CaratLane Experiences Significant Growth in Q3

Omnichannel jewellery brand CaratLane has experienced a remarkable 27% year-on-year growth during the third quarter of the current fiscal year. Furthermore, its EBITDA has surpassed Rs 130 crore within the same timeframe.

In Q3 FY25, CaratLane’s total income, excluding bullion and Digi Gold sales, leapt to Rs 1,117 crore, a notable increase from Rs 879 crore in Q3 FY24, showcasing a year-on-year growth of 27%. These results were shared in Titan’s quarterly performance summary derived from the National Stock Exchange (NSE).

As stated in the company’s official announcement, CaratLane has successfully launched 19 new stores across India, elevating its total presence to 305 stores in 128 cities. Additionally, during the quarter ending December 2024, CaratLane inaugurated its first international store located in New Jersey, USA.

With a substantial 22% increase in brand searches, CaratLane’s EBITDA reached Rs 131 crore in Q3 FY25, yielding a margin of 11.7%.

Titan’s Jewellery Business Growth

It is noteworthy that Titan’s overall jewellery segment, which includes Tanishq and Mia, grew by 26.6%, reaching Rs 16,134 crore in Q3 FY24, compared to Rs 12,742 crore in Q3 FY24. In addition to CaratLane, Tanishq and Mia added 11 and 13 new stores respectively in the domestic market during the last quarter.

Investment and Ownership Details

Titan Company Limited first acquired a 62% stake in CaratLane for Rs 357.24 crore in 2016. The company’s holding was subsequently increased to 71.09%. Later, an additional 27.18% was purchased for Rs 4,621 crore, raising Titan’s total stake to 98.64%. Furthermore, in February of last year, the remaining shares were acquired for Rs 60 crore.

Fiscal Year Performance

For the fiscal year ending March 2024, CaratLane reported a 42% rise in revenue, reaching Rs 3,081 crore, up from Rs 2,169 crore in FY23. However, its profit experienced a slight decline of 3.7%, standing at Rs 79 crore during the same period.

Competitive Landscape

CaratLane is in direct competition with Bluestone, which has recently filed a Draft Red Herring Prospectus (DRHP) with SEBI for a Rs 1,000 crore initial public offering (IPO) and reported operating revenue of Rs 1,266 crore for FY24, alongside a loss of Rs 142 crore. The fine jewellery brand Giva has also shown impressive performance, achieving a 66% year-on-year revenue growth, totalling Rs 274 crore in FY24. Meanwhile, Melorra has yet to release its annual results for the last fiscal year.