Titan shares fall over 5% post-Q1 update; firm says volatile gold prices affected sentiments

In its filing to stock exchanges, Titan said its consumer businesses registered a growth of around 20% YoY in Q1 FY26. A total of 10 stores (net) were added during the quarter, expanding Titan's combined retail network presence to 3,322 stores.

The company said its jewellery domestic operations grew around 18% YoY in a quarter marked by gold price volatility affecting consumer sentiments.

While the Akshaya Tritiya period saw good traction, the increase in gold prices from May till mid-June saw some softening in customer purchases. Buyer growth was flat (YoY) for both TMZ and CaratLane.

In the high gold rate scenario, customers preferred lightweight and lower karatage jewellery. The studded ratio came in lower YoY, driven by the differential growths across segments (in TMZ), with coins continuing to lead strongly, plain gold growing in the mid-teens, and studded segment growth coming in early double digits.

The like-to-like (L2L) domestic sales growth in TMZ was in early double digits, driven entirely by ticket size growth across formats, and the L2Ls in CaratLane were in healthy double digits. Of the 19 new store additions (net) in India, 3 were in Tanishq, 7 in Mia and 9 in CaratLane, respectively.

Watches business

The Watches segment's domestic business clocked a strong quarter of around 23% YoY growth, led by analogue, driven by both volume and value growth.

"Sonata, with its refreshed offerings, led the growth charts for the quarter, closely followed by Titan and well supported by Fastrack and international brands, all clocking healthy double-digit growths. The Division added 9 new stores (net), consisting of 4 stores in Titan World and 5 in Helios, respectively," the company said.

Eye Care Business

EyeCare's domestic business grew around 12% YoY, led by performances across retail and e-commerce, by both international and house brands. Titan Eye+ retail opened 12 new doors and closed 32 stores, resulting in 20 domestic store closures (net) for the quarter.

Emerging Businesses

In the Emerging Businesses (domestic), Fragrances grew around 56% YoY, led by volume growth in SKINN and Fastrack; Women's Bags grew by around 61% YoY; and Taneira grew nearly 15% YoY, driven by value growth in Sarees.

The international business grew approximately 49% YoY, led by nearly doubling Tanishq's business in the US market. The 1 new store addition (net) in the quarter consisted of Tanishq and Titan Eye+'s one new store opening (each) in the UAE in Dubai and Sharjah, respectively, and the closure of 1 Mia store in the region.