Titan Company Ltd on October 7 said its domestic sales grew 18% YoY in September quarter while its domestic jewellery sales grew 19% YoY during the same period. The 18% growth is slower than the 25% it registered during the same period last year, as soaring gold prices stunted demand for higher carat jewellery.
Spot gold prices rose 16.4% in the quarter as investors fled to the safe-haven commodity amid global economic volatility.
The jewellery business contributes close to 90% of overall revenue.
Studded jewellery in Titan's Tanishq, Mia and Zoya portfolio collectively grew in the mid-teens, outpacing growth in plain gold jewellery, the company said.
Investment-grade gold coins continued their strong run for the quarter, the company said, as Indians chose to invest in the bullion as a store of value. However, since coins yield lower profit margins than jewellery, the shift has constrained overall margin growth in recent quarters.
"Surging gold prices drove substantial ticket size increases offsetting marginal YoY declines in buyer counts. The impact of Q2FY25’s high base (due to custom duty reduction) was offset by early onset of festive season in September this year, compared to October in FY25. Further, these growths were also fueled by significant investments in consumer promotions including a powerful exchange offer and marketing initiatives, to stimulate demand amidst elevated gold prices. Studded jewellery in Tanishq, Mia, Zoya portfolio collectively grew in mid-teens outpacing gold (plain) jewellery growth, while gold coins continued their strong run for the quarter reflecting investment sentiment in this sub-category. The like-for-like growths for Tanishq and CaratLane were in double digits," said the Tata group firm in a stock exchange filing.
The firm's domestic watches business sales grew 12% in the July-September quarter while domestic eyecare business sales grew 9% on-year in Q2FY26.
A total of 55 stores (net) were added during the quarter expanding Titan’s combined retail network presence to 3,377 stores, it said. Jewellery operations net added 34 stores in India in July-September, of which 6 were in Tanishq, 18 in Mia and 10 in CaratLane.
The international business grew 86% year-on-year, led by Tanishq more than doubling its business in the United States, the company added, while emerging business sales grew 37% on-year in July-September.
With inputs from Reuters
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