Titan Share Price Surges 4% Post Q2FY26 Update: Stock Near 52-Week High As Company Reports 20% Business Growth

Shares of Titan Company jumped sharply on the stock market today, becoming one of the top gainers on the Nifty 50 index after the company announced its Q2FY26 business update after market hours on 7th October. Titan's stock was trading at Rs. 3,560 apiece, up 4.15% at the time of writing. The stock opened at Rs. 3,474, 4% higher than its previous close, and is now moving closer to its 52-week high.

Titan Q2FY26 Business Performance Update

Titan Company reported that its consumer businesses registered a 20% YoY growth in the second quarter of FY2025-2026. The company expanded its retail presence by adding 55 net new stores, taking its total retail network to 3,377 stores. With the domestic business shining, Titan's international business also grew a massive 86% YoY, with growth in the USA & the GCC market.

Jewellery Business Growth

The domestic jewellery segment grew around 19% YoY due to higher ticket sizes amid rising gold prices in India, which offset slight declines in buyer counts. The early onset of the festive season in September, compared to October last year, also contributed to sales growth.

Other Business Updates

The domestic watches business grew around 12% YoY, while the smart wearables segment faced a 23% YoY decline. At the same time, the EyeCare division posted around 9% YoY growth. The fragrances segment grew about 48% YoY, led by Fastrack and Skinn.

Titan Share Price Target: Market Outlook

Morgan Stanley has maintained an "Overweight" rating on Titan, with a target price of Rs. 3,953 against the current market price of Rs. 3,418.20. The firm pointed out several positive factors behind this outlook, which include revenue of Tanishq, Mia, and Zoya brands increased by 18% year-over-year, surpassing the 12% estimate; although buyer growth has slightly declined, the average ticket size has increased due to higher gold prices. Additionally, the early festive season helped offset a high base effect. Growth was further supported by heavy promotions and exchange offers, while studded jewellery saw mid-teen growth, and gold coins maintained their growth momentum.

Global brokerage Nomura has given Titan Company a 'Buy' rating, assigning a target price of Rs. 4,275. According to the report, "Titan currently trades at 50x one-year forward EPS, while Nomura forecasts an EPS CAGR of 24% over FY26-28F. The broking values Titan at 60x Sep-27F EPS, closely aligning with its 10-year historical average trading multiple. Titan's current valuation sits 1 standard deviation below its five-year trading average, offering investors significant valuation comfort."

However, Nomura highlighted key risks, including a potential slowdown in sales growth due to rising gold prices or competition and margin pressure from LGD and competitive challenges.

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