Titan Q1 FY26: Titan Shares Down, What Investors Need to Know

Titan, Tata Group Company major a bellwether in the jewellery space, saw a steep 5.96 per cent drop in share price after it reported its Q1 FY26 business update. Jewellery was weak and below expectations and that sent the market into a tizzy and also saw brokerage houses review their stance up and down.

At A Glance: Titan Q1 FY26 Segment Wise Performance

Segment	Q1 Growth (YoY)	Key Insights
Domestic Jewellery	+18%	Missed the 25% trend; impacted stock
Tanishq, Mia, Zoya (TMZ)	+17%	Light demand for studded jewellery
Watches	+23%	Continued strong performance
CaratLane	+38%	Youth-focused jewellery sees growth
Domestic Business Overall	+19%	Decent but dragged by jewellery
International Business	+49%	One new store; strong overseas demand
Consumer Business Overall	+20%	Mixed growth across segments
Retail Expansion	+10 stores	Healthy footprint growth (Total: 3,322)

Why Jewellery Growth Fell Below the Mark

Jewellery business, which accounts to majority of Titan’s revenues, grew only 18% YoY, significantly below the ~25% growth trend, we saw over past few quarters. The reasons include:

• Volatility of gold prices during May and June that prevented premium buyers from participating.

• Coins and plain gold jewellery gained traction, while the demand for high-margin studded jewellery weakened.

• Flat buyer growth, although ticket sizes up.

• Studded ratio declined 100 to 150 basis points, which was painful on margins.

• Diversification: The Silver Lining

Watches Segment

Posted +23% YoY growth.

Consistently strong performance led by brands such as Titan, Fastrack, and Sonata.

CaratLane

Was the standout with +38% YoY growth.

A focus on fashion-forward, budget-friendly jewellery paid off, particularly among millennials and Gen Z.

International Expansion

Registered 49% YoY growth.

One new store opened internationally (total 31), confirming brand appeal outside India.

Share Price & Market Sentiment

Stock price slumped from ₹3,666 to ₹3,447.60 (5.96% fall).

Wiped out close to ₹900 crore of investor wealth, including losses in the Jhunjhunwala portfolio.

Studded weakness and volatile gold sentiment was the warning faint.

Brokerages React: Mixed Views

Brokerage	Rating	Target Price (₹)	Remarks
Citi	Neutral	3,800	Buyer growth flat; only ticket size rose
CLSA	Outperform	4,326	Watches & CaratLane strong, jewellery moderate
Morgan Stanley	Overweight	3,876	Disappointed by jewellery segment performance
Motilal Oswal	Buy	4,250	Still confident in brand and expansion
Emkay Global	Reduce	3,350	Concerned about margin and competition

What to Watch Next

Upcoming festivals – Raksha Bandhan, Diwali – are going to be crucial for demand recovery (for jewellery) going forward.

Whether premium jewellery rebounds could depend on stability in gold prices.

Titan’s portfolio (watches, CaratLane, overseas) provides a hedge against jewellery risks.

FAQs: Titan Q1 Results Explained

Conclusion

In its Q1 FY26 results, Titan’s performance is a mixed bag. Jewelry—its mainstay business—was disappointing thanks to gold’s volatility, but the watches, Carat Lane and international subsidiaries plugged the gap. For investors, the quarter is a reminder of Titan’s diversification strength, despite operating in a difficult gold market and keep reading such article only on News.highzones

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