Titan , the parent company of Tanishq, is experiencing a significant uptick in demand for its jewellery products, even as gold prices reach new heights. The surge in demand comes at a time when gold prices have touched Rs 1,30,000 per 10 grams, a level that would typically dampen consumer interest.

Demand Resurgence

According to Ajoy Chawla, CEO of Tanishq, the company witnessed a slow start to sales but has since seen a robust return in volume growth. This resurgence is attributed to customers who were initially waiting for price corrections but have now decided to make their purchases.

Product Preferences

The company is observing particularly strong demand in two key areas:

1. Gold coins
2. Gold bars

This trend is driven by a combination of investment interest and a fear of missing out (FOMO) among customers who anticipate further price increases.

Supply Concerns

While Tanishq has made adequate preparations to meet the surge in demand, Chawla expressed some concerns about potential stock shortages. This apprehension stems from a reported bullion shortage in the country, which could impact the availability of raw materials for jewellery production.

Upcoming Financial Results

Titan has scheduled a board meeting for November 3 to consider and approve the unaudited financial results for the quarter and half-year ended September 30. This meeting, as announced in a filing to the stock exchanges, will provide further insights into the company's performance during this period of increased demand.

Market Implications

The surge in jewellery demand, despite high gold prices, suggests a strong consumer sentiment in the luxury goods sector. It also indicates that gold continues to be viewed as a valuable investment, even at elevated price levels. For investors, this trend may signal potential growth opportunities in the jewellery retail sector, particularly for established brands like Tanishq that can navigate supply challenges effectively.

As the festive season progresses, it will be interesting to see how Tanishq and other jewellery retailers balance the high demand with potential supply constraints, and how this impacts their financial performance in the coming quarters.

Titan Company Limited , a prominent player in the Indian consumer goods sector, has reported a strong performance for the second quarter of fiscal year 2026. The company's consumer businesses registered an impressive year-over-year growth of approximately 20%, showcasing its resilience and market strength.

Key Highlights

• Overall consumer businesses grew by 20% year-over-year
• Jewellery segment, the company's mainstay, saw a 19% growth
• International business experienced a remarkable 86% growth
• 55 new stores added, expanding the retail network to 3,377 stores

Segment-wise Performance

Titan's performance across various segments demonstrates its diversified growth strategy:

Jewellery Segment: The Growth Engine

The jewellery segment, which includes brands like Tanishq, Mia, and Zoya, continued to be the primary growth driver for Titan. Despite high gold prices, the segment achieved a 19% year-over-year growth. This growth was supported by:

• Substantial ticket size increases, offsetting marginal declines in buyer counts
• Early onset of the festive season in September
• Significant investments in consumer promotions and marketing initiatives

Notably, the studded jewellery portfolio outpaced gold jewellery growth, while gold coins showed strong performance, reflecting positive investment sentiment.

International Expansion

Titan's international business witnessed an exceptional growth of 86% year-over-year. This was primarily driven by:

• Tanishq more than doubling its business in the USA market
• Strong double-digit growth in the GCC market
• Addition of a new Tanishq store in Virginia, USA

Other Business Segments

• Watches: The domestic watches business grew by 12%, led by strong performance in the analog segment.
• EyeCare: Reported a 9% growth, supported by international brands and sunglasses.
• Emerging Businesses: Fragrances grew by 48%, while Women's Bags saw a substantial 90% growth.

Retail Expansion

Titan continued its retail expansion strategy, adding a net total of 55 stores during the quarter. This brings the company's total retail network to 3,377 stores, further strengthening its market presence across India and internationally.

As Titan Company continues to navigate the dynamic retail landscape, its multi-pronged growth strategy and focus on both domestic and international markets position it well for sustained growth in the coming quarters.

Note: The financial figures mentioned in this article are provisional and subject to limited review by the company's statutory auditors.