Titan Q4 FY25 Results Preview: Tata Group firm set to clock 25% jewellery growth; flat margins may cap profit upside

Titan Company, part of the Tata Group, will announce its March quarter results on May 8, according to Zee Business estimates, a strong performance on the revenue front is anticipated. The company is likely to report a 16 per cent year-on-year (YoY) jump in revenue to Rs 13,060 crore, up from Rs 11,257 crore in the same period last year.

The growth is likely to be driven by stellar performance across key segments such as jewellery, watches, eye-care, and digital platform CaratLane. However, despite the impressive revenue growth, the company’s bottom line may see only modest improvement due to rising marketing and finance costs.

Jewellery segment may shine with 25% YoY growth

According to Zee Business estimates, the jewellery segment. Titan’s mainstay is expected to deliver 25 per cent YoY growth in Q4. This is supported by strong consumer demand, Tanishq’s continued brand equity, and a solid wedding season. Titan’s Like-to-Like (LTL) growth in Tanishq is pegged at 14 per cent, while Same-Store Sales Growth (SSSG) is likely to remain in the high single digits.

Other verticals also show healthy traction

Titan’s watches segment is estimated to grow 22 per cent YoY, and the eye-care business could clock 19 per cent growth. CaratLane is also expected to perform well with a 22 per cent rise in Q4 sales. These numbers indicate a well-rounded recovery and expansion across the board.

Margins may remain flat; finance costs likely to dent profits

While operating performance is likely to improve, margins may stay flat at 10.2 per cent against 9.9 per cent a year ago. The EBITDA is expected to rise 20.6 per cent YoY to Rs 1,337 crore. However, Zee Business warns that higher marketing expenses and a rise in finance costs could restrict net profit growth.

The profit after tax (PAT) is projected to come in at Rs 836 crore, up just 6.4 per cent from Rs 786 crore in the same quarter last year. The flat margin guidance also stems from elevated brand-building initiatives and promotional spending during Q4.

Q3 snapshot offers perspective ahead of Q4

In the previous quarter (Q3FY25), Titan reported a minor dip of 0.6 per cent in consolidated net profit at Rs 1,047 crore, despite a 25 per cent YoY rise in income to Rs 17,723 crore. The decline was attributed to gold inventory adjustments after a change in customs duty. EBIT margins then fell by 177 bps to 9.2 per cent.

This context will be crucial when interpreting Q4 numbers, especially in terms of margin resilience and the company’s approach to managing cost pressures.

Outlook and investor watchpoints

Despite anticipated cost headwinds, Titan is expected to post strong revenue growth in Q4FY25. Investors will closely watch the management’s commentary on gold price volatility, demand trends post-election, and growth in high-margin verticals like CaratLane and eyewear. The Street will also track updates on Titan’s expansion plans and its performance in Tier-2 and Tier-3 cities.

Stay tuned to Zee Business on May 8 for complete coverage of Titan’s earnings and expert views on its future outlook.