Titan Company Ltd Q1 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Devanshu Bansal - Emkay Global Financial Services Ltd - Analyst : Hi sir, congratulations on a good margin performance across segments. First question is on growth, for Julie segment. The rest three quarters have a relatively higher base, obviously, because there was, 900 GT cut that happened. Do you, foresee some growth moderation in the rest of FY26, or we should be able to sustain the momentum that we have seen in (inaudible).

Question: Devanshu Bansal - Emkay Global Financial Services Ltd - Analyst : Thanks for this. Secondly, I wanted to understand on margin. There is indication that there is some 50 bps of one off in the segments for Q1, and there was some one off in Q4 as well. Firstly, wanted to understand what is the nature of this and whether both these one offs are expected to reverse in the rest of [FY26]. And subsequent, margin question is also that, if we exclude this one off, there has been, still a pretty robust margin performance that the mix was weaker due to lower the rate and higher coin sales. So do you, sort of see scope of beating the upper end of your margin time, which is 11%, 11.5% in FY26.

Question: Devanshu Bansal - Emkay Global Financial Services Ltd - Analyst : Understood. Okay, so, thanks for this, just a small follow up. So that Q4 gain that was it. That will also revise the coming quarters?

Question: Devanshu Bansal - Emkay Global Financial Services Ltd - Analyst : Yeah. Thanks for taking.

Question: Avi Mehta - Macquarie Group - Analyst : Yeah, hi, team. Thanks for the opportunity. I wanted to get your thoughts on the market share in the jewelry segment. For the last few quarters, we've seen a situation where our same store sales for momentum has been lagging the other larger listed players. So wanted to know how are you seeing this. And what do you at least are just the way forward? Is this something that is because of the size and it's expected? Would love to hear your thoughts on that.

Question: Devanshu Bansal - Emkay Global Financial Services Ltd - Analyst : Got it. Where I'm coming from is this a case where the segment that we cater to is where we are gaining market share, or is it more a geography mix? That's the clarification that I wanted to understand more than just to follow up on that.

Question: Avi Mehta - Macquarie Group - Analyst : Got it. And just to follow up, but just the second question that leads to it from a margin point of view, now you have a range of 11% to 11.5%. Wanting to understand is margin at a lever to change or which we need to evaluate to remain competitive or this is not the right approach when you look at the segments so that is the last part.

Question: Avi Mehta - Macquarie Group - Analyst : Very clear. That's all from my side. I'll come back in queue. Thank you.

Question: Videesha Sheth - Ambit Private Limited - Analyst : Yeah, hi. Some of my questions have been answered. So just one from my side, with 9 carats also coming under the purview of hallmarking, how are you thinking of exposing multiple formats, multiple brands of yours, be it carrot lane or Mia, or maybe even have a separate brand? I understand REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2025 / 1:00PM, TITN.NS - Q1 2026 Titan Company Ltd Earnings Call that you've already launched it. You've launched certain assortment on the 9 carrots and carriage and Mia last quarter, but just wanted to know where do you stand or where will this carrot age be focused on?

Question: Videesha Sheth - Ambit Private Limited - Analyst : Okay, I understand early days, but do you believe it warrants a separate format or would you be playing this through specifically through Carat and Mia only?

Question: Videesha Sheth - Ambit Private Limited - Analyst : Got it. Got it. And the second question was around study, to be any indication beyond, besides currently any indication on improvement of the study ratio or study assortment?

Question: Videesha Sheth - Ambit Private Limited - Analyst : Sorry, is there any indication of the overall standard portfolio growth or picking up versus the 11% growth which we saw this quarter?

Question: Videesha Sheth - Ambit Private Limited - Analyst : Okay, and this bio growth to which you're referring to and started being better versus that would be inclusive of character or exclusive excluding?

Question: Videesha Sheth - Ambit Private Limited - Analyst : Understood. Thank you.

Question: Tejas Shah - Avendus Spark Institutional Equities - Analyst : Hi, thanks for the opportunity, for the change start with watches, and then, -- so watches, delivered exceptional quarter. So what led to this growth and how should we think about sustainability of the same.

Question: Tejas Shah - Avendus Spark Institutional Equities - Analyst : Okay. And on I -- despite store closures we are delivering decent growth, so what's the strategy there going forward?

Question: Tejas Shah - Avendus Spark Institutional Equities - Analyst : Sure. And last one, if I may, given the US tariff environment, are you seeing any impact on demand pricing or sourcing strategies for the international jewelry business, especially in the US?

Question: Tejas Shah - Avendus Spark Institutional Equities - Analyst : Okay. Thanks and all the best.

Question: Siddhant Dand - Goodwill Warehousing Private Limited - Analyst : Yeah, hi. I had a question regarding the could you speak more on the numbers, the scalability, the sustainability of this quarter's numbers and the semiconductor business that we're doing.

Question: Tejas Shah - Avendus Spark Institutional Equities - Analyst : Okay. That's wonderful. Thank you so much.

Question: Harit Kapoor - Investec Bank Ltd - Analyst : Yeah, hi, good evening. So my first question was on the watches business again. So even adjusting for this INR50 crores is 18.5% debit margin is extremely strong and way ahead of our expected guidance. So just for the full year -- is it likely to be a higher profitability year for watches or is there something sustainably that you think, is going to be at the higher end now? That's my first question.

Question: Harit Kapoor - Investec Bank Ltd - Analyst : Got it. And just to follow up on this, you, analog seems to be doing, significantly better, there's not much of talk available in your, release now. Is there a shift in the market, or are reversion that's happened, towards analog, it's if you could just give some sense on that?

Question: Harit Kapoor - Investec Bank Ltd - Analyst : Got it. And the last question was on [Tanishq], over the last two quarters you've seen a slower rate of store expansion even this quarter 3 stores. So just wanted to get a sense, is this year going to be slightly more back ended, how do we see that?

Question: Harit Kapoor - Investec Bank Ltd - Analyst : Great. Thanks and wish you all the best. Thank you so much.

Question: Amit Sachdeva - UBS - Analyst : Hi, good evening, and thank you so much for taking my question. So my question is on the started growth, which is, 11%, and I think it's been going on in the same vein for the last two, three quarters, but surprisingly caratly continues to grow strongly in 30s, and you also make a point that premium solitaires there are up 60% and you also sort of given a mix of revenue in the slide which is studied versus gold, and that includes [carat] in the numbers seems to be unchanged, but then does it signal that in the [study] segment the ticket sizes now are coming down. And is there something consumer trends are telling us at Tanishcore, Zoya level or whatever I think the premium formats level while the market is going towards more affordable diamond jewelry. How should we see the trend and could you also update what is the diamond overall market would be in India level, studed market and how the market growth is happening?

Question: Amit Sachdeva - UBS - Analyst : Got it. No, that's very helpful, Venkat. Thanks so much for that. And can I just ask a small follow up on, given the gold price is very high and most jewelers have tried to make a light jewelry and several, SKU innovations to excite the, buyers and including lower carriages, lower, sort of carat as well. Well, so my question is that has that changed some competitive dynamics on making charges, just to get a sense of that. Are you seeing at the margin things are the same or has that been a little bit more intense on pricing front?

Question: Amit Sachdeva - UBS - Analyst : Thanks so much. It's very thank you so much for the disclosure as well. It is very helpful and thank you so much for the detailed answers. Thank you, Ajoy, and thank you very good. Okay, so thank you so much.

Question: Percy Panthaki - IIFL Securities - Analyst : Hi sir. Just, a question on, a lab grown diamonds. I know we have been discussing this, on and off, in the quarterly calls, but I think it's been probably four or five quarters since we all first raised the question as to how Titan is looking at LGD and whether it wants to have a play in this or not. And we are seeing now news items on several relatively small, but, be funded, players who are going to set up, LGD stores over the next couple of years. We will have significant supply coming into the Indian retail market. It's not as if LGD is not available now. But proper retail frontage, enough number of touch points square feet, et cetera. That we have not seen till now, which I think over the next two years will come in. So the question is do we want to participate in that at all or I mean, that's something that because we are a natural diamond player. We don't want to get into that, and we believe that, while they might garner a certain amount of sales, we will focus only on the other part of the market. So just some thoughts here.

Question: Percy Panthaki - IIFL Securities - Analyst : Okay. Got it. Secondly, this 11% started growth, is that number including caratlane?

Question: Percy Panthaki - IIFL Securities - Analyst : Including caratlane, I mean as a company as a whole, what is your started growth?

Question: Percy Panthaki - IIFL Securities - Analyst : Okay, because see, I don't know if that 11 materially changes or maybe just goes up to 12, 13 or something like that, but my question on this was that see we have traditionally always held that we are not too focused on the [study] percentage because of gold inflation. Gold jewelry is selling more and that percentage is naturally come down, but we have a good absolute growth in [studed]. Now that is not true for this quarter. So absolute growth itself is on the lower side. So what is driving this absolute growth to be low and is it just a quarterly one off or is there some pressures which can continue for a longer period of time?

Question: Percy Panthaki - IIFL Securities - Analyst : Understood. And the last follow up on the first question on the LGD part. See, again, just your take on this because right now the situation is too nascent and we don't have any real data, so I'm just asking your take on it for the future. Basically, see in US et cetera, we have seen, LGD penetrate into mainly the solitaire category and take a substantial, share of the solitaire category. In India, the solitaire category is, quite small. We are a small diamonds market. But even in a small diamond market there is a significant price arbitrage. So let's say a piece which cost INR80,000 in a natural diamonds that similar kind of piece in LGD might, cost, let's say INR30,000, INR35,000, in the LGD segment. So the Indian consumer being a little more price sensitive, especially at the slightly lower end of course a 5 lakh, 10 lakh customer is not going to shift because he might be interested in natural diamonds only, but let's say a customer in that price point of INR70,000 to INR1,00,000, is it likely that if he's getting it at 50%-60%, cheaper that he might shift to LGD, even if, let's say the business economics of LGD as a business is not very attractive, but what is your take on the market share loss that you might suffer because of this phenomenon?

Question: Percy Panthaki - IIFL Securities - Analyst : Right, very helpful. Thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2025 / 1:00PM, TITN.NS - Q1 2026 Titan Company Ltd Earnings Call

Question: Nihal Mahesh Jham - HSBC Securities - Analyst : Yes, good evening, team. I had a follow-up question on LGD itself or for more on the study part that if I look at for the last four quarters and adjusting this quarter, say, for the numbers, including currently, and just looking at Tanishq, there has been a moderation in the standard growth. So just wanted to understand the reasons as to you, is it maybe a case of LGD which you said is not the case, or is it more a case that as diamond prices have not seen any appreciation or they have been contracting over the last 24 months, that is in a way making people not being very keen in terms of investing in diamond or investing in diamond pieces.

Question: Nihal Mahesh Jham - HSBC Securities - Analyst : Understood. One point of when you're saying the 2% share in value, would it be better to look at it from a carrotage perspective because it's at the end of it $0.01 the price, so 10% of the total carrotage is maybe a decent start just asking your opinion on that.

Question: Nihal Mahesh Jham - HSBC Securities - Analyst : Point taken. Just one last question on the margin but to assure that this quarter, despite started going lower, a very high share of gold coins sales as you highlighted our margins are flat in jewelry excluding the one-off benefits. So mainly operating leverage or some optimization of advertising given the festival of diamond things happens in if you could just give.

Question: Nihal Mahesh Jham - HSBC Securities - Analyst : Thank you so much, sir. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2025 / 1:00PM, TITN.NS - Q1 2026 Titan Company Ltd Earnings Call

Question: Avijit Kundu - Antiquestock Broking - Analyst : Yeah. Thanks for the opportunity.

Question: Tejas Shah - Avendus Spark Institutional Equities - Analyst : And you would be that whatever reversals happen in the second and third quarter. That would be sort of the way you have given it.

Question: Tejas Shah - Avendus Spark Institutional Equities - Analyst : Okay, got it. Thank you. And congrats on a great set of numbers.