Motilal Oswal has reiterated its Buy rating on Titan Company with a target price of ₹5,150, implying an upside of over 26% from current market levels. According to reports from The Financial Express, the domestic brokerage expects the Tata Group company to manage ongoing regulatory challenges well by continuing to find new gold sourcing avenues and leveraging its superior balance sheet to navigate regulator tightening.
The Indian government's decision to increase customs duty on gold and silver from 6% to 15% presents a significant regulatory challenge. As reported by The Financial Express, while this may hurt demand in the short term, Motilal Oswal observes that Titan has historically managed such situations well, often benefiting from inventory gains and seeing its stock outperform the Nifty-50 within a year of such announcements. The brokerage has reduced EPS estimates for Titan by 2% for FY27 and 1% for FY28 due to the rise in customs duty.
Titan is positioned to benefit from the ongoing shift from unorganised to organised jewellery players, with the company holding only an 8% share in a market where organised players still make up less than 40%. According to The Financial Express, the company is strengthening its international presence through the acquisition of a 67% stake in Damas Jewellery in July 2025, allowing for a dual-brand strategy where Tanishq caters to the South Asian diaspora while Damas targets the local Arab population.
CaratLane has been a highly successful acquisition, delivering a 40% revenue CAGR between FY19 and FY26 and transitioning from losses to profitability, achieving double-digit EBIT margins of 10% by FY26. As reported by The Financial Express, historical analysis shows that Titan thrives during flat gold cycles, with the company clocking revenue CAGRs of 25% during FY17-19 and 35% during FY21-23 when gold prices remained stable.
Titan reported strong Q4FY26 results with consolidated net profit rising 35% year-on-year to around ₹1,179 crore and total income rising 46% YoY to around ₹20,300 crore. According to The Financial Express, the jewellery portfolio grew 50% YoY to around ₹18,195 crore during the quarter, excluding bullion and digi-gold sales, despite elevated gold prices. The company's board recommended a dividend of ₹15 per equity share for FY26.
