Titan Company delivered a stronger-than-expected operational performance in the first quarter of FY27, prompting Nomura to reiterate its 'Buy' rating and Rs 5,000 target price on the stock.
The brokerage said Titan's business update highlighted that consolidated sales growth (excluding bullion) came in at 41% year-on-year, ahead of its 37% estimate and the consensus forecast of 31%.
"All businesses have experienced strong growth," Nomura said, adding that jewellery, watches, eyewear and international operations all outperformed expectations.
The jewellery business, including CaratLane, posted 39% sales growth, supported by healthy festive demand and Akshaya Tritiya. CaratLane's sales rose 42% year-on-year, well above Nomura's estimate of around 20%, signalling "a pickup in demand boosted by the stability in gold prices."
The brokerage highlighted that "buyer growth (equivalent to footfalls) further improved sequentially to early double-digits as gold prices remained relatively stable during 1Q," while average ticket sizes grew in high double-digits due to higher gold prices.
Titan also accelerated store expansion, opening 22 Tanishq, Mia and Zoya stores and 11 CaratLane outlets during the quarter, exceeding Nomura's expectations. The brokerage believes the higher store additions "could support growth in 2HFY27F when the company starts to cycle at a higher base."
The watches business also surprised positively, with sales rising 23% year-on-year versus Nomura's forecast of around 12%, driven by premiumisation in the analogue segment. Eyecare sales also grew 23%, supported by broad-based demand across owned and international brands.
International sales surged 128% year-on-year, led by double-digit growth in the GCC business and a gradual recovery in Damas Jewellery despite disruption from the Iran conflict.
Nomura said it continues to view Titan as "one of our top picks" and expects the company to deliver a 21% EPS CAGR over FY26-29. It believes Titan will continue gaining market share from unorganised jewellers as consumers increasingly shift to organised players seeking "correct carat-age, better designs, and experience."