Buy Titan Company Ltd for the Target Rs.4,250 by Motilal Oswal Financial Services Ltd
Domestic LFL growth in low double digits
TTAN released its pre-quarterly update for 1QFY26. Following are the key highlights:
Jewelry division
* Domestic jewelry revenue grew ~18% YoY (ex-bullion) (est. 22% YoY in 1QFY26, 9% YoY in 1QFY25), despite gold price volatility affecting consumer sentiment.
* Akshaya Tritiya witnessed strong traction; however, rising gold prices from May to mid-June led to softened customer purchases.
* Like-for-like (LFL) domestic growth for Tanishq, Mia, and Zoya (TMZ) remained in low double digits, driven by ticket size growth across formats.
* CaratLane posted healthy double-digit LFL growth.
* Buyer growth remained flat YoY for both TMZ and CaratLane.
* In a high gold rate environment, customers opted for lightweight and lower karat jewelry.
* Studded ratio declined YoY due to the segmental mix in TMZ, with strong growth in Coins. Plain Gold grew in the mid-teens, while the Studded segment grew in low double digits.
* The company added 19 net new stores in India: three in Tanishq, seven in Mia, and nine in CaratLane.
Watches & Wearables division
* The domestic watches business grew ~23% YoY, led by strong analog performance in both volume and value.
* Sonata (with refreshed offerings) topped growth charts, followed by Titan.
* Fastrack and International brands also delivered healthy double-digit growth.
* Nine net new stores were added: four in Titan World and five in Helios.
Eyecare division
* Domestic business grew ~12% YoY, driven by both Retail and E-commerce.
* Growth was supported by International and House brands.
* Titan Eye+ opened 12 new stores and closed 32, resulting in net 20 closures for the quarter.
Emerging businesses (Fragrances & Fashion Accessories and Indian Dress Wear)
* Fragrances grew ~56% YoY, led by volume growth in SKINN and Fastrack.
* Women’s Bags segment grew ~61% YoY.
* Taneira revenue grew ~15% YoY, led by value growth in sarees.
International business
* International business grew ~49% YoY, driven by the near doubling of Tanishq's US business.
* The company opened one net store during the quarter: Tanishq opened a new store in Dubai. Titan Eye+ opened a new store in Sharjah. One Mia store was closed in the region.
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