Titan Q4 Results Preview: Due to margin issues, profit growth may remain unchanged despite strong revenue expectations.

On Thursday, May 8, Titan, the jewelry-to-eyewear division of the Tata Group, will release its March quarter (Q4FY25) financial results. Strong revenue growth is anticipated by analysts, driven by robust performance in major business categories.

They do anticipate that margins will continue to be squeezed, though, and that additional expenses associated with gold leases would probably result in flat profit after tax (PAT) on a year-over-year (YoY) basis.

According to the company's Q4FY25 business update, the jewelry division expanded by 25% year over year in March, while the watch and eyewear divisions expanded by 20% and 18%, respectively. Additionally, the corporation claimed that its emerging businesses had improved by 7% year over year. According to the firm, studded jewelry saw low double-digit YoY value increase during the quarter, which analysts anticipate would have an adverse effect on the margins of the jewelry category.

According to domestic brokerage firm Centrum, Titan is expected to report revenue growth of 26.4% YoY to ₹15,787 crore in Q4FY25. This growth will be driven by strong buyer traction in gold jewelry, which will drive a 24% increase in domestic jewelry sales; gifting demand will drive a 22% growth in the watches and wearables (W&W) segment; and eyewear revenue will grow by 18%. Coin sales, mostly for value storage, increased 65% YoY, and plain (gold) jewelry sales increased 27% YoY, driving a 24% YoY increase in domestic jewelry sales. According to the report, demand for solitaire jewelry saw a resurgence, while studded jewelry exhibited low double-digit increase.

In light of this, Centrum projects Titan's EBITDA to increase 19.3% year over year, but its EBITDA margin will be 9.0%, down 53 basis points year over year. Additionally, it forecasts an 8.1% YoY increase in EPS. PAT is predicted to rise 8% year over year but fall 20% on a quarter-over-quarter (QoQ) basis to ₹833 crore. The stock has a target price of ₹4,026 per share, and the brokerage has rated it as a "Buy."