Titan Company Maintains Strong Growth Trajectory Amid Rising Gold Prices

Titan Company reported a 25% year-on-year increase in consolidated sales for Q1-FY26, with standalone jewellery sales (excluding bullion) rising 17%. The surge was driven by a 16% increase in ticket sizes due to higher Gold prices. Studded jewellery grew 11%, though its share in the mix declined by 100 basis points to 29%.

The company faces a high base effect in 2QFY26, attributed to last year's customs duty reduction and deferred purchases. Despite this, Titan's competitive positioning—sourcing advantages, studded ratio, youth-centric focus, and reinvestment strategy—continues to outperform peers. The brand's moat remains formidable, with store count reaching 3,322 as of June 2025.

Non-jewelry segments are scaling well, contributing to medium-term growth. Revenue, EBITDA, and PAT are projected to grow at CAGRs of 16%, 19%, and 23%, respectively, from FY25 to FY27. The BUY rating is reiterated with a target price of ₹4,150, reflecting 60x June 2027 P/E.