Star Metro - Titan quarterly profit seen rising as jewellery business drives growth

Titan Company is expected to report healthy double-digit growth in revenue and profit in the September quarter, with brokerages projecting year-on-year sales growth of 16-18. 8 per cent and profit growth of 20-26. 8 per cent. Jewellery is expected to remain a key growth driver, supported by strong demand, although festive-season timing and a favourable base following last year’s GST rate cut could make year-on-year comparisons less straightforward. Brokerage view on Titan J P Morgan The brokerage expects Titan to report a 16 per cent year-on-year increase in revenue to ₹21,631 crore in Q2FY27, while Ebitda is projected to rise 22 per cent to ₹2,279 crore. Net profit is estimated to grow 20 per cent to ₹1,338 crore.

The brokerage has an Overweight rating as the stock features in J P Morgan’s Overweight Consumer Discretionary basket. Overall, the brokerage expects topline growth for the JPM universe to increase to 20 per cent in 2QFY27 from 19 per cent in 1QFY27, while higher input costs continue to pressure profit margins. J P Morgan also observed that a key swing factor is the base; last year’s GST rate cut created a favourable y-o-y base for Discretionary and Staples coverage. A shift in festive-season timing has also distorted normal seasonality across jewellery, fashion and BPC, making YoY comparisons noisier than usual. Motilal Oswal Financial Services Motilal Oswal expects Titan to report consolidated revenue of ₹22,244 crore in Q2FY27, up 18. 8 per cent year-on-year.

Ebitda is estimated to rise 24 per cent to ₹2,325 crore, with the operating margin at 10. 5 per cent against 10 per cent a year ago. Adjusted profit after tax is projected to grow 26. 8 per cent to ₹1,419 crore. The brokerage expects standalone jewellery revenue, excluding bullion, to grow 28 per cent, with Tanishq’s like-to-like growth pegged at 23 per cent. Jewellery Ebit margin, excluding bullion and inventory gains, is expected to remain flat year-on-year at 10.

9 per cent. CaratLane revenue is estimated to increase 28 per cent, although its Ebit margin may contract 20 basis points to 10 per cent. Watches, eyewear and other businesses are also expected to post healthy double-digit growth. Motilal Oswal has a Buy rating on the stock with a target price of ₹6,000, implying an upside of 32 per cent from its CMP of ₹4,535. Titan share price Titan share price rose over 2 per cent on Wednesday, a day before the company’s Q2FY27 results. The share hit an intraday high of 2.

08 per cent at ₹4,657 apiece. As of 10:39 AM, the share was trading at ₹4,614. 20 Titan shares have outperformed the Nifty 50 across most time frames. The stock has gained 6. 25 per cent over the past week, compared with a 5. 04 per cent rise in the benchmark.

While its one-month gain of 2. 07 per cent trailed the Nifty’s 6. 33 per cent advance, Titan has delivered a 13. 82 per cent return year-to-date, against an 8. 81 per cent decline in the index. Over one, three and five years, the stock has risen 20.

86 per cent, 40. 75 per cent and 89. 53 per cent, respectively, significantly outperforming the Nifty 50’s corresponding returns of -6. 86 per cent, 23. 98 per cent and 33. 07 per cent.

Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.

S.Belanger--SMC