Titan sees continued growth momentum in July, MD Ajoy Chawla says
New Delhi: The growth momentum witnessed in the first quarter of the current fiscal has continued in July, Titan Managing Director Ajoy Chawla said, adding that the company is on course to deliver the improvement targets after a strong start to this fiscal year.
“The growth we have seen in the first quarter, and we are also seeing that July is not bad. I am seeing a certain positivity so far in the last four months,” Chawla said, addressing analysts after the company’s June quarter earnings.
While acknowledging that near-term performance would depend on external factors, he said Titan remains on track to achieve the growth trajectory outlined earlier and could even do better this year.
“We think we are on trajectory for delivering the kind of growth that we had promised on the Investor Day, and we hope that we can, in fact, better it in the current year because we have started very well,” he said.
On the jewellery business, which contributes around 90 per cent of Titan’s topline, Chawla reiterated his commitment to delivering healthy double-digit value growth in the segment, saying it is essential to achieving Titan’s FY30 goals.
“We are committed to healthy double-digit growth in value in the jewellery business because that is the only way we will get to our committed FY30 goals that we have said. In a particular quarter or in two quarters, it may be looking like a power play where we have hit the ball out of the park. It is not just us. The market also has done very well,” he said.
He, however, cautioned against reading too much into short-term performance swings, whether positive or negative.
Earlier this year, Titan Company set a strategic roadmap to double its consolidated revenue and operating profit (EBIT) by FY30 compared to FY26 base levels.
The Titan management also pointed to a resurgence in studded jewellery demand, which he said began in the fourth quarter of the previous fiscal and has continued into the first quarter of the current year.
“We began seeing a resurgence of studded in the fourth quarter of last year, and we are seeing that continue to play out in quarter one,” he said, adding that buyer growth in the studded segment has been rising since Q4 of last year – a trend he described as the “heartening part of the story”.
On the international business, they said the rest of the portfolio, barring UAE-based jewellery brand Damas, continues to post a mid-single-digit EBIT margin of 5-6 per cent, which he expects to sustain.
Damas’ contribution to the international business will remain limited, with its performance contingent on the current situation it faces, he pointed out.
On buyer growth trends during the quarter, Titan said April and June saw healthy footfalls, while sentiment was somewhat subdued in May.
He attributed the fluctuation largely to gold price movements.
“If gold rates stay stable, we always see that sentiments are positive and people come back and they don’t sit on the fence,” he said, adding that volatile or consistently falling gold prices tend to prompt buyers without an urgent need to defer purchases, whereas stable or marginally rising prices support demand.
Moreover, as gold prices remain high, Titan is using lightweight jewellery and exchange schemes to provide affordable purchase options.
“Accessibility comes from keeping it lightweight, looking at a variety of caratages, looking at an exchange programme that is strong to get them to recycle. All these are different levers that we are using to keep jewellery accessible to a wide set of consumers across the different town classes that we are present in,” the company said.
The Titan MD said the headroom for growth remains high across all the company’s business segments – jewellery, eyecare, watches, fragrances, bags and sarees – driven by tailwinds of formalisation, the broader India growth story, rising participation from “middle India”, and premiumisation trends.
Terming the June quarter as “another fantastic quarter”, Chawla said this quarter has been even better than the previous quarters.
“We have seen all-round growth across all our businesses, all our brands, subsidiaries, and we have also seen a good volume growth and a buyer growth that has come in,” he said.
Titan Company Ltd on Friday reported a 40.3 per cent growth in revenue for the June quarter of FY27 to Rs 20,787 crore, driven by strong performance in the jewellery business. Its profit also increased 62.87 per cent to Rs 1,777 crore in Q1 FY27.
This is the third successive quarter in which the Tata Group-managed firm has reported over 40 per cent revenue growth.