The inventory had spent the previous two years delivering nearly flat returns, at the same time as the corporate remained one among India’s strongest client discretionary franchises. Elevated valuations, rising gold costs, weak discretionary spending and issues over demand had stored traders cautious.
What modified in 2026
One of many greatest positives that analysts noticed this 12 months was jewelry demand stayed stronger than anticipated. Titan benefited from the continued shift of consumers from unorganised jewellers to organised chains. This shift has helped giant branded gamers acquire share, particularly in city and semi-urban markets the place belief, design vary, change presents and retailer expertise have grow to be stronger promoting factors.
HSBC, which has a goal value of Rs 5,290 on Titan, mentioned the outlook for India’s jewelry phase stays stronger than the broader consumption market. The brokerage mentioned the shift from unorganised to organised jewelry continues to assist Titan. It added {that a} sharp correction in gold costs might damage demand for a brief interval, however demand ought to get better later via greater footfalls and purchaser development.
Gold costs additionally performed a task in Titan’s restoration. A comparatively steady gold value surroundings helped patrons return to shops in the course of the June quarter. Excessive volatility in gold normally delays purchases as customers look ahead to higher costs. Stability helps each wedding ceremony and non-wedding demand.
Additionally Learn: FIIs now backing India’s consumers, not capex: July data reveals major rotation
Titan’s change programmes have additionally supported development. These programmes permit prospects to change outdated jewelry for brand spanking new purchases, serving to the corporate convey extra customers into its organised retail community.
Q1 earnings assist thesis
The corporate’s June-quarter numbers added contemporary momentum to the inventory rally. Titan reported a 63% development rise in web revenue to Rs 1,777 crore for Q1 over final 12 months, whereas complete earnings, excluding bullion and digi-gold gross sales, rose 40% to Rs 20,753 crore..
Jewelry remained the principle engine. The jewelry portfolio grew 43% year-on-year to Rs 18,253 crore, excluding bullion and digi-gold gross sales. India jewelry income rose 38% to Rs 16,943 crore. Tanishq, Mia and Zoya collectively grew 38% to Rs 15,502 crore, whereas CaratLane grew 40% to Rs 1,441 crore.
Titan mentioned the quarter was helped by festive demand, Akshaya Tritiya purchases, change programmes and steady gold costs. It additionally mentioned purchaser development was in double digits, whereas common ticket sizes rose meaningfully. That mixture helped plain and studded jewelry classes develop within the mid-thirties.
ICICI Securities mentioned Titan reported wholesome development regardless of the complete 28-day Adhik Maas interval falling within the quarter, which usually impacts wedding-related demand.
Titan’s worldwide jewelry enterprise additionally stood out. Income from the worldwide jewelry enterprise grew 136% to Rs 1,309 crore, helped by sturdy traction for Tanishq in North America and double-digit development within the GCC. Damas, acquired earlier, reported income of Rs 396 crore.
Watches, eyecare take centerstage
The rally isn’t solely about jewelry. Titan is attempting to construct bigger companies in watches, eyecare and rising classes. Watches grew 21% to Rs 1,543 crore in Q1, led by premiumisation and demand for analog watches. Eyecare income additionally grew 21% to Rs 289 crore.
JM Financial mentioned it stays constructive on Titan regardless of near-term headwinds from elevated gold costs and regulatory modifications. The brokerage mentioned Titan is investing in development engines past jewelry via eyecare, watches and rising companies, utilizing premiumisation, omnichannel growth and class improvement. It has a Purchase ranking on the inventory nwith a goal value of Rs 4,900.
“Titan stays one among India’s highest-quality client discretionary franchises, supported by class management, execution and a number of development levers.”
The brokerage mentioned it broadly agrees with administration’s long-term jewelry plans, although it’s extra conservative on eyecare and watches till there may be clearer proof of sustained enchancment.
In the meantime, BNP Paribas lately made one of many largest earnings upgrades for Titan after the latest efficiency, reflecting stronger confidence within the firm’s development outlook.
For traders, the case for Titan stays linked to long-term jewelry formalisation, model power and execution. The dangers are additionally clear. A pointy fall in gold costs can delay purchases. Elevated gold costs can have an effect on affordability. Any structural fall in pure diamond costs stays a priority for the jewelry enterprise.
(Disclaimer: Suggestions, recommendations, views and opinions given by the specialists are their very own. These don’t characterize the views of Financial Occasions)
