New Delhi: Gold prices are expected to remain “elevated and volatile” due to geopolitical tensions, Titan said, but expressed optimism about the long-term growth prospects of the jewellery market on favourable demographics and its safe-haven appeal.
Despite these challenges, the “outlook in India remains positive” due to favourable demographics and the continued relevance of jewellery as a store of value; however, “short-term demand fluctuations may persist”, Titan said in its annual report.
“Gold prices are expected to remain elevated and volatile, given ongoing geopolitical developments and global conflicts leading to macroeconomic uncertainties,” said Titan, a JV between Tata and the Tamil Nadu government.
The Tata group-managed firm also said these macroeconomic uncertainties arising from geopolitical developments could lead to shifts in demand patterns across customer segments.
“In this environment, there could be shifts in demand segments and the Division will continue to prioritise market share-led, topline growth supported by sustained investments in retail expansion, product innovation, customer engagement, new collections, manufacturing excellence and brand building,” said Titan.
The jewellery firm, which crossed the Rs 75,000 revenue mark in FY26, in which its jewellery division contributed 91.5 per cent of the turnover, will continue to focus on strengthening its retail footprint and enhancing customer experience to capitalise on long-term opportunities in the organised jewellery sector.
“The Financial Year 2025-26 was a year that saw a continued rise in gold prices, from about 33 per cent year-on-year in the first quarter to 78 per cent year-on-year in the fourth quarter, and increased competitive intensity driven by formalisation of the jewellery industry,” said Titan.
The volatile gold prices impacted consumer sentiment, which was subdued in the first half of FY26 and turned favourable in the second half across gold and studded jewellery, as well as coins.
Its jewellery division also expects the “international markets to remain dynamic with cautious optimism in the United States and watchfulness in the Middle East in light of the prevailing geopolitical conditions”.
In FY26, Titan’s jewellery division saw periods of turbulence in consumer sentiment, operations and demand across key international markets.
In the US, elevated tariff regimes necessitated agile supply chain redesign and sourcing strategies to mitigate impact, while in West Asia, the division focused on seamless integration and collaboration with the Damas business, which it had acquired.
Addressing shareholders, Titan Company Managing Director Ajoy Chawla said that FY26 was a landmark year for the Tata Group firm as it crossed the Rs 75,000-crore revenue milestone despite facing challenges from global trade uncertainties, geopolitical tensions and volatile gold prices, which impacted consumer sentiment in the jewellery business.
The year was marked by complexities, including US tariff actions on India that peaked in August 2025 and geopolitical developments that triggered significant fluctuations in gold prices.
“The US tariffs on India, which peaked in August 2025, added uncertainty to the global trade environment. Geopolitics led to volatility in gold prices, in turn creating significant uncertainty amongst jewellery consumers,” he said
In FY26, it also acquired a 67 per cent stake in UAE-based Damas Jewellery, which opened up opportunities to tap the Arab consumer segment in the Gulf region, he added.
