Titan Company Limited shares continue to attract positive attention from brokerages following Tanishq's launch of its Diamond Expertise Centre, an initiative that will gradually expand across the store network. Analysts view this development as a strategic move to strengthen customer trust and enhance awareness about diamond adulteration in the high-value jewellery segment.

Brokerage Ratings and Target Prices

Major brokerages have issued positive ratings on Titan following the Diamond Expertise Centre announcement, with Nuvama reaffirming its bullish stance:

Nuvama highlighted that 90% of inventory in a 1,000 square feet Mumbai store is priced under ₹1,00,000, reflecting Titan's strategy to cater to a broad customer base. The brokerage noted that median pricing remains flexible based on customer input, though the current format does not offer savings schemes for installment purchases.

Strategic Initiatives and Product Lines

The Diamond Expertise Centre represents Titan's commitment to reinforcing its credibility in the premium jewellery market. Nuvama also emphasized beYon, Titan's premium line focusing on designer jewellery featuring lab-grown diamonds, as a key differentiator in the competitive landscape.

Titan has also highlighted its Gold Exchange Programme, which includes planned campaigns featuring Sachin Tendulkar to encourage customers to exchange old gold for new jewellery. The programme allows buyers to offset high gold prices by utilizing existing gold, serving as both a trust-building mechanism and customer acquisition tool.

Recent Financial Performance

Titan reported robust results, demonstrating strong operational performance:

Despite the strong revenue growth, management flagged pressure on margins due to elevated gold prices. Chief Financial Officer Ashok Sonthalia indicated that forecasting margins remains challenging while gold prices stay elevated, though the company maintained its guidance on EBIT.

Market Performance

Titan shares closed 0.18% lower at ₹3,985.00 apiece, outperforming the broader market as the NSE Nifty 50 declined 0.38% at market close. The relatively better performance suggests investor confidence in the company's strategic initiatives despite broader market weakness.

Titan Company Limited has officially launched beYon, its dedicated lab-grown diamond brand, with the first exclusive store opening in Mumbai on December 29, 2025. The strategic move comes as the company reported robust Q2 FY26 results, with jewellery revenue growing 29% to ₹16,522 crore despite challenging macro conditions including elevated gold prices.

beYon Brand Launch and Market Strategy

The beYon brand operates separately from Titan's existing jewellery brands including Tanishq, Mia, and Zoya. Following the Mumbai launch, the company plans to open a second store in Delhi as part of its phased expansion strategy. Lab-grown diamonds, which are physically and chemically identical to natural diamonds, are offered at a 30-40% discount to natural diamonds.

Q2 FY26 Financial Performance

Titan delivered strong quarterly results despite macro headwinds from rising gold prices. The company's jewellery division, led by CEO Ajoy Chawla, reported significant revenue growth while managing margin pressures from elevated gold costs. Chief Financial Officer Ashok Sonthalia noted that forecasting margins remains challenging in the current gold price environment.

Strategic Rationale and Market Positioning

Market expert Sandip Sabharwal believes Titan's entry into lab-grown diamonds represents strategic alignment with global trends. He highlighted that nearly 70% of engagement rings in the US market now feature lab-grown diamonds, demonstrating rapid consumer acceptance when affordability and design converge.

"They are exactly the same product. So why should one pay more for natural diamonds?" Sabharwal noted, emphasizing that most consumers cannot distinguish between lab-grown and natural diamonds. The company's evolved stance marks a shift from its cautious approach in early 2024 to active scaling in the current period.

Addressing Market Challenges

The launch of beYon addresses specific market challenges identified during Q2 FY26. Demand weakened in lower price bands, particularly for plain gold jewellery, with buyer growth declining 11% during the quarter. Conversely, studded jewellery buyers grew 3%, indicating consumer preference for value-added products.

Titan plans to leverage lab-grown diamonds to attract younger consumers who may not enter the natural diamond segment due to price constraints. The company aims to limit cannibalisation of its natural diamond business through the multi-brand strategy, positioning beYon to capture new market segments focused on design and sustainability.

Analyst Outlook and Valuation

Analysts covering Titan expect revenue to grow 15.40% annually between FY25 and FY29, with net earnings per share projected to rise approximately 26% annually over the same period. The stock trades at a forward price-to-earnings multiple of about 68 times, above the 10-year average of 62.50 times.

According to Amnish Aggarwal, Director-Institutional Research at PL Capital, Titan's formal entry into lab-grown diamonds removes structural uncertainty that has long concerned investors about the company's ability to participate in this growing segment.