Festive and wedding season set to boost sales Titan, India's leading organised jeweller, is gearing up for a strong festive and wedding buying cycle. Managing Director Ajoy Chawla told CNBC‑TV18 that improving consumer sentiment and robust demand for core jewellery are underpinning the outlook.
Q2 revenue surge driven by natural diamonds The company reported a 22% rise in domestic revenue for the second quarter. A key catalyst was the continued strength of natural diamonds, with brands such as Tanishq, CaratLane, Mia and Zoya posting consistent growth over the past four quarters. This performance comes after a period when lab‑grown diamonds and soft international pricing dominated headlines.
Gold‑coin sales dip, but core jewellery stays resilient While investment‑grade gold‑coin purchases, which had been expanding at 40‑60% year‑on‑year, fell sharply in the quarter, Chawla stressed that Titan’s core business is about “adorning the Indian woman,” not bullion sales. Excluding the coin segment, core jewellery growth could have been 5‑8 percentage points higher, still exceeding 20% on a high base.
Macro backdrop and customs‑duty outlook Global factors – US bond yields, interest‑rate moves and the Middle‑East conflict – have left some shoppers cautious on gold prices. Store feedback shows a split view: some expect a price correction, others anticipate a rally. With festivals and weddings approaching and price volatility easing, demand is expected to stay strong. Chawla added that a reduction in customs duty on gold is unlikely given the pressure on the dollar‑rupee exchange rate and foreign‑exchange concerns.
Growth targets and margin prospects Titan remains well ahead of its ambition to achieve a 20% compound annual growth rate in core jewellery by FY30. Same‑store sales are now close to 18%, comfortably above the 4‑6% inflation range. The organised jewellery segment accounts for 38‑40% of the overall market, allowing multiple players to grow even if the industry’s total expansion slows.
Margin improvement is expected from a higher mix of studded jewellery and stronger performance in higher‑margin categories such as watches, eyewear and the TEAL subsidiary. Although a recent customs‑duty hike may provide a short‑term inventory gain, Chawla cautioned against relying on it, noting that any such benefit could be reversed by future policy changes.