Titan Shares Drop Nearly 3% as Q3 Profit Marginally Declines; Revenue Surges 25% YoY

Titan Company reported a marginal 0.6% decline in Q3 FY25 net profit to ₹1,047 crore, impacted by inventory losses from a reduction in gold import duties. Despite this, total income surged 25% YoY to ₹17,723 crore, driven by strong jewellery sales and festive demand. Following the results, Titan’s stock fell nearly 3% due to margin compression and weakness in the wearables segment.

CONTENTS:

• Titan Shares Decline Nearly 2% as Q3 Net Profit Marginally Drops to ₹1,047 Crore
• Titan Q3 Results 2025 Highlights
• Titan Q3 FY25 Results: Key Highlights

Titan Shares Drop Nearly 3% as Q3 Profit Marginally Declines; Revenue Surges 25% YoY

Titan Shares Decline Nearly 2% as Q3 Net Profit Marginally Drops to ₹1,047 Crore

Titan Shares Drop Nearly 3% as Q3 Profit Marginally Declines Shares of Titan Company Ltd, a leading jewellery and watchmaker, declined on Wednesday following the release of its third-quarter financial results. The stock fell 1.67% to ₹3,537.45 per share on the National Stock Exchange (NSE) at 9:28 AM, bringing the company’s market capitalization to ₹3,14,049.92 crore.

Q3 Financial Performance

Titan Shares Drop Nearly 3% as Q3 Profit Marginally Declines Titan reported a consolidated profit after tax (PAT) of ₹1,047 crore for Q3 FY25, marking a slight 0.56% decline from ₹1,053 crore in the same period last year. However, revenue showed significant growth, with total sales rising 25.68% year-on-year (YoY) to ₹17,550 crore from ₹13,963 crore in Q3 FY24.

Total expenses increased by 27.47% YoY to ₹16,472 crore, while overall income rose by 24.9% to ₹17,868 crore.

Segment-Wise Performance

• Jewellery Business: Revenue surged by 26.62% YoY to ₹16,134 crore. The company attributed this growth to strong festive demand, increased gold prices, and a 29% rise in wedding-related purchases. Same-store sales also grew by 22% compared to Q3 FY24. Tanishq expanded its footprint by adding 11 stores, while Mia by Tanishq opened 13 new stores in India.
• Watches and Wearables: Revenue in this segment grew 15.31% YoY to ₹1,137 crore. The analog watch segment saw a robust 20% growth, primarily driven by the Titan brand, which reported an 18% increase in sales. However, the wearables category faced a decline of 20%, with average selling prices dropping by 8% and volumes decreasing by 7% YoY.
• Eyewear and Fragrances: The eyecare division posted a 16.66% YoY growth, reaching ₹196 crore in revenue. Meanwhile, the fragrances segment grew by 27%, fueled by a 23% increase in SKINN sales.
• Fashion Accessories: Excluding the discontinued belts and wallets category, women’s bags under the IRTH and Fastrack brands recorded a 25% YoY increase in revenue.

Retail Expansion

During Q3 FY25, Titan expanded its retail presence by launching 23 new stores, including 12 Titan World outlets, 10 Helios stores, and one Fastrack store.

Market Outlook

Despite strong revenue growth, the company’s marginal decline in net profit and rising expenses contributed to the stock’s dip. Investors are closely monitoring Titan’s performance amid evolving consumer trends and market conditions.

Titan Q3 Results 2025 Highlights

Titan Shares Drop Nearly 3% as Q3 Profit Marginally Declines Titan Company, part of the Tata Group, reported a slight 0.6% decline in consolidated net profit for the third quarter of FY25, amounting to ₹1,047 crore. This dip comes despite a strong 25% year-on-year (YoY) increase in total income, which reached ₹17,723 crore.

The company’s profit before tax remained stable at ₹1,396 crore, largely due to the impact of a reduction in customs duty on gold. Titan acknowledged that losses associated with inventory adjustments during the duty change were fully accounted for in this quarter, which contributed to lower profitability.

Meanwhile, consolidated EBIT grew by 5% YoY to ₹1,627 crore, though EBIT margins saw a decline of 177 basis points, settling at 9.2%.

Segment-Wise Performance

Watches & Wearables

• The segment recorded a total income of ₹1,128 crore, reflecting a 15% YoY growth.
• The domestic business expanded by 14% during the same period.
• The analog watch segment posted a strong 20% growth, led primarily by the Titan brand, which saw an 18% rise in sales.
• Consumer preference for premium brands was evident, with international brand sales growing 30% YoY.
• The wearables category, however, declined by 20%, with average selling prices falling 8% and volumes decreasing 7% compared to Q3 FY24.
• The segment’s EBIT stood at ₹111 crore, with an EBIT margin of 9.8% for the quarter.
• Titan expanded its retail footprint, adding 23 new stores: 12 Titan World stores, 10 Helios stores, and 1 Fastrack outlet.

Titan Q3 FY25 Results: Key Highlights

Titan Shares Drop Nearly 3% as Q3 Profit Marginally Declines : Titan Ltd reported a marginal decline in its consolidated net profit for the third quarter of FY25, amounting to ₹1,047 crore, primarily due to inventory losses from a reduction in gold import duties. In the same quarter last year, the company had posted a net profit of ₹1,053 crore.

Despite the dip in profitability, total income surged 25.5% year-on-year (YoY) to ₹17,723 crore, compared to ₹14,122 crore in Q3 FY24. However, the reported revenue fell short of market estimates, as analysts had predicted a 27.9% growth to ₹16,688 crore, with net profit expected to reach ₹1,159 crore.

On a sequential basis, net profit increased from ₹704 crore in Q2 FY25. However, standalone profit dropped by 4.9% to ₹990 crore.

Managing Director CK Venkataraman commented on the results, stating that losses related to inventory held during the customs duty change had been fully realized, impacting margins. However, he expressed confidence in closing FY25 with strong growth over FY24.

Financial Performance

• EBITDA increased 2.8% YoY to ₹1,641 crore, but EBITDA margins fell by 210 basis points, from 12.2% in Q3 FY24 to 10.1% in Q3 FY25.
• EBIT margins declined 177 basis points to 9.2%.
• Profit before tax remained stable at ₹1,396 crore.

Segment-Wise Performance

Jewellery Business

• Revenue grew 26% YoY to ₹14,697 crore.
• Domestic jewellery sales expanded 25%, with secondary sales rising 28%, largely due to higher gold prices, festival demand, and a 29% increase in wedding-related purchases.
• Gold jewellery and coins recorded a 27% YoY growth, as consumers continued to favor gold for both adornment and investment.
• Titan’s Tanishq brand expanded its presence with 11 new stores, while Mia by Tanishq added 13 stores in India.

Watches & Wearables

• Total income grew 15% YoY to ₹1,128 crore.
• The analog watches segment saw 20% growth, led by Titan brand sales rising 18%.
• Consumer demand for premium international brands surged, with retail sales increasing 30% YoY.
• The wearables segment declined 20%, with both average selling prices (-8%) and volumes (-7%) falling YoY.
• The company added 23 new stores: 12 Titan World, 10 Helios, and 1 Fastrack outlet.

Eyewear Segment

• Revenue increased 15% YoY to ₹194 crore.
• Sunglasses outperformed other categories, growing 35% YoY, while frames and lenses showed mid-double-digit growth.

Emerging Businesses

• Taneira (Indian dresswear), Fragrances, and Fashion Accessories (F&FA) collectively posted a 5% YoY growth, with total revenue reaching ₹118 crore.

Stock Market Reaction

Following the Q3 results, Titan’s stock price dropped nearly 3%, trading at ₹3,490.15 per share, reflecting investor concerns over margin compression and wearables segment weakness. However, the company remains optimistic about strong growth momentum for the remainder of the fiscal year.