Titan Q4 Results Review: Strong Jewellery Growth Bolsters Brokerages' Confidence

Titan Co. reported strong earnings for the fourth quarter of financial year 2025, with brokerages providing an upbeat view on the company’s future growth.

Despite facing challenges from high gold prices, Titan’s results have largely met market expectations, and brokerages remain confident about the company's ability to sustain growth in the coming quarters. The company’s solid performance in the jewellery segment, especially in higher price points and studded jewellery, has strengthened analysts’ outlook for Titan.

Across the board, brokerages have highlighted Titan's resilience amid volatile gold prices, with strong sales growth driving performance, especially in the luxury and studded jewellery categories.

Brokerages also noted Titan’s successful product diversification strategy and the company’s ability to leverage brand strength. As a result, most analysts have revised their target prices upwards, reflecting a positive growth outlook for fiscal 2026 and beyond.

The consensus outlook from brokerages reflects continued confidence in Titan’s jewellery sales growth, though there remains some caution due to potential margin pressure from competition and fluctuating gold prices. Analysts expect Titan to maintain its market leadership, supported by its expanding retail presence and strong consumer demand.

Macquarie has raised its target price for Titan to Rs 4,000, up from Rs 3,900, maintaining an ‘outperform’ rating. The brokerage praised Titan’s Q4 Ebitda beat, driven by stronger-than-expected jewellery margins. While acknowledging pressure from low-margin products like gold coins, Macquarie noted that Titan has managed to offset this through cost controls and higher-margin products.

Macquarie’s outlook for Titan remains strong, with expectations of 15-20% jewellery sales growth in fiscal 2026. However, there are concerns about increasing competition and rising working capital intensity.

Nuvama has maintained its ‘buy’ rating on Titan, raising its target price to Rs 4,541 from Rs 4,115. The brokerage highlighted Titan’s solid performance, particularly in the jewellery segment, where it saw 25% YoY growth.

Nuvama also praised Titan’s strong retail expansion, noting that the company added several new Tanishq, Mia, and Caratlane stores. The brokerage revised its revenue estimates for fiscal 2026 and 2027 upwards, reflecting continued sales momentum and strong demand for Titan’s high-value offerings, including solitaires and wedding jewellery.

Citi has revised its target price for Titan to Rs 3,800 from Rs 3,550, maintaining a ‘neutral’ rating. While acknowledging Titan’s strong fourth quarter results, the brokerage expressed caution over the company’s ability to sustain margins in the face of intense competition and high gold prices.

The brokerage noted that Titan faces challenges in the studded jewellery segment and is increasingly pressured by the growing popularity of Lab-Grown Diamonds. Citi sees the current stock price as fairly valued, with limited upside potential in the short term. The brokerage recommends a wait-and-watch approach for investors.

The brokerage emphasised Titan's ability to grow its customer base in higher-price segments, particularly in studded jewellery and repeat customers.

Morgan Stanley also pointed to the company’s focus on expansion, with plans to open 40-50 new Tanishq stores in fiscal 2026. Despite concerns over gold price fluctuations, Titan's strategic investments in product offerings and operational efficiencies are expected to drive long-term growth.