Synopsis:
Titan had a strong first quarter of FY26, with double-digit growth in revenue and profit driven by diversified business strength, while analysts see continued growth potential but warn of margin pressures ahead.
A prominent lifestyle company is in the spotlight today following the announcement of its Q1FY26 financial results. Read the article below for a detailed overview of the company’s performance and analyst views.
With a market capitalization of Rs. 3,09,465 crore, the shares of Titan Company Ltd were trading at Rs. 3,485, up by 2 percent from its previous closing price of Rs. 3,415.70.
Q1FY26 Results
Titan Company Ltd reported Rs. 16,523 crore in revenue for the first quarter of FY26, a moderate 24.55 percent increase over the Rs. 13,266 crore for the same period in FY25. However, from Rs. 14,916 crore in Q4 FY25, revenue increased by 10.77 percent sequentially.
The company’s operating profit stood at Rs. 1,830 crore in Q1FY26, increased by 19.06 percent compared to Rs. 1,537 crore in Q4FY25, and increased by 46.75 percent compared to Rs. 1,247 crore in Q1FY25.
The consolidated net profit for the first quarter of FY26 was Rs. 1,091 crore, which was 26.26 percent higher than the Rs. 871 crore reported in the previous quarter and 52.59 percent rose year over year from the Rs. 715 crore in Q1 FY25.
Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 12.29 in Q1 FY26 from Rs. 9.81 in Q4 FY25 and Rs. 8.05 in Q1 FY25.
Segment-wise, Titan’s total income saw robust growth yearly, with jewellery rising 16.6 percent YoY, watches up 24.1 percent, and eyewear advancing 12.5 percent. The emerging businesses segment grew 35 percent, CaratLane surged 39 percent, TEAL grew by 55.8 percent and international operations expanded 48 percent year-on-year. Bullion and Digi-gold grew by 71.6 percent.
Also Read: How did BSE Ltd perform in Q1 and should you Buy, Sell or Hold?
Management View
Titan MD C.K. Venkataraman stated that Q1FY26 began strong, with 21 percent consolidated revenue growth driven by the company’s diversified business model. Despite high gold prices, jewellery remained resilient, watches had one of their best quarters, and EyeCare grew by double digits for three quarters running.
Emerging brands SKINN, IRTH, and Taneira improved their business mix, while international operations expanded significantly. He was optimistic about maintaining momentum and creating long-term value across segments.
About the company
Titan Company Limited, established in 1984 as a joint venture between the Tata Group and TIDCO, is a leading lifestyle brand with a diverse portfolio that includes jewellery, watches and wearables, eyewear, fragrances and women’s bags, and Indian dresswear.
Titan is known for quality, innovation, and customer focus, and it combines sophistication and style to meet changing consumer expectations. Guided by Tata Group values, the company is dedicated to making a positive contribution to society while also growing consistently.
Analyst Outlook
Morgan Stanley maintains its Overweight rating and sets a target price of Rs. 3,876. Q1 jewellery margins were slightly lower, but the company remains committed to its market share strategy and will invest without compromising margins. Q2 faces a high base due to last year’s gold duty reduction and deferred sales, but it has begun well.
Jefferies maintains Hold and raises the target price from Rs. 3,600 to Rs. 3,800. Reports strong growth in jewellery and watches, with margin expansion aided by one-time items; adjusted EBITDA still exceeds expectations. Warning that most one-time events will reverse in the coming quarters. Firm gold prices continue to be a headwind for buyer growth.
Citi maintains Buy rating with a target price of Rs. 3,900, up from Rs. 3,800. Q1 growth and profitability were consistent with expectations. High competition, firm gold prices, and an unfavorable product mix all pose risks to medium-term margins. Aggressive store expansion may necessitate increased branding spend and discounts, keeping the growth-versus-margin trade-off in mind.
Macquarie maintains Outperform rating at a target price of Rs. 4,150. Jewellery margins were consistent, while watch margins exceeded expectations. Q2 jewellery sales have started well, but a high base may limit growth. Concerns were raised about Q1’s slower same-store sales growth compared to peers.
Written by Akshay Sanghavi
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