Synopsis: Titan stock rose 2% to Rs. 3,800 after 59% profit growth and Morgan Stanley’s ‘Overweight’ rating, driven by strong jewellery sales and festive demand.
Known for its strong presence in the technology and engineering sector, the company has reported impressive financial results with revenue up 29% year-on-year and profit rising 59%. The stock gained market attention after Morgan Stanley upgraded it to an overweight rating.
Titan Company Limited’s stock, with a market capitalisation of Rs. 3,36,772 crores, rose to Rs. 3,800, hitting a high of up to 2.03 percent from its previous closing price of Rs. 3,724.50. Furthermore, the stock over the past year has given a return of 17.8 percent.
Segment Growth
- Titan’s jewellery segment, including Tanishq, Mia, Zoya, and CaratLane, is the main growth engine, with total income rising 21% YoY to Rs. 14,092 crore. Domestic jewellery sales grew 18% to Rs. 12,460 crore, CaratLane’s online sales surged 32% to Rs. 1,072 crore, and international revenues nearly doubled to Rs. 561 crore.
- The watches and wearables segment saw a 13% increase in revenue to Rs. 1,477 crore, supported by strong demand for Titan, Fastrack, and Sonata brands. Analog watches grew 17%, helped by higher sales and better prices. The segment’s EBIT was Rs. 238 crore, with a margin of 16.1%.
- Titan’s eyewear business, under Titan Eye+, grew 9% to Rs. 220 crore with EBIT of Rs. 12 crore and a 5.3% margin. The company added five new premium ‘Runway’ stores this quarter to expand its presence in the eyewear market.
Brokerage View
Morgan Stanley set a target price of Rs. 3,953 for Titan, noting that the company exceeded expectations in revenue, EBITDA, and profit. Titan’s EBITDA margin (excluding bullion) was 11.5%, above forecasts, supported by 19% yearly growth in jewellery sales from higher ticket sizes and festive demand.
CaratLane maintained strong momentum with 32% revenue growth, while the watches and eyewear businesses grew 13% and 8% respectively. Morgan Stanley said steady festive demand should keep Titan’s growth outlook strong in the near term.
Q2 Financial Highlight
The company reported revenue of Rs. 18,725 crore in Q1FY26, rising 13.3% sequentially from Rs. 16,523 crore in Q4FY25 and 28.8% year-on-year from Rs. 14,534 crore in Q1FY25. The consistent double-digit growth reflects strong operational momentum backed by expanding business volumes and improved realizations.
Net profit stood at Rs. 1,120 crore in Q1FY26, up 2.7% QoQ from Rs. 1,091 crore and 59% YoY from Rs. 704 crore, driven by better margins and cost efficiencies. Over the past three years, profit has grown at a CAGR of 15%, sales at 28%, and return on equity at 32%, showcasing sustained earnings strength and efficient capital utilization.
Written By Fazal Ul Vahab C H
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