Titan Co has returned to investors’ radar in 2026 after nearly two years of weak stock returns, with the Rakesh Jhunjhunwala-linked marquee holding adding nearly Rs 80,000 crore in market value this year. The rally has been driven by a mix of factors including steady jewellery demand, stable gold prices, market share gains by organised jewellers, strong execution at
Tanishq and CaratLane, and renewed confidence that Titan can build more growth engines beyond jewellery.
The stock had spent the past two years delivering almost flat returns, even as the company remained one of India’s strongest consumer discretionary franchises. Elevated valuations, rising gold prices, weak discretionary spending and concerns over demand had kept investors cautious.
What changed in 2026
One of the biggest positives that analysts saw this year was jewellery demand stayed stronger than expected. Titan benefited from the continued shift of customers from unorganised jewellers to organised chains. This shift has helped large branded players gain share, especially in urban and semi-urban markets where trust, design range, exchange offers and store experience have become stronger selling points.
HSBC, which has a target price of Rs 5,290 on Titan, said the outlook for India’s jewellery segment remains stronger than the broader consumption market. The brokerage said the shift from unorganised to organised jewellery continues to help Titan. It added that a sharp correction in gold prices could hurt demand for a short period, but demand should recover later through higher footfalls and buyer growth.
Gold prices also played a role in Titan’s recovery. A relatively stable gold price environment helped buyers return to stores during the June quarter. High volatility in gold usually delays purchases as consumers wait for better prices. Stability helps both wedding and non-wedding demand.
Also Read: FIIs now backing India’s consumers, not capex: July data reveals major rotation
Titan’s exchange programmes have also supported growth. These programmes allow customers to exchange old jewellery for new purchases, helping the company bring more consumers into its organised retail network.
Q1 earnings support thesis
The company’s June-quarter numbers added fresh momentum to the stock rally. Titan reported a 63% growth rise in net profit to Rs 1,777 crore for Q1 over last year, while total income, excluding bullion and digi-gold sales, rose 40% to Rs 20,753 crore..
Jewellery remained the main engine. The jewellery portfolio grew 43% year-on-year to Rs 18,253 crore, excluding bullion and digi-gold sales. India jewellery revenue rose 38% to Rs 16,943 crore. Tanishq, Mia and Zoya together grew 38% to Rs 15,502 crore, while CaratLane grew 40% to Rs 1,441 crore.
Titan said the quarter was helped by festive demand, Akshaya Tritiya purchases, exchange programmes and stable gold prices. It also said buyer growth was in double digits, while average ticket sizes rose meaningfully. That combination helped plain and studded jewellery categories grow in the mid-thirties.
ICICI Securities said Titan reported healthy growth despite the full 28-day Adhik Maas period falling in the quarter, which typically affects wedding-related demand.
Titan’s international jewellery business also stood out. Revenue from the international jewellery business grew 136% to Rs 1,309 crore, helped by strong traction for Tanishq in North America and double-digit growth in the GCC. Damas, acquired earlier, reported revenue of Rs 396 crore.
Watches, eyecare take centerstage
The rally is not only about jewellery. Titan is trying to build larger businesses in watches, eyecare and emerging categories. Watches grew 21% to Rs 1,543 crore in Q1, led by premiumisation and demand for analog watches. Eyecare revenue also grew 21% to Rs 289 crore.
JM Financial said it remains positive on Titan despite near-term headwinds from elevated gold prices and regulatory changes. The brokerage said Titan is investing in growth engines beyond jewellery through eyecare, watches and emerging businesses, using premiumisation, omnichannel expansion and category development. It has a Buy rating on the stock nwith a target price of Rs 4,900.
“Titan remains one of India’s highest-quality consumer discretionary franchises, supported by category leadership, execution and multiple growth levers.”
The brokerage said it broadly agrees with management’s long-term jewellery plans, though it is more conservative on eyecare and watches until there is clearer evidence of sustained improvement.
Meanwhile, BNP Paribas recently made one of the largest earnings upgrades for Titan after the recent performance, reflecting stronger confidence in the company’s growth outlook.
For investors, the case for Titan remains linked to long-term jewellery formalisation, brand strength and execution. The risks are also clear. A sharp fall in gold prices can delay purchases. Elevated gold prices can affect affordability. Any structural fall in natural diamond prices remains a concern for the jewellery business.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
.webp?t=1786466553)
You must be logged in to post a comment Login