NEW DELHI: The management of leading Indian lifestyle retailer Titan Company Limited is taking a measured approach to the evolving US tariff environment. "A knee-jerk reaction with respect to pricing is not warranted at this time," says Managing Director CK Venkataraman.
During the Q1 FY'26 earnings conference call, Venkataraman indicated that the company is performing "pretty well" despite the new tariffs. He noted that the US market accounts for only about 2% of Titan's sales, making the tariffs "not a deal breaker."
The company, which is known for its diverse range of products including watches, jewelry, and eyewear, plans to observe the situation until the end of August before finalising any pricing strategies.
In a forward-looking statement, Venkataraman highlighted the growth of Titan's international jewellery business, particularly following its recent entry into the Gulf Cooperation Council (GCC) region. He projects that the international business, including the US and GCC, could grow to 6% of total company sales. This growth has prompted the company to explore the possibility of establishing global supply chains in different parts of the world, though there are currently "no concrete plan to share."
Titan has reported a 'very satisfying quarter' across its businesses, with management expressing confidence despite a volatile US tariff environment. The company's Q1 FY'26 earnings conference call transcript reveals strong performance and strategic planning for future growth.
The jewellery division saw a robust margin performance. While the company's same-store sales growth momentum has been slower than other large players, management believes it has sustained its national market share in Q1. The division benefited from a one-time hedging gain of approximately 50 basis points, which is expected to reverse in the coming quarters.
This segment delivered an "exceptional quarter," which management attributes to premiumization and mass customization across brands like Sonata and Fastrack. The division reported an 18.5% EBIT margin, which includes a one-time benefit of approximately Rs 50 crores from an annual inventory valuation. This one-time gain will reverse in subsequent quarters, but the company is hopeful of delivering a "mid-teen" margin for the full year.