Shares of Titan slumped 3 percent to Rs 3,077 on March 24 after brokerage firm Ambit cautioned that the company’s growth momentum in Q4 could slow down.
Over the past six months, Titan’s stock has dropped more than 18 percent, underperforming the benchmark Nifty 50 index, which has declined 9 percent in the same period.
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Ambit’s channel checks indicate a weaker revenue growth trend for Tanishq in February and March. This raises concerns about the company’s ability to meet Q4 growth expectations, which stand at 22 percent according to Ambit and 29 percent as per consensus estimates. If actual growth lands in the 15-18 percent range, analysts anticipate a 2-3 percent cut in FY26 and FY27 earnings estimates.
The brokerage also pointed to near-term revenue pressures and uncertainty around margin recovery, stating that Titan’s current valuation—at 50 times its projected FY27 earnings—looks expensive. Given these factors, Ambit favors Nykaa and Sapphire among discretionary stocks.
In Q3FY25, Titan reported a 5 percent year-on-year decline in net profit, coming in at Rs 990 crore, primarily due to the impact of reduced customs duty on gold. However, revenue grew 23 percent to Rs 16,097 crore. EBITDA stood at Rs 1,510 crore, with margins at 9.4 percent.
During its Q3 earnings call, the company’s management noted a strong start to Q4 but highlighted a slowdown in momentum after the first three weeks of January, attributing it to a sharp increase in gold prices.
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