Timex Group India Limited reported its highest ever annual revenue of ₹800 crore for FY26, a 48% increase over the previous year, marking a significant transformation in its growth trajectory. The company delivered a robust 32% CAGR over FY22–FY26, driven by momentum across brands, sharper portfolio premiumisation, and operating efficiency. Profit Before Tax (PBT) stood at ₹101.94 crore, a 138% jump versus the previous year, with PBT margin improving to 12.7%. The Board of Directors, in its meeting held on May 26, 2026, approved the audited financial results for the year ended March 31, 2026, and the financial results for the quarter ended March 31, 2026.

The company's EBITDA stood at ₹116.14 crore versus ₹49.68 crore in the previous year, recording a 134% year-on-year jump. EBITDA margin scaled to 14.5% from 9.2% in the prior year. The results were subject to a limited review by the statutory auditors, Deloitte Haskins & Sells LLP, who issued an unmodified opinion.

Quarterly Performance

For the quarter ended March 31, 2026, total revenue reported a 73% jump over the previous year to ₹235 crore (vs ₹135 crore in the year-ago period). EBITDA for the quarter came in at ₹404 million rupees, a significant increase versus ₹143.8 million in the same quarter last year, with EBITDA margin expanding to 17.16% from 10.62%. Net profit for the quarter stood at ₹273 million rupees, compared to ₹92.4 million in the year-ago period, reflecting a nearly three-fold improvement in quarterly profitability.

Financial Performance Highlights

Profit before exceptional items and tax for the financial year was reported at ₹107.25 crore, growing 2.5 times versus ₹42.77 crore last year. The impact of the new Labor Codes resulted in a one-time increase of ₹531 lakh towards gratuity and leave encashment liabilities, classified as an Exceptional Item. Excluding this impact, core operating performance remained unaffected for the year ended March 31, 2026. Other expenses included advertising and sales promotion expenditure of ₹6,603 lakh for the financial year, compared to ₹4,390 lakh in the corresponding period last year.

Brand and Channel Growth

The core brand Timex witnessed a 62% rise versus last year, supported by design-led innovation and manufacturing scale-up. Guess reported a growth of 51%, emerging as the second leading non-luxury fashion watch brand, while Versace delivered 48% growth. The E-commerce channel recorded 90% growth over the last year, and the trade channel grew 32%. Deepak Chhabra, Managing Director of Timex Group India, attributed the performance to disciplined brand building and a pyramid architecture where every brand occupies a distinct space.

Strategic Initiatives

The Board re-appointed M/s Grant Thornton Bharat LLP as the Internal Auditors of the Company for FY 2026-27. The company continues to focus on expanding its portfolio and scaling manufacturing capabilities, with annual capacity scaled to 6 million units and a roadmap to enhance it to 10 million units. Timex launched a new watch franchise, Signio, as part of its strategy to strengthen its premium occasion-wear portfolio for men in India. The new collection includes automatic, slim, and multifunction watch variants designed to cater to evolving consumer preferences.

Timex Group India Limited has received a scrutiny notice from the Office of the Superintendent, Central Goods and Services Tax, Range-5, Division-I, Noida, regarding discrepancies in its Goods and Services Tax (GST) returns for the Financial Year 2022-23. The communication, received on May 25, 2026, outlines a potential financial exposure of INR 2,64,20,074, excluding interest and penalties. The company clarified that the observations are preliminary queries and do not constitute a final determination of liability.

The notice, issued in Form GST ASMT-10, details four primary areas of concern. The authorities alleged an excess availment of input tax credit (ITC) due to reconciliation differences between various GST returns and underlying data. Additionally, the department flagged a short payment of tax concerning outward supplies, citing discrepancies between figures reported in GST returns and e-way bill (EWB-01) data.

Further, the notice questioned the availment of ineligible ITC for the place of supply outside Uttar Pradesh in certain transactions where the place of supply was interpreted differently. The authorities also required the company to furnish supporting documents and reconciliations to seek additional information and documentation, including credit notes, reversals, and export-related remittances.

Regulatory Disclosure

The intimation was submitted to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing confirmed that the company is assessing the matter with the assistance of legal counsel and intends to file an appropriate response within the prescribed timelines.

Financial Impact

The table below summarizes the key details of the scrutiny notice: