Titan shares tumble 5% as Q1 update disappoints street; Should you buy?

Shares of Titan fell 5% after its jewellery domestic revenue in the first quarter came in less than expected

Shares of Titan declined 5 per cent in Tuesday’s trade after the company’s jewellery business growth fell short of expectations, with its first-quarter update disappointing the street.

 

The Jewellery and watch maker's stock fell as much as 4.99 per cent during the day to ₹3,483.2 per share, the biggest intraday fall since February 28 this year. The stock pared losses to trade 4.5 per cent higher at ₹3,500 apiece, compared to a 0.08 per cent advance in Nifty 50 as of 9:42 AM. 

 

Shares of the company fell for the second consecutive day on Tuesday and currently trade at 12 times the average 30-day trading volume, according to Bloomberg. The counter has risen 6.7 per cent this year, compared to a 7.7 per cent advance in the benchmark Nifty 50. Titan has a total market capitalisation of ₹3.11 trillion.   READ STOCK MARKET UPDATES TODAY LIVE

Titan Q1 business update 

Titan's jewellery domestic operations grew 18% Year-on-year (Y-o-Y), driven by ticket size despite gold price volatility and flat buyer growth, according to the company statement. Customers preferred lightweight, lower karatage jewellery, while coins and plain gold led growth. CaratLane and TMZ saw double-digit like-to-like growth. 

 

Watches grew 23 per cent Y-o-Y, led by analogue and strong performance from Sonata, Titan, Fastrack, and international brands. EyeCare rose 12 per cent Y-o-Y, despite net store closures. 

 

Emerging businesses saw strong growth, with Fragrances and Women’s Bags up 56–61 per cent Y-o-Y. International business surged 49 per cent Y-o-Y, driven by Tanishq US. Titan added 30 stores and closed 33 during the quarter.

JM Financial on Titan Q1 update

Jewellery domestic revenue is estimated to have grown 18 per cent year-on-year. However, Tanishq, Mia, and Zoya (ex-bullion) posted 17 per cent growth, impacted by volatility in gold prices, which affected consumer sentiment, according to the brokerage. "This was below our initial estimate of 22 per cent jewellery growth."

 

Buyer growth remained flat year-on-year across jewellery brands, with a clear preference for lightweight and lower karatage jewellery. Like-to-like (LTL) domestic sales growth in Tanishq, Mia, and Zoya was in early double digits, driven entirely by higher ticket sizes across formats.   ALSO READ | Gokaldas, Vardhman, Siyaram rally up to 8%. What's driving textile stocks? 

Overall, standalone revenue is expected to grow 18 per cent year-on-year, led by a similar growth rate in the jewellery segment. "We expect jewellery Ebit margin at 11 per cent (ex-bullion), down 20 basis points year-on-year."

Motilal Oswal on Titan Q1 update

Domestic jewellery revenue grew 18 per cent Y-o-Y(excluding bullion), compared to estimates of 22 per cent for Q1FY26 and 9 per cent in Q1FY25, despite volatility in gold prices weighing on consumer sentiment, Motilal Oswal said. 

 

The Akshaya Tritiya period saw strong traction. However, the sharp rise in gold prices from May to mid-June led to softer customer purchases. Like-for-like (LFL) domestic growth for Tanishq, Mia, and Zoya (TMZ) remained in the low double digits, driven entirely by ticket size growth across formats, it added.