Morgan Stanley has maintained its overweight rating on Titan Company with a target price of ₹3,953 per share after the company’s Q2FY26 results surpassed expectations on revenue, EBITDA, and profit after tax. The brokerage said consolidated EBITDA margin came in at 11.5%, beating consensus by 64 basis points, while standalone jewellery EBIT margin of 10.8% was broadly in line with its estimate of 11.2%.
The firm noted that the quarter began on a soft note but saw a strong pickup in September, driven by improved festive sentiment and sustained momentum during Navratri. Titan’s flagship Tanishq brand benefited from its gold exchange offer, which helped sustain volumes despite high gold prices.
The watches segment performed slightly ahead of expectations, while EyeCare was below forecast. Meanwhile, CaratLane continued its strong performance, with topline growth of over 32% year-on-year. Morgan Stanley said domestic jewellery demand remained robust and expects momentum to continue into the festive and wedding seasons, supported by a healthy consumer environment.
The brokerage believes Titan’s strong execution and brand recall will continue to drive earnings growth, with premiumisation remaining a key theme.
Disclaimer: The views and recommendations above are those of Morgan Stanley. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
