Titan Shares Rise After Q2 Profit Doubles, Brokerages Issue Mixed Outlooks

Shares of Titan Company climbed up to 2.46 per cent to trade at ₹4,953.70 on Friday afternoon, touching an intraday high of ₹5,003.90. The movement followed the jewellery-to-watches conglomerate's second-quarter financial results announced on Thursday. The stock has gained over 31 per cent in the past year and 22 per cent year-to-date, trading at a P/E multiple of 61 times. Traded volume reached 32.70 lakh shares with a total traded value exceeding ₹1,608 crore by the afternoon session.

For Q2FY27, Titan reported a consolidated total income of ₹20,533 crore, marking a 25 per cent increase compared to the same period last year. Jewellery revenue, excluding bullion, grew by 22 per cent to ₹17,495 crore. EBITDA rose 62 per cent to ₹2,626 crore, and profit after tax (PAT) jumped 56 per cent to ₹1,572 crore. The bottom line was aided in part by a one-time customs duty gain of ₹536 crore, while adjusted profit before tax (PBT) growth stood at 18 per cent. The watches segment grew 27 per cent to ₹1,881 crore, and EyeCare expanded 28 per cent to ₹281 crore. Management retained its FY27 jewellery EBIT margin guidance at approximately 11 per cent, indicating plans to reinvest margin gains into driving buyer growth.

Following the earnings announcement, financial brokerages issued mixed outlooks and revised their targets. Jefferies maintained a Buy rating with a target of ₹6,000, characterising the quarter as a strong performance despite gold price volatility and a festive calendar shift. Citi raised its target price to ₹5,875 from ₹5,700 with a Buy rating, pointing to a domestic jewellery EBIT margin of 11.7 per cent. Motilal Oswal also kept a Buy rating with a target of ₹5,700, projecting a 15 per cent revenue CAGR and a 24 per cent PAT CAGR through FY28.

In contrast, JM Financial downgraded Titan from Buy to Add while keeping its target price unchanged at ₹5,150. The brokerage cited the stock's recent run-up and noted that flat buyer growth remains a concern for the second half of the fiscal year. JPMorgan maintained a Neutral rating with a ₹5,540 target, highlighting that earnings missed estimates due to higher finance costs despite an otherwise solid operating performance.

"Titan's latest financial results demonstrate resilient consumer demand across its core segments, particularly jewellery and watches. However, the divergence in brokerage views highlights the delicate balance established companies must maintain between aggressive top-line growth and high market valuations. For emerging businesses and consumer brands, Titan's strategy to reinvest margin gains into buyer acquisition rather than immediate profitability serves as a notable lesson in long-term market capture." — Dr. Shishir Gupta, Founder & CEO, StartupLanes