Titan Co. (TITN.BO) 2QFY27: Margins ahead of expectations in most segments; Buy

2QFY27 ahead of estimates adjusted for one-offs: Titan's revenue growth was already known across segments in the quarterly sales update. The margins adjusted for one-offs came in better for most segments, with the exception of Caratlane. TMZ margins ahead of estimates, Caratlane below: Titan's domestic jewellery revenue growth of 21% YoY was already known from the quarterly sales update. Titan's domestic jewellery EBIT has to be adjusted for 1) customs duty increase led inventory gains and 2) mark to market losses on hedges to get the underlying trend. The adjusted domestic jewellery EBIT grew 23% YoY which was largely in-line with our estimates. The Tanishq, Mia, Zoya (TMZ) EBIT growth at 26% (~60bps YoY expansion in EBIT margin) was ahead of our estimates, but Caratlane EBIT declined 15% YoY which was below our estimates. These two offset each other at a domestic jewellery EBIT growth level. Management stated that in Caratlane the business chose to increase marketing spends this quar