Titan stock rallies 11% in one month, outperforms market; more steam left?

Share price of Titan Company today

 

Shares of Titan Company, the country's largest listed gold jewellery maker, hit a 10-month high of ₹3,740 today, gaining 1 per cent on the National Stock Exchange (NSE) in Thursday's intra-day trade. Investors bought Titan shares on hopes that the company's strong performance may sustain over the medium term on the back of its market leadership position in the organised jewellery retail and wristwatch segments.

 

In the past one month, Titan shares have outperformed the market by surging 11 per cent as compared to a 0.42 per cent rise in the Nifty 50. The stock has bounced back 28 per cent from its 52-week low level of ₹2,925, which it touched on April 7, 2025. It had hit a 52-week high of ₹3,867 on September 27, 2024.

 

 

At 11:59 AM, Titan was t₹rading flat at 3,693.60 on the NSE, as compared to Nifty 50 was up 0.43 per cent. 

  Titan Company outlook

  The GST Council, in its meeting on September 3, reduced rates on contact lenses, spectacle lenses, and glasses for corrective spectacles from 12 per cent to 5 per cent. This is positive for Titan's eyewear business 'Titan Eye+' as cost of spectacles are likely to go down with inputs cost getting rationalised, thereby improving the margins of the business.  Separately, jewellery companies delivered robust revenue growth in the June quarter of the current financial year, despite global headwinds and a sharp rise in gold prices. Demand was resilient, supported by festive and wedding-related purchases.

 

In the April to June 2025 quarter (Q1FY26), the company's consolidated operating income surged by 25 per cent on a year-on-year (Y-o-Y) basis to ₹16,523 crore, driven by an increase in the ticket size in the gold jewellery segment despite an impact of the elevated gold prices on customer traffic. 

 

Titan's consolidated operating margin in Q1FY26 witnessed a marked recovery to 11.1 per cent from 9.4 per cent in Q1FY25. The operating margin expansion and healthy revenue growth led to a material increase in the consolidated net profit by 53 per cent in Q1FY26 on a Y-o-Y basis, to ₹1,091 crore.  Titan Company shares: Analysts' View

 

With sustained improvements in macros and government initiatives to revive demand, Motilal Oswal Financial Services expects a broad-based demand recovery in FY26. Early signs of demand improvement in Q1 have increased the brokerage firm's confidence in growth recovery for FY26.

 

Meanwhile, ICRA expects Titan's revenue growth and cash accruals to remain healthy, driven by accelerated formalisation of the jewellery retail industry, the company's strong brand equity, and planned expansion of its retail presence across the operating segments.

 

"Increasing regulations in the jewellery retail industry, aimed at improving transparency and standardisation over the recent years, have accelerated the shift in the market share from unorganised to organised players. The industry tailwinds are expected to benefit the organised jewellery retailers like Titan over the medium term, supported by its strong brand equity and increasing retail presence. The customs duty cut by 9 per cent, from 15 per cent, in July 2024 disincentivised unofficial imports, thus benefiting the organised players," the rating agency said.

 

That said, a surge in gold prices (at all-time high) and high base due to custom duty cuts is expected to have an impact on the growth in the coming quarters, according to analysts at JM Financial Institutional Securities.  Titan has initiated multiple steps like pre-ponement of 'festivals of diamonds', leveraging repeat customers amid high gold prices, driving higher basket sizes, and introduction of 9 caratage jewellery to drive affordability and growth.

 

On its part, the Management has maintained its Jewellery Ebit margin guidance of 11-11.5 per cent, and expects watches margins to remain in mid-teens.