Titan’s consumer businesses recorded revenue growth of 41% year-on-year during the quarter, driven by robust demand across its jewellery, watches and international operations.
The jewellery division, Titan’s largest business, posted 39% revenue growth, with its Tanishq, Mia, Zoya and beYon brands collectively growing at the same pace. CaratLane outperformed with 42% growth.
The Watches & Wearables and EyeCare businesses each reported 23% growth, while the international business more than doubled its revenue, registering a 128% increase.
The company attributed the strong performance to healthy festive demand, including Akshaya Tritiya, along with steady buyer additions and higher ticket sizes. Buyer growth remained in the early double digits, while average ticket sizes rose in the high double digits.
Plain gold jewellery and studded jewellery both delivered growth in the mid-30% range, while gold coin sales continued to benefit from strong investment demand.
What brokerages are saying
CLSA has retained its ‘Outperform’ rating on Titan with a target price of ₹5,249. The brokerage said domestic business growth of 37% exceeded its expectations, led by a stronger-than-anticipated performance in the jewellery segment.
It also highlighted the acceleration in watches, robust growth in EyeCare and exceptional performance from the international business.
HSBC maintained its ‘Buy’ rating, saying the core jewellery business significantly outperformed its estimates. The brokerage believes regulatory uncertainties are easing and continues to view Titan as its preferred pick in the consumer discretionary space. It has also marginally raised its earnings estimates.
Nomura, which also has a ‘Buy’ rating and a target price of ₹5,000, said all major business segments exceeded its expectations, with jewellery, watches, EyeCare and international operations delivering broad-based strength.
Morgan Stanley reiterated its ‘Overweight’ rating with a target price of ₹5,182. The brokerage said stronger buyer growth, favourable product mix and resilient demand supported the quarter, adding that relatively stable gold prices and festive demand further aided performance.
Citi maintained its ‘Buy’ rating with a target price of ₹5,075. It said that domestic jewellery revenue excluding bullion grew ahead of estimates, supported by healthy festive demand, higher buyer additions and strong average ticket sizes.
The brokerage also highlighted continued momentum across CaratLane, Watches & Wearables and EyeCare.
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