Titan shares climbed 2 percent to Rs 3,478 apiece on August 8 after the company delivered a strong set of April–June quarter (Q1FY26) numbers, beating analyst estimates across all parameters.
Brokerages were quick to turn optimistic. CLSA maintained an “outperform” rating with a target price of Rs 4,394 per share, noting its confidence in management’s jewellery EBIT margin guidance of 11 to 11.5 percent for FY26.
Jefferies retained a “buy” rating and lifted its target price to Rs 3,800 per share, citing robust growth in both jewellery and watches, along with healthy margin expansion in the June quarter.
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Prabhudas Lilladher also maintained its “buy” call, setting a target price of Rs 3,901 per share. The brokerage remains upbeat on the company’s long-term outlook, pointing to its efforts to enhance product mix, the strategic shift towards lightweight jewellery, and a strong medium-term growth runway led by innovative designs.
Citi, however, struck a more cautious tone, assigning a “neutral” rating with a target price of Rs 3,900 per share. While acknowledging Titan’s near-term growth potential relative to other discretionary categories, the brokerage flagged medium-term margin risks from intense competition, high gold prices, and an unfavourable product mix.
In Q1FY26, Titan’s consolidated net profit surged 52.5 percent year-on-year to Rs 1,091 crore, while revenue jumped 24.6 percent to Rs 16,523 crore.
Operating profit (EBITDA) rose 46.7 percent to Rs 1,830 crore from Rs 1,247 crore a year earlier. EBITDA margin improved to 11.1 percent from 9.4 percent, surpassing expectations of 10.6 percent.
The jewellery division, Titan’s biggest revenue generator, posted a 19 percent year-on-year growth (excluding bullion and digi-gold sales) despite persistently high gold prices. The watches and wearables segment logged one of its best quarters ever, with revenue up 24 percent to Rs 1,273 crore.
The EyeCare business grew 13 percent year-on-year to Rs 238 crore, delivering an EBIT of Rs 20 crore with an 8.4 percent margin.
Meanwhile, Titan Engineering & Automation reported a 56 percent jump in income to Rs 307 crore. Within this, Automation Solutions grew 82 percent, while Manufacturing Services expanded 16 percent, buoyed by strong demand from the aerospace sector.
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