Titan Company's retail expansion in Q4FY26 was led by a sharp scale-up in its international footprint, even as domestic store additions remained steady across key segments. The company added a total of 170 stores (net) during the quarter, taking its overall retail network to 3,603 stores, with international additions accounting for the bulk of the expansion. Brokerages also remain constructive on Titan post its Q4 update, with a clear consensus that jewellery continues to anchor growth, albeit with some emerging watchpoints.
Titan added 128 stores internationally, largely on account of the integration of the Damas network. Notably, 127 Damas stores were added during the quarter, significantly boosting Titan's presence in the Gulf region and marking a step-change in its global scale. In the domestic market, Titan added 42 stores, with growth broad-based across categories. Jewellery continued to anchor expansion with 27 net additions, including 22 stores across Tanishq, Mia, Zoya and beYon, and 5 stores under CaratLane.
The watches segment saw an aggressive push, with 30 net store additions, reflecting continued focus on retail visibility despite relatively muted growth in parts of the category. The eyecare segment stood out as the only vertical witnessing contraction, with a net reduction of 20 stores, indicating ongoing network rationalisation and optimisation. Emerging categories added 5 stores during the quarter, signalling calibrated expansion in newer verticals.
Brokerage Views
Morgan Stanley maintains an Overweight rating, with a target price of Rs 4,529, highlighting a strong beat led by 46% YoY domestic jewellery growth, with core brands like Tanishq, Mia, Zoya and beYon outperforming estimates. Citigroup, however, stays Neutral with a price target of Rs 4,750, acknowledging the acceleration in jewellery growth but flagging concerns around declining studded mix. Meanwhile, Investec retains a Buy, with a price target of Rs 4,849, citing continued strong momentum in jewellery despite elevated gold prices.
Morgan Stanley on Titan
- Morgan Stanley maintains an Overweight rating with a target price of Rs 4,529.
- Q4 saw a strong beat with 46% YoY domestic jewellery growth.
- Tanishq, Mia, Zoya and beYon (ex-bullion) revenue grew 47% YoY versus estimates of 35%.
- Buyer growth remained in high-single digits, while ticket sizes saw a sharp increase.
- Gold coin revenue tripled YoY, while plain gold grew in the mid-30s% and studded jewellery in the early 30s%.
Citi on Titan
- Citi maintains a Neutral rating with a target price of Rs 4,750.
- Jewellery growth continues to accelerate.
- However, studded mix declined amid rising competitive intensity and increasing presence of lab-grown diamonds.
- The brokerage believes Titan's ability to defend margins without compromising growth will be key to sustaining valuations.
Investec on Titan
- Investec maintains a Buy rating with a target price of Rs 4,849.
- Titan continues to deliver robust momentum led by jewellery, despite higher gold prices.
- CaratLane growth remains relatively modest.
- Watches segment growth softened due to smartwatch drag, while analog watches remain strong.
- Eyewear continues to perform well with network optimisation.
- Fragrances remain strong, while women's bags drive growth momentum.
- Taneira continues to lag.
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