Titan Company Shares Hit Record High on 61% Q3 Profit Jump

Introduction to Titan's Market Performance

Shares of Titan Company Ltd. surged by over 4% to reach a new all-time high of Rs 4,329 ahead of its official third-quarter earnings announcement. The strong investor sentiment was fueled by a robust business update for the quarter ending December 2025, which highlighted significant growth across its key consumer segments. The rally pushed the company's market capitalization to Rs 3.78 lakh crore, reflecting sustained confidence in its growth trajectory and market leadership.

Stellar Q3 Financial Highlights

Titan Company reported a remarkable financial performance for the third quarter of fiscal year 2026. The company's net profit saw a substantial year-on-year increase of 60.84%, rising to Rs 1,684 crore from Rs 1,047 crore in the same period last year. This impressive bottom-line growth was driven by a significant uptick in revenue. Sales for the quarter grew by 41.97% to Rs 24,915 crore, compared to Rs 17,550 crore in the corresponding quarter of the previous year. The company's operational efficiency also improved, with the EBIT margin expanding by 155 basis points to 10.8%.

Jewellery Division Leads the Charge

The primary driver of this outstanding performance was the jewellery division, which includes prominent brands like Tanishq, Mia, Zoya, and CaratLane. The segment recorded a stellar 41% year-on-year growth. This was attributed to a vibrant festive and wedding season, which saw strong consumer demand despite elevated gold prices. The company's strategic initiatives, such as attractive gold exchange programs and new festive collections, helped sustain momentum. Higher average selling prices compensated for relatively flat buyer growth, while gold coin sales nearly doubled compared to the previous year, indicating strong investment demand.

Performance of Other Key Segments

While jewellery was the standout performer, other divisions also contributed positively. The Watches and Wearables division reported a 13% year-on-year growth, led by a 17% increase in the analog watches category. Premiumisation trends continued to benefit the Titan brand. However, the smartwatch category experienced a 26% decline in sales due to lower volumes. The Eyecare division grew by a healthy 16% year-on-year, supported by a strong product mix and the growth of its e-commerce channel.

Aggressive Retail and International Expansion

Titan continued its aggressive retail expansion, adding 56 net new stores during the quarter. This brought its total retail footprint to 3,433 stores across its various brands and formats. The expansion is a key part of its strategy to deepen its reach into Tier 2, 3, and 4 towns and capture market share from the unorganised sector. On the global front, the company's international business delivered exceptional growth of approximately 79-81% year-on-year. This was driven by strong performances in the GCC, Singapore, and North American markets, including the opening of two new Tanishq stores in Boston and Orlando.

Market Reaction and Stock Movement

The positive business update triggered a significant rally in Titan's stock, which hit a 52-week high of Rs 4,329 on February 10, 2026. The stock has been trading consistently above its 5, 10, 20, 50, 100, and 200-day moving averages, indicating a strong bullish trend. The Relative Strength Index (RSI) stood at 66.2, suggesting the stock is neither overbought nor oversold. The performance also had a significant impact on the portfolio of key investors like Rekha Jhunjhunwala, whose 5.32% stake in the company soared to a notional value of Rs 20,000 crore.

Analyst Outlook Remains Bullish

Following the strong quarterly update, several brokerage firms reiterated their positive outlook on Titan. Nomura maintained its 'Buy' rating with a target price of Rs 4,500, citing Titan as a key beneficiary of India's rising affluent population. Analysts expect the company to continue gaining market share, projecting its share in the jewellery market to increase from 8% in FY24 to 10% by FY28. Antique Stock Broking also maintained a 'Buy' call and raised its target price to Rs 4,500, forecasting strong earnings growth driven by steady market share gains and improving profitability in non-jewellery segments.

Conclusion and Forward Look

Titan Company's third-quarter performance underscores its robust business model, strong brand equity, and effective execution strategy. The exceptional growth in the jewellery segment, coupled with strategic retail expansion and a burgeoning international presence, has solidified its market leadership. While high valuations remain a consideration, the consistent growth and positive analyst outlook suggest that Titan is well-positioned to capitalize on long-term consumption trends in India. The company's ability to navigate challenges like high gold prices while delivering strong results continues to make it a compelling story for investors.