Titan reported its Q3FY26 business update on Tuesday, after market hours. In the December quarter (Q3FY26), 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 growths. 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, its 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.
Brokerages’ view on Titan
Nomura | Buy | Target: ₹4,500
The brokerage has maintained its top pick status on Titan and forecasts an Earnings per share (EPS) compound annual growth rate (CAGR) of 24 per cent over FY26-28F. Nomura sees Titan as a key beneficiary of the rising affluent and elite income population in India, with sales growth at 1.5-2x gross domestic product (GDP) over the medium term.
The brokerage expects the company to continue growing faster than the industry and gain share to 10 per cent by FY28F 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/sq ft driven by higher ticket sizes, formalisation and a rising contribution from wedding jewellery to 25 per cent of sales in 3–5 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 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 lab-grown diamonds (LGD) margins seen as potentially higher than 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.
Antique Stock Broking | Buy | Target raised to ₹4,500 from ₹4,400
The brokerage forecast revenue/Earnings before interest, tax, depreciation and amortisation (Ebitda)/ profit after tax (PAT) CAGRs of 21 per cent/24 per cent/25 per cent over FY25–FY28E and remains confident of a 20 per cent CAGR in jewellery revenue over the next three years for Titan.
With jewellery Ebit margin likely having bottomed out at 9.7 per cent in FY25, its 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, execution capabilities and ongoing expansion of its store network. Improving profitability in non-jewellery segments should further support overall earnings growth.
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