Titan surges 2.5% on strong Q2 results; brokerages divided on upside

Shares of Titan Company climbed as much as 2.46 per cent to ₹4,953.70 on Friday afternoon trade, touching an intraday high of ₹5,003.90, as investors reacted to the jewellery-to-watches conglomerate’s second-quarter results declared on Thursday. The stock has gained over 31 per cent in the past year and 22 per cent year-to-date, sharply outpacing the Nifty 50’s negative returns over the same periods. At current levels, Titan trades at a P/E of 61 times, commanding a significant premium to the broader market.

Traded volume stood at 32.70 lakh shares, with total traded value crossing ₹1,608 crore by afternoon.

Brokerages retained broadly bullish stances but differed on headroom. Jefferies maintained a Buy with a ₹6,000 target, calling Q2 a strong delivery despite gold price volatility and a festive calendar shift. Citi raised its target price to ₹5,875 from ₹5,700, also with a Buy, citing domestic jewellery EBIT margin of 11.7 per cent, 60 basis points above its own estimate.

Motilal Oswal kept its Buy rating with a target of ₹5,700, projecting a 15 per cent revenue CAGR and 24 per cent PAT CAGR through FY28. JM Financial downgraded Titan to ADD from BUY, keeping its target unchanged at ₹5,150, citing the recent run-up in the stock, while flagging that flat buyer growth remains a concern for the second half. JPMorgan holds a Neutral with a ₹5,540 target, noting earnings missed estimates due to higher finance costs even as operating performance beat.

Titan’s Q2FY27 consolidated total income rose 25 per cent year-on-year to ₹20,533 crore. Jewellery revenue, excluding bullion, grew 22 per cent to ₹17,495 crore. EBITDA rose 62 per cent to ₹2,626 crore, while PAT jumped 56 per cent to ₹1,572 crore, aided partly by a one-time customs duty gain of ₹536 crore. Watches grew 27 per cent to ₹1,881 crore and EyeCare expanded 28 per cent to ₹281 crore.

Management retained its FY27 jewellery EBIT margin guidance at approximately 11 per cent, signalling it will reinvest margin gains to drive buyer growth rather than expand profitability in the near term.