Titan shares jump 4% to fresh 52-week high after strong Q3 growth beats estimates

Titan share price

• Titan shares reach 52-week high after strong Q3 updates and 40% YoY growth.
• Jewellery segment led gains with 41 percent YoY rise and 47 new store additions
• Nomura and JM Financial remain positive on Titan, citing strong performance

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The shares of Titan Company jumped more than 4 percent on January 7 after the company released strong updates for the October-December quarter of the ongoing FY26.

The shares of the company hit a fresh 52-week high of Rs 4,280 apiece, breaking the previous record set just yesterday. The stock has now extended gains for the fourth consecutive session.

Titan Q3 business update:

Titan released its business update for Q3 of the financial year 2026 in the post-market hours of January 6. The company’s consumer business grew 40 percent year-on-year (YoY) during the quarter, with 56 new store additions taking the company’s total store count to 3,433 at the end of the quarter.

Jewellery segment led gains with a 41 percent YoY rise and 47 store additions, taking the total store count to 3,399. CaratLane recorded a 42 percent rise and 24 store additions, while Tanishq, Mia, Zoya and its newly-launched lab-grown diamond brand beYon recorded 40 percent rise and 23 store additions.

Titan attributed the strong performance in the jewellery segment to a “vibrant festive demand”. “Revenue growth was driven by substantial average selling price (ASP) increases, offsetting flattish buyer growths. To navigate the elevated gold price environment, Tanishq deployed a powerful gold exchange offer that sustained consumer engagement beyond the traditional festive window. Distinct consumer patterns were observed across product categories(all brands combined),” it added.

Spot gold prices rose nearly 12 percent during the quarter, to close out a calendar year in which the precious metal clocked its steepest rise since 1979, driven by geopolitical uncertainties, rate cuts and robust central bank buying.

"Higher prices did have an impact on volumes, but not on (overall) spending," said Dharmesh Kant, head of equity research at Cholamandalam Securities. Kant added that jewellery companies also benefitted from higher cash in the hands of people as a result of fiscal policies like GST cuts and income tax relief, as well as low inflation.

Titan's watch segment saw a 13 percent growth and 22 new stores taking its total store count to 1,281. “Premiumization trends resulted in solid double-digit gains for the Titan brand, complemented by healthy volume expansion during the festive period. Sonata and Fastrack also witnessed notable consumer traction, delivering robust double-digit value growth and well supported by strong volume momentum,” the firm said.

Its smart watches segment however declined 26 percent YoY due to lower volumes, whereas their ASPs were broadly flattish YoY.

Eye care however saw 17 stores being closed, reducing the store count to 860. However, the segment grew 16 percent during the quarter. The firm’s emerging business recorded 14 percent growth meanwhile.

Titan’s international market saw a strong 79 percent YoY rise during the quarter, with 2 store additions taking the total store count to 34. Domestic market meanwhile grew 38 percent, with 54 new store additions taking the store count to 3,399 at the end of the quarter under review.

Nomura on Titan:

Nomura kept a ‘Buy’ call on the shares of Titan, and a target price of Rs 4,500 per share. This implies an upside potential of more than 9 percent from the stock’s previous closing price.

The international brokerage said that the firm’s strong Q3 performance beat estimates. Ex-bullion consolidated sales grew around 40 percent YoY, well above expectations. Jewellery, including CaratLane, delivered around 41 percent YoY growth, also ahead of estimates.

Watches and Eyecare businesses delivered in-line performance, while emerging categories, especially fashion accessories, continued strong momentum, Nomura said.

JM Financial on Titan:

JM Financial said that Titan’s “blockbuster numbers” were driven by 65 percent YoY increase in gold prices. “We expect jewellery EBIT margin of 10.8% (ex-bullion sales; down ~40 bps YoY adjusted for custom duty losses in the base). Overall, we estimate standalone EBITDA/ PAT growth of 60/ 64% YoY,” it added.

Centrum Broking said that the company's Q3 update is "largely positive". It added that the jewellery business stood on a strong footing, driven by gold price inflation, strong festive and wedding demand, exchange schemes, consumer preference for jewellery and bullion.

Titan share price history:

Titan shares have gained more than 5 percent in the past five days, and more than 13 percent in the past one month. The stock gained over 16.5 percent in the past six months.

The stock's P/E ratio currently stands at 98.34.

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