Titan Company shares fell up to 4.7% to ₹4,335.60 on the NSE in early trade on Wednesday, October 7, following the company's Q2 FY27 business update. The stock decline came after the company reported 25% year-on-year growth in its consumer businesses, with domestic jewellery growth of around 21% year-on-year falling short of several analysts' expectations. According to latest reports, analysts attributed the softer performance largely to the shift in festive demand into the December quarter, high gold prices and a decline in investment-led gold coin sales, rather than a broad-based weakening in underlying jewellery demand.
Titan's jewellery portfolio, across all brands, recorded around 21% year-on-year growth in Q2 FY27, with consumer demand remaining healthy for most of the quarter before some softening towards the end as the festive calendar shifted to Q3 FY27. CITI noted that domestic jewellery growth, excluding bullion, came in at around 20%, below its estimate of 27%, primarily due to the festive season shifting into Q3 FY27 and weaker investment-led gold coin demand. However, excluding coins, CITI estimates underlying jewellery growth at 24-25%, suggesting that demand remained resilient. The company's 'Festival of Diamonds' campaign and brand-level promotions supported growth, with studded jewellery growing in the early thirties while plain gold jewellery grew around 20% year-on-year. Buyer growth at a portfolio level came in mid-single digits, with average ticket sizes seeing double-digit growth in this period. The jewellery business added 42 stores during the quarter, including 29 across Tanishq, Mia, Zoya and beYon and 13 CaratLane stores, taking their total store counts to 1,269 and 394 respectively.
The watches business recorded around 30% year-on-year growth in Q2 FY27, with analog watches growing in the early thirties, supported by premiumisation trends, while the smart watches business recovered with encouraging high single-digit growth during the quarter. The watches business added 34 stores, taking its total store count to 1,379. Titan's EyeCare division grew around 28% year-on-year during the quarter, with the company attributing growth to execution across key strategic priorities, a multi-brand approach, continued upgrades to its existing store network and a sharper merchandise portfolio. EyeCare had 847 stores as of September 2026. CLSA noted that Tanishq, Mia and Zoya grew 20%, while CaratLane delivered a stronger 32% growth, with the company adding 32 CaratLane stores during the quarter. The international business grew 97% year-on-year, with one net store added during the quarter, taking the total store count to 164. The international jewellery businesses of Tanishq, Mia and CaratLane continued to record strong double-digit growth in North America, while the Gulf Cooperation Council (GCC) business held up well in a volatile geopolitical environment.
Titan's sequential growth momentum moderated in Q2 FY27, with revenue growth of 25% year-on-year compared to over 40% growth in each of the preceding three quarters. The company had reported 40% growth in standalone revenue in the December quarter of FY26, which further accelerated to 46% in the March quarter and 41% in the June quarter of FY27. Within the jewellery division, which contributed 91.5% of its over ₹75,000 crore revenue in FY26, the jewellery segment recorded 21% growth during the September quarter. Among emerging businesses, which grew 21% overall, fragrances clocked mid-thirties growth, while women's bags grew in the twenties. The ethnic wear brand Taneira recorded high-single-digit growth year-on-year.
