Titan Q4 revenue and net profit likely to rise despite high gold prices; check earnings preview

The company's quarterly business update anticipates a 25% year-on-year (YoY) revenue growth in its jewelry segment, boosted by rising gold prices and double-digit increases in purchase ticket sizes. The watches and eyecare segments are projected to report YoY growth of 22% and 19%, respectively. During the quarter, Titan expanded its retail presence by opening 72 new stores, bringing the total store count to 3,312.

Experts believe that Titan’s standalone Q4 revenue may increase by 16 to 18% YoY to ₹12,900 to ₹13,300 crore, while its net profit could rise 5 to 8% YoY to ₹820 to ₹855 crore. However, higher marketing and financial costs could dent the profitability.

Titan reported a standalone revenue of ₹11,257 crore in Q4FY24 and ₹16,097 crore in the previous quarter. Meanwhile, its net profit stood at ₹786 crore in Q4FY24 and ₹990 crore in Q3FY25.

Investors will closely monitor management's insights on demand outlook, especially considering near-record high gold prices. Key performance indicators such as same-store sales growth (SSSG), like-for-like (LTL) sales, segment-wise revenue growth, and margins will be closely analysed.

Ahead of the Q4 result announcement, Titan shares are trading flat at ₹3,335 per share on Thursday, May 8.

Technical view

The technical outlook of Titan stands at a crucial juncture. It formed a doji candlestick pattern last week around the middle of the downward trending channel. It reclaimed its 21-weekly and 50-weekly exponential moving averages and is currently trading above both the crucial levels.

For short-term clues, traders can monitor the ₹3,419 and ₹3,290 levels. A break above or below these levels on a daily closing basis will provide further directional insights.

Options outlook

Options strategy for Titan

The options data suggests a potential price swing of ±6.1%. Traders can capitalise on this expected volatility by implementing either a long or short volatility strategy. Straddles are a common approach for this purpose.