Titan Q3 Results 2025 Preview: Revenue growth seen at 25% YoY, net profit to be flat due to exceptional loss | Stock Market News

Titan Q3 Results Preview: Titan Company is set to announce its earnings for the third quarter of FY25 on Tuesday, February 4. The Tata Group jewellery maker is expected to report a decent set of earnings in Q3FY25 led by strong festive demand and wedding season.

Analysts expect the profitability of Titan Company in the quarter ended December 2024 to be muted due to one-time inventory loss. However, the company is expected to see solid sales growth.

Titan’s revenue from operations in Q3FY25 is estimated to grow 25% YoY, while its net profit is expected to remain flat due to the exceptional item, according to average estimates of five brokerages. Adjusted net profit is estimated to rise around 20% YoY.

Titan Q3 Update

Titan Company reported a standalone growth of 24% year-on-year YoY in Q3FY25. The company’s combined retail network presence (including CaratLane and International) expanded by 69 stores (net) in the quarter to reach 3,240 stores, according to Titan Company’s Q3 business update.

Domestic Jewellery sales grew 25% YoY buoyed by strong festive demand. Robust consumer traction during ‘Diwali’ translated into high single-digit buyer growth along with double-digit ticket size growth. Gold (plain) exhibited particularly strong momentum growing 24% YoY benefiting from increased gold prices, the company said.

Watches & Wearables business in the domestic market grew 13% YoY, while EyeCare segment clocked a growth of 17% YoY led by Retail and E-commerce, both on revenue and buyers.

In Emerging Businesses, Fragrances clocked a healthy growth of c.27%, Fashion accessories was lower by c.20% and Taneira was flat YoY, respectively. Caratlane grew 25% YoY driven by a strong 26% YoY growth in the studded portfolio.

Titan Q3 Results Preview

Motilal Oswal: The brokerage firm models 24% standalone revenue growth (excl. bullion) and Tanishq LTL growth of 15% in Q3FY25. It expects standalone Jewelry EBIT (ex-bullion) margin expected to decline 110 bps YoY to 11.1% due to reduction in the studded share. Watches, eyewear and other businesses are estimated to see healthy double-digit growth. Motilal Oswal expects inventory loss of ₹200 crore – 250 crore in Q3 due to customs duty reduction.

Nuvama Institutional Equities: The brokerage firm estimates Titan’s revenue in the September-December quarter of FY25 to grow 24% to ₹16,168 crore from ₹13,052 crore in the year-ago period. The net profit is expected to fall 2% to ₹1,023 crore from ₹1,040 crore, YoY. It builds a 12% margin for the jewellery segment margins before adjusting for inventory losses on custom duty cuts, given the focus on market share gains.

Nuvama expects Titan’s Q3 EBITDA to rise 11% to ₹1,622 crore from ₹1,457 crore YoY, up 11% YoY, while EBITDA margins drop to 10% from 11.2% YoY.

Kotak Institutional Equities: Revenue growth is seen at 22.3% YoY to ₹15,958 crore. Kotak Equities estimates one-time inventory loss at ₹275 crore, which will be classified as an exceptional item. Thus, adjusted profit after tax (PAT) is seen rising 19.2% YoY to ₹1,239 crore.

EBITDA in Q3FY25 is expected to rise 24.9% YoY to ₹1,819 crore, while EBITDA margin is estimated to improve by 23 basis points (bps) YoY to 11.4%.

Titan Company’s FY2025E consolidated jewellery EBIT margin guidance band is 11.0% – 11.5%, revised from 11.5% – 12.5% in Q2. We estimate 11.5% and 9% EBIT margin for watches and eyewear segments in Q3FY25, Kotak Equities said.

At 3:00 PM, Titan shares were trading 0.75% higher at ₹3,579.20 apiece on the BSE, commanding a market capitalisation of over ₹3.17 lakh crore.

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