Jewellery Business Grows 39%, International Revenue Surges 128% as Brokerages Reiterate ‘Buy’ Calls with Targets Up to ₹5,250

Shares of Titan Company Ltd. surged to a new all-time high on Tuesday after the Tata Group's lifestyle and jewellery major reported an impressive business update for the first quarter of FY27. Robust growth across its jewellery, watches, eyewear and international businesses boosted investor confidence, prompting several leading brokerage firms to reiterate their bullish outlook on the stock.

Titan's shares climbed as much as 4% during intraday trade on the BSE to touch a lifetime high of ₹4,643.70, surpassing its previous record of ₹4,601.10 touched in May this year. The stock later traded around ₹4,629, up nearly 3%, significantly outperforming the broader market.

The rally comes after the company reported stronger-than-expected business growth across all key segments, reinforcing its leadership in India's organized jewellery retail industry and highlighting the resilience of discretionary consumer spending despite elevated gold prices.

Q1FY27 Business Update Exceeds Market Expectations

Titan reported 37% year-on-year growth in its domestic business during the April–June quarter, driven by strong demand across its major retail segments.

The company's flagship jewellery business expanded 39%, while the watches division and eyecare business both posted 23% growth. Its international operations recorded an exceptional 128% growth, reflecting the success of the company's overseas expansion strategy.

The broad-based growth across business verticals indicates healthy consumer demand and effective execution despite macroeconomic uncertainties.

Jewellery Segment Continues to Drive Growth

Jewellery remained Titan's strongest growth engine during the quarter.

According to the company, healthy consumer demand during the festive season and Akshaya Tritiya, one of India's most significant gold-buying festivals, contributed substantially to sales growth.

Despite relatively high gold prices, Titan witnessed:

• Early double-digit growth in customer acquisitions.

• High double-digit increase in average ticket size.

• Mid-thirties growth in both plain gold and studded jewellery.

• Continued double-digit growth in gold coin sales, reflecting strong investment demand.

The performance demonstrates that premium jewellery demand remains resilient even amid elevated bullion prices.

Strong Momentum Across Tanishq, Mia and CaratLane

Titan's leading jewellery brands—Tanishq, Mia, and CaratLane—continued to gain market share both in India and overseas.

The company reported encouraging double-digit growth in North America and the Gulf Cooperation Council (GCC) region, driven by increasing demand from the Indian diaspora and premium customers.

Meanwhile, its Middle East business under the Damas Jewellery brand is witnessing gradual recovery despite geopolitical challenges in the region.

Management believes international expansion will become an increasingly important contributor to long-term earnings.

Analog Watches Offset Smartwatch Slowdown

Titan's watches business delivered another strong quarter despite weakness in the smartwatch category.

While smartwatch sales declined in the low teens due to intense competition and changing consumer preferences, the company's analog watch portfolio continued to perform exceptionally well.

Popular brands such as Titan, Fastrack, Sonata, and Helios drove overall watches revenue growth of 23%, highlighting sustained demand for premium and fashion-oriented timepieces.

Eyecare Business Maintains Healthy Growth

The eyecare segment also reported 23% year-on-year growth, supported by robust performance across both domestic and international markets.

Higher demand for premium eyewear products, expanding retail presence, and improved customer footfalls helped the business maintain strong momentum during the quarter.

International Business Emerges as a Key Growth Pillar

One of the biggest highlights of Titan's Q1 performance was the 128% surge in international business revenue.

Brokerages believe Titan's global expansion strategy is beginning to deliver meaningful results.

The company plans to significantly expand the footprint of Tanishq internationally by opening nearly 50 additional stores over the medium term.

Unlike earlier years when Titan primarily targeted Indian expatriates, the company is now focusing on attracting global consumers through premium product offerings and the integration of Damas Jewellery.

This strategy is expected to diversify revenue streams and improve overall profitability.

Brokerages Remain Bullish on Titan

The company's strong operational performance has reinforced confidence among analysts, with several brokerages maintaining positive recommendations.

ICICI Securities: Revenue Growth Beats Expectations

ICICI Securities said Titan delivered another quarter of healthy business performance, with consolidated revenue growth of 37%, comfortably ahead of its expectations.

The brokerage noted that jewellery buyer growth remained in double digits, while studded jewellery continued to maintain strong momentum.

However, analysts cautioned that operating margins may remain under pressure due to elevated gold prices and changes in product mix.

Nomura Sees Structural Growth Story Intact

Global brokerage Nomura continues to view Titan as one of India's most attractive long-term consumer growth stories.

According to Nomura, Titan is well positioned to benefit from:

• Rising disposable incomes.

• Expansion of India's affluent population.

• Increasing formalization of the jewellery industry.

• Higher wedding jewellery demand.

• Premiumisation across product categories.

The brokerage expects Titan's revenue growth to remain 1.5–2 times India's GDP growth over the medium term.

Nomura has maintained its 'Buy' recommendation with a target price of ₹5,000.

Motilal Oswal Raises Confidence

Motilal Oswal Financial Services believes Titan's strong balance sheet, market leadership and diversified sourcing strategy will help it effectively navigate regulatory changes and fluctuations in gold prices.

The brokerage expects Titan to deliver impressive financial performance over FY26–FY28, projecting:

• 16% Revenue CAGR

• 20% EBITDA CAGR

• 23% Adjusted PAT CAGR

It has reiterated its 'Buy' rating with a higher target price of ₹5,250, reflecting confidence in the company's long-term earnings trajectory.

Premium Valuation Supported by Strong Fundamentals

Although Titan continues to trade at premium valuation multiples compared to most retail companies, analysts believe the valuation is justified due to:

• Consistent market share gains.

• Industry-leading corporate governance.

• Strong brand equity.

• Robust cash generation.

• Healthy balance sheet.

• High return on capital employed.

• Long runway for domestic and international expansion.

The organized jewellery market continues to benefit from the shift away from unorganized players, a trend that is expected to accelerate over the coming years.

Risks Investors Should Monitor

Despite the strong business momentum, investors should keep an eye on several factors that could influence Titan's performance:

• Sustained rise in gold prices impacting jewellery demand.

• Margin pressure due to product mix and inventory costs.

• Regulatory changes affecting the jewellery industry.

• Global geopolitical uncertainties impacting international operations.

• Intensifying competition in the smartwatch and premium retail segments.

Nevertheless, analysts believe Titan's diversified business model and pricing power provide significant resilience against these challenges.

Market Outlook

Titan's Q1FY27 business update reinforces its position as one of India's highest-quality consumer discretionary companies. The combination of robust jewellery demand, healthy growth in watches and eyewear, and rapid expansion of international operations has strengthened confidence in the company's long-term growth prospects.

With the festive season approaching, continued store expansion, increasing premiumization, and favourable structural trends in the organized jewellery market, Titan appears well positioned to sustain earnings momentum over the coming years.

The stock's new all-time high reflects the market's confidence in its execution capabilities, while brokerage target prices of ₹5,000–₹5,250 indicate that analysts continue to see meaningful upside despite the recent rally.