Titan Company Ltd Management Discussions

Watches & Wearables Division

Outlook:

Responsible Jewellery Supply Chain:

EyeCare Division

W FRAGRANCES & WOMENS BAGS DIVISION

FRAGRANCES

WOMENS BAGS

W INDIAN DRESS WEAR DIVISION

Taneira is steadily carving its path towards becoming a leading force in the ethnic wear space, guided by a clear vision to be one of Indias most loved ethnic wear brand. In an industry long dominated by unorganised players, a shift towards greater structure and efficiency is underway. Taneira stands at the forefront of this evolution, driving change through design-led innovation, operational excellence, and a more organised, thoughtful approach to a heritage-rich category. Taneiras brand awareness and salience has been strengthened with the growing retail footprint, impactful brand marketing, and an overall increase in brand visibility on offline and online channels.

Taneiras efforts have been recognised through several prestigious accolades, including being named Ethnic Fashion Retailer of the Year at the ET Retail Great Indian Retail Awards.

Retail Expansion & Customer Experience

Taneira continues to strengthen its consumer outreach through an expanding retail footprint, culminating the year with 82 stores across 41 cities, including 10 new additions. With knowledgeable staff and an immersive, thoughtfully curated shopping experience, the brand distinctly stands out in the ethnic wear market. A noteworthy NPS of 90 and a stellar Google rating of 4.9 stand as a strong testament to the deep customer appreciation and loyalty the brand enjoys.

Building the Brand: Signature Collections & Impactful Campaigns

Empowering Artisans with Weavershala

The brand is building meaningful connections beyond consumers - through its pioneering Weavershala initiative, now active in 18 Weavershalas across the country. This initiative is revitalising Indias rich weaving traditions while empowering the next generation of artisans, with strong focus on women. A key milestone is the launch of the first all-women Weavershala in Samudragarh, West Bengal emphasising the brands commitment and championing inclusivity and craft preservation.

Strengthening Consumer Connect

Taneira also launched its first-ever saree exchange program in collaboration with Goonj, receiving enthusiastic participation from customers and reinforcing its commitment to sustainability and community impact. The Taneira Saree Run also saw significant growth, expanding to five cities and engaging over 18,500 women in a celebration of culture, fitness, and sisterhood. The brands growing connection with consumers was further strengthened through engaging instore experiences, Try @ Home services, and curated pop-up events across key markets.

Operational Excellence and Supply Chain Innovation

The brand has established a robust and scalable supply chain network, joining hands with over 300 vendors and engaging more than 12,000 artisans across the country. A newly operational 50,000 sq. ft. warehouse, supported by an advanced warehouse management system, has enhanced fulfilment capabilities and streamlined logistics. The introduction of standardised colour cards ensures consistency in dyeing practices across vendor partners nationwide, leading to improved quality control. In an industry-first move, the brand has also implemented a tech- enabled production tracking system, providing end-to-end visibility across the supply chain, enabling timely fulfilment, better planning, and optimal resource utilisation.

Resilience and Forward Momentum

In the face of challenges such as rising input costs and a transforming traditional weaving ecosystem, the Division remains committed to authenticity, accessible retail experiences, and ethically sourced collections. With a strong focus on design-led innovation, the brand continues to reimagine traditional weaves into contemporary expressions across all product categories.

Recognising that weddings and festivals account for nearly 60% of industry purchases, the brand has strategically begun deepening its presence in these high-impact segments.

With these efforts well underway, the brand is confidently progressing toward its vision of becoming the most loved womens ethnic wear brand in India.

At Taneira, we care about the planet and people. We use pure, natural materials that are good for the environment. We also support the rich and diverse crafts of our country by working with skilled weavers and artisans in a way that keeps their methods alive and true. Through our Weavershalas, we help our weavers earn a steady living. Our goal is to protect the earth, keep traditional crafts alive, and support local communities.

Mr. Ambuj Narayan, CEO, Indian Dress Wear

M DIGITAL

The Company is harnessing the power of technology, algorithms, and AI including Large Language Models to drive innovation across its domains. From automating analog watch testing, enabling accurate pupillary distance measurement via camera, and offering virtual RSO jewellery recommendations, to AI-driven merchandising suggestions, the Company is embedding intelligence into its operations to enhance customer experience and productivity.

The testament to all of this is in the numbers. Omni-channel continues to power a good percentage of offline sales in the Jewellery Division; watch dealers order significant volumes online; E-commerce is the second most important driver of business for the EyeCare Division.

The focus for the Digital function this year has been about building an intelligent enterprise - a) Embedding intelligence in processes (assortment rationalisation, payout optimisation, reducing melting), b) Automation (Including agents), c) Increased use of ecosystem data, d) Building AI powered solutions, and e) Evangelisation including upskilling, reskilling as well as workshops. Digital and data remain the strategic assets, that continue to be guarded with robust security initiatives including cybersecurity as well as safeguarding customer data.

The Digital team is helping drive sustainability through three levers: a) optimise cloud usage and working with Green cloud providers to directly reduce carbon footprint; b) actively enabling paperless initiatives including bills and contracts across the enterprise; and c) leveraging AI/ML algorithms and analytics for more efficient inventory planning and marketing to reduce waste.

Mr. Krishnan Venkateswaran, Chief Digital Officer

W DESIGN EXCELLENCE CENTRE

Design sits at the heart of every product created at the Design Excellence Centre (DEC), which caters to all the businesses of the Company. With diverse capabilities, multi-disciplinary teams backed by creativity and technology, the DEC creates products which are trend setters for all brands. Each product that is created is authentic and unique. The design process is robust which ensures that the brands are able to create winning products consistently. Deep consumer insighting, trend analysis and ability to create deep design stories & narratives which translate to tangible unique pieces of design is the core competence of DEC. Design innovation drives the function to create unique products which are visible across all the new products launched in all the brands The holistic approach to design is what differentiates the DEC. A strong focus on utility, ergonomics, aesthetics, functionality and innovation drives all creations in every brand. Being a lifestyle company, Macro and Micro trends govern decisions at every step. Embracing new age technology for enhancing productivity is the way of life in DEC.

DEC is focused on consistently building design leadership and product differentiation for every brand across the Company.

Financial Year 2024-25 was a year of focus on innovation, premiumisation, and design differentiation. We won two global awards: German Design Award for Zoya-Aeterna and iF Award for Edge Ultraslim. It was a tightrope walk for Design to deliver both Democratisation and Desire, Scale and Bespoke. Our Design Excellence Centre empowers the community, co-creates with karigars, and features talented designers with disabilities.

Ms. Revathi Kant, Chief Design Officer

MPEOPLE function

The Company had 9,191 employees on rolls as on 31^st March 2025 of which 2,727 were women and recruited 1,275 new employees. The Company also had an attrition of 770 employees, i.e. 8.61%. Of the total headcount, 3,301 employees were engaged in manufacturing, 3,294 in retail, and 2,596 in corporate and support functions. Of the total base, 127 employees are differently abled.

Diversity in Titan begins right at the top; the Company is proud to be at par with some of the best employers for women, with 13.17 % gender diversity in its Top Management and 29% gender diversity at the entry level positions. While these figures reflect strong representation at both the entry and leadership levels, current efforts are focused on bridging the gap at the mid-management level. Additionally, the Company has consistently maintained pay equity across genders and levels, reinforcing its commitment to building a truly equitable workplace.

The Company continues to embed diversity, equity, inclusion, and belonging into its business and people practices through a well-defined, actionable inclusion blueprint. Progressive policies like period and menopause leave have enabled greater self-care for women employees across diverse roles. Career development programs such as Titan ACE and ACE+ supported leadership readiness for women in mid and senior management. A creche facility at the corporate office and Jewellery ISCM further underscores the Companys commitment to working parents. The Companys inclusive approach also extends beyond gender and the new policies now support employees with differently abled children through flexible work arrangements and financial assistance, reinforcing the Companys belief in care thats equitable and far-reaching.

People NXT & Business Partnering Strategy

The People function has strategically partnered with the business divisions and functions to chart out the People Strategy in alignment with their business goals. Some of the highlights include re-imagining organisational structures, conducting immersions to learn about luxury, premium and digital, resultantly building capability of the building capability of the frontline staff. The People function also embarked on a transformational journey called People NXT to provide superlative employee experience and support the Companys ambitious growth target of Titan Turbo. In this journey, the function is focusing on organisational design for the future, data centricity, technological interventions and operational excellence. With its foundational tenets at the core, the Company has reimagined key employee touchpoints through technology to build a more accessible, agile, and intuitive experience. These digital interventions are designed with future readiness in mind, extending not only to on-roll employees but also to the broader ecosystem, including off-roll and contract manpower. This ensures inclusive engagement, operational efficiency, and a workforce that is better equipped for the evolving world of work.

Titans commitment to people excellence was recognized globally, winning the HR Asia Best Companies to Work for in Asia award for two consecutive years, viz., 2023 and 2024.

At Titan, our belief that doing good drives sustainable business outcomes is central to our approach. ESG serves as a strategic framework through which all policy decisions are rigorously assessed. We actively invest in developing ESG capabilities and awareness across our workforce to positively impact all stakeholders within our value chain.

Mr. Swadesh Kumar Behera, Chief People Officer

Career Development

The People function continued its efforts to strengthen the Titan Career Vista programme, which has presented Titanians with an avenue to Dream, Discover and Design their career. This year, Titan introduced Bridge Marketplace, a platform enabling employees to take on short-term, cross-functional assignments-fostering exposure, collaboration, and learning beyond their core roles.

Capability Building

The Company continued to invest in leadership development programmes across the 4 tiers namely, Top Management Development (TMD), Senior Management Development (SMD), Emerging Leaders Programme (ELP) and Sales Excellence Programme (SEP).

• ELP continues to be a cornerstone of leadership development at the mid-management level. This year saw a higher intake of mid-level participants, a more agile format with a shorter journey duration, and a shift from assessment centre-based selections to manager- led nominations.

• SMD Program is a comprehensive development journey designed for the Senior Management Team (SMT). The program begins with a robust diagnostics stage that enables senior leaders to gain deeper self-awareness and align more closely with Titans leadership competencies and organisational focus areas.

• SEP is designed to identify and accelerate the growth of high-potential sales talent across the Company. Now in its third edition, this year saw a strong focus on meritocratic selection, greater regional focus through rigorous aptitude and regional judgement tests & role- plays, case studies and behavioural event interviews for leadership readiness In its efforts to manage key talent, the Company has made several interventions such as personalised coaching, personalised developmental plan, managed career movements, etc., resulting in approximately 163 employees being positively impacted. The programme had a retention rate of 95%.

Retail Capability Building

A structured two-month training program was launched in partnership with ISME, Bangalore, to build a ready pipeline of retail staff aligned with Tanishqs standards. The program combines six weeks of virtual learning with on-the-job training, covering induction to advanced store operations— ensuring end-to-end readiness for retail roles.

Integrated Supply Chain Management (ISCM) Capability

• Leadership Enhancement Agility Program- LEAP:

Focused on building business, financial, operational, and digital skills via 6 strategic projects for mid-to-senior managers, reviewed by senior leadership.

• Sourcing Excellence 2.0:

Designed to upskill the sourcing teams with 9 innovation- driven group projects.

• STRIDE - Supervisory Development Program for Diploma Engineering Trainees & Graduate Trainees : Training roadmap in collaboration with the ISCM Council; aimed at developing early-career engineers to deliver strong performance and sustainable impact.

• BOOST Program under Digital Economy and Society Index:

Soft skills workshop and coaching for managers at Case and SS Case plants, leveraging Harrison Assessment.

• Design & Engineering Excellence Program - DEEP: Functional training for 44 managers across manufacturing, design, and innovation, aligned with the W&W Division vision.

• GIA - DGL Workshop:

A comprehensive program on diamond grading, quality assessment, global standards, and emerging trends for relevant functions and designed to upskill teams involved in the diamond value chain.

• Diamond 4C Grading Knowledge & Quality Awareness: Designed to understand the 4Cs - Cut, Colour, Clarity, and Carat Weight for quality awareness.

CREST

The Company had launched a programme called CREST in 2023 to enable a uniform understanding of what is expected from a people manager at Titan. The CREST commitment is rooted in 9 statements under the following:

CREST-o-meter was launched to assess people managers behaviour against the commitment of CREST through an anonymous third party facilitated survey. This year the People function reinforced the CREST promises through roadshows, branding and interactive platforms.

Nurturing Talent for today and tomorrow

To strengthen talent retention and future readiness, the Company introduced greater differentiation in its Performance Management System by moving from a 4-point to a 6-point rating scale, enabling more precise identification and focused development of top talent. The annual stay interviews continued to offer proactive insights into engagement and retention risks across key themes such as career growth, development, and work environment, enabling targeted interventions and sustained focus on high-potential cohort.

Retail Academy, a structured training program blending virtual learning and on-the-job experience was also launched to build a strong pipeline of store-ready talent aligned with Tanishq retail standards, combining virtual learning with on- the-job experience. Continued investment in luxury capability building further reshaped mindsets and strengthened the ability to deliver differentiated value as the Company expand in the luxury segment.

Wellness at Titan

At Titan, employee well-being is a core priority, reflected in its holistic and evolving approach to wellness. This year, Annual Health Check-up 2.0 was launched, with a special focus on employees aged 50+, achieving a highest-ever completion rate of 80%.

Recognising the growing importance of financial literacy, the Division introduced targeted wellness sessions in collaboration with trusted partners. An Employee Assistance Program - Maithri was extended to both on-roll and off-roll employees, ensuring access to professional support for all. Maithri can now be easily accessed through Titan Sachiv, which also features weekly positive affirmations, reinforcing mental wellness and emotional resilience across the organisation.

Culture of Listening

recognised as a best practice under the Tata Business Excellence Model (TBEM). In 2021, the format was changed to in-person conversations with the MD and Chief People Officer, fostering a more in-depth listening culture. In 2024, the Managing Director and Chief People Officer spent over 70 hours engaging with more than 400 employees across 13 locations, listening to their perspectives and feedback. An in-house portal was introduced to capture inputs and provide timely responses, enabling closure on 91% of the suggestions received. This enhanced listening approach has inspired several new listening posts across the ISCM and retail ecosystem. The Company participated in the Great Place to Work assessment to gather feedback across cohorts, spanning generations, genders, and levels, enriching our understanding of the employee experience. Titans efforts were recognised with a Silver Badge in the Culture category by Brandon Hall in 2024, reaffirming our commitment to building a truly inclusive and responsive workplace.

Employee Relations

The Company continues to build on its relations with unionised employees with the mantra of trust, transparency, and togetherness. A collaborative forum was set up with companies like Ashok Leyland, TVS, Bosch, and ITC to exchange best practices, address ER challenges, and align on evolving policies. Each quarterly meet features a review of the host companys practices, enabling cross-industry learning. A quarterly ER bulletin further broadens perspective by highlighting key developments across the industry.

KEY RISKS AND MITIGATION MEASURES AT ENTERPRISE LEVEL

The Company being a prominent player in the retail sector with presence in multiple lifestyle products categories is exposed to certain risks at the enterprise level which may impact the Companys operations and growth plans. Considering the same and in order to be agile and to ensure sustainability of the businesses, the Company periodically reviews risks at the enterprise level and also puts in place mitigation measures to address the fallout of such risks. The Companys Board of Directors and the Risk Management Committee frequently review these risks and necessary action plan is put in place.

Jewellery - Industry Trend

Nature of Risk

The increasing adoption of Lab Grown Diamond (LGD/synthetics) Direct-to-Consumer and retail players in metros and large cities. This risk pertains to their impact on the sale and growth of our natural diamond portfolio.

Key Mitigation Measures

Track the developments internationally and in Indian market of LGDs.

Track technological developments in this space and potential use cases including consequent cost and market trends.

Data Privacy Across All Business Operations

Nature of Risk

Probability of breach of customer/employees Sensitive Personal Information in violation of laid down country specific privacy regulations.

Key Mitigation Measures

The Companys business systems are continually upgraded/updated to continuously mitigate data privacy risks including carrying out privacy impact assessment, defining data privacy framework, usage of privacy enhancing technologies and a regular independent assessment of data and benchmarking against industry parameters and scores.

Cyber Attacks & Security

Nature of Risk

Potential loss of sensitive data or disruption to the Companys operations due to cyber-attack or hardware/software failure, compromise of customer data, defacement of Titan website, and social media profile, etc.

Key Mitigation Measures

The Company has adopted the best available cyber security framework and deployed a number of Industry leading Cyber Defence Technological Controls. Periodic Security Assurance Validation by an external party is also carried out. Continuous cyber awareness programs for employees are also ensured.

Data Security Leakage from Third Party Agencies

Nature of Risk

As the Company uses third party agencies for carrying out various business related activities, there could be a probability of loss of business sensitive data and sensitive customer data managed by third parties.

Key Mitigation Measures

All the IT Vendors being engaged by the IT function undergo Vendor Risk Assessment. Further, data protection requirements are embedded in contracts for agreements signed with vendors. In addition, only Tier I vendors are engaged for cyber security practices in compliance with Titan cyber security policies especially for business critical applications handling sensitive customer/business data.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

During the year, the Company has reviewed its Internal Financial Control (IFC) systems and has continually contributed to the establishment of a more robust and effective IFC framework, prescribed under the ambit of Section 134(5) of the Companies Act, 2013. The preparation and presentation of the financial statements is pursuant to the control criteria defined considering the essential components of Internal Control - as stated in the "Guidance Note on Audit of Internal Financial Controls over Financial Reporting" issued by the Institute of Chartered Accountants of India (ICAI).

The control criteria ensures the orderly and efficient conduct of the Companys business, including adherence to its policies, the safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and the timely preparation of reliable financial information.

Based on the assessment carried out by the Management and the evaluation of the results of the assessment, the Board of Directors are of the opinion that the Company has an adequate IFC system, operating effectively as at 31^st March 2025.

There is an internal audit function carried out partly by the internal resources and the balance activity outsourced to chartered accountant firms. As part of the efforts to evaluate the effectiveness of internal control systems, the Internal Audit Department reviews control measures on a periodic basis and recommends improvements, wherever appropriate. The Internal Audit Department is staffed by qualified and experienced personnel and reports directly to the Audit Committee of the Board. The Audit Committee regularly reviews the audit findings as well as adequacy and effectiveness of the internal control measures.

SEGMENT WISE PERFORMANCE

(Rs in crore)

(Rs in crore)

HOW THE COMPANY FARED

Some of the key financial indicators are as below:

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

During the year, following were the key financial ratios of the Company where there was a change of 25% or more as compared to the immediate previous Financial Year

DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind- AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) (Amendment) Rules, 2016 read with Section 133 of the Companies Act, 2013.

OUTLOOK FOR FINANCIAL YEAR 2025-26

As the Company looks ahead to Financial Year 2025-26, the Company remains confident in the long-term growth trajectory of our businesses, supported by strong and aspirational consumer base, increasing formalisation of the economy and the deepening reach of digital commerce.

While global macroeconomic uncertainties and geopolitical tensions may persist, the Company is confident of its diversified portfolios, agile execution capabilities, and deep customer insights which would help in navigating to the evolving environment. The Companys continued investments in innovation, customer experience, digital transformation, and omni-channel presence would further strengthen its competitive edge.

Backed by the trust in the Companys brands, the commitment of its employees, and the resilience of the retail, distribution, and vendor ecosystems, the Company is optimistic that Financial Year 2025-26 would be a year of strong, profitable, and sustainable growth.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which it operates, changes in the Government regulations, tax laws and other statutes, any epidemic or pandemic, natural calamities over which we do not have any direct/indirect control.

Ratios given in notes as part of Financials differ from ratios given in the Management Discussion and Analysis as the ratios in Financials are computed purely based on formulas given in the Guidance Note issued by the ICAI. The figures in the Management Discussion and Analysis are commentaries by the Businesses and are basis business metrics which may differ from the Financials in the Annual Report.