Titan Company shares rose by 1% on Friday, August 8, outperforming a generally weak Indian stock market. The gains followed the company’s robust performance in Q1 FY26 (April–June), where it reported a 53% year-on-year increase in net profit to ₹1,091 crore and a 21% rise in revenue.
Strong operating performance and improved margins were the key drivers of positive market sentiment. Gross margin rose by 40 basis points YoY to 22.5%, slightly below Motilal Oswal’s estimate of 23.5%. EBITDA margin jumped by 170 bps to 11.1%, and EBIT margin for the jewellery segment (excluding bullion) improved by 30 bps to 11.5%. However, analysts noted that a one-time hedging gain boosted margins by around 50 bps and may reverse in the coming quarters.
Titan remains well-positioned in the branded jewellery space due to its sourcing advantages, youth-centric focus, and strong brand equity. Its non-jewellery businesses are also growing steadily. While Jefferies maintained a ‘Hold’ with a target of ₹3,800, MOFSL retained a ‘Buy’ rating with a revised target price of ₹4,150, citing long-term growth prospects and consistent execution.
