Titan's Q2 pre-tax profit rises 53%, 18% excluding customs gains
Profit before tax was about ₹2,329 crore in the quarter to 30 September, on total income of about ₹20,533 crore, up 25%. Excluding ₹536 crore of customs-duty gains, it was about ₹1,793 crore.
By Carat Capital
What changed
Customs gains drove most of it. Titan's Q2 profit before tax rose 53%, the company says. Excluding ₹536 crore of customs-duty gains, the rise was 18%.
What it means
- If you hold Titan: Read the 18%. The customs-duty gains are about two-thirds of the profit increase, on our arithmetic.
- If you price against Tanishq: Jewellery income rose 24%, and Titan says studded jewellery grew in the early thirties.
- What this is not: The festive quarter. Titan says the festive calendar shifted into October to December.
Key figures
| Profit before taxQ2, +53%, 11.3% margin | ₹2,329 cr |
|---|---|
| Pre-tax, ex-customsQ2, +18%, 8.7% margin | ₹1,793 cr |
| Customs-duty gainsQ2; ₹943 crore in the half | ₹536 cr |
| Total incomeQ2, +25%, excludes bullion sales | ₹20,533 cr |
Source: Titan Company, Q2 FY27 press release and unaudited consolidated results, filed to NSE 5 November 2026; quarter to 30 September 2026.
Customs gains drove the rise.
Two-thirds from customs. Profit before tax rose by ₹807 crore to about ₹2,329 crore. The customs-duty gains are 66.4% of that rise, on Carat Capital's arithmetic.
Titan names the cause. Titan ties the gains to the increase in customs duty on gold in the quarter. Without them, profit before tax was about ₹1,793 crore, an 8.7% margin.
Jewellery carried the gains. India jewellery EBIT was about ₹2,281 crore, or ₹1,745 crore at a 10.7% margin without the customs-duty gains, Titan says.
| Line | Q2 FY26 | Q2 FY27 | Change |
|---|---|---|---|
| Total income, ₹ crore | 16,407 | 20,533 | +25% |
| Earnings before interest and tax, ₹ crore | 1,799 | 2,865 | +59% |
| Profit before tax, ₹ crore | 1,522 | 2,329 | +53% |
| Profit before tax margin | 9.3% | 11.3% | +207bps |
| Profit after tax, ₹ crore | 1,120 | 1,722 | +54% |
| Profit before tax excluding customs-duty gains, ₹ crore | 1,522 | 1,793 | +18% |
Titan's presentation excludes bullion and digital-gold sales and a ₹671 crore non-operational accounting credit. The last row is Titan's adjusted figure; Q2 FY26 is the base it is compared with.
Jewellery income grew 24%.
Income rose 25%. Total income rose 25% to about ₹20,533 crore in the quarter to 30 September, excluding bullion and digital-gold sales.
Studded led growth. Jewellery income rose 24% to about ₹17,495 crore, excluding bullion and digital gold. Titan credits its Festival of Diamonds and brand promotions.
India rose 21%. India jewellery income rose 21% to about ₹16,343 crore. CaratLane, inside it, grew 31%.
International more than doubled. The international jewellery business grew 105% to about ₹1,152 crore. It includes Damas, consolidated since the fourth quarter of the last financial year.
Statutory pre-tax profit is higher.
An accounting credit. The highlights exclude a ₹671 crore non-operational credit, a fair-value change on a put option over minority holders. The statutory statement shows profit before tax of ₹3,000 crore.
Festive sales come later. Titan says the festive calendar shifted into its third quarter, October to December.
What to watch
- Q3 FY27 business update, date not announcedFestive-quarter jewellery sales. The test: whether India growth holds at or above the 21% of Q2.
- Q3 FY27 results, date not announcedWhether customs-duty gains recur. The test: the gap between Titan's profit and its adjusted profit.
The story so far
Go deeper
What would change this call
A third quarter with adjusted profit growth close to the headline rate would make the customs-duty gains a footnote. A second quarter of gains this size would make them part of the run rate.
How Titan's adjusted profit is built
Titan presents consolidated profit, then removes gains it ties to the increase in gold customs duty: ₹536 crore in Q2 FY27 and ₹943 crore in the half. Its highlights also exclude bullion and digital-gold sales and a ₹671 crore accounting credit.
Method
Titan Company Limited, outcome of board meeting filed to NSE on 5 November 2026: a press release dated 'Bengaluru, 5th November 2026' and unaudited consolidated results for the quarter and six months ended 30 September 2026. Text: 'Profit before Tax was ~2,329 crores at 11.3% margin, recording a 53% increase. Adjusting for the impact of custom duty increase in gold for the quarter, the Profit Before Tax was ~1,793 crores at 8.7% margin, up 18% for the period'; 'include custom duty gains of ₹536 crores for Q2FY27 and ₹943 crores for H1FY27'; 'The above representation excludes the non-operational Ind-AS credit of ₹671 crores in both Total Income and Profits'. The filing's text layer prints the rupee sign and some spacing wrongly ('~1, 793', '8. 7%'); the figures are quoted with the spacing closed. Highlights table, Q2 FY26 against Q2 FY27: total income 16,407 and 20,533; EBIT 1,799 and 2,865; profit before tax 1,522 and 2,329; profit after tax 1,120 and 1,722. Statutory statement, quarter to 30 September 2026: 'Fair value change of put option liability over NCI' 671; profit before tax 3,000, against 1,522 a year earlier. India jewellery: 'EBIT of ~2,281 crores at 14.0% margin (adjusted for Custom Duty ('CD') gains of ₹536 crores, EBIT was ₹1,745 crores at 10.7% margin)'. Arithmetic, ours: 2,329 - 1,522 = 807; 536 / 807 = 66.4%; 2,329 - 536 = 1,793; 1,793 / 1,522 = 1.178, the 18% Titan prints; 20,533 / 16,407 = 1.251. Carat Capital's 8 October piece gave 21% for jewellery from Titan's business update; the results put India jewellery at 21% and all jewellery, including international, at 24%. The release does not explain how the duty increase produced the gains, and does not call them one-off; this page does neither.