Titan Company has reported a 20% year-on-year growth in its consumer business for Q1 FY26. The company also expanded its retail presence by adding 10 new stores. However, Titan’s share price dropped nearly 5% as its jewellery segment underperformed market expectations.
1. Consumer Business Grows 20%
Titan’s total consumer business grew 20% compared to the same quarter last year. This includes growth in jewellery, watches, eyewear, fragrances, and ethnic wear. Despite this strong performance, the jewellery business, which is the company’s biggest revenue driver, saw 18% YoY growth, slightly below analyst expectations.
2. Titan Adds 10 New Stores
Titan expanded its retail network by adding 10 new stores, bringing the total count to 3,322 across India.
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Jewellery segment: 3 new Tanishq, 7 new Mia, and 9 CaratLane stores
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Watches segment: 4 Titan World and 5 Helios stores
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Eyecare segment: Net decrease of 20 stores due to closures
3. Segment-Wise Growth Highlights
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Jewellery: 18% YoY growth, driven by plain gold jewellery and gold coins. High gold prices led to a shift towards lighter jewellery.
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Watches & Wearables: Strong 23% YoY growth, supported by Titan, Sonata, Fastrack, and international brands.
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Eyewear: 12% YoY growth in revenue, despite a net reduction in store count.
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Emerging Categories:
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Fragrances: +56% YoY
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Women’s Bags: +61% YoY
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Taneira Sarees (Ethnic Wear): +15% YoY
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4. International Business Performance
Titan’s international business grew by 49%, driven by higher sales in the United States and UAE. Expansion in global markets continues to be a key focus for Titan’s growth strategy.
5. Stock Market Reaction
Despite the strong overall update, Titan shares fell around 5% due to concerns over the jewellery segment’s growth. Investors were expecting a higher rate of growth given the size and importance of this segment. The company’s market cap saw a decline, which also impacted the value of holdings by major investors.
6. Outlook for Festive Season
Analysts and investors are now looking forward to Titan’s performance in Q2, especially during festive periods like Raksha Bandhan, Dussehra, and Diwali. The company is expected to focus on improving margins and maintaining its store expansion strategy.
Conclusion
Titan continues to show strong growth in most of its business areas and is expanding both in India and abroad. However, jewellery sales will be closely monitored going forward. With the festive season ahead, Titan’s performance in the coming quarter will be crucial for investors.
