By Neha Gupta, Research Analyst
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New Delhi | Timex Group India Limited delivered one of its strongest financial performances in FY 2024–25, reporting record revenue and profitability as India’s premium watch market continued to expand. Supported by strong demand for luxury brands, growing digital sales, and improved operational efficiency, the company achieved its highest-ever annual revenue while strengthening its position across premium, fashion, and smart wearable categories.
According to the company’s 37th Annual Report, Revenue from Operations increased 28% year-on-year to ₹539.82 crore, while Profit Before Tax (PBT) surged 54% to ₹42.77 crore, making FY25 one of the best years in the company’s history.
Management believes the Indian watch industry is entering a long-term premiumisation cycle where consumers increasingly view watches not merely as timekeeping devices but as fashion accessories and lifestyle statements.
Timex Reinvents Itself Beyond Traditional Watches
Timex Group India has evolved significantly over the last few years.
While analog watches continue to remain the company’s core business, management has steadily diversified into premium international brands, luxury timepieces, smart wearables, and digital retail channels.
Today, the company operates across multiple segments including:
Analog Watches
Luxury Watches
Fashion Watches
Smart Wearables
OEM Manufacturing
E-commerce
Modern Retail
Exclusive Brand Outlets
Management continues to follow a balanced multi-channel strategy covering traditional trade, exclusive stores, online marketplaces, luxury boutiques, and quick-commerce platforms.
Premiumisation Becoming the Biggest Growth Driver
One of the biggest themes highlighted in the annual report is the rapid premiumisation of India’s watch industry.
Consumers are increasingly shifting toward premium and luxury brands, leading to higher average selling prices and better profitability for branded players.
Timex has successfully capitalised on this trend by expanding internationally renowned brands including:
Versace
Ferragamo
Guess
Gc
Adidas Originals
Timex Premium Collection
Management believes premiumisation will continue for several years as disposable incomes rise across urban India.
Industry Outlook Remains Positive
The company remains optimistic about India’s long-term watch industry.
Several structural trends continue supporting demand:
Rising disposable income
Growing fashion consciousness
Low wristwatch penetration
Expansion of Tier-II and Tier-III cities
Rapid growth of e-commerce
Rise of quick-commerce platforms
Despite a slowdown in the overall smartwatch industry, Timex reported double-digit growth in its own wearable segment, outperforming the broader market.
Strong Execution Across Every Business Vertical
Management highlighted several operational achievements during FY25.
Among the biggest milestones:
Highest-ever annual revenue
Record Profit Before Tax
Strong luxury watch sales
Continued expansion of digital channels
Successful integration of the Justwatches retail network
Strong growth in premium international brands
The successful transition of the Justwatches retail footprint demonstrates management’s execution capability while strengthening the company’s retail presence across India.
Financial Performance Reflects Operational Strength
Timex delivered broad-based financial improvement during FY25.
Key highlights include:
Revenue Growth: 28%
Profit Before Tax Growth: 54%
Highest-ever annual turnover
Improved operating margins
Better working capital management
The company’s profitability improved despite inflationary pressures and rising input costs, reflecting stronger pricing power and better product mix.
Business Strategy Focused on Long-Term Sustainable Growth
Management has outlined a clear long-term strategy built around four pillars:
Premiumisation
Expanding premium and luxury watch portfolios.
Digital Growth
Strengthening online sales through marketplaces, brand websites, and quick-commerce platforms.
Retail Expansion
Improving productivity across exclusive stores and modern retail formats.
Technology Integration
Building wearable technology alongside traditional analog watches.
This balanced approach allows Timex to participate across multiple consumer segments while reducing dependence on any single category.
Related Party Transactions
As part of its global operating model, Timex maintains significant business relationships with its international group companies.
Major related-party transactions include:
Product purchases from Timex Nederland B.V.
Product sourcing from Vertime B.V.
Royalty payments to Timex Group USA Inc.
Service charges paid to Timex Group USA
These transactions support the company’s access to global brands, technology, and intellectual property.
Management confirmed that all related-party transactions were conducted on an arm’s-length basis.
Capital Expenditure Remains Asset-Light
Unlike heavy manufacturing businesses, Timex continues to operate with relatively low capital expenditure.
Capital commitments remain limited at approximately ₹73 lakh.
Recent investments have focused on:
Manufacturing automation
Warehouse modernization
Energy-efficient equipment
Inventory management systems
Process digitisation
These investments aim to improve operational efficiency rather than significantly expand manufacturing capacity.
Management Remuneration Remains Performance-Oriented
Managing Director Deepak Chhabra received total remuneration of approximately ₹5.52 crore, representing nearly 1.02% of total revenue.
Chief Financial Officer Amit Jain received approximately ₹2.45 crore, while Company Secretary Dhiraj Kumar Maggo received nearly ₹2.04 crore.
Executive compensation includes Long-Term Incentive (LTI) plans linked to strategic performance objectives rather than only annual profitability.
Corporate Governance Overview
Timex maintains a well-balanced governance framework.
The Board comprises:
6 Directors
3 Independent Directors
2 Women Directors
The company also maintains:
Audit Committee
Risk Management Framework
Stakeholders Relationship Committee
Nomination & Remuneration Committee
Whistleblower Policy
Overall governance standards remain aligned with listed company requirements.
Auditor Observations
Statutory auditors issued a clean unmodified opinion, confirming that the financial statements present a true and fair view of the company’s financial position.
However, auditors highlighted a few important observations that investors should monitor.
Managing Director Remuneration
The Managing Director received remuneration exceeding the statutory limits under Section 197 of the Companies Act.
Management has stated that the excess remuneration is subject to shareholder approval.
Audit Trail Compliance
Auditors observed that Oracle R12 EBS, the company’s primary accounting software, did not have the audit trail (edit log) feature enabled throughout the financial year.
No evidence of financial manipulation was reported, but the issue represents a technical compliance gap.
Data Backup Location
Electronic accounting records are backed up on servers located in Singapore rather than physically within India, which auditors identified as a technical regulatory non-compliance under recent MCA guidelines.
Key Risks to Monitor
Despite strong operational performance, management highlighted several external risks:
Global geopolitical tensions
Currency fluctuations
Rising raw material prices
Counterfeit products
Supply chain disruptions
These factors could impact profitability if they persist over the long term.
Execution Check: Walking the Talk
Management appears to be delivering on its strategic commitments.
Key execution achievements include:
Record financial performance
Strong luxury segment growth
Expansion of premium brands
Growth in smart wearables despite industry slowdown
Successful retail integration
Improved profitability
The company has demonstrated its ability to convert strategy into measurable financial performance.
Conclusion
Timex Group India has delivered one of its strongest financial years, successfully leveraging India’s premiumisation trend to achieve record revenue and profitability.
Its diversified brand portfolio, strong retail presence, expanding digital business, and disciplined execution provide a solid foundation for future growth.
However, investors should continue monitoring governance-related observations highlighted by auditors, particularly the audit trail compliance issue and excess managerial remuneration pending shareholder approval.
Overall, Timex remains well-positioned to benefit from the long-term structural growth of India’s premium watch market while continuing to strengthen its presence across luxury, fashion, and wearable technology segments.
Disclaimer: This article is intended solely for educational and informational purposes and should not be construed as investment advice. Investors should conduct their own due diligence or consult a qualified financial advisor before making investment decisions.