Shares of Titan Company Ltd plunged by nearly 5% to ₹3,496.70 on Tuesday, July 8, after the company’s Q1 business update left investors and analysts disappointed, particularly on the jewellery segment performance. The stock fell sharply from its previous close of ₹3,666.10, marking a loss of ₹169.40 and wiping out a significant portion of its recent gains.
During the quarter, Titan added 10 new stores, taking its domestic retail network to 3,322 outlets. Overall domestic business grew by 19% year-on-year (YoY), led by 23% growth in the watches segment and an impressive 38% surge in CaratLane. However, the key jewellery division — which includes brands like Tanishq, Mia, and Zoya — registered only an 18% YoY growth, with the core Tanishq-Mia-Zoya (TMZ) brands growing just 17%.
On the international front, Titan delivered a robust 49% YoY growth, adding one new store to bring its overseas count to 31 stores.
Brokerages reacted to the update with caution. Morgan Stanley maintained its ‘overweight’ rating but termed the jewellery growth a “big miss,” keeping its price target at ₹3,876 per share. Domestic brokerage Emkay Global was more critical, highlighting the slowdown in jewellery sales compared to previous trends of ~25% growth.
“Street’s expectation of a high-teen jewellery growth for FY26 at stable margins is at risk,” Emkay noted, pointing to weaker footfalls, subdued high-margin studded jewellery sales, and a strong base in Q2/Q3FY25 due to earlier customs duty cuts. Emkay reiterated its ‘reduce’ call on Titan stock, with a price target of ₹3,350.
The company’s P/E ratio currently stands at 92.91 with a market capitalization of ₹3.10 trillion. Titan’s dividend yield is modest at 0.31%, reflecting its growth-oriented strategy.
As investors digest these numbers and recalibrate expectations, Titan’s performance in upcoming quarters — particularly its ability to revive jewellery sales momentum — will be closely watched.
