Titan Company shares fell nearly 5% on Wednesday, trading at ₹4,362 on NSE after hitting a low of ₹4,335.60 following the company's Q2FY27 business update. The stock was trading 5% lower compared with the previous close of ₹4,550, making it the top loser on the Nifty 50 as the broader market declined 0.7% to 22,621. The sharp decline came after the company's second-quarter business update revealed jewellery sales growth of 21%, which fell short of brokerage estimates, though the company's broader business delivered stronger performance across watches, eyewear and international operations. Despite the near-term weakness, Titan's market capitalisation stood at around ₹3.86 lakh crore and the stock remains up 7.4% so far this year, significantly outperforming the Nifty 50's 13.5% decline.
Managing Director Ajoy Chawla told CNBC-TV18 that the company is gearing up for a robust festive and wedding season, supported by improving consumer sentiment and strong demand for core jewellery. According to Moneycontrol, Chawla expects strong demand to be driven by the concentration of weddings and upcoming festivals, with macroeconomic uncertainties including US bond yields and Middle East conflict having left some consumers on the fence regarding gold prices. However, with festivals and weddings approaching and volatility showing signs of stabilising, Chawla expects demand to be strong. The company remains well ahead of its stated ambition to achieve 20% compound annual growth rate (CAGR) in core jewellery through FY30, with achieving same-store sales growth beyond 15% and inching closer to 18% considered a strong metric that outpaces inflation levels of 4-6%.
The jewellery segment faced multiple headwinds that contributed to the growth shortfall. As reported by The Hindu BusinessLine, domestic jewellery growth was 21% year-on-year, below some brokerage estimates, with consumer demand remaining healthy for most of the quarter, with some softening towards the close due to the shift in the festive calendar to Q3FY27. Within the core jewellery business comprising Tanishq, Mia and Zoya, sales rose 20%, also below estimates. The lower growth was further accentuated by investment-led coin demand declining in high single digits year-on-year but on a high base, and Shradh falling in the last week of September. According to Citi, domestic jewellery growth excluding bullion was around 20% y-o-y, below its 27% 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. However, studded jewellery growth has been much higher in the early thirties, aided by 'Festive of Diamonds' and brand-level promotions, while plain gold jewellery was up 20% year-on-year, indicating an improved product mix that could support better margins despite the headline growth missing estimates.
The company's diversified portfolio showed robust growth across multiple segments. According to The Hindu BusinessLine, Titan's consumer businesses registered growth of 25% year-on-year in Q2FY27, with the company adding 78 stores on a net basis during the quarter, taking its combined retail network to 3,758 stores. Tanishq, Mia and Zoya together registered growth of 20%, while CaratLane grew 32%, with the company accelerating store additions during the quarter. Titan's watches business recorded 30% growth, with analog watches growing in the early thirties and Smart Watches business recovering with high single-digit growth during the quarter. EyeCare delivered 28% growth, with the company adding 34 new stores during Q2, taking total network to 1,379 stores. Among emerging businesses, Fragrances grew in the mid-thirties, Women's Bags grew in the twenties and Taneira recorded high single-digit growth. The international business surged 97% year-on-year, including the contribution from Damas Jewellery, with Titan acquiring a 67% stake last year and showing early signs of recovery. Despite the near-term challenges, buyer growth was in the mid-single digits while average ticket sizes increased at a double-digit pace, indicating strong underlying demand trends across the portfolio.
Despite the Q2 miss, brokerages retained bullish ratings on Titan Company stock, citing strong growth in studded jewellery and other businesses. According to The Hindu BusinessLine, Citi retained its buy rating with a target price of ₹5,700, saying the recent stock correction offered an attractive entry point and estimating ex-coin growth at 24-25%. CLSA maintained an outperform rating with a target price of ₹5,590, noting domestic jewellery growth of 21% y-o-y, above its consensus expectation of 19.3%, and highlighting 30% growth in watches and 28% growth in EyeCare. HSBC retained its buy rating with a target price of ₹5,510, saying 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. JPMorgan maintained an overweight rating with a target price of ₹5,540, noting Q2FY27 revenue was below expectations with domestic jewellery growth moderating to 21% due to softer buyer growth, high single-digit decline in gold coins and consumption deferment linked to the festive shift into Q3. The positive brokerage sentiment reflects confidence in the company's diversified portfolio and long-term growth prospects despite near-term challenges.
Market experts suggest Titan Company shares are currently in oversold territory following recent corrections. Jigar S. Patel from Anand Rathi Share and Stock Brokers noted that the daily RSI has slipped below 30, indicating oversold conditions, with the last similar reading occurring in September 2025. The stock has breached its major support near ₹4,600, which also coincided with the 200-week EMA, making the breakdown technically significant. Vipin Kumar from Globe Capital Market pointed out that the ongoing corrective move has reached the one-year exponential moving average support around ₹4,322. Experts advise investors to avoid fresh long positions at current levels and wait for signs of stabilisation before considering fresh buying, with the ₹4,200 level as the next important support and ₹4,600 acting as immediate resistance. Despite near-term challenges, the stock has delivered 28% returns over the last 1 year compared to an 11% fall in the Sensex, with Titan being a Rekha Jhunjhunwala portfolio stock holding 4.71 crore shares as of June 2027.
