Titan Expects Jewelry Margins to Improve Despite Gold Price Surge

According to the analysis by Antique Stock Broking, Titan Company Limited is poised to see a steady improvement in its jewelry business performance over the next three years. The brokerage firm expects Titan's jewelry revenue to grow at a compounded annual rate of 19% during this period, driven by the company's strong brand, execution, and expansion of its store network.

While Titan's gross margins are likely to face pressure in the second quarter of 2025 due to a surge in gold prices, the brokerage remains confident that the company's jewelry segment will be able to partially offset this impact. The analysts note that the steady growth in Titan's studded jewelry offerings, as well as an incremental improvement in the profitability of its watches segment, should help ease the margin pain.

Looking ahead, the brokerage firm believes that Titan's jewelry EBIT margin, which has bottomed out at 9.7% in fiscal year 2025, is expected to improve to 11.8% over the next three years. The company's medium to long-term performance is expected to be driven by its ability to gain market share in the jewelry business, leveraging its strong brand, execution capabilities, and the scaling up of its store network. Additionally, the improving profitability of Titan's other business segments, such as watches, is seen as a positive for the company's overall financial performance.