Citi has maintained its neutral rating on Titan Company with a target price of ₹4,125 per share, even as the company delivered a significant upside surprise in its domestic jewellery business during Q3FY26. The brokerage acknowledged that reported growth far exceeded expectations but remains cautious on sustainability and mix-related dynamics.
Standalone domestic jewellery revenue (excluding bullion) grew 40% year-on-year, sharply above Citi’s estimate of 25%, supported by low-thirties like-for-like (LFL) growth during the quarter. Citi noted that gold prices were up nearly 55% YoY, which materially boosted reported revenue through higher ASPs.
Management commentary indicated that jewellery revenue growth was driven primarily by a substantial increase in average selling prices, while buyer growth remained broadly flat. Citi highlighted that gold coin sales doubled YoY, while plain gold jewellery grew in the late-thirties, outperforming studded jewellery growth in the mid-twenties. The brokerage estimates a 200–250 bps YoY decline in the studded jewellery mix, reflecting a shift in consumer preference amid rising gold prices.
On the expansion front, Tanishq added 10 stores in India and two international stores during the quarter, while CaratLane delivered strong 42% YoY growth, reinforcing its role as a key growth driver. Other segments reported steady performance, with Watches & Wearables growing 13% YoY, EyeCare up 16%, and Emerging Businesses rising 14%. Consolidated consumer business revenue growth excluding bullion stood at 40% YoY.
Despite the strong topline performance, Citi remains neutral on the stock, citing concerns around buyer growth trends, jewellery mix shifts and valuation comfort after the sharp rally.
Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
