shares fell nearly 5 per cent on Wednesday after the company’s Q2FY27 business update showed domestic jewellery growth of 21 per cent y-o-y, below some brokerage estimates, while the festive calendar shift to Q3FY27 and weaker investment-led coin demand also weighed on the quarter.
Titan shares sink, top loser of Nifty 50
The stock traded at ₹4362 on the NSE at 9.46 am, after hitting a low of ₹4335.60, compared with the previous close of ₹4,550.
Titan Company’s consumer businesses registered growth of 25 per cent y-o-y in Q2FY27. The company added 78 stores on a net basis during the quarter, taking its combined retail network to 3,758 stores.
Domestic growth
Titan’s jewellery portfolio across all brands recorded 21 per cent y-o-y growth in Q2FY27. Consumer demand remained healthy for most of the quarter, with some softening towards the close due to the shift in the festive calendar to Q3FY27.
Studded jewellery grew in the early thirties, supported by the ‘Festival of Diamonds’ and brand-level promotions, while plain gold jewellery grew 20 per cent y-o-y. Investment-led coin demand declined in the high single digits y-o-y off a high base.
Buyer growth at the portfolio level was in the mid-single digits, while average ticket sizes grew by double digits.
The watches business recorded 30 per cent y-o-y growth. Analog watches grew in the early thirties, while the Smart Watches business recovered with high single-digit growth during the quarter.
EyeCare delivered 28 per cent y-o-y growth. Among emerging businesses, Fragrances grew in the mid-thirties, Women’s Bags grew in the twenties and Taneira recorded high single-digit growth.
Brokerages view
Citi retained its buy rating on Titan with a target price of ₹5700. It said domestic jewellery growth excluding bullion was around 20 per cent y-o-y, below its 27 per cent estimate, but attributed the miss primarily to the festive shift to Q3FY27 and weaker investment-led coin demand rather than an underlying slowdown in demand.
Citi estimated ex-coin growth at 24-25 per cent and noted that buyer growth remained in the mid-single digits while average ticket size grew by double digits. It also highlighted early-thirties growth in studded jewellery and said the recent stock correction offered an attractive entry point.
CLSA maintained an outperform rating with a target price of ₹5590. It noted domestic jewellery growth of 21 per cent y-o-y, above its consensus expectation of 19.3 per cent. CLSA also highlighted 30 per cent growth in watches and 28 per cent growth in EyeCare.
HSBC retained its buy rating with a target price of ₹5510. It said Titan reported lower-than-expected Q2 sales partly due to the shift in festive timing, while the mix was expected to be better given lower gold coin sales and a higher studded jewellery share. HSBC trimmed its jewellery revenue estimate by 1 per cent.
JPMorgan maintained an overweight rating with a target price of ₹5540. It said Q2FY27 revenue was below expectations, with domestic jewellery growth moderating to 21 per cent y-o-y due to softer buyer growth, a high single-digit decline in gold coins and consumption deferment linked to the festive shift into Q3.
JPMorgan also highlighted 32 per cent revenue growth at CaratLane, along with acceleration in Watches and EyeCare growth to 30 per cent and 28 per cent, respectively. It expects the stock reaction to be negative following the Q2 revenue miss.