Titan Company Ltd.TITAN₹3,474.40 -5.23%

Shares of Titan Company Ltd. fell over 5% on Tuesday after the company released its Q1 FY26 business update, which showed overall 20% YoY growth in consumer businesses but highlighted some softness in its core jewellery segment due to rising gold prices and flat buyer growth.

Jewellery sales grew around 18% YoY, but rising gold prices through May and mid-June dented consumer sentiment. Although the festive Akshaya Tritiya season helped boost sales early in the quarter, overall buyer momentum remained flat compared to last year in both Tanishq and CaratLane. Many customers opted for lighter, more affordable jewellery, leading to softer performance in high-value segments. Studded jewellery, in particular, saw slower growth, while gold coins and plain gold jewellery performed better..

In contrast, Titan’s watches business clocked a strong 23% YoY growth, with analog watches leading the charge across brands like Sonata, Titan, Fastrack, and international labels. The EyeCare division rose 12%, despite reporting a net closure of 20 stores.

Emerging categories such as fragrances and women’s bags delivered standout performances, growing 56% and 61% YoY, respectively. Ethnic wear brand Taneira rose 15%, while Titan’s international consumer business surged 49%, led by strong traction for Tanishq in the US market.

Titan added a net 10 new stores in the quarter, taking its total retail footprint to 3,322 outlets across categories. Among individual segments, CaratLane expanded to 755 stores, Watches to 1,244, and EyeCare to 872 stores, despite closures.

While the overall growth trajectory remained positive, concerns around jewellery demand, especially in premium segments, appear to have weighed on investor sentiment, dragging Titan’s stock lower after the update.

Note: The stock price mentioned is as of 11:40 AM.

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