Titan Company Ltd.’s consumer business achieved a robust 20% year-over-year growth in the first quarter of FY26. However, the business update for the quarter was below street estimates, resulting in a more than 5% fall in shares on Tuesday, July 8, 2025. The dip in Titan’s overall market cap by over Rs 17,000 crore left the shareholders, including the Jhunjhunwala family, floundering with their portfolios, which had declined by around Rs 900 crore. Titan’s share price recently declined about 2% over the month and rose about 10% over the past 12 months. The stock has returned more than 260% over the past five years, making it a multibagger for long-term investors.
Q1 Performance Highlights
Titan’s retail segment, meanwhile, saw 20% growth year on year in the June quarter of 2025. There are now 3,322 retail locations overall after the inclusion of 10 new locations. The volatile price of gold did impact consumer buying patterns during the quarter, but there was an overall 18% growth in the domestic jewelry market.
Titan clarified in their filing that all product categories saw growth, with coins experiencing the most significant increase. Coins remained the largest, with studded in the early double digits and plain gold in the mid-teens. Analysts had predicted the studded ratio to be between 100 and 150 basis points, but it decreased as a result.
The use of basic gold jewelry emerged in the mid-teens. The sales of jewelry with studs were in the low double digits. Caratlane says it grew by 38%. Buyer growth also remained stagnant. Larger average bill sizes were the primary driver of the like-for-like (L2L) domestic sales increase in the early double digits for Tanishq, Mia, and Zoya (TMZ) brands. L2L sales for CaratLane were likewise robust.
How did Other Segments Perform?
Analog watches led the way across brands including Sonata, Titan, Fastrack, and overseas labels, while Titan’s watches business saw a robust 23% YoY rise. Despite reporting a net loss of 20 outlets, the EyeCare division saw a 12% increase.
Women’s bags and fragrances, two emerging categories, saw exceptional growth, increasing 56% and 61% year over year, respectively. Titan’s international consumer business grew 49%, driven by excellent traction for Tanishq in the US market, while Taneira, an ethnic apparel brand, had a 15% increase.
Analyst Opinions and Market Reaction
Despite the disappointing Q1 update, analysts remain generally optimistic about Titan’s long-term prospects. Bloomberg data shows 23 analysts rate the stock “buy,” seven say “hold,” and five recommend “sell” out of 35. According to the average 12-month price target, prices may increase by roughly 9% from their current level.
Morgan Stanley set a Rs 3,876 price target to maintain its ‘overweight’ rating on the consumption player. Even though buyer growth remained stable, the business claims that the quarterly update was a “big miss” on jewelry growth.
The deceleration in the sales growth of the Tata Group company was “worse than feared,” according to JPMorgan analysts. It was regrettable that it trailed peers like Senco Gold and Kalyan Jewellers and that like-for-like growth slowed to early double digits. Brokerage firm Citi has rated Titan as “neutral” and set a price target of ₹3,800 per share.
Conclusion
The 5% decline in share price that followed Titan’s Q1 update shows how sensitive the market is to any signs of slowing growth in the company’s flagship jewelry business. Despite short-term challenges, analysts believe Titan’s strong brand, diverse products, and wide retail reach support its solid long-term fundamentals. Analysts and investors will watch for performance changes during the holidays and the company’s upcoming earnings release.
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