Titan Company shares surged to a fresh record high of ₹4,603.55 as of 12:30 PM on Tuesday, climbing 2.64% after the company released its quarterly update. The stock had earlier reached a fresh 52-week high of ₹4,655.90 on the NSE on Tuesday morning, with the stock trading at ₹4,648.60, up ₹164.20 or 3.66%, by 9:52 AM. The stock opened at ₹4,550, well above its previous close of ₹4,484.40, and climbed steadily through early trade. Traded volume stood at 14.41 lakh shares, with traded value crossing ₹659 crore within the first hour. Buy orders dominated at 56.79% against 43.21% on the sell side. The company registered a strong all-round performance with domestic business growing 37% driven by 39% growth in the jewellery business, 23% growth in watches business, and 23% growth in eyecare business, while international business grew 128%.
The company's Q1 FY27 update, filed with exchanges on July 6, showed consumer business revenue grew approximately 41% year-on-year, marking the third consecutive quarter where the company has sustained an accelerated revenue growth rate above 40%. CaratLane was a standout performer, growing 42% against Motilal Oswal Financial Services' estimate of 22%, with Nomura noting the performance was well above its estimate of around 20%, signalling 'a pickup in demand boosted by the stability in gold prices'. The company's consumer businesses added 77 net new stores during the quarter, taking the total retail network to 3,680 stores. Watches and Eyecare both clocked 23% growth, with watches growth driven by premiumization in analog collections, which comfortably offset a minor, low-teen decline in the smartwatch category. The strong performance was attributed to healthy festive demand, steady buyer additions, and higher ticket sizes, with buyer growth remaining in the early double digits and average ticket sizes rising in the high double digits. Emerging businesses including fragrances and women's bags also contributed with 19% growth.
Nomura has reiterated its 'Buy' rating with a target price of ₹5,000, implying upside potential from current levels. The brokerage highlighted that consolidated sales growth (excluding bullion) came in at 41% year-on-year, ahead of its 37% estimate and the consensus forecast of 31%. "All businesses have experienced strong growth," Nomura said, adding that jewellery, watches, eyewear and international operations all outperformed expectations. The brokerage believes the higher store additions could support growth in 2HFY27F when the company starts to cycle at a higher base. Nomura continues to view Titan as "one of our top picks" and expects the company to deliver a 21% EPS CAGR over FY26-29. It believes Titan will continue gaining market share from unorganised jewellers as consumers increasingly shift to organised players seeking "correct carat-age, better designs, and experience."
The jewellery division, Titan's largest business, posted 39% revenue growth with its Tanishq, Mia, Zoya and beYon brands collectively growing at the same pace. Plain gold jewellery and studded jewellery both delivered growth in the mid-30% range, while gold coin sales continued to benefit from strong investment demand. The Watches & Wearables and EyeCare businesses each reported 23% growth, with the company highlighting acceleration in watches and robust growth in eyecare. The international business more than doubled its revenue, registering a 128% increase, aided by the aggressive expansion of its jewellery division in North America and encouraging double digit growth in GCCs. The company attributes growth to the consolidation of Damas Jewellery, which is witnessing a gradual recovery despite local geopolitical volatility. The strong performance was supported by healthy festive demand, higher buyer additions, and strong average ticket sizes across all major business segments.
The company accelerated its store expansion strategy during Q1 FY27, opening 22 Tanishq, Mia and Zoya stores and 11 CaratLane outlets during the quarter, exceeding Nomura's expectations. The buyer growth (equivalent to footfalls) further improved sequentially to early double-digits as gold prices remained relatively stable during 1Q, while average ticket sizes grew in high double-digits due to higher gold prices. This accelerated expansion is expected to support growth momentum in the second half of FY27 when the company begins cycling at a higher base.
