Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Titan Company Ltd (NSE: TITAN) Q4 2026 Earnings Call dated May. 08, 2026
Corporate Participants:
Ajoy Chawla — Managing Director
Kuruvilla Markose — Chief Executive Officer – Watches
Ashok Sonthalia — Chief Financial Officer
N S Raghavan — Chief Executive Officer- Eyecare
Analysts:
Devanshu Bansal — Analyst
Aditya Soman — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Titan Co. Ltd. Q4NFI 26 earning conference call. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask question after the presentation. Conclude should you need assistant during the conference call please signal an operator by pressing star then zero on your touch tone phone. I now hand the conference over to Mr. Ajoy Chawla, Managing Director Titan Co. Ltd. Thank you and over to you Mr. Chawla.
Ajoy Chawla — Managing Director
Thank you. Warm welcome to the Titan Quarter 4 FY26 earnings call. Thank you for being here this Friday afternoon. We have ended the year with a superlative quarter for top line growth. Perhaps our best ever. In the recent past all our businesses have grown very well and all our brands have enhanced their visibility and equity in the quarter and the full year that went by. Over to you for all the questions so we can get on with the Q and A.
Operator
Thank you so much ladies and gentlemen. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchdown telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are request to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Our first question comes from the line of Devanshu Bansal from Anki Global. Please go ahead.
Questions and Answers:
Devanshu Bansal
Hi. Congratulations on a good set of numbers sir. Firstly I wanted to check on gold sourcing. The industry sources are considerable part of gold from India and there was some news flow also that there has been delayed removal of import licenses by DGSP checking. If you could provide some color on the current inventory levels as well as any increasing cost related to sourcing that you foresee in the nehem.
Ajoy Chawla
Hi Devang, Sue, Ashok here. While yeah some of those slowness we are also picking up from the customs point of view but we are pretty much quite covered for you know quarter one and also our gold exchange program is very very successfully being run from the last quarter three onwards. Actually we always used to run this but you know now we have another level of another short notice. We can kind of if required further ratchet turn and some of the other Plan Bs are also ready. So we are at least not concerned in the short term as far as gold supply is concerned.
For Titan perspective.
Devanshu Bansal
Mr. Sundaria sir, just small follow up from an availability perspective I understood but do you foresee any increase in cost? Maybe our gold metal Loan cost was around 3 odd percent. Do you foresee an increase there?
Ajoy Chawla
No, no, no, not yet actually. Now if you would recall, Gold Loan tenure has been increased from 180 to 270 days and I think we are working on that and we are successful in starting that also. So we don’t see any increase in cost in Gold Loan at least in the short term.
Devanshu Bansal
Sure sir. Second, couple of bookkeeping questions. Damas is a recent acquisition. International loss has been around 80 crore in Q4. If you could guide us on the top line scale growth as well as near term loss run rate for Damas it would be helpful in sort of forecasting for FY27.
Ajoy Chawla
You know one of the positive news for international business, if you look at the full year at operating level they became profitable and this is the first year after whatever two, three years back we started and we scaled it up. So full year basis it is profitable. Quarter four certainly had a challenge which we all are aware. March month was quite disturbed in the GPC where not only the mark is present but our TAMISC also is present. So all those things have kind of come in the quarter four in the form of loss of 82 crore.
What you are seeing GCC continues to be a evolving or situation which is unpredictable at this stage and where the Damas retail network is there and Tanish is also expanding there through some conversion of Damas retail network. So a lot of restructuring going on there. But over the I would say 2, 3/4 beyond if you want to look at, we are very, very positive about the aspects of whatever is happening in the integration, the operational improvement. We are quite positive about that. So the the next four quarter we started consolidating from the January 1st fourth quarter.
Of course we have started disclosure in some manner and maybe you will see increased disclosure coming out of us as kind of we get better and then next year onwards you will also have comparison. Then you will be able to assess how the situation in terms of growth of revenue margin of the market is improving. But right now we are not separately calling out but it is not a major part of 82 crore. I can tell you whatever plan they had, it is actually they have done better than that plan.
Devanshu Bansal
Got it. So last one, the unallocated losses which were which used to be around 2030 crore this time around is around 140 crore in Q4. So what has led to this higher loss
Ajoy Chawla
For corporate? Just give me a second. Okay. So this is, you know there was a quite good performance for the full year as a Joy started and Titan in past also we have spoken about. We have a tradition of sharing that superlative performance by sharing we call it special reward which kind of announce once we know the result. And that is how in quarter four it comes without much planning. And this year also the good performance has been celebrated by sharing that with all the employees and all the people connected with Titan.
120 crore roughly. And that is what the variation you are seeing.
Devanshu Bansal
Sure. So I have more questions but I’ll join back in the queue. Thank you.
Operator
Thank you. The next question comes from the line of Aditya Soman from clsa. Please go ahead.
Aditya Soman
Hi. Thanks for the opportunity. So actually to follow up questions. So you said a lot of that 80 crude 2 crore loss was not in Damascus. So that would be for Titans Middle east businesses. Is that the right assumption?
Ajoy Chawla
Yeah. Yeah, you’re right.
Aditya Soman
Okay. And which is why it’s showing up in the standalone numbers, right?
Ajoy Chawla
No, it will not show any standalone. It is the international subsidiary. It is. Okay,
Aditya Soman
Okay. In the international. All right. And this 120 crores, this is not attribute. I mean the reason it’s an unallocated loss is because it’s not attributable to any. So it wouldn’t be like a payment to the franchisees. Right. So this is just bonuses to employees or other partners or would this also include payment to franchisees?
Ajoy Chawla
It is not payment to franchise. It is mostly employees and the other employees to different agencies who are connected with us.
Aditya Soman
All right. No, very clear. And then just very quickly on the watches business again you
Ajoy Chawla
Know like my colleague just hinted me one thing which you would see in a standalone in international. I don’t know what page you are looking at but we from the 25:26, although we had a transfer pricing arrangement all through start of international business but we formalized that from 2526 where we are treating our all succeeding that low risk distributor and that Titan as a parent company is in a way ensuring that a certain amount of basic profit is there. And that transfer pricing adjustment in standalone books is about 80 crore plus minus.
But in consolidated basis that nullifies because it is between subsidiary and parents. So that I just wanted to point out for you as well as all the people who are on the call.
Aditya Soman
Understand that’s very clear and that’s why the standalone profitability will look lower.
Ajoy Chawla
Yes, yes.
Aditya Soman
Okay, very clear. And just quickly on the watches one. So any you’ve given us a sense of how the analog watches have done but can you give us a sense of what the contribution for the full year is from analog watches now.
Kuruvilla Markose
Hi, this is Dinny here. Analog watches overall growth has been around 16% for the year. If you look at both smart and analog put together because smart reduced in numbers, overall growth has been about 14% for the watches division. And you were asking about contribution. What contribution were you looking for?
Devanshu Bansal
No, just a revenue contribution of analog watches. Within the overall business or within the watch business?
Kuruvilla Markose
Within overall business. Analog within the watch business. Analog within the watch is around 85%
Ashok Sonthalia
Now.
Kuruvilla Markose
Closer to 90.
Ashok Sonthalia
Okay, very good. Thank you. That’s it for me.
Operator
Thank you. Our next question comes from the line of Mihail from Nomura, please.
Devanshu Bansal
Hi sir. Congrats on a good set of numbers. Thank you for taking my question. So first question is on buyer growth. I just wanted to get a sense of what led to the return of buyer growth to 8% versus flat that we’ve seen for the past nine months. Was it a brief period of stable gold demand that brought it back or. I’m sure you’ll be doing certain activations etc. On diamond. So how should one look at the return of buyer growth? Was it more from gold point of view or from activation point of view?
Ajoy Chawla
Yeah, thanks. This is Arun Narayan here. So very clearly we have seen the resurgence in buyer growth in quarter four. And what we have reported is 8% versus a flattish for the period prior to that. Now two clear types of buyers, those who are waiting on the sidelines for Dubai. And pretty much we have seen gold rates go up from Festive onwards. Onwards. It’s been climbing and there are
Operator
Many customers who were waiting on the sidelines who came in to buy in quarter
Ajoy Chawla
Four. And we’ve also seen an advancement in wedding purchases. People were anxious that it could go up even beyond. And those who have weddings in their families in quarter one also ended up coming in the months of February, March too. It’s a mix of both. But also we have seen a resurgence in biogrowth on the studded front as well. Aided and enabled by the diamonds, which has been a very, very successful campaign. A very fresh campaign, very different from what we have done in the past. So on both sides we have seen a good supply growth.
Lastly, I think the continued exchange campaign which we began in the month of just before Festive really has worked extremely well. It helped get buyers in in quarter three. And by sustaining it, it’s also helped us to get buyers in quarter four. And now we are running the exchange campaign both as a standalone campaign and you may have Seen that a lot of our punish campaigns, which are new collection campaigns, also have an exchange section in the same campaign. So in a sense it’s getting reinforced with every campaign that we run.
Devanshu Bansal
Understood. Arun, may I request if you can pursue ball gaze. And how do you see the sustainability of this? Do you think the exchange program will help us ensure buyer growth to continue?
Ajoy Chawla
We think so. We think so, we believe so. That’s why we are sustaining the investment behind exchange. It’s very relevant for wedding buyers. It’s also relevant for others who are looking at updating their collection of jewelry. And I mean we all. And the sentiment also of the campaign has resonated very well with people because as a certain public service message and nationalistic angle to it. So all in all, we think that, you know, it is a good thing to run and it will give us rewards even going forward.
Devanshu Bansal
Got it. That is clear. So that’s one. Secondly, wanted to get your
Ajoy Chawla
Sense on the increase in ticket size that we’ve been witnessing over the past two quarters of 44 and 40%. You know, should one extrapolate this growth given that the gold prices have gone up or do you think it is a phenomena again because
Devanshu Bansal
Of,
Ajoy Chawla
You know, wedding earlier
Devanshu Bansal
Activation in fourth quarter? Can one expect this at least to continue for some more time?
Ajoy Chawla
Yeah. So if you track the gold rate trend of last year, you will see that there have been increases on a consistent basis and a big jump which happened close to Dussera and thereafter it’s gone up significantly. So therefore there will be, you know, I mean, in that sense, if you were to compare, let’s say quarter one versus quarter one of last year, just the increase in gold rate will give us a certain ticket size benefit in quarter one and quarter two. But the second half of the year we will have to see how the trend of gold actually, you know, how it kind of pans out.
But perhaps for the first two quarters we may see a certain benefit.
Devanshu Bansal
Got it. And lastly on profitability, you know, you have been within the 11, 11.5% band in the TMZ side of the business in domestic. Any confidence on sustaining these levels? I understand this quarter while it is down yoy, but because of the gold diamond activation, it will be optically, sequentially better. But ability to sustain these margins, any insights of that will be great.
Ajoy Chawla
So Ashok here, I think this is completely, I would not say full correlation, but gold price is playing a significant role on the product mix aspect of it and consequently it is very difficult to tell sustainability if gold remains at the current rate, it is sustainable. But if gold continues to go up, we may have to keep making effort which has been a huge effort by the team on various things which we have talked in the past, like doing 18 carat, 14 carat jewelry, doing mix re engineering, lightweight jewelry, lot of things they have been doing.
So to some extent you can offset that. But beyond the point there will be impact on margin and that is visible. Some 1020 basis point we have been kind of losing and the other thing which we are able to offset sometimes through the control of our overhead cost, et cetera, optimizing that. So I would not give you a good assurance that this is sustainable. Lot of things are going on and maybe we will have more informed view to guide a little bit about this. How do we see it, you know, in the context of where growth is number one priority?
How do we see it maybe in our investor day which we are planning in June first week? Yeah,
Devanshu Bansal
Got it. Understood Ashoksa. The prices have constantly gone up and you’ve been able to manage well and I was, you know, asking in that context only, but I hear you and we look forward to, you know, seeing more guidance from you on the first week of June. Thank you. Keep sending
Ajoy Chawla
Your blessings. We will hopefully continue to deliver. Just keep sending your blessings.
Devanshu Bansal
Thank you sir, wishing you all the way.
Ajoy Chawla
Thank you.
Operator
Thank you. Our next question comes from the line of Kunal Vora from BNP Paribas. Please go ahead.
Devanshu Bansal
Thanks for the opportunity. Gold price is now stabilized at a fairly high level. How is the consumer managing with the high gold price? What is the behavioral change which you are seeing? Any changes in trends in exchange or shift towards lower carat or increase in the jewelry budgets? Buying gold coins? What’s happening in the market?
Ajoy Chawla
Yeah, actually all of the above with because I think people have started accepting gold at this level and this small cool off that we have seen in the last month or two is also kind of helped to bring people back because there seems to be an acceptance that in the medium to long term it’s again going to go back to its trajectory of upward movement. That seems to be the sentiment with consumers from a brand standpoint. I think we have said we need to make jewellery both exciting as well as accessible.
So there are a set of things we have done to make it accessible. Exchange is 1, 18 karat gold is the other, 14 karat studded jewelry is the third. Lastly is the jewelry purchase plan that we have which is a gramage purchase plan which is ongoing for the last two years which does A rupee cost averaging by accumulation in grams and not in rupees plus the whole lightweight piece where we are trying to get a significant difference in the weight of the jewelry versus the way it looks. So look to price ratio.
So multiple things we are doing to make jewelry accessible and exciting as well for customers. But certainly there is interest in the category which is what we have seen in quarter four by way of a buyer growth both in diamonds, studded jewelry and in gold jewelry. And we are also expanding the pie by, you know, by what we have launched also this Akshay Trithiya which is getting, you know, entry into whole new world of natural gemstone jewelry to make jewelry more exciting and provide collections and stories which have never been seen before.
So bunch of things we are doing to keep jewelry and the category exciting and accessible.
Devanshu Bansal
Understood. Just a follow up there. So FY26 was a strong year for you and the days will keep getting higher, especially in the second half. Can you share your early thoughts on FY27 generally sales growth? Also you mentioned customers might have preponed purchases. Is that a risk for FY27 and how like say confident are you of like say maintaining the growth rate or like say the 20% growth which you’ve been talking about in the past? How doable is that?
Ajoy Chawla
Yeah, I think in the past we have said between 15 to 20. So in a sense, you know, that holds good and we hope to do that and maybe do a bit better. In a sense this preponement can keep happening because each month you can keep advancing from the future because wedding dates are in a way sustained. But it all depends upon the trajectory of gold and what impact that makes on consumer sentiments. So we, you know, too early to call on that. But we are hopeful to keep to the same guidance we may have given in the past whether we will sustain this trajectory.
I think perhaps time will tell.
Devanshu Bansal
Understood. Just lastly, Any comments on LGD4A beyond how would you look to scale it up?
Ajoy Chawla
Yeah, like we said in the, you know, earlier, we would certainly like to expand to around 10 to 12 stores in two to three cities and then kind of see how that, you know, because we’ve done a certain study, we’ve done a lot of interaction with customers and we reached a point where we believe that, you know, that it is a, it is a twin engine approach to growing adoption in a very low penetrated diamond market, which is India. So our objective currently is very soon to scale up to the next step of 10 to 12 stores and then kind of see how that works for us before planning national launch.
So right now we are looking to get to that point. We are at two stores currently and hopefully we will get a bunch of stores in place well in quarter one as
Devanshu Bansal
Understood. Thank you. That’s it for me.
Operator
Thank you. Next question comes from the line of Nihal Mahesh Jam from HSBC Bank. Please go ahead.
Devanshu Bansal
Yes. Hi team, good evening. Couple of questions. The first one was on the 15 to 20% growth for next year that you mentioned. Does it say, as I said, depend on the fact of gold prices tending to sustainably increase. So that also becomes an additional. What are the caveats in terms of achieving that number?
Ajoy Chawla
I think this is the general guidance that we have given that we should be able to sustain this kind of a growth irrespective of gold rate because it’s intrinsic to what we kind of try to achieve irrespective of the gold rate. And pretty much the playbook is very simple. If gold rate goes up, then we need to manage the buyer growth to deliver this number and to keep the category, like I said, accessible. So in a sense that’s the playbook that we’ve been following also for the last year or so.
Devanshu Bansal
I will just add to that. These are fundamentals of jewelry
Ajoy Chawla
Category and industry formalizing and therefore organized players growing more rapidly, certainly players with stronger balance sheets as gold price go up as well as brands which are providing that trust and of course differentiation. So I think that formalization of the industry continues to be a very strong underlying factor for growth interest in the category because of its preciousness. And thirdly, the India growth story, therefore the 15 to 20% is something that we ought to do. You know, if we don’t do that much, we won’t be doing justice to all these tailwinds.
Caveats will always exist in terms of volatility in gold price, macro sentiment, etc. But those need to be managed.
Devanshu Bansal
Got that as well. Just one follow up to that. FY26 was an exception there. And you also mentioned there was a lot of FOMO buying which would have paid off saying Q3, maybe in Q4 that that kind of a customer obviously would have come in one time or would have upsized the amount he spent. So potentially if you know you don’t see that kind of a gold price run up in this current year, maybe that customer goes out. Does that still have any impact on this 15 to 20%? Just asking your views on that.
Ajoy Chawla
I think this 15 to 20%, whenever we have given, we’ve never Said it for a quarter or for a certain period, it’s typically an annualized number and also a kind of a CAGR for the next three, four years. And I would stay with that. Pluses and minuses will happen. Preponement, postponement can keep happening, but that’s more noise which happens between month to month, quarter to quarter. Think of it over the next three to four, what should be the growth, I think India growth story and the formalization of this sector will land you in this space.
Devanshu Bansal
Final question. Beyond obviously the mix of gold and diamond which is sort of changing, is there any other pressure on margins in terms of competitive intensity or is this mainly the mix that is leading to the uncertainty?
Ajoy Chawla
No, it’s primarily that nothing else that’s in the mix.
Devanshu Bansal
Coins play
Ajoy Chawla
The role these days because investment led orientation is high and that and plain gold and diamond. These are the three broad categories which interplays and impact the margin.
Operator
Understood. Thanks. Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address all the questions from the participant, we request you to kindly limit your question to two question per participant. If you have a follow up question, please rejoin the queue. Our next question comes from the line of Cavalier bank from IFL Capital T Squared.
Devanshu Bansal
Hi sir, this is Parsi Pansaki here. I just wanted to understand on the competitive and margin front for the jewelry business, what is the situation now in terms of competition? Is it still sort of on a y o y basis getting more intense in terms of discounting and so on and on a standalone basis now for the India business, what kind of EBITDA margins are we confident of achieving in FY27?
Ajoy Chawla
Okay, thanks Percy. I’ll answer the competition question. I think competition is now has become business as usual. Nothing you know. And I think we have shown that we’ve got a playbook to kind of to deliver sustained results. So it’s not something that we are so concerned about and competition is here to stay. And what Ajoy mentioned on formalization is also resulting in organized competition. Putting up stores and adding storage stores across geographies. So that’s something that is now par for the course.
N S Raghavan
And as far as margin is concerned I was answering
Ajoy Chawla
To the earlier question where I was asked that 11.2% and how much it can sustain. So in a way we have been focusing on growth and in the current environment of gold prices it’s very difficult to predict or give you a number that or a small range that within that we will operate. Idea is that if we are growing revenue 15 to 20% in the same ballpark, can we grow our EBIT also at least a little bit lower than revenue because the structural gold price impacts are happening. We talked about product mix, et cetera, but a healthy growth of EBITDA which would be a source of cash flow and value creation overall.
But we will talk maybe more about that in our investor day. How do we view this which is going to be in June first week? Okay.
Devanshu Bansal
Yeah. And on the top line given supposing if the gold price remains roughly at 1:50,000 for the rest of the year on a yoy average basis, that would still be a significant inflation. And although not fully to some partial effect, the gold price inflation typically has a positive effect on the top line growth. So when you are seeing a 15, 20% growth, aren’t you lowballing the possible growth for FY27 given where the gold price is currently?
Ajoy Chawla
We are not lowballing. We said this is the medium to three to five year horizon. If you want to look at this is the growth rate, growth rate we are expecting. We are not giving any guidance to you for FY27. As Arun spoke about quarter one and quarter two may have benefit of this gold price inflation substantially quarter three quarter for already gold price was quite elevated and it will completely depend on trajectory from there on. So this guidance of 15.1020 you look more that we have the way we are running business, the way Indian macros are behaving, we believe 15 to 20%, 3 to 5 year kind of horizon is certainly to be delivered on a CAGR basis kind of thing.
Operator
Understood, Very clear sir. Thank you very much. Thank you. Our next question comes from the line of from Benson sg. Please go ahead.
Devanshu Bansal
Hi, thank you for the opportunity. I just have one question. A lot of this has already been discussed. Wanted to touch there on Carat Lane. The commentary seemed to suggest to me that one of the reasons why the growth sort of slowed from last quarter to this quarter was a preference for higher gold jewelry across customers and which is why the studied jewelry value proposition for Caraclane had a challenge. This almost suggests there is fungibility of gold versus studded or indeed Caratlan versus Tanishq Mia.
Is this understanding correct or is the customer’s use case and profile different for these two? How do you think about it structurally?
Ajoy Chawla
Is there? Are you there? I’m there, I’m
Devanshu Bansal
There.
Ajoy Chawla
I’ll
Devanshu Bansal
Take, I’ll take. Hi, this is Shoman Yada. I wouldn’t you know draw that kind of a conclusion by one quarter’s result. And I think if you look at even the studied sales of Tanishq or even otherwise, I think it has been a good sales, good growth. For Caratlin specifically, among other things, we have grown to the tune of 20 to 20% which is per se not bad. But we also had a big platform level shift, meaning we moved from our legacy ERP to Oracle Fusion that had created some degree of operational challenges especially in the month of January and first half of February.
And February month is very critical for Carat Lane because Valentine is our next big month of February. So at some level we have not been able to fulfill some of the demand that coming to us. So I would say this is a bit internal and this is part and parcel very big change that happens in terms of ERP migration. And why am I saying it so confidently? Because if I look at my December figure or if I look at what we experience in the month of April, that suggests that this is actually more of a blip.
Yeah. So I wouldn’t think there is any significant change in customer presence for diamond, therefore for Caratulina. Okay, clear. Just a quick follow up. Margin profile changing For Catalina at 8.4% this quarter is also a function largely of operating leverage or something else. Yeah, it is because the revenue was one big factor and also we have continued our investment on our campaigns in order to, you know, generate a lot more, you know, awareness among customers because we are also presenting across island 60 plus towns.
So these would be the two factors but revenue be the single largest factor for the but for the year is almost nearly 10%. So. Yes. Okay. All right, that’s it for me. Thank you so much.
Operator
Thank you. Our next question comes from the line of Siddhant from Goodwill. Please go ahead.
Devanshu Bansal
First question was about 10. What kind of metrics are you targeting till you start opening new stores again? Some inventory tone, profitability.
Ajoy Chawla
Yeah, hi, this is Aja here. I’ll take that on. Than I think we are undergoing some kind of a review of the way we are managing the store operating model through a mix of merchandise change price points and strengthening the consumer value proposition. And therefore the metrics we are looking at is twofold. One is of course same store growth, buyer growth and thirdly we will be looking at the stock turns as well as the sell throughs of product merchandise that has been brought. These are the top level pieces that we are tracking and, and lot of work is underway to kind of bring in a lot more buyer growth particularly in the sub 10,000 price band.
Category and some of that will start showing up in the next few months.
Devanshu Bansal
Okay, that’s great to know about the Damas. Just I wanted to understand a little more about the minority stake. So, you know, because we’re converting some Damas stores to Tanishq. How does it work for the minority shareholder? And, and what is the acquisition plan like for the residual stake in three, four years? Whenever it is planned. Because in case it is very successful, might not want to overpay for it or something like that. Right.
Ajoy Chawla
If it is very successful, we are happy to overpay. But you know, it is about four years after that. That occasion would come where partners can discuss and transact and some of the retail conversion which are happening in favor of Taneshk in the catchments where Southeast Asian customers are dominant, they are under a franchisee model with Damas. So minority shareholder interest has been completely protected and both the partners are in full partnership taking some of these calls for the application of brand equity and everything.
What Damas is expected to do for Arab segment. Yeah,
Devanshu Bansal
Understood, that was good to know. And the third question would be, would we expect the momentum at Teal to continue and how is the Jettech acquisition doing?
Ajoy Chawla
That has done wonderfully well, you can see in the full year result, I think which we have spoken about. And Teal has good opportunities, folding in, unfolding under various domains. And they are a powerhouse of engineering, precision manufacturing. Ajay, you want to add something? I think the Teal business has some good growth tailwinds or opportunities sitting in front a lot of India manufacturing coming in, lot of investments, aerospace sector, defense infrastructure, electronic chips. So manufacturing itself because of partly government led incentives as well as the fact that internationally many clients are choosing to have China plus one strategy.
Both of these augur very well. And the automation business as well, having a lot of opportunities thanks to lot more new sectors also emerging from batteries to EVs to so many other things.
Operator
Thank you so much. Thank you. Next question comes from the line of Ashish.
Aditya Soman
Hi, thank you for the opportunity. So the first question was on the bullion sales. You know, if I look at on a full year basis, the bullion sales is substantially higher. So one is this bullion sales largely because of the, you know, benefit which we have on the custom duty, which 1% custom duty. So you’re just selling that gold. And if that’s true, then where is the profit sitting? Is it sitting within the jewelry bit?
Ajoy Chawla
No, this is more inventory management. We have been running gold exchange program at a very, very successfully. You would have Seen our campaign around that from quarter three onwards and lot of gold we are buying from customers from their vault and we don’t want to hold it for long so we continuously keep updating that and replacing it when we really need that volume. There is no 1% angle to this. We are not getting enough quota you know from the government to get that 1%. So you know it is not at all linked with that.
And actually you know there is no in a way profit because it is just inventory optimization.
Aditya Soman
Fair point sir. The second question was on the jewelry ebit. Now when I look at on the standalone basis on the reported financials the jewelry it is around 1711 crores and when I look at you know the revised disclosure of the TMZ business domestic it’s around 1813 crores so there’s a difference of around 100 and 203 crores. Now Mayan please help me correct if I’m wrong here but this is basically the difference in revenue as well as on the absolute EBIT is largely because of the primary sales which happened from India to international.
And if that’s true why is there suddenly a 102 crore loss this quarter versus typically having profit? Because this is mostly gross margins on the primary sales.
Ajoy Chawla
So that you know I spoke about the transfer pricing adjustment of about 80 plus crore that is sitting into the India international business. That is why you are seeing that loss. Otherwise and this is a new thing as I spoke in the sometime during the call that Titan as a parent company is ensuring that its international subsidiaries who are doing this jewelry business they are low risk distributors and we ensure that they have a minimum profit there. So that is sitting there.
Aditya Soman
Sure. So maybe I will connect more on this offline and just last question I think on the demand side is one if you can help me understand I think you talked about the Grammage purchase plan which started two years back. So one when did we started seeing the first you know like which quarter did we started seeing the you know maybe the redemption of the same Because I think it’s typically a one year phenomena. So that’s one and second thing is this one Q will have adhik mass as well. And when I look at historical numbers 2018 we saw some you know de acceleration in growth because of adhik mass the next year 2021 because of COVID etc is not very clear.
But 2024 we we didn’t see any impact from a growth point of view. Whatever was the trajectory it kind of continued. So from Atikma’s point of view anything to, you know, look at or do you think that, you know, there are enough, you know, initiative is the company has taken to mitigate that impact on growth.
Ajoy Chawla
Okay, thank you for that. For the two questions, let me answer the first one first. I the Redemption for the River Golden Advantage Grammage program started from January 2025. This is at a national level, though the program was run at a pilot level in Tamil Nadu prior to that. So January 25th was the National. At a national level is when Redemptions began. The second question on Adikmas honestly, you know, we haven’t really given it too much of thought for me to, you know, answer that. But see, there is a lot of seasonality in jewelry purchase.
There are months which are auspicious, months which are not auspicious. So it pretty much is part of an operating rhythm that we have. So really we don’t, you know, worry too much about too much about this.
Aditya Soman
Sure, sir, thank you. And all the best.
Ajoy Chawla
Thank you so much.
Operator
Thank you. Our next question comes from the line of Ali from Mutual fund. Please go ahead.
Ashok Sonthalia
Yeah, thanks a lot for the opportunity, sir. So just have one question on the margin. So we’ve seen margin slightly coming down obviously because of the prices going up and you know, you also have to offer promotions, discounts to the customer. Now as you mentioned that Q1, Q2 prices will be high but beyond that, if prices remain at the current level, would we expect the discounts promotions to now start coming down and therefore in a flattish gold price environment your margins could be better.
Ajoy Chawla
See our reference was more from the growth point of view that quarter one, quarter two may have a tailwind of differential gold rate compared to last year quarter one to this quarter one and quarter three, quarter four might be much more closer if gold prices doesn’t go further up. But you know, if at all they go further up, then again something may happen. So it was more from the growth point of view than the margin point of view. You know, our response that and I think the margin margin pressures are more coming from the product mix aspect not as much as the discount which happens, which we have activations and I don’t think we have kind of doubled down on that in a very, very big manner.
Exchange program, of course exchange program does have an investment and which is kind of helping us a lot in growth in getting buyers and all those stuff. So we are quite comfortable in continuing with that.
Ashok Sonthalia
Okay. But just to further persist on this point that if at all the gold prices remain stable, do you think there Is any possibility of improvement either from the point of view of also makes or maybe whatever activation we may be doing to increase customer intensity.
Ajoy Chawla
Sustainability of margin would become far easier if gold rate remains where it is and then we will see whether there is opportunity to improve or what. But sustainability would certainly become far easier.
Ashok Sonthalia
Got it.
Ajoy Chawla
Okay. Thank you very much. Very useful.
Operator
Thank you. Our next question come from the line of Tejas Shah from Evidence Park Institutional Equities. Please go ahead.
Devanshu Bansal
Yeah hi, thanks for the opportunity sir. So just wanted to know based on the current trends and data available what would be assessment our assessment of the market share moment this year in jewelry.
Ajoy Chawla
Okay, thank you for that question Tejas. Our sense is that perhaps we have gained about 50 to 60 bps. Is our sense on FY26 versus FY24.
Devanshu Bansal
Perfect. Just second if we have to look the opportunity here. And Julie, from consumer wallet share perspective based on my rough calculation we would have added the sector would have added roughly 4 lakh crore kind of size in last four or five years which is sizable if we compare with many other discretionary categories. So how should we think about this number or the denominator is not only consumption basket but it is tipping into investment basket of the consumer as well. Perhaps looking from consumer lens could be not the right way or the only way to understand this.
Just wanted your perspective.
Ajoy Chawla
I think it’s a bit of a complex question. Better to you know discuss it in person when we are meeting just few weeks from now if you get to answer that over a call. But there are multiple customers, multiple need states. The whole investment buying has really peaked in the last few years. That may not have been the case between 2012 and 2019 when gold was very stable. So yeah, so we’ll have to look at it by need state and maybe good to catch up in person perhaps or do it with investor meet few weeks from now
Devanshu Bansal
And I’ll park it for them sir. Thanks a lot and all the way.
Operator
Thank you. Our next question comes from the line of utkarsh from an individual investor. Please go ahead.
Devanshu Bansal
Actually I wanted to understand that given the sharp increase in gold prices of the gold mulatthen D Can you paint us a picture of how the demand trends progress across January?
Ajoy Chawla
I think gold price increase has actually created more interest in the category is my sense. This is Ajoy Chavza and it’s not just for investment demand but even for jewelry demand old as well as studded. I think Arun shared that how people have requirements for wedding, people have requirements for adornment I think the interest in the precious jewelry category has got heightened with the high gold prices and across segments young, old, modern, traditional.
Operator
Have you done with your question?
Devanshu Bansal
Yeah, I guess there was some. Thank you sir.
Operator
Thank you. The next question comes from the line of Devanshi Bansal from Anchor Global. Please go ahead,
Devanshu Bansal
Sir. Hi, thanks for the follow up opportunity. Sir, I wanted to check on this new gemstone based Hughes collection that we had launched. What is the strategic rationale behind this launch? Is it also an attempt to address the current challenges at entry level price points or is it to address a relatively slower growth in the studded segment? And second sub question is how is the margin profile for this line of GB within line with the studded Jupiter?
Ajoy Chawla
Thank you, thank you for that question and also thank you for noting this new development from our side. It’s an effort to grow the category. So far the category has been seen through the lens of coins, gold jewelry and studded jewelry. We are adding a new dimension to it of natural gemstones with gold and therefore attempting to create another engine of growth for us. There are, you know, the category is a very, very, let’s say the category penetration for gold is extremely high in India and we are seeing that over the last few years.
The design seeker in the category is growing by leaps and bounds in addition to the value seeker who is there to get the best value for their hard earned money. And the design seeker in the category is looking for new expressions in gold jewelry and we are adding a dimension to it by adding natural gemstones. And natural gemstones is a completely different world where there are multiple types of natural gemstones from different parts of the world which can be embellished in gold to create a whole new, whole new range of jewelry.
So that’s what we are aiming to do with this. Hughes is just the first attempt or first collection and there’ll be many more coming up in this. So the, you know, we’re not approaching it from a margin standpoint or from any other standpoint, but we are only approaching it from creating a new dimension and ensuring that the category in which we operate stays exciting.
Devanshu Bansal
Understood, sir. Small follow up. If we could highlight the price range for this collection, is it at entry level price points or more towards the, the premium price points?
Ajoy Chawla
Yeah, we have about 200 styles, 50% of which is between about 40,000 and 2 1/2 lakhs.
Devanshu Bansal
Okay. So this may help us
Ajoy Chawla
About 10 lakhs. That’s the overall range.
Devanshu Bansal
Understood. So this may help us sort of address the challenges that we have been seeing at entry level price points as well.
Ajoy Chawla
It is seeming to do that as well. And a lot of the. Yeah, it is seeming to do that as well. So very wearable jewelry, jewelry that you can wear every day. So it’s not stuff that you buy and keep, you know, keep it in the locker. And that’s also the direction in which we are moving to have a greater part of the excitement also in variable daily wearage. So it’s, it’s certainly helping in that.
Devanshu Bansal
Got it sir. Thanks for the opportunity.
Operator
Thank you. Our next question comes from the line of Priyanka Dhingra from SBI Mutual Fund. Please go ahead.
Unidentified Participant
So I just wanted to Understand from the IK business perspective there were 20 stores which were net closed in the quarter and of course the EBIT margin is also from a YOY basis a little suppressed. So I’m just trying to understand that despite the premiumization and the store optimization that we are doing, why are the EBIT margins going down and what are the plans to further improve this category?
N S Raghavan
Thank you Priyanka. This is Raghavan here. So the store closures is a part of revamping the look and feel of our network. So this is a journey which we undertook for the past one and a half years and that is the reason you see almost 32 store closures and the net being at 20. So that is to enhance the overall appeal. In terms of the ebit, I think our focus is on growing the top line revenue. And if you look at the revenue growth now we are clocking almost 16 to 17% growth. However, this was also supported by increased marketing spends and also we had a one off inventory recall where we recalled certain stocks which we believe were slow movers.
So these are the reasons for that.
Unidentified Participant
Okay, got it sir. The second question I wanted to ask was about beyond the LDD platform. I understand that at this point of time maybe sharing separate numbers may not be, but how was the, let’s say the Valentine’s period sale for beyond and do you see kind of parity between Carath Lane or let’s say MIA versus Beyond? Do you think that the footfalls are increasing? If you could give us some color around Beyond?
Ajoy Chawla
Sure. Thank you for this question on Beyond. It’s just one store so you know it would be incorrect to extrapolate on a sample size of 1. But we have seen good traction even in beyond during the Valentine’s period this year. So nothing that we are seeing which is very different from what we are seeing in natural diamonds. But do allow us to open few more stores and have more data points to answer that with more rigor.
Unidentified Participant
Sure. Thank you so much.
Operator
Thank you. As there are no further question from the participant, I would like to hand the conference over to Mr. Chawla for closing comments. Thank you. And over to you sir.
Ajoy Chawla
Thank you. Thank you everyone once again for a very engaging and interesting conversation. Thanks for all your questions. They make us think and look forward to seeing you soon in the next few weeks. Till then, take care. Bye. Have a good Friday and a weekend.
Operator
Thank you so much sir. Ladies and gentlemen, on behalf of Titan Co. Ltd. That concludes this conference. Thank you for joining and have a good day.