Titan Shares in Focus as Q2 Sales Rise 18% YoY, Jewellery Up 19%

Titan Company Limited has reported a solid performance in the second quarter of fiscal year 2026, with overall domestic sales increasing by 18% compared to the same period last year. The growth, however, was slower than the 25% surge witnessed in Q2 of the previous year, primarily due to elevated gold prices impacting demand for high-carat jewellery.

The company's mainstay, the jewellery business, which contributes approximately 90% to the total revenue, demonstrated a growth of 19% year-on-year. Despite the impressive growth in sales, the number of buyers saw a marginal decline, which was offset by increased spending per customer. This indicates a shift towards premium purchases among consumers. The rise in gold prices also influenced consumer behavior, with many shifting towards investment-grade gold coins, impacting overall margin growth due to the coins' lower profit margins compared to jewellery. Titan is strategically leveraging old gold exchange programs to attract customers during the festive season, expecting up to 50% of Tanishq sales to come from these offers.

Within the jewellery segment, studded jewellery across Tanishq, Mia, and Zoya brands, collectively grew in the mid-teens, outpacing the growth of plain gold jewellery. CaratLane, another brand under Titan, outperformed Tanishq, Mia and Zoya with a 30% increase. The company also inaugurated its first wedding destination store, Rivaah, in Delhi during the quarter. A total of 34 new jewellery stores were added, including 6 Tanishq, 18 Mia, and 10 CaratLane outlets.

The watches and wearables division also contributed positively to the company's overall performance, with a 12% year-on-year growth in the domestic market. The analog segment led this growth with a 17% increase. While Titan-branded watches experienced strong sales during the festive season, the smart wearables category faced challenges, declining by 23% year-on-year. The division expanded its retail presence by adding 15 net new stores, including Titan World, Helios, and Fastrack outlets.

Titan's EyeCare division reported a 9% year-on-year growth, driven by international brands, sunglasses, and e-commerce. The company added five new Runway stores during the quarter. Emerging businesses within Titan Company exhibited robust growth, with a 37% year-on-year increase. Fragrances grew by 48%, women's bags surged by 90%, and Taneira rose by 13%.

The company's international business has been a standout performer, registering an impressive 86% year-on-year growth. Tanishq more than doubled its business in the United States and recorded strong double-digit growth in the GCC (Gulf Cooperation Council) market. One new international store was opened in Virginia, USA.

In Q2FY26, Titan added a total of 55 stores, expanding its retail network to 3,377 stores. Shares of Titan closed 0.19% lower at ₹3,419 on the NSE on Tuesday.