Titan Company shares fell 8 per cent in early trade on Monday after Prime Minister Narendra Modi urged citizens to avoid non-essential gold purchases for one year to help reduce pressure from forex outflows amid West Asia war, dampening sentiment around jewellery stocks despite Titan reporting a strong rise in fourth-quarter earnings.

The stock hit an intraday low of ₹4,150.10, down 7.9 per cent, from the previous close of ₹4,509. In the previous trading session, the stock scaled to a 52-week high of ₹4,605.

Titan posted a 35 per cent y-o-y rise in consolidated net profit at ₹1,179 crore for Q4FY26 compared with ₹871 crore in the year-ago period, aided by robust growth in its jewellery business and continued momentum across watches and wearables.

The company’s domestic jewellery business delivered healthy profitability, with EBIT margin at 11.1 per cent, ahead of investor expectations of 10.5-11 per cent. Within the domestic jewellery segment, Tanishq, Mia and Zoya reported EBIT margin of 11.3 per cent, while CaratLane margin stood at 8.3 per cent.

Domestic jewellery EBIT rose 41 per cent y-o-y, driven by strong buyer growth and higher gold prices. Consolidated jewellery EBIT margin, however, declined 100 basis points y-o-y to 10 per cent due to losses in the international business amid disruption in Middle East operations and consolidation of Damas financials from Q4FY26.

Management said the international jewellery business could return to positive margins within the next two to three quarters.

CLSA maintained an outperform rating with a target price of ₹5,249 and said standalone sales growth of 78 per cent y-o-y was led largely by average transaction value increases, while buyer growth returned to 8 per cent y-o-y. The brokerage added that India jewellery margin remained strong despite elevated gold prices and a lower studded jewellery mix.

Citi retained a neutral rating with a target price of ₹5,075 and noted that standalone jewellery revenue growth excluding bullion was ahead of estimates at 45 per cent y-o-y. However, jewellery margins contracted 135 basis points y-o-y to 10.5 per cent. The brokerage cautioned that sustained high gold prices may have led to preponement of consumer demand, making FY27 growth trends critical for valuations.

Goldman Sachs reiterated its buy rating with a target price of ₹5,400 and highlighted that domestic jewellery EBIT margin exceeded investor expectations. The brokerage said domestic jewellery EBIT growth remained healthy at 41 per cent y-o-y and noted that overseas margins were impacted by Middle East disruptions and Damas consolidation.

JP Morgan has upgraded the stock from neutral to overweight, setting the target price of 5,400.

BofA Securities maintained a buy rating with a target price of ₹4,830 and said Titan’s underlying earnings trajectory remained steady, with adjusted jewellery EBIT growth of 35 per cent y-o-y. The brokerage remained constructive on the company’s medium-term outlook, citing multiple levers to sustain 15-20 per cent revenue and earnings CAGR.

Jefferies retained a buy rating with a target price of ₹4,800 and said jewellery business revenue growth remained strong, supported by higher gold prices and a rebound in buyer growth. The brokerage added that watches also delivered a strong quarter, although overall EBITDA was marginally below expectations due to higher staff cost provisions.

Published on May 11, 2026