Titan shares jump 5% on robust Q2 update; analysts expect further upside

Shares of Titan Company Ltd surged in Wednesday's trade as the Tata Group firm posted a strong business update for the second quarter of the ongoing financial year 2025-26 (Q2 FY26). The stock jumped 4.72 per cent to hit a day high of Rs 3,577.95 and was last seen 4.27 per cent up at Rs 3,564.30. At this value, it has risen 14.16 per cent over the last six months.

The company reported a robust 20 per cent year-on-year (YoY) growth in its combined consumer businesses for Q2 FY26. Titan also announced a net addition of 55 stores during the period, expanding its total retail presence to 3,377 stores across all its businesses.

The jewellery division, the company's mainstay, recorded an impressive 19 per cent YoY growth in its domestic business. According to the filing, this growth was achieved despite a "marginal YoY decline in buyer counts," which was more than compensated for by "substantial ticket size increases" driven by surging gold prices. The early onset of the festive season in September this year also provided a significant boost compared to the previous year.

The company said that growth was also fueled by "significant investments in consumer promotions, including a powerful exchange offer and marketing initiatives, to stimulate demand amidst elevated gold prices." Within the segment, CaratLane was a standout performer, clocking a stellar 30 per cent growth.

Responding to a query on Titan, Gaurang Shah, Senior Vice-President at Geojit Financial, said, "I think all that glitters is indeed gold in this case, with precious metals such as gold, silver and platinum trading at historic highs. With the festive season gaining momentum and the wedding season ahead, we continue to maintain a positive view on Titan from a long-term perspective."

He added, "It's not just the gems and jewellery business -- the company's other verticals, including wristwatches, eyewear, CaratLane (which it acquired some time back and is performing well, especially in platinum jewellery sales), and other accessory segments, are also contributing positively. We see an upside target of near Rs 4,000."

On the technical setup, Sebi-registered analyst AR Ramachandran noted, "Titan's stock is bullish on daily charts with strong support at Rs 3,460. A daily close above the resistance of Rs 3,573 could trigger a further upside target of Rs 3,740 in the near term."

As of June 2025, promoters held a 52.90 per cent stake in the Tata Group company.