compared to ₹14,122 crore in the same quarter last year. However, net profit slightly declined to ₹1,047 crore, compared to ₹1,053 crore a year ago. The company attributed this marginal dip in profitability to the customs duty changes on gold imports, which impacted the valuation of its inventory.
Impact of Customs Duty Changes on Profitability
C.K. Venkataraman, Managing Director of Titan, explained the impact of the duty changes, stating:
“The customs duty cut losses on the inventory held at the time of the duty change in July 2024 have been fully realized in the December quarter and hence the profitability is lower to that extent.”
The reduction in gold import duties in mid-2024 led to inventory losses, as Titan had purchased gold at higher prices before the policy change. This resulted in a temporary impact on profit margins despite the strong revenue growth.
Key Business Segments Performance
Jewellery Division: Strongest Quarter Yet
Titan’s jewellery division, which includes Tanishq, CaratLane, Zoya, and Mia, saw its best quarter ever, with retail-level growth exceeding 25%. This was driven by:
✅ Strong consumer preference for gold, both as adornment and an investment
✅ Festive and wedding season demand, boosting sales
✅ Strategic marketing and product launches
Venkataraman emphasized that consumer sentiment toward gold remains positive, positioning Titan well for continued growth in the segment.
Watches and Wearables Segment
Titan’s watches and wearables segment also reported steady growth, driven by increasing demand for premium timepieces and smartwatches. Titan’s brands like Fastrack, Sonata, and Titan Edge continued to expand their market presence.
Eyewear and Other Emerging Businesses
Titan’s eyewear segment (Titan Eye+), Taneira (ethnic wear), and fragrances & accessories also showed promising growth, though these divisions are still scaling up. The company remains committed to investing in these emerging businesses to accelerate expansion.
Future Outlook: Optimism for FY25 Growth
Despite the temporary profitability dip, Titan remains confident in its future growth trajectory. Venkataraman highlighted that:
✅ Q3 firmly set the FY25 growth momentum after a muted Q1 and a strong Q2
✅ Investment in emerging businesses will continue to help them scale faster
✅ Overall FY25 performance is expected to surpass FY24
Titan’s ability to leverage festive season demand, maintain strong brand loyalty, and expand its product offerings puts it in a solid position for sustained growth.
Conclusion
Titan’s Q3 FY25 performance reaffirms its resilience in India’s consumer retail space. While customs duty changes impacted short-term profitability, the company’s robust revenue growth, strong festive sales, and increasing consumer preference for jewellery indicate a positive long-term outlook. With continued investments in scaling new businesses and a solid market presence, Titan is set to maintain its leadership position in the jewellery and lifestyle segments.
What are your thoughts on Titan’s Q3 performance? Will its jewellery segment continue to drive growth in the coming quarters? Share your views in the comments! 🚀