Titan hits all-time high on posting Q3 update; here's what analysts suggest

Titan's jewellery portfolio clocked a 41% Y-o-Y growth in Q3FY26, driven by substantial average selling price (ASP) increases, offsetting flattish buyer growths

The shares of Titan Company hit its all-time high on the BSE and was the top gainer in the Sensex on Wednesday after the company released its business update for the third quarter of 2025-26 (Q3FY26). The stock closed at ₹4,272, up 3.94 per cent as compared to the Sensex, which was a tad down.

 

Titan reported its Q3FY26 business update on Tuesday, after market hours. In the quarter, the company’s consumer businesses registered a growth of 40 per cent year-on-year (Y-o-Y), according to the filing.

 

Its jewellery portfolio clocked a 41 per cent Y-o-Y growth in Q3FY26, driven by substantial average selling price (ASP) increases, offsetting flattish buyer growth. Like-for-like (LFL) sales growth for Tanishq and Caratlane was healthy, in low thirties.

 

 

Its watch segment grew 13 per cent Y-o-Y led by the analog segment, which clocked 17 per cent Y-o-Y growth. However, the smart watches category declined 26 per cent Y-o-Y led by lower volumes, whereas their ASPs were broadly flattish Y-o-Y.

 

Further, Titan’s eyecare division grew 16 per cent Y-o-Y, and fragrances grew 22 per cent Y-o-Y. International business, primarily comprising jewellery (Tanishq, Mia, and CaratLane), grew 81 per cent.

 

Nomura Research has maintained its top-pick status on Titan. It believes that the company’s earnings per share (EPS) will compound at an annual growth rate of 24 per cent over FY26-FY28. Nomura sees Titan as a key beneficiary of the rising affluent and elite-income population in India, with sales growth at 1.5-2 times that of the gross domestic product (GDP) over the medium term.

 

The brokerage expects the company to continue growing faster than the industry, and gain share up to 10 per cent by FY28 from unorganised players (60 per cent of the industry) as it deepens its store reach in Tier 2/3/4 towns, and as consumers shift to organised players, seeking correct carat-age, better designs and experience.

 

The brokerage also anticipates a structural improvement in revenue per store and revenue per square feet driven by higher ticket sizes, formalisation, and a rising contribution from wedding jewellery to 25 per cent of sales in three-five years (from 20 per cent currently), supporting stronger-than-peer sales growth and margin improvement.

 

Titan is also scaling up its international presence in higher-margin categories, and widening its addressable market, with plans to increase Tanishq overseas stores to 50 over the medium term from 22 currently, targeting not only the affluent Indian diaspora but, post-acquisition/integration of Damas Jewellery, a broader global diaspora as well.

 

Separately, Titan has entered lab-grown diamonds (LGD) with a new brand, “beYon – from the House of Titan”, via an exclusive store format. Nomura views this as a positive move to capture a new customer segment, with LGD margins seen as potentially higher than that of natural diamond jewellery, making it gross margin accretive. In the near term, while elevated gold prices could affect footfalls and volumes, Nomura expects wedding-related demand to provide support to jewellery growth. It has a target price of ₹4,500.

 

Antique Stock Broking forecasts revenue, operating, and net profit growth over FY25-FY28 of 21 per cent, 24 per cent, and 25 per cent, respectively. It remains confident of a 20 per cent growth in jewellery revenue for Titan over the next three years.

 

With the jewellery segment margin likely having bottomed out at 9.7 per cent in FY25, it anticipates a gradual recovery to 10.9 per cent over the next three years. The brokerage reckons that Titan’s medium-to-long term performance will be driven by continued market share gains in jewellery, supported by its strong brand and execution capabilities, and ongoing expansion of its store network. Improving profitability in non-jewellery segments should further support overall earnings growth. The company has a “buy” rating and has raised its target price to ₹4,500 from ₹4,400 earlier. 

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