Titan Company Limited , a leading player in the Indian jewellery market, has reported a robust performance for the second quarter of fiscal year 2026, despite facing headwinds from rising gold prices. The company's Managing Director, C.K. Venkataraman, described Q2 FY26 as "very satisfying" with growth across virtually all businesses, markets, and subsidiaries.

Key Highlights

• Overall buyer growth at -2% for the quarter
• Gold jewelry buyers declined by 11%
• Studded jewelry buyers grew by 3%
• Exceptional growth in gold coins driven by strong investment demand

Strategic Initiatives

To combat the challenges posed by high gold prices, Titan has implemented several strategic initiatives:

1. Launched powerful gold exchange campaigns
2. Introduced lower carat offerings, including 18-carat jewelry
3. Expanded retail presence with 35 new stores in the first half
4. Renovated close to 35 existing stores

International Operations

Titan's international operations, particularly in North America, continued to show strong performance. The company's expansion into global markets appears to be gaining traction, contributing to overall growth.

Financial Performance

While specific financial figures were not provided, the company maintained its margin guidance despite headwinds from elevated gold prices. This suggests Titan's ability to manage costs and pricing effectively in a challenging environment.

Product Mix and Consumer Behavior

The data shows a shift in consumer preferences, with gold coins seeing exceptional growth due to strong investment demand. Studded jewelry has shown resilience with positive buyer growth, while gold jewelry faced challenges due to high prices.

Future Outlook

Titan remains optimistic about its growth prospects, particularly in the studded jewelry segment. The company plans to continue pushing for studded buyer growth, especially in the sub-INR 1 lakh space, which is crucial for new customer acquisition.

Ajoy Chawla, CEO of the Jewellery Division, stated, "We believe exchange is a strategic customer acquisition and trust-building tool. And therefore, I would request we don't see it as an offer, and it is -- exchange is there right through the year."

As the wedding season approaches, Titan expects continued strong performance, supported by its ongoing exchange programs and diverse product offerings.

Management Transition

This earnings call marked C.K. Venkataraman's final presentation as Managing Director after 12-15 years with the company. His tenure has seen Titan grow significantly in the Indian jewelry market and expand internationally.

In conclusion, Titan Company Limited has demonstrated resilience and adaptability in the face of challenging market conditions. The company's strategic initiatives, focus on customer trust, and diversified product portfolio position it well for continued growth in the competitive jewelry market.

Titan Company , a prominent player in the Indian jewellery market, has reported impressive growth in its jewellery division, signaling strong consumer demand and effective business strategies. The company's performance has caught the attention of analysts, leading to revised target prices and earnings estimates.

Revenue Surge in Jewellery Division

Titan's jewellery division has posted a remarkable 21% year-on-year increase in revenue, reaching ₹14,092 crore. This growth can be attributed to several factors:

• Strong festive and wedding demand
• Successful strategy of offering lower karat jewellery
• Expansion of international business

Financial Highlights

International Expansion

Titan's international jewellery business has shown significant growth:

• Revenue nearly doubled to ₹561 crore
• Major contributions from Middle East and North America
• Plans to acquire a 67% stake in Dubai-based Damas Jewellery
• Aim to expand across GCC countries

Domestic Market Strategy

The company continues to strengthen its presence in the domestic market:

• Added 8 new Tanishq stores in October
• Renovated 35 stores in the first half of the fiscal year
• Targeting 40 new Tanishq store openings for the year

Business Segment Guidance

Titan's management has provided guidance on multiple business segments:

• Jewelry Division: Expects absolute EBIT growth to be slightly slower than revenue growth for the full year due to margin pressures from high gold prices
• Q3 year-to-date growth rates are expected to improve compared to first half growth rates
• Eyewear Segment: Management expects to close the year with 13-14% growth
• Margins: The company aims to maintain stable margins within their guided range, though some variation may occur due to gold price volatility

Analyst Outlook

The strong performance has led to positive analyst sentiment:

• Target prices revised upward by 10-12%
• EPS estimates raised by approximately 3% for FY26 and FY27
• Motilal Oswal maintained a 'buy' rating
• Emkay Global upgraded to 'Add' with a target price of ₹4,100

Market Response

The market has responded positively to Titan's performance, with the stock closing at ₹3,812.90 on the BSE.

Titan Company's robust growth in its jewellery division, coupled with its international expansion plans and positive analyst outlook, indicates a strong position in the market. The company's strategy of catering to diverse customer preferences through varied offerings and its focus on both domestic and international markets appears to be yielding positive results. As Titan maintains its growth momentum and provides guidance across various segments, investors and market watchers will likely keep a close eye on its performance in the coming quarters.