Titan Company is likely to sustain the strong momentum seen in the September quarter for the remainder of the fiscal year given an upbeat momentum so far in the third quarter driven by festive and wedding demand and the company’s initiative to offer lower karat jewellery to reduce overall cost for buyers.
Analysts had earlier anticipated a muted performance in the second half of FY26 due to a high base in the year-ago period. Given the strong business momentum, some analysts have revised target prices by 10-12% while raising FY26 and FY27 EPS estimates by around 3%.
Titan’s jewellery division posted a 21% year-on-year increase in revenue (excluding bullion and digigold), to ₹14,092 crore. Titan’s exchange program boosted revenue growth while slightly compressing margins, serving as a key driver for customer acquisition.
Overall buyer growth declined 2% year-on-year, with gold jewellery (below ₹1 lakh) down 11%, while studded jewellery grew 3%, led by high-value pieces (over ₹2 lakh) contributing 14% of sales. Studded jewellery has outpaced gold jewellery in growth over the past 5–6 quarters.
Titan’s international jewellery business nearly doubled to ₹561 crore, with major contributions from the Middle East and North America. To accelerate its expansion across the six GCC countries—UAE, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain— Titan announced plans to acquire a 67% stake in Dubai-based Damas Jewellery, a 118-year-old luxury Arabian brand. The remaining 33% stake is expected to be acquired by the end of 2029.
Titan added eight new Tanishq stores in October, bringing the year-to-date total to 17, with a full-year target of 40. Additionally, 35 stores were renovated in the first half of the year, with expectations of 70–80 renovations by the year-end. Titan stated that these revamps have significantly boosted store productivity.
Consolidated inventory increased by INR 9,473 crore, primarily due to gold price inflation and festive stocking. Titan expects inventory levels to normalise in the December quarter, potentially reducing interest costs on gold metal loans.
Motilal Oswal has reiterated its ‘buy’ rating on Titan, citing an improved earnings growth outlook. It has also increased earnings per share (EPS) estimates by 3 per cent for FY26-27. “A strong jewellery demand over the past 45 days indicates that Titan is effectively capitalising on the buying momentum.”
Emkay Global has upgraded Titan to ‘Add’ from ‘Reduce’ raising the target price by 14 per cent to INR 4,100 and FY27 EPS estimates by 4–5 per cent, driven by stronger-than-expected topline growth in the first half of FY26. The stock closed at INR 3,812.9 on the BSE.
