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beYon to add to growth momentum

Quick Pointers:

* beYon to open 10 stores in near term across Delhi and Mumbai

* beYon pricing ~25% lower than market, LGD price erosion might continue

* LGD currently forms just 2-3% of overall studded jewellery, however share might go up as awareness go up

We believe beYon expands Titan’s addressable market by tapping incremental demand in lab-grown diamonds and fulfills a gap in its portfolio. While there might be some shift from Caratlane and Mia to beYon, the expansion of market size and new customer base will more than neutralize that and provide incremental growth to the company in the sub-Rs1–2 lakh daily wear studded jewellery segment. Overall, Titan’s LGD strategy appears measured and strategic, balancing near-term investments with long-term optionality in a small but evolving category.

Core business remains a firm shape with 40% growth in consumer business in 3Q led by 41% growth in domestic Jewellery business. Watch continues to grow in double digits and Eyewear has also grown by 16%. We expect strong growth to continue led by higher gold prices and sustained demand. We expect TTAN to report sales/EBIDTA and PAT growth of 36/53.7/52% for 3Q26. We are increasing FY26/27/28 EPS Estimates by 6.8/4.5/4.6% and increasing target price to Rs4600 (Rs4397 earlier based on Sept27). We estimate 27.4% EPS CAGR over FY25-28 and 19.4% EPS CAGR over Fy26-28. Retain Buy.

Titan enters LGD jewellery under beYon brand

TTAn has entered LGD jewellery under the brand beYon in December. It is offering curated LGD jewellery for everyday and occasion wear, priced between Rs10,000 and Rs1 lakh, clearly targeting affordability-conscious urban consumers. beYon has been positioned as a lifestyle brand which aims to bring in a new class of consumers into its fold. Titan plans a phased expansion, with additional stores in Mumbai and Delhi, indicating a calibrated approach focused on proof of concept before scaling.

We see this entry as strategically timed diversification within its jewellery portfolio. We believe this move enables Titan to participate in a rapidly growing, affordability-led segment while preserving the premium positioning of its core natural diamond offerings.

Call highlights

LGD a highly competitive space and management expect more price erosion

* LGD segment remains highly competitive, with a large number of players and continuous price erosion.

* Unit economics across the industry are yet to stabilize, and PE participation in the space has also increased the number of players. ? Currently, LGDs account for ~2–3% of the overall studded jewellery market, indicating that the category is still nascent.

LGD presents meaningful opportunity, customer awareness key

* Titan believes LGDs present a meaningful opportunity to expand the studded jewellery consumer base, particularly among customers who were earlier hesitant due to high natural diamond prices.

* In an environment of rising gold prices, LGDs are viewed as a more accessible entry point, potentially improving purchase frequency. While customer awareness of LGDs has improved, management acknowledged that confusion and hesitation persist, reinforcing the need for consumer education as the category evolves.

beYon plans to open 10 more stores in near term across Delhi and Mumbai

* Titan continues to prioritise investments in natural diamond brands, while simultaneously building beYon as a long-term growth platform. The company is positioning beYon as a separate, full-fledged brand, similar to other in-house brands within the Titan portfolio.

* Second beYon will be opened in NCR, 10 stores planned to be open in Delhi and Mumbai in coming months with E-commerce launch planned shortly. It will enter other Metros and Tier1/2 cities over time as the brand gets established and model is refined.

* beYon is currently in a learning and investment phase, with a clear intent to “play to win” over the long term

beYon pricing ~25% lower than market

* Titan has deployed ~30 diamond experts, with plans to gradually expand this expertise across Titan stores. The current collection spans 14K and 18K gold jewellery, along with select silver offerings. Management clarified that Titan does not plan backward integration at this stage and has instead partnered with reputed sourcing players.

* beYon’s pricing is currently ~Rs22,000–23,000 per carat, compared to broader market prices of Rs30,000–50,000 per carat, positioning the brand competitively. Management expects continued technology-led price erosion in LGDs and has already factored this into business modelling, with flexibility to refine pricing as the market evolves.

Growth Outlook

* Titan expects the LGD category to continue witnessing price pressure in the near to medium term. While management does not anticipate the contribution from bEYon to be material in the medium term. Importantly, management does not expect meaningful cannibalisation of natural diamond sales at this stage, though it acknowledged that this remains a learning process.

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