Titan Shares Down 6% Despite Reporting 20% YoY Q1FY26 Growth

On Tuesday, Titan share price dropped by 5.7 percent, touching a day’s low of Rs. 3,455.90 on NSE after the exchange filing revealed Titan’s business update for Q1FY26. The company’s consumer businesses registered a strong 20 percent year-on-year (YoY) growth in Q1FY26, highlighting its resilience amid a challenging macro environment and gold price volatility. The jewellery segment, Titan’s largest revenue contributor, delivered an 18 percent YoY growth, with brands like Tanishq, Mia, Zoya, and CaratLane continuing to attract a diverse customer base. The watches and wearables segment also showcased impressive performance, growing by 23 percent YoY, while the eyewear business expanded by 12 percent. International operations surged by approximately 49 percent, primarily driven by the expansion of Tanishq in the US market.

Store network expansion remained a strategic focus. Titan added a net 10 new stores in Q1FY26, increasing its total retail footprint to 3,322 stores. The jewellery business alone saw 19 new store additions, taking its total to 1,086 outlets in India, including Tanishq, Mia, Zoya, and CaratLane. The watches segment added 9 stores, bringing its total to 1,244, and the eyewear division, led by Titan Eye+, adjusted its network to 872 stores. The company’s emerging businesses, such as fragrances and Taneira (ethnic wear), also posted strong growth, with fragrances up 56 percent and the overall emerging business segment growing by 36 percent.

The quarter was marked by shifting consumer preferences due to high gold prices, with customers moving towards lightweight and lower karatage jewellery. Despite this, the Akshaya Tritiya festival period provided a boost to jewellery sales. However, buyer growth remained flat for both Tanishq, Mia, Zoya (TMZ) and CaratLane, as higher gold prices from May to mid-June tempered purchasing enthusiasm. The studded jewellery ratio declined year-on-year, with coins and plain gold jewellery leading growth, while the studded segment saw early double-digit growth. Like-to-like sales in TMZ grew in double digits, driven by higher ticket sizes rather than volume, and CaratLane also reported healthy double-digit growth.

Internationally, Titan’s business nearly doubled, especially in the US, reflecting successful brand positioning and expansion. The company’s fragrance brand, SKINN, and ethnic wear brand Taneira contributed to the diversification of its revenue streams.

For FY25, Titan Company reported a total income of Rs. 60,456 crore, marking an 18.35 percent increase from Rs. 47,501 crore in FY24. Despite strong topline growth, net profit for the year stood at Rs. 3,337 crore, a modest decline of 4.6 percent compared to Rs. 3,496 crore in the previous fiscal, primarily due to margin pressures from fluctuating gold prices and higher input costs. 

Looking ahead, Titan aims to sustain its growth trajectory by targeting 15 to 20 percent revenue growth in FY26. The company plans to open 40 to 50 new stores in FY26, focusing on expanding its presence beyond tier-1 cities and leveraging the franchise-owned, franchise-operated model to optimise capital expenditure. Titan is also committed to digital transformation, omnichannel retailing, and operational efficiencies to drive future growth. The company’s long-term vision is to increase its market share from the current 8%. Titan’s strategic focus on store expansion, product innovation, and premiumization, coupled with its strong brand equity, positions it well for sustained growth in the coming years.