Titan shares sink 5% jewellery growth a 'big miss' in Q1, brokerages disappointed

Over the past year, shares of Titan have gained over 16 percent.

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26 Aug, 2025 12:21

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Tata Group player Titan Company shares tumbled five percent on Tuesday, July 8, after recording a 20 percent growth in the consumer business for the quarter ended June 30, 2025.

During the quarter, Titan saw a net addition of 10 stores, taking the total retail network to 3,322 stores. Domestic business grew 19 percent YoY, led by Watches at 23 percent and CaratLane at 38 percent. The jewellery segment, including Tanishq, Mia, and Zoya, saw an 18 percent growth, with TMZ brands alone rising 17 percent.

Overall, the domestic store count stood at 3,291. International business delivered a robust 49 percent growth YoY, with one store addition, bringing the total international presence to 31 stores.

At 9.20 a.m., shares of the firm were quoting Rs 3,494.2, lower by 4.7 percent on the NSE.

Volatility in gold prices led to the softening consumer sentiment between May and June. In the high gold prices scenario, buyers preferred light weightage and lower karatage, noted the firm.

International brokerage Morgan Stanley maintained its 'overweight' call on the consumption player, with a price target of Rs 3,876 per share. The brokerage said the quarterly update was a 'big miss' on jewellery growth, while buyer growth was flat.

"Titan saw growth moderation in Q1 with 17 percent growth in the jewellery business versus recent trends of ~25 percent growth," said Emkay Global, domestic broking firm. "In our view, Street’s expectation of a high-teen jewelry growth for FY26 at stable margin is at risk, as the 17 percent growth in Q1 comes on a weak base."

With low footfalls at stores, the high-margin studded sales (low double-digits) are also under pressure which otherwise see better traction in periods of rise in gold price. While there have been periods of strong rebound in the past, expectations of a recovery now need to be weighed against a strong base, which had a big customs duty-cut related pick-up in Q2/Q3FY25. Emkay Global reiterated its 'reduce' call, with a price target of Rs 3,350 apiece.

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