Daijiworld Media Network - Mumbai

Mumbai, May 10: Titan Company has said it is not concerned about short-term gold supply disruptions arising from tensions in West Asia, stating that its strengthened gold exchange programme and contingency sourcing plans are helping the company mitigate risks effectively.

The company, whose FY26 topline crossed Rs 75,000 crore, said its gold exchange initiative has been functioning successfully since the third quarter and has significantly improved sourcing flexibility for its jewellery business.

Responding to queries regarding gold supply concerns, Titan Chief Financial Officer Ashok Sonthalia said the company had expanded the scale of its exchange programme in recent months.

“Our gold exchange programme is very successfully being run from quarter three onwards. We always used to run this, but now we have taken it to another level,” he said.

Sonthalia added that the company has contingency measures ready to tackle any potential supply-related challenges.

“On short notice, we can further ratchet it up if required. Some other Plan B options are also ready. We are not concerned in the short term as far as gold supply is concerned for Titan, Tanishq and CaratLane,” he said.

Industry sources procure a considerable quantity of gold from the Middle East, and concerns had emerged over delays in renewal of import licences by the government.

Sonthalia said there had been some slowdown at the customs level, but the situation was improving and the company remained adequately covered for the first quarter.

He also said Titan does not foresee any immediate increase in gold loan costs as the tenure has been extended from 180 days to 270 days.

Meanwhile, Titan CEO – Jewellery Division Arun Narayan said the company has now positioned the exchange campaign as a standalone initiative, particularly for Tanishq.

He noted that many of Tanishq’s jewellery collection campaigns also prominently feature the exchange programme, helping reinforce the message among customers.

According to Narayan, the exchange initiative has received a positive response from consumers because of its “public service message and nationalistic angle”.

He said the programme is expected to continue driving buyer growth, especially among wedding customers and consumers seeking to refresh old jewellery collections.

Narayan further said Titan recorded an 8 per cent buyer growth in the fourth quarter, compared to a largely flat trend in the previous quarter, as customers who had postponed purchases amid rising gold prices returned to stores.

“Gold prices have been rising since Diwali. Many customers who were waiting on the sidelines came back to buy in quarter four,” he said.

He added that many consumers advanced wedding-related jewellery purchases anticipating further hikes in gold prices.

“Those who had weddings in quarter one also made purchases during February and March. It was a combination of both factors that helped,” Narayan said.

Apart from plain gold jewellery, Titan also witnessed improved buyer growth in studded jewellery, aided by a successful diamond campaign.

On high gold prices, Narayan said consumers have gradually started accepting elevated price levels, while a recent cooling in rates has encouraged customers to return to stores.

“There seems to be acceptance that in the medium to long term, gold prices will continue their upward trajectory. That appears to be the prevailing consumer sentiment,” he added.

Titan on Friday reported a 35.36 per cent rise in consolidated net profit to Rs 1,179 crore for the March quarter of FY26. Its sales surged 48.28 per cent to Rs 20,607 crore.