Titan’s New Sparkle: Lab-Grown Diamonds And Its Growth Path

Titan Co Ltd. has led India’s branded jewellery market for decades.

The Tata Group-owned company built its business around natural diamonds and 22-carat gold. As it closed a “very satisfying” Q2 FY26, Titan signalled a strategic shift with the launch of beYon, a dedicated brand for lab-grown diamonds.

Titan listed in January 1999. Over 26 years, the stock has returned about 93,400%. An investment of Rs 1,000 soon after the initial public offering would be worth close to Rs 10,00,000 today.

Despite challenging macro conditions, Titan shares trade at an all-time high in December 2025.

Investors are now assessing whether Titan’s entry into lab-grown diamonds could shape its growth over the coming decade.

The main headwind discussed in Titan’s recent earnings call was the sharp rise in gold prices. Higher prices can support inventory gains but weigh on demand.

Jewellery division CEO Ajoy Chawla said demand weakened in lower price bands, especially for plain gold jewellery. Buyer growth in this segment fell 11% during the quarter.

At the same time, demand for gold coins and bullion rose. Titan reported strong appetite for these products, which lift revenue but carry different margin profiles from jewellery.

Management said some mid- and lower-income buyers remain cautious due to price volatility. The company sees this backdrop as a key reason to expand into lab-grown diamonds.

Titan’s entry into lab-grown diamonds through beYon marks a clear shift. The company plans to open its first exclusive beYon store in Mumbai on Dec. 29, 2025, followed by a launch in Delhi. The brand will operate separately from Tanishq, Mia and Zoya.

Management’s stance has evolved since early 2024, when it expressed caution about lab-grown diamonds. This year, the company has moved to scale.

Lab-grown diamonds are physically and chemically identical to natural diamonds and sell at a 30% to 40% discount. Titan sees this as a way to address slower buyer growth in gold.

During the quarter, buyers of plain gold jewellery declined, while buyers of studded jewellery grew 3%. Titan plans to use lab-grown diamonds to offer products below Rs 1 lakh and attract younger consumers who may not enter the natural diamond segment.

Titan reported strong Q2 FY26 results, with jewellery revenue up 29% to Rs 16,522 crore. Management, however, flagged pressure on margins from high gold prices.

Chief Financial Officer Ashok Sonthalia said forecasting margins remains difficult while gold prices stay elevated. The company maintained its guidance on EBIT.

Titan also highlighted its Gold Exchange Programme. The company plans campaigns featuring Sachin Tendulkar to encourage customers to exchange old gold for new jewellery.

The programme allows buyers to offset high prices by using existing gold. Chawla described it as a trust-building and customer acquisition tool.

Jewellery remains Titan’s main business, but other segments continue to contribute.

The watches and wearables segment reported a push towards higher-priced products. New launches, including Edge Ultraslim and Stellar, supported festive growth of 16%. Management targets margins of 15% to 18% as it expands Helios and Helios Luxe stores.

The eyewear business, Titan Eye+, grew 13% to 14%. The segment operates a vertically integrated model, with lens plants in Bengaluru and Kolkata and frame manufacturing in Chikkaballapur.

Titan also reported progress in North America, driven by studded jewellery sales. The company said overseas growth reduces reliance on domestic demand cycles.

Industry estimates project the Indian lab-grown diamond market to reach $1.5 billion by 2030. India already accounts for about 29% of global lab-grown diamond exports.

Titan said it aims to limit cannibalisation of natural diamond sales through a multi-brand strategy. By positioning beYon separately, the company seeks to attract new buyers focused on design and sustainability rather than traditional wedding jewellery customers.

Titan is entering a transition phase, with Managing Director C.K. Venkataraman set to step down after decades with the company. Management said the company’s portfolio of brands remains well positioned.

Analysts covering Titan expect revenue to grow 15.4% annually between FY25 and FY29. Net earnings per share are projected to rise about 26% annually over the same period.

Titan shares trade at a forward price-to-earnings multiple of about 68 times, above the 10-year average of 62.5 times. Market estimates point to an 8% upside from current levels.

Through new product categories, gold exchange initiatives and the entry into lab-grown diamonds, Titan continues to adjust its strategy as market conditions change.