Titan Q1: Brokerages bullish on broad-based growth, watchful on margins

Brokerages on Titan Q1 results: Titan Company’s robust Q1FY26 performance has drawn a largely positive response from brokerages, who view the June quarter results as a reaffirmation of the company's brand strength and execution capabilities across segments. 

 

While near-term concerns around a high base, elevated gold prices, and segmental margin pressures persist, analysts remain confident in Titan's long-term prospects, supported by formalisation trends, premiumisation, and international expansion.  On the bourses, Titan shares advanced up to 0.99 per cent to an intraday high of ₹3,449 per share. At 9:20 AM, Titan share was trading 0.69 per cent higher at ₹3,438.45. In comparison, BSE Sensex was trading 0.09 per cent lower at 80,548.22 levels. 

Brokerage Sentiment: Mostly positive, few cautious voices

 

According to Bloomberg data, the Street remains largely bullish on Titan. Out of 39 brokerages, the majority, including Macquarie, Motilal Oswal, Emkay, IIFL, Invesco, Jefferies, Goldman Sachs, Nuvama, Kotak, HSBC, and Phillip Securities, have retained their ‘Buy’ or equivalent calls. Target prices among them range between ₹4,050 and ₹4,479, with the average consensus target at ₹3,880, implying modest upside from the current market price of ₹3,415 (as of August 7).

 

Meanwhile, JP Morgan, Morgan Stanley, and HDFC Research hold ‘Overweight’ ratings, citing medium- to long-term structural tailwinds. Antique Stock Broking and BNP Paribas Exane rate the stock ‘Accumulate’ and ‘Outperform’, respectively, reflecting cautious optimism.

 

On the other hand, Citi maintained a ‘Neutral’ stance with a target of ₹3,900. It acknowledged a strong near-term outlook but flagged medium-term risks stemming from intensifying competition, adverse product mix, and sustained high gold prices, according to reports. CLSA and Ambit Capital are the most bearish, assigning ‘Reduce’ and ‘Sell’ ratings respectively.

 

Motilal Oswal: Growth intact, formalisation tailwind

 

Motilal Oswal retained its ‘Buy’ rating with a target price of ₹4,150, noting Titan’s 25 per cent consolidated Y-o-Y growth and 17 per cent jewellery growth ex-bullion. CaratLane continued to outperform with 39 per cent Y-o-Y growth, and studded jewellery rose 11 per cent, although its mix fell slightly.

 

The brokerage highlighted that despite the near-term drag from a high base in Q2FY26 (due to customs duty cut and deferred purchases last year), demand remained steady. Importantly, jewellery Ebit margin expanded 30bps Y-o-Y to 11.5 per cent, and watches also delivered strong growth, with 28 per cent Y-o-Y expansion in analog watches. EyeCare grew 13 per cent.

Motilal sees sustained benefits from industry formalisation, Titan’s premium positioning, and international push, especially in jewellery. The consistent margin discipline across businesses and guidance of 11-11.5 per cent Ebit margin in jewellery supports the long-term outlook.

 

Nuvama: Growth resilient, profitability improving

 

Nuvama also maintained a ‘Buy’ rating, albeit with a slightly revised target price of ₹4,479 (earlier ₹4,541). It reported 16.6 per cent Y-o-Y growth in core jewellery, with CaratLane showing strong like-to-like growth and both gold and studded segments doing well. International jewellery operations turned profitable for the first time -- a key milestone, in Nuvama’s view.

The brokerage trimmed revenue estimates slightly due to the high base but revised PAT forecasts up marginally, citing improving profitability across segments.

 

Antique Stock Broking: Watches surprise on margins

 

Antique, which upgraded its target to ₹4,615, noted that Titan considerably outperformed expectations on the back of better-than-anticipated watch segment margins. The adjusted Ebit margin in watches rose by 730bps to 18.6 per cent, while jewellery margin declined slightly by 25bps Y-o-Y to 10.9 per cent.

 

The brokerage expects watches to now deliver mid-teen Ebit margins, a marked improvement from the 10–12 per cent range seen over the last three years. It continues to back Titan's strong brand equity, execution, and store expansion plans, especially in jewellery.

 

Management confident despite headwinds

 

Titan’s managing director C K Venkataraman described Q1 as “an encouraging start,” crediting the diversified model for performance resilience. He underlined strength in gold jewellery demand, watches margin gains, and growth traction in emerging categories like SKINN, Taneira, and IRTH.

 

“We remain optimistic about our growth trajectory and our ability to create long-term value across all business segments,” Venkataraman added.

 

Titan outlook: Structural story intact

 

While some near-term challenges persist, such as the high base effect in Q2FY26 and sustained high gold prices, brokerages largely agree that Titan remains a core structural bet on India’s discretionary consumption. Its brand equity, international expansion, product innovation, and formalisation of the jewellery sector continue to offer strong long-term growth visibility.