Among Tata Group’s vast portfolio of businesses, some sections are more prosperous than others. While some sections falter, the jewellery section has become the undisputed star that makes the whole business shine even brighter. The key to it all lies at CaratLane, the in-store and online jewellery business that is truly worth its weight in gold—literally.
Remember that old adage that all that glitters is not gold? Well, in Titan’s case, the glitter is very real, and the gold is making heady profits. The recent financial statements have substantiated something that connoisseurs of jewellery and market watchers have suspected for a long time now:
CaratLane is not merely another feather in Titan’s cap—it’s quickly turning into the peacock among pigeons in the jewellery retailing space.
The numbers tell a story that would make any business owner’s eyes shine with envy. In the fourth quarter of the last fiscal year, CaratLane registered a stunning 23% year-on-year growth. That’s not just great; it’s the kind of growth that keeps the competition awake at night. The company’s EBIT (Earnings Before Interest and Taxes) for the quarter stood at Rs 70 crore, reporting not just growth but growth that is profitable—the holy grail of retailing.
Stepping further into the treasure chest of CaratLane‘s achievements, its total revenue (excluding bullion and online gold sales) rose to Rs 883 crore in Q4 FY25 from Rs 717 crore in Q4 FY24. These figures weren’t spoken in hushed tones in a few boardroom meetings but were openly displayed in Titan’s quarterly results and placed in the public domain on the National Stock Exchange for everyone to see.
The studded jewellery category is traditionally the real litmus test of a jewellery retailer’s knowledge and market savvy, and it rose by a robust 19%. But the rest—gold jewellery, gold coins, and all the rest—shone all the brighter with a staggering 44% surge in the same timeframe. That’s what you call the Midas touch!
CaratLane also expanded by increasing the number of stores. In a press release by the company, they said they added 17 new stores in India in just the last year alone, totaling 322 stores in 139 cities. That is not growth; that is an indication that they’re leading the retail charge. And if growing in India is not sufficient, CaratLane has opened in New Jersey, United States, beginning what is possibly an expansion to the international market.
The online space has not been left behind either. With a 22% increase in brand searches, CaratLane is obviously winning over the hearts of online consumers also. This synergy between digital and physical is evident in its strong EBIT margin of 7.9% in Q4 FY25—a reflection of lean operations in both channels.
If we look at the overall situation, CaratLane did well in FY25. The firm registered a 24% increase in revenue from the last year at Rs 3,583 crore from Rs 2,889 crore in FY24. Its earnings before tax (EBT) was Rs 296 crore with a margin of 8.3% in the period. These numbers reflect what the company is aiming at in a market where CaratLane is directly competing against strong players like Bluestone, Giva, and Melorra.
Speaking of competition, it should be noted that Bluestone has recently received the Securities and Exchange Board of India sanction on its initial public offering. They will raise Rs 1,000 crore by issuing fresh equity shares. The competition is intensifying, but CaratLane’s performance proves that it is prepared for the challenge.
The superiority of CaratLane is also apparent when viewed in the context of Titan’s overall jewellery business. The combined might of Titan’s jewellery portfolio, including heavyweights Tanishq and Mia, rose by a staggering 25% to Rs 11,232 crore in Q4 FY25. The domestic business alone rose by 23% to Rs 10,845 crore in the period.
For those who are unaware of Tanishq, it is India’s first national retail jeweler. With its wide range of gold and diamond jewellery, including a sophisticated range of wedding and bridal wear, Tanishq has emerged as a trendsetter with its emphasis on modernization and inclusiveness in the otherwise traditional jewellery segment. Along with CaratLane and Mia, it is a three-pronged attack that’s sweeping across various segments of the market.
The parent company, Titan, released its fourth-quarter and fiscal year 2025 ending March 2025 results. It stated that its overall income increased by a healthy 22% compared to the same quarter of the previous year. The net profit increased by 12.9% to Rs 871 crore. For the full year FY25, the overall income was Rs 57,819 crores, an increase of 22% compared to the previous year. But the net profit decreased marginally by 4.6% to Rs 3,337 crore, a minor blip in otherwise brilliant performance.
What is noteworthy about these successes is that they were attained when gold prices were very high. Even with this huge obstacle, both the studded and gold coin sections saw more buyers. Solitaires regained ground as more people were buying them, even though there was a shift towards lower carats. Nevertheless, the company stated that the high gold prices continue to affect the mood of the consumers in the short term—a challenge that will test even the most established jewellery retailers.
Titan’s bottom line shows that the company registered a 10.7% rise in net profit in Q4 at Rs 870 crore against Rs 786 crore in the same period of the previous year. Revenue also increased robustly by 19.7% over the previous year at Rs 13,477 crore, primarily because of a 25% increase in jewellery sales despite the high price of gold. As a demonstration of confidence in its fiscal health and its future prospects, the company declared a dividend of Rs 11 per share to its faithful shareholders.
The jewellery performance exceeded market expectations, thanks to hedging gains and operating leverage. Jewellery segment EBIT margin came in at 11.9%, exceeding expectations even as the studded ratio continued to fall. Market analysts have attributed the success to good wedding demand and an improved product mix, led by a revival in solitaires—drivers that provided the business with robust tailwinds.
The investment fraternity has taken notice of these spectacular performances. Brokers are positive about Titan, with most believing that its market position is strong. For example, Motilal Oswal retained its ‘Buy’ recommendation on Tata shares at a price target of Rs 4,000, considering a profit growth rate of 22% for FY25-FY27. Likewise, Nuvama increased its target to Rs 4,541 on the basis of strong margins and a positive view. The brokerage also increased FY26 and FY27 revenue and profit after tax estimates—visible support for the growth path of Titan.
Titan’s plan to grow in all directions seems to be yielding results. By FY25, the company will have 3,312 stores, which means it is well settled in the retail industry. In addition, its non-jewellery products, including smart wearables and sunglasses, are growing steadily and are sure to make the company successful in the days to come. This product diversification gives the company more opportunities to grow and makes it less dependent on a single industry. Technically, the indicators are positive.
Titan’s Relative Strength Index (RSI) stands at 61.9, which shows it is strong but not overbought. Its beta of 0.8 reflects lower volatility than the market, making it a defensive consumer bet in the giant Tata stable. Analysts are firm in their belief that Titan’s brand equity, size of operations, and executional excellence give it a sustained competitive edge in the market.
As gold prices continue to rise and economic attitudes shift, CaratLane demonstrates the power of good planning, market acumen, and getting things right. In the epic saga of Tata Group’s diverse forays, the jewellery business—with CaratLane at its sparkling core—remains the gem that makes the entire group sparkle more. As those in the jewellery trade would say, diamonds are forever, but the growth story of CaratLane appears no less timeless.
