Titan Loses Shine In Q1 FY26: JPMorgan 'Neutral' After Revenue Misses Estimates — Buy Or Sell?

Titan Co. reported an 18% rise in revenue in the first quarter of fiscal 2026. However, this missed street expectations. JPMorgan in a note on Tuesday said that the moderation in the Tata Group company's revenue growth was "worse than feared". The brokerage, having maintained its 'neutral' stance on the stock, has assigned a target price of Rs 3,350 on the jewellery stock.

Titan's consumer businesses registered a growth of 20% year-on-year in Q1 FY26. A total of 10 stores were added during the quarter, expanding Titan's combined retail network presence to 3,322 stores. "The revenue growth was impacted by gold price volatility, with customers favouring lightweight and lower karatage jewellery," said Titan in a regulatory filing to the stock exchanges.

According to JPMorgan, Titan's jewellery shine has faded in the April-June quarter. Moderation in like-to-like growth to early double digits and being lower than peers, such as Kalyan Jewellers and Senco Gold, were disappointing. The next catalyst for Titan could be the earnings print. "Margin delivery and management’s growth outlook amid an early festive period will be key to monitor," said JPMorgan.

The brokerage expects an adverse share price reaction after the first quarter business update, particularly after the outperformance seen over the past three months from April 2025 lows. The stock has rallied nearly 15% in three months and over 7% year-to-date. However, Titan's stock opened 5% lower on Tuesday after the disappointing first quarter business update.

• Watches and eyecare domestic business: Achieved around 23% year-on-year growth, driven by analog watches and strong performances from brands like Sonata, Titan, and Fastrack. Nine net new stores were added. Eyecare grew by approximately 12% year-on-year, but experienced a net closure of 20 domestic stores despite new openings.

• Emerging and international businesses: Emerging businesses like fragrances and women's bags saw significant growth (56% and 61% respectively). International business grew by approximately 49% driven by Tanishq's expansion in the US and new store additions in UAE.

Increased gold prices from May to mid-June led to a softening in customer purchases, and buyer growth was flat year-over-year for both TMZ and CaratLane, Titan said. More than 80% of Titan's revenue comes from the jewellery business. "Customers preferred lightweight and lower karatage jewellery in a high gold rate environment, and the studded ratio decreased year-over-year," it added.