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.
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
Titan’s Q1 update indicated jewellery segment growth was slower than expected, and caused panic among investors, resulting in a nearly 6% fall in its share price.
International business grew 49% Y-o-Y and CaratLane continued its high growth trajectory with 38% Y-o-Y growth representing stand out performances.
Most brokerages are guardedly optimistic. Some raised questions on margins and jewellery growth but retained buy’ rating on Titan citing strong brand equity and diversified portfolio.
That will depend on festive demand, gold price movement and how comfortably Titan straddles the consumer reality in jewellery.
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