Upgrades

Kalyan reported a strong Q2FY26 with broad-based growth across India and the Middle East, supported by healthy SSSG and continued FOCO-led expansion.

Q2FY26 performance: Titan's consolidated net revenues grew by 22%yoy to Rs16,461cr (total revenues grew by 29%). This was driven by 18% growth in the domestic jewellery business, 32% growth in Caratlane and 84% growth in the international business while TEAL (subsidiary) revenues grew by 2x during the quarter. Its watches and eyewear business had a soft quarter with revenues growing by 13% and 8% in Q2. Consolidated gross margins decreased by 127bps YoY affected by higher gold prices and inferior mix. EBIDTA margins decreased by...

Titan Company (TTAN) posted consolidated sales growth of 29% YoY in 2QFY26. Standalone jewelry sales (excl. bullion) rose 19% YoY, driven by the early onset of the festive season, gold exchange campaign, and consumer offers.

Management sustained guidance of 11-11.5% EBIT margin with mid-teens EBIT margin guidance for watch business TTAN reported a robust 1Q led by 400bps positive impact of revaluation in watch business EBIT margin and 50bps positive impact of MTM gain from hedging in jewellery business. However, we remain cautious in near term given 1) rising inventory costs due to higher gold prices (Rs75bn increase in FY25) will...

The acquisition of Damas will enable TTAN to consolidate its presence in USD15bn GCC jewellery market with brands like Damas, Tanishq and Gaia. TTAN will be paying an EV of AED 1038mn, which will be funded through a debt of Rs12bn and small funding from reserves. Damas has debt of ~700mn AED and working capital is funded by gold metal loan....

In FY25, Titan Company (TTAN) continued to post strong double-digit growth (18% YoY) despite high gold inflation and intensified competition.

*over or under performance to benchmark index Titan Company Ltd manufactures and retails jewellery and watches. The company also produces perfumes for men and women. In Q4FY25, consolidated revenue increased 19.4% YoY to Rs. 14,916cr, driven by the growth in the jewelry segment. The jewelry segment grew 23.7% YoY to Rs....

Titan’s consolidated total revenues (ex-bullion sales) grew by 21.4% y-o-y to Rs. 13,891 crore (in line with our expectation of Rs. 13,888 crore). Including bullion sales (ex-other income), consolidated revenues grew by 19.4% y-o-y to Rs. 14,916 crore.

TTAN's Q3 EBITDA beat our estimate by 5%, helped by better margins as revenue came in line. Jewelry retail growth improved to 28% vs 21% in Q2, led by SSG improving to 22% vs 15% in Q2.

Titan's domestic jewellery business revenue growth continued to be strong (~25% YoY; LFL: 22% YoY) driven by gold jewellery with good performance in studded segment (+21% YoY, strong buyer growth in sub-100k price point) while solitaire segment continued to be muted (global price uncertainty), leading to ~100bps (~23%) reduction in the studded share.

Titan Company (TTAN) posted consolidated sales growth of 25% YoY in 3QFY25 (in line). Standalone jewelry sales (excl. bullion) rose 26% YoY, driven by strong festive demand, higher gold prices, and a 29% surge in wedding purchases.

Setting the GOLD standard

SENCO delivered consolidated revenue growth of 31% YoY to INR15.0b (in line) in 2QFY25. SSSG was at 20% (vs. 4% in 1QFY25, 19% in 2QFY24).

Kalyan Jewellers (KALYANKJ)’s consolidated revenue grew 37% YoY to INR60.7b (in line). The Indian business delivered 39% YoY revenue growth, driven by store additions.

As per its Q2 business update, TTAN has exceeded our growth expectations across most business segments.

We see significant re-rating scope for Senco, helped by our expectations of a strong pick-up/SSG outperformance in Q2 and valuation discount vs P N Gadgil (PNG) after its ~70% listing gain.