Titan Shares Fall 5% Despite 20% YoY Rise In Q1FY26 Consumer Business; Brokerage Bullish with Rs. 4,195 TP

Titan shares slipped over 5% this morning after the company released its Q1 FY26 business update, despite reporting over 20% growth in its Consumer business. Major segments like Jewellery, Eyecare, and Watches showed a mixed performance during the quarter.

Titan Share Performance

The Tata Group stock today opened at Rs. 3581.80, slightly lower than Monday's close. However, the shares fell 5.6% intraday to Rs. 3,455.90 apiece. Titan shares have been trading rangebound in the last few trading seasons before falling today. So far in 2025 the stock has gained 6.82% overall.

Q1 FY26 Update

Jewellery Business:

As per the data released by the company on Monday, July 7th, Titan's Jewellery division reported a healthy 18% year-on-year revenue growth in Q1 FY26 mainly because of festive buying and wedding-related demand. While same-store growth (SSG) saw some moderation due to the high base of Q1 FY25, Titan added a net of 19 new jewellery stores during the quarter, expanding the presence of the Tanishq, Mia, and Zoya brands.

Watches & Wearables Business

The Watches & Wearables segment also saw a 23% YoY growth. The domestic business grew, supported by new launches and premium product demand. However, the company said that the international watch business continues to face subdued demand. 9 new store additions were seen this quarter in the watch segment.

Eyecare and Fragrances

Titan's Eyecare division also clocked 12% year-on-year growth. The company plans to counter this by revamping its product assortment and focusing on deeper digital integration. The Fragrance & Fashion Accessories segment also remained flat YoY.

Titan Share Price Target

Antique Stock Broking has reiterated its BUY rating on Titan Company Ltd., maintaining a target price of Rs. 4,195 in its latest report dated July 1. The brokerage noted, "Most of the margin compression in Titan's jewellery business, caused by rising competition, is already factored into the stock. While short-term concerns such as the sharp surge in gold prices could affect product mix and restrict margin expansion, Titan's long-term growth drivers remain intact.

"The company has guided for an 11%-11.5% EBIT margin in its jewellery business, with Antique projecting a revenue CAGR of 18% and an EBIT CAGR of 30% for FY25-27. Titan's consistent new launches, premium store formats, and strong brand trust are expected to support medium-to-long-term performance. Additionally, a robust wedding season in Q1 FY26-with 29 auspicious days versus just 3 in the base quarter-is seen as a key sales driver," the brokerage note further said.

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