The country’s largest jewellery retailer Titan saw fourth-quarter net profit come below street estimates even as topline was ahead of analysts’ forecasts. Titan’s consolidated net profit for Q4FY26 stood at Rs 1,179 crore, up 35.4% versus last year, but below street estimates of Rs 1,270 crore for the period.
Revenue Outperformance
Titan’s consolidated revenue in Q4 surged 80.5% year-on-year to Rs 26,920 crore, compared to Rs 14,916 crore in the year-ago period. This was ahead of street estimates of Rs 18,854 crore for the period. Titan, home to the Tanishq and CaratLane jewellery brands, also declared a final dividend of Rs 15 per share for FY26.
Margin Contraction
Earnings before interest tax depreciation and amortisation (Ebitda) rose 26% year-on-year to Rs 1,937 crore, but it was below street estimates of Rs 2,062 crore for the period. Ebitda margins narrowed 310 basis points to 7.2% in Q4 versus 10.3% reported a year ago.
Gold prices rallied over the last 12 months, with geopolitical and macroeconomic uncertainty contributing to inflation fears and a weak growth outlook. That posed a threat to jewellers’ margins, even as demand for gold ornaments and coins held steady with more consumers visiting Titan’s stores.
For the entire FY26, Titan’s profit surged 52% year-on-year to Rs 5,073 crore. Consolidated sales in FY26 advanced 34.4% year-on-year to Rs 76,797 crore. Shares of Titan rallied higher to hit nearly 7% intra-day on the BSE on Friday after reporting its Q4 numbers. It closed trade at Rs 4513.40 apiece, up 4.56% versus the previous day’s close.
The stock has risen 11.85% year-to-date and 34.60% in the last 12 months. Out of the 37 analysts tracking the company, 28 have a ‘buy’ call on its stock, six suggest holding the stock, while three recommend selling it. The company commands a market cap of Rs 4,00,693.41 crore, according to stock exchange data.