Menu

Jewellery

Titan Company Rides High on Gold: Quarterly Revenue Soars Amid Price Surge
business update, Commodities, Market News - July 8, 2025

Titan Company Rides High on Gold: Quarterly Revenue Soars Amid Price Surge

Titan Company Rides High on Gold: Quarterly Revenue Soars Amid Price Surge

Jewellery giant Titan posts double-digit revenue growth as higher gold prices and expanding retail footprint drive performance, but market reacts to shifting consumer sentiment.

Introduction
Titan Company Limited, a household name in India’s luxury and lifestyle sector, has once again demonstrated its market resilience. The company’s latest quarterly results reveal a significant uptick in revenue, driven largely by the surge in gold prices and the steady expansion of its retail presence. However, the results also reflect the complex dynamics of consumer demand in a volatile gold market, with growth in the core jewellery segment showing signs of moderation.

Quarterly Performance Snapshot
• Standalone net sales: ₹12,581 crore, up 19.72% year-on-year
• Consolidated net sales: ₹14,916 crore, up 19.39% year-on-year
• PAT: ₹870 Cr, an 11% increase
• Total income from operations: ₹13,477 crore
• Basic EPS: ₹9.81, compared to ₹8.87 in the same quarter last year1
The company’s operating profit and margins improved, reflecting the benefits of higher gold prices and efficient cost management.

Jewellery Segment: Growth Amid Headwinds
In the first quarter of FY26, Titan’s jewellery business—its main revenue source—registered 18% annual growth. While impressive, this figure marks a slowdown from the 25% growth rates seen in previous periods. Analysts attribute this moderation to the sharp rise and volatility in gold prices, which has led some customers to defer purchases or opt for lighter pieces.
Even amid these difficulties, the jewellery division expanded its presence by increasing store count and upgrading its collection. The company’s flagship brand, Tanishq, remains a preferred choice for consumers seeking quality and trust in their gold purchases.

Retail Expansion and Diversification
Titan’s strategy of broadening its retail presence paid dividends during the quarter. With the addition of 10 new stores, the company’s retail footprint now spans 3,322 locations across India and select global markets. Notably, Titan opened new Tanishq and Titan Eye+ stores in Dubai and Sharjah, strengthening its global footprint.
Beyond jewellery, Titan’s watches and wearables segment also contributed to growth, supported by innovative launches and effective marketing. The company’s foray into eyewear and accessories continues to diversify its revenue streams.

Gold Prices: Boon and Challenge
Titan has been impacted in both positive and negative ways by the increase in gold prices. On one hand, higher prices have boosted the average ticket size of jewellery purchases, lifting overall revenue. On the other, price volatility has made some consumers cautious, leading to softer volume growth and a more measured approach to buying.
Management acknowledged these dynamics in its quarterly update, noting that while gold price appreciation supports topline growth, it also introduces uncertainty into consumer behavior and inventory planning.

Market Reaction and Investor Sentiment
Despite the strong headline numbers, Titan’s stock experienced notable volatility following the quarterly update. Shares fell over 5% as investors digested the impact of moderating jewellery growth and management’s comments on the challenges posed by volatile gold prices. Some brokerages expressed disappointment at the slower pace of growth in the jewellery segment, though the company’s long-term fundamentals remain robust6.

Looking Ahead: Opportunities and Risks
Titan’s leadership remains optimistic about the future, citing ongoing investments in retail expansion, digital initiatives, and product innovation. The company’s ability to adapt to changing consumer preferences and navigate commodity price swings will be crucial in sustaining its growth trajectory.
At the same time, the broader macroeconomic environment, gold price trends, and competitive pressures will continue to shape Titan’s performance in the coming quarters.

Conclusion
Titan Company’s latest quarterly results underscore its strength as a market leader in Indian jewellery and lifestyle retail. While higher gold prices have propelled revenue growth, they have also introduced new complexities in consumer demand and inventory management. Titan’s strategy of expanding its retail network and diversifying its product portfolio positions it well for future growth, but the company—and its investors—will be watching gold price movements and consumer sentiment closely in the months ahead.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Battery Storage Win Powers Acme Solar’s Stock Surge

, , , , , , , , 0 Comment
Read More
Gold Prices Plunge as Israel-Iran Ceasefire Triggers Market Volatility
Market News - June 17, 2025

Gold Prices Dip in Kerala After Record Highs: What’s Driving the Correction?

Gold Prices Dip in Kerala After Record Highs: What’s Driving the Correction?

After surging to unprecedented levels, gold prices in Kerala have taken a step back, reflecting global market volatility, profit-booking, and geopolitical uncertainties.

Introduction
Kerala, renowned for its deep-rooted affinity for gold, witnessed a dramatic surge in gold prices in the first half of June 2025. Prices reached historic highs, only to see a swift correction as global market dynamics shifted. This article delves into the recent price action, the factors influencing the correction, and what lies ahead for gold buyers and investors in the state.

Gold Price Milestones in June 2025
• Record Highs:
On June 14 and 15, 2025, gold prices in Kerala peaked at ₹74,560 per sovereign (8 grams) and ₹9,320 per gram for 22-carat gold, marking the highest levels ever recorded in the state.
• Recent Correction:
By June 16, prices fell by ₹120 per sovereign, settling at ₹74,440, while the per-gram rate dropped by ₹15 to ₹9,305 for 22-carat gold. The downward trend continued into June 17, with 22-carat gold at ₹9,304 per gram and 24-carat at ₹10,150 per gram.
• Short-Term Trend:
The price movement over the past week reflects a mild bearishness after a sharp rally, mirroring corrections seen in international bullion markets.

Key Factors Behind the Price Drop
1. Global Profit-Booking
A significant contributor to the recent decline has been profit-booking by international traders. After gold hit record highs, many investors chose to cash in on their gains, leading to a pullback in global prices that quickly filtered down to local markets in Kerala.
2. International Market Volatility
The international price of gold dipped to $3,414.32 per ounce as per recent Reuters data, reflecting a broader trend of volatility in global bullion trading. This has a direct impact on domestic prices, given gold’s status as a globally traded commodity.
3. Geopolitical Tensions
Ongoing tensions in West Asia, particularly between Iran and Israel, have played a dual role. Initially, they drove prices higher as investors sought safe-haven assets. However, as the situation stabilized or as traders locked in profits, prices corrected downward. The geopolitical risk premium remains a key variable for gold prices going forward.
4. US Federal Reserve Policy Uncertainty
There is lingering uncertainty regarding the US central bank’s next move—whether to cut interest rates or maintain a pause. Lower rates typically make gold more attractive compared to bonds, supporting higher prices. Any signals from the Fed could trigger further swings in gold prices globally and in Kerala.

Current Gold Prices in Kerala
Gold prices showed slight fluctuations over the past few days. On June 14–15, 22K gold was priced at ₹9,320 per gram and 24K at ₹10,168 per gram, with one sovereign (8g of 22K) costing ₹74,560. On June 16, prices dipped slightly, with 22K gold at ₹9,305 and 24K at ₹10,151, bringing the sovereign price down to ₹74,440. The downward trend continued marginally on June 17, as 22K gold was priced at ₹9,304 per gram and 24K at ₹10,150, with the sovereign rate dropping to ₹74,432.

Historical Perspective and Consumer Sentiment
Kerala’s gold price history is marked by periodic surges, often driven by global events and local demand spikes during festivals and weddings. The recent correction is seen as a healthy pause, allowing buyers who missed out during the rally to reconsider their purchases. Local jewellers report steady footfall, with some consumers waiting for further dips before making large purchases.

Outlook: What’s Next for Gold in Kerala?
• Short-Term:
The market is expected to remain volatile, with prices sensitive to global economic data, central bank decisions, and geopolitical developments.
• Medium-Term:
If the US Federal Reserve signals a rate cut or if geopolitical tensions flare up again, gold could find renewed support. Conversely, easing tensions and stronger equity markets may keep gold prices in check.
• Long-Term:
Kerala’s cultural affinity for gold and its role as a hedge against inflation and uncertainty suggest that demand will remain resilient, even as prices fluctuate.

Conclusion
The recent fall in gold prices in Kerala after reaching record highs is a reminder of the metal’s sensitivity to global events and market psychology. While the correction offers relief to prospective buyers, the underlying drivers—geopolitical risks, central bank policies, and investor sentiment—will continue to shape the market in the days ahead. For Kerala’s gold-loving public, the message is clear: stay informed, watch the trends, and seize opportunities as they arise.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Vedanta’s ₹17,000 Cr FY25 Dividend Spurs Hopes Among 20 Lakh Retail Investors

, , , , , , , , , 0 Comment
Read More
Titan Company Rides High on Gold: Quarterly Revenue Soars Amid Price Surge
Equities, Markets, Research, Result Updates - February 14, 2025

PC Jewellers recorded a strong net profit of Rs. 148 Cr in 3QFY25 mainly driven by strong festive demand

PC Jewellers recorded a strong net profit of Rs. 148 Cr in 3QFY25 mainly driven by strong festive demand

About the Stock

PC Jeweller Ltd. is involved in the operations of manufacturing, sale and trading of diamond studded jewellery, gold jewellery, and silver articles. It is one of the important jewellery firms in the Indian organised jewellery retail sector.

It offers a diverse range of diamond, silver, and gold jewellery for various occasions like wedding, party and casual wear as well. It has several famous jewellery collections- Bandhan, Anant, The Fluttering Beauty, Animal Collection, Dashavatar, Amour, Folia Amoris, Hand Mangalsutra, Wedding Collection, Men’s Collection, and many more

The company had its own in-housing manufacturing and designing facility. It has around four manufacturing units located in Noida, Uttar Pradesh. 

The company has three wholly-owned subsidiaries- PCJ Gems & Jewellery Limited, Luxury Products Trendsetter Private Limited, and PC Jeweller Global DMCC.

In the third quarter of the financial year 2025, the company had around 55 showrooms (consisting of 3 franchisee showrooms) in around 41 cities in 15 states of India. In this quarter, the company’s showrooms at Allahabad and Preet Vihar were closed. The company is currently operating in the domestic market only. 

 

Quarterly Update

1.In the third quarter of the financial year 2025, PC Jewellers recorded a robust growth of about 1496 percent in the revenue which accounts to Rs. 639 crore compared to the its revenue growth of Rs. 40 crore in the same quarter of the previous financial year.  The company recorded a turning point from being in loss to profit in the third quarter of the current financial year.

2.In the third quarter of the financial year 2025, the company recorded a surged in total expenses to Rs. 535 crore from earlier total expenses of Rs. 244 crore in the same quarter of the previous financial year which accounts to about 199 percent. It is because of hike in cost of materials consumed and the increase in rise in the purchase of stock.

3.The company recorded growth in EBITDA (including other income) by about 323 percent YoY in 3QFY25 which accounts to Rs. 155 crore compared to loss of Rs. 69 crore in the same quarter of FY24.

4.The company also registered a strong growth in its PAT by about Rs. 146 crore compared to its loss of Rs. 200 crore in the same quarter of the previous financial year. The company recorded a consolidated net profit of Rs. 148 crore.

 

Commentary

1.In the previous  financial year 2024, the company was record loss. The company was facing the debt and financial issues.  In the current financial year, the company has started to record profit. It has taken measures like one-time settlement with the bank and preferential issuance of fully convertible warrants to investors in the current financial year.

2.The company recorded strong growth in terms of revenue due to rise in consumption demand by consumers. The reason for the strong growth is mainly driven by festive and wedding season. It led to the hike in the consumer demand levels. This revenue growth is based completely on its sales at domestic level. 

3. The rise in total expenses in terms of purchases of stock and cost of material consumed indicates company trying to match up with the robust consumption demand driven by festive and wedding season, along with elevated gold prices.

Years (In Cr) Q3FY25 Q3FY24 YoY (%) Q2FY25 QoQ (%)
Revenue 639 40 1495% 505 26%
COGS 505 96 428% 404 25%
Gross profit 134 -56 340% 101 32%
Gross Margin% 20.94% -139.03% 115% 20.03% 5%
Employee cost 7 7 0% 5 30%
Other expenses 17 11 59% 10 62%
Total OpEx 24 17 36% 16 51%
EBITDA 110 -73 251% 86 29%
EBITDA Margin% 17.24% -182.35% 109% 16.95% 2%
Depreciation 5 5 4% 4 17%
EBIT 105 -78 236% 81 29%
EBIT Margin% 16.48% -193.93% 108% 16.13% 2%
Interest cost 3 126 -98% 2 91%
Other income 44 4 1133% 44 1%
PBT 146 -200 173% 124 18%
Tax expenses 0.08 0 -55 -100%
Tax Rate% 0% 0% -11% -100%
PAT 146 -200 173% 179 -18%
PAT Margin% 22.89% -500.12% 105% 35.44% -35%
EPS 0.27 -0.43 163% 0.38 -30%

 

Con Call Highlights

1.The company recorded a rise in its domestic sales by Rs. 639 crore in the third quarter of the financial year 2025. It is mainly driven by a hike in consumer demand due to the wedding and festive season leading to an increase in consumption and customer traffic for the company and the sector.

2.In the first three quarters of the financial year 2025, the company was successful in recording a PBT of Rs. 353 crore compared to its loss of Rs. 525 crore in the previous first three quarters of the financial year 2024. It indicates remarkable progress for the company.

3.To address the issue of debt burden and bring financial stability in the company, the company took the approach of offering to subscribe and issuance of warrants.

4.On 30th of September, 2024, PC Jewellers completed its one-settlement agreement with its consortium banks. In the period of third quarter, the company paid its payment as per the decided timeframe in the Settlement Agreement.

5.On 11th October, 2024, the company executed its issuance of warrants of Rs. 2,702.11 crore which received a subscription of about 99.89 percent. In the third quarter, the company allotted about 118,41,30,520 equity shares by converting its warrants. The company executed this conversion after getting 75 percent  of the issue price from its investors. The company recorded a strong support by investors for the preferential issuance of fully convertible warrants due to the decision of the Union Budget to change import duty on gold to 6 percent from earlier 15 percent.

6.In the period of the third quarter of FY25, the company declared its first-ever stock split with the ratio of 1:10. It resulted in change in face value Rs. 10 to Rs. 1.

7.The company’s efforts to increase its brand presence and expansion in marketing is reflected in its performance of 9 months of the financial year 2025.

8.The company now has 55 showrooms (consists of 3 franchisee showrooms) in 41 cities in about 15 states in India.

9. The company is optimistic about its growth in the industry as well as development in business operations in the upcoming quarters. 

 

Valuations

In present times, the stock of PC Jeweller Ltd is trading at multiple of 20.6 x  0.73 EPS at the CMP of Rs. 13.7. In book terms, trading  2.14x than its book value of Rs. 6.35.  As of today, the ROCE and ROE of the company is at -1.74 percent and -19.0 percent, respectively. The company recorded a net profit of Rs. 146 core in the third quarter of FY25 due to strong consumption demand driven by festive and wedding season.

 

Investment Rationale

India is known for its high jewellery consumption levels. India consumes about 850 to 900 tonnes of gold on yearly basis. In the period of April to December of the year 2024, India recorded expansion in import levels of gold jewellery to around 87.4 percent higher in relation to its import levels in the previous financial year of the same period. These imported gold jewellery prominently includes rings, chains, and earrings. 

India’s Gem and Jewellery  sector plays a crucial role in the progress of the Indian economy. The reason for this is that this industry is considered as one of the biggest exporters of India in the world.  It also plays a major role in creating jobs for artisans.  One of the issues in this industry is the proportion of unorganized jewellers is higher than organized segments. In the FY 2023, the organized retail jewellery segment comprised around 37 percent of jewellers at both regional and national level. There is a positive projection of rise in market size of the Indian jewellery retail industry to 145 billion US dollar  by the financial year 2028.

In the Union Budget 2025, the jewellery companies got the relief as the budget announced reduction in tariff duties to jewellery  by  20 percent. It was earlier 25 percent. It resulted in a rally of many jewellery companies to about 9 percent. Apart from this, the budget announced lowering duties on platinum metal by about 5 percent which was earlier 25 percent. It also IGCR conditions imposed on Lab Grown Diamond (LGD) leading  to becoming duty-free product. The objective of these measures is to contract the cost and to raise the demand in the market. It is also anticipated to promote the luxury jewellery segment.

Budget 2025 announcement of tax relief for income up to Rs. 12.75 lakhs is expected to aid in increasing demand in the jewellery industry and also rise in job levels in the sector. In the first 9 months of the current financial year , domestic jewellery companies recorded a rise in consumption due to hike in gold prices,  high number of auspicious days and wedding days,  and consumers moving towards branded jewellery. 

In the current financial year, the company has started to record profit after a long period of loss. The company is now focused on increasing its market presence in India. It is expected to continue to get benefitted with the expansion in consumption demand of the consumers. 

The image added is for representation purposes on

HDFC bank Q3FY25: Loan growth decline, NIMs margin stable

, , 0 Comment
Read More