Titan shares hit fresh record high on strong Q1 FY27; MD says on track to beat FY30 growth targets

Shares of Titan Company, the jewellery major of the Tata Group, rallied in the early trade on Monday, August 10, after the company’s June quarter (Q1 FY27) earnings checked all the right boxes.

The stock gained as much as 2.44% to hit its all-time high level of ₹5,061.90 on the NSE.

Titan Managing Director Ajoy Chawla, in the earnings call, said that the growth momentum witnessed in the first quarter of the current fiscal has continued in July, adding that the company is on course to deliver the improvement targets after a strong start this fiscal year.

While acknowledging that near-term performance would depend on external factors, Chawla said Titan remains on track to achieve the growth trajectory outlined earlier and could even do better this year.

"We think we are on trajectory for delivering the kind of growth that we had promised on the Investor Day, and we hope that we can, in fact, better it in the current year because we have started very well," Chawla said.

On the jewellery business, which contributes around 90% of Titan's topline, Chawla reiterated commitment to delivering healthy double-digit value growth of the segment, saying it is essential to achieving Titan's FY30 goals.

"We are committed to a double-digit healthy growth in value in the jewellery business because that is the only way we will get to our committed FY30 goals that we have said. In a particular quarter or in two quarters, it may be looking like a power play where we have hit the ball out of the park. It is not just us. The market also has done very well," Chawla said.

The MD, however, cautioned against reading too much into short-term performance swings, whether positive or negative.

Earlier this year, Titan Company set a strategic roadmap to double its consolidated revenue and operating profit (EBIT) by FY30 compared to FY26 base levels.

What leading analysts said

Jefferies

Despite gold price volatility, Titan’s jewellery segment reported strong revenue growth and record-high segment EBIT margins on a reported basis. Adjusted for customs duty and mark-to-market (MTM) gains, margins were broadly in line with management guidance.

Going ahead, management remains focused on buyer acquisition and market share gains. It targets around 11% jewellery margins and expects international profitability to improve as Damas normalises. Jefferies has sharply raised its FY27 estimates and increased its FY28–29 estimates by around 4%.

HSBC on Titan

HSBC highlighted strong underlying jewellery margins despite several moving parts, with the YoY EBIT margin moderating slightly to 10.9% from 11.3%.

While July has seen some moderation, HSBC expects overall Q2 FY27 growth of around 30% YoY and FY27 growth of 19% YoY to remain robust. The investment firm has also raised its FY27–28E EPS estimates for Titan’s subsidiaries.

CITI on Titan

CITI described Titan’s Q1 FY27 as another strong quarter, with jewellery revenue and EBIT growth, excluding bullion and one-off benefits, at 38% and 33% YoY, respectively.

Reported PAT growth of 65% was higher, aided by a one-time customs duty benefit of ₹386 crore and an MTM gain of 75–80 bps in jewellery.

Management highlighted a healthy double-digit revenue growth target notwithstanding the gold price trend, driven by the interplay between average selling prices (ASP) and buyer growth. It also noted some softness towards the end of July for plain gold jewellery, although the last few days have shown improvement.

CITI said the near-term growth and profitability outlook remains strong, with potential for positive surprises from mix improvement, led by moderation in gold coin growth and acceleration in studded jewellery growth. The investment firm has increased its FY27–29E EPS estimates by 5–10%.

JPMorgan on Titan

JPMorgan said Titan delivered a strong Q1 FY27, with revenue and EBITDA, adjusted for one-offs, ahead of Street expectations, underscoring disciplined execution across its portfolio despite a volatile quarter.

Despite the customs-duty hike, domestic jewellery revenue grew 38% YoY, driven by higher transaction values, which increased 31% YoY, along with Titan’s own demand levers, including an attractive gold exchange programme, lighter/lower-carat offerings and continued diamond activation.

JPMorgan has raised its FY27–28E earnings estimates by 1–2%.

To Sum Up

Analysts remain broadly positive on Titan following its strong Q1 FY27 performance.

The key positive is the resilience of Titan’s jewellery business despite elevated and volatile gold prices. Brokerages expect growth to remain strong, supported by buyer additions, higher transaction values, market-share gains and a favourable product mix, particularly a shift towards studded jewellery.