Titan Q4 Results Preview: Strong revenue expected, PAT growth seen muted due to margin pressure
Titan Q4FY25 results preview: Titan, Tata Group’s jewellery-to-eyewear brand, is set to report its March quarter (Q4FY25) results on Thursday, May 8. Analysts project strong revenue growth, led by healthy performance across key business segments.
However, they expect margins to remain under pressure, with incremental gold lease-related costs likely leading to flat profit after tax (PAT) on a year-on-year (YoY) basis.
In its Q4FY25 business update, the company stated that its jewellery business grew by 25% YoY in March, while the watches and eyewear segments grew by 20% and 18%, respectively. The company also reported a 7% YoY improvement in its emerging businesses.
The company said studded jewellery registered low double-digit YoY value growth for the quarter, which analysts expect will weigh on the jewellery segment’s margins.
Domestic brokerage firm Centrum expects Titan to report revenue growth of 26.4% YoY to ₹15,787 crore in Q4FY25, led by a 24% rise in domestic jewellery sales driven by strong buyer traction in gold jewellery, 22% growth in the watches and wearables (W&W) segment due to gifting demand, and 18% growth in eyewear revenue.
Domestic jewellery sales rose 24% YoY, driven by plain (gold) jewellery at 27% YoY and coin sales—primarily for value storage—at 65% YoY. It said that studded jewellery showed low double-digit growth, while the solitaire segment saw a bounce-back in demand.
Against this backdrop, Centrum expects Titan’s EBITDA to rise 19.3% YoY, with EBITDA margin at 9.0%, down 53 basis points YoY. It also projects an 8.1% YoY rise in EPS. PAT is estimated to increase by 8% YoY but decline 20% quarter-on-quarter (QoQ) to ₹833 crore. The brokerage has a ‘Buy’ rating on the stock with a target price of ₹4,026 per share.
Separately, JM Financial expects Titan’s overall standalone sales (excluding bullion) to grow 18% YoY, driven by 18% growth in jewellery (ex-bullion), 20% in watches, and 15% in eyewear.
It projects jewellery EBIT margin (ex-bullion) at 10.5%, a 160-basis point decline YoY. Overall, it estimates standalone EBITDA and PAT growth of 12% and 1% YoY at ₹1,241 crore and ₹792 crore, respectively.
JM Financial noted that margin expansion will likely be driven by operational efficiencies in the watches and eyewear segments, while jewellery margins may remain subdued due to a lower share of studded jewellery and higher price-led growth in gold. The brokerage has a ‘Hold’ rating on the stock with a target price of ₹3,550 per share.
Titan share price trend
Titan shares have been volatile over the past few months, swinging between gains and losses amid heightened volatility in the Indian stock market. The stock bounced back in April with a gain of 10.33% after posting losses for two consecutive months.
At current levels, Titan share price is trading 14% below its all-time high of ₹3,886, recorded in January 2024.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
