Target: ₹4,150
CMP: ₹3,460.40
Titan Company posted consolidated sales growth of 25 per cent y-o-y in Q1-FY26. Standalone jewellery sales (excluding bullion) rose 17 per cent y-o-y, driven by an increase in ticket size (16 per cent y-o-y) due to rising gold prices. Studded jewellery grew 11 per cent y-o-y, and the mix declined 100 bp y-o-y to 29 per cent. The company is expected to face a high base effect in 2QFY26 due to the impact of last year’s customs duty reduction and the benefits from deferred purchases
We maintain our EPS estimates for FY26/FY27.
Titan, with its superior competitive positioning (in sourcing, studded ratio, youth-centric focus, and reinvestment strategy), continues to outperform other branded players. The brand recall and business moat are not easily replicable; therefore, Tanishq’s competitive edge will remain strong in the category. The store count reached 3,322 as of June 2025, and the expansion story remains intact.
The non-jewelry business is also scaling up well and will contribute to growth in the medium term.
We model a CAGR of 16/19/23 per cent in revenue/EBITDA/PAT during FY25-27E. Titan’s valuation is rich, but it offers a long runway for growth with a superior execution track record. Reiterate BUY with a TP of ₹4,150 (60x Jun’27 P/E)
Published on August 8, 2025
