This article first appeared on GuruFocus .
Release Date: November 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Titan Co Ltd ( BOM:500114 ) reported satisfying growth across all businesses, markets, and subsidiaries in Q2 FY26.
-
The company has seen a positive response to its 18-carat jewelry offerings, with plans to increase its share in inventory.
-
The festive season saw improved buyer growth, particularly in the mid to higher price bands, driven by a strong exchange offer and new collection launches.
-
International markets, especially North America, are performing well, with strong growth in studded jewelry.
-
The watch division experienced a 16% growth during the festive period, driven by new product launches and premiumization efforts.
Negative Points
-
High gold prices have led to sluggishness in the lower price bands, affecting overall buyer growth.
-
Competitive intensity has increased due to other jewelers leveraging inventory gains from rising gold prices.
-
Margins are under pressure due to the high gold prices and the impact of gold exchange schemes.
-
Store openings for Tanishq have been lower than expected due to execution delays, impacting expansion plans.
-
The eyewear division's growth has been slower than the industry average, with challenges in vertical integration and competition.
Q & A Highlights
-
Warning! GuruFocus has detected 3 Warning Signs with BOM:500114.
-
Is BOM:500114 fairly valued? Test your thesis with our free DCF calculator.
Q: How are consumers reacting to the rise in gold prices, and what strategies is Titan implementing to address this? A: Ajoy, a representative from Titan, explained that while there was initial consumer hesitation due to rising gold prices, many buyers, particularly in the mid to higher price bands, eventually made purchases during the festive season. The company is seeing positive responses to 18-carat jewelry, though it is not yet a significant part of their inventory. Titan is also observing a marginal increase in studded jewelry purchases compared to gold jewelry.
Q: What steps is Titan taking to stimulate buyer growth, and how did October sales perform? A: Titan has introduced more products at lower price points and launched a powerful gold exchange campaign, which has been well-received. October sales were strong, and the company expects continued growth due to the festive season and strategic initiatives.
Q: How is Titan managing margins amid rising gold prices and increased gold exchange activity? A: The company acknowledges that gold exchange impacts margins but has integrated it into their business model. They view it as beneficial for stimulating demand and contributing to national interests. While there may be short-term margin impacts, Titan aims for long-term benefits.
Q: What are Titan's plans for store openings, and how are they addressing execution delays? A: Titan faced some execution delays in store openings but has added more stores in October. The company aims to open 40 new stores this year and is also focusing on renovating and expanding existing stores to drive growth.
Q: How does Titan view the competitive landscape, particularly with the rise of lab-grown diamonds (LGDs)? A: Titan acknowledges the growing interest in LGDs but has not seen significant demand in their stores. They note that competitive intensity is increasing, with some jewelers leveraging inventory gains to offer competitive pricing. Titan continues to focus on its strengths in transparency and customer trust.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
