CaratLane Q3: Total Income Jump 27% YoY To INR 1,117 Cr

SUMMARY

CaratLane’s EBIT jumped 59.7% to INR 131 Cr in Q3 FY25 as against INR 82 Cr during the corresponding quarter last fiscal

On the operational front, Titan said that CaratLane’s number of buyers grew 8% YoY while average selling prices zoomed 17% YoY in Q3 FY25

CaratLane also opened 19 new stores in India during the quarter under review, taking the total store count in the country to 305

Tata-owned Caratlane

saw its total income, excluding bullion and digi-gold sales, jump nearly 27% year-on-year (YoY) to INR 1,117 Cr in the third quarter (Q3) of the financial year 2024-25 (FY25).

In contrast, the omnichannel jewellery brand reported a total income of INR 880 Cr in the year ago period. The data was disclosed by parent Titan in its quarterly financial report filed with BSE.

The watchmaker, in its quarterly results, also said that CaratLane’s earnings before interest and taxes (EBIT) jumped 59.7% to INR 131 Cr in Q3 FY25 as against INR 82 Cr during the corresponding quarter last fiscal.

Meanwhile, the omnichannel jewellery brand’s EBIT margin improved by 240 bps (basis points) to 11.7% in the quarter under review from 9.3% in Q3 FY24. “The strong revenue growth led to a positive operating leverage benefit resulting in an EBIT of INR 131 Cr and a margin expansion of ~240bps to 11.7%,” added the company.

In its investor presentation, Titan also noted that CaratLane’s revenue from the studded category (excluding solitaires) grew 24% YoY while other categories, including gold jewellery, gold coins, solitaires, among others, jumped 40% YoY during the quarter under review.

On the operational front, Titan said that CaratLane’s buyers grew 8% YoY while average selling prices (ASP) zoomed 17% YoY in Q3 FY25.

The omnichannel jewellery brand also opened 19 new stores in India during the quarter under review, taking the total store count in the country to 305, spanning 128 cities. It also opened its first international store in New Jersey, US in the quarter ended December 2024. These 306 stores spanned an area of 4.11 Lakh sq ft.

“Activations and promotions during the festive quarter led to c.22% growth in brand searches. The Holiday Edit curation was launched during Diwali, driving good consumer interest,” added the company.

Founded in 2008 by Mithun Sacheti and Srinivasa Gopalan, CaratLane is an omnichannel brand that manufactures and sells jewellery items in India.

The Tata-owned watchmaker acquired an additional 27.18% stake in CaratLane in 2023 for INR 4,621 Cr at a nearly INR 17,000 Cr valuation. With this, Titan increased its total shareholding in the startup to over 99%. Subsequently, the conglomerate bought the remaining 0.36% stake in CaratLane for INR 60.08 Cr, turning the company into its wholly-owned subsidiary.

CaratLane competes against the likes of legacy giants such as Kalyan Jewellers, Malabar Gold, as well as new-age brands such as BlueStone and GIVA.