On July 8, 2025, Titan Company’s stock fell by over 5%, closing around ₹3,476 per share. This happened right after Titan shared its Q1 FY26 business update, which showed that changing gold prices affected people’s interest in buying jewellery.
Jewellery Business — Mixed Signals
Titan’s jewellery division saw 18% growth in sales compared to last year. However, this number was below expectations. From May to mid-June, gold prices moved up and down a lot, which made many people hold back on purchases, especially after the strong Akshaya Tritiya buying season.
The number of buyers stayed the same as last year across major brands like Tanishq, Mia, Zoya, and CaratLane. People also preferred lighter, lower-karat jewellery, while studded jewellery demand dropped.
Even within jewellery:
– Plain gold jewellery grew at mid-teen levels.
– Studded jewellery saw early double-digit growth.
– Gold coins led category growth.
Other Business Segments — Strong Growth
Titan’s non-jewellery categories performed very well:
– Watches: Sales grew ~23%, led by Sonata, Titan, Fastrack, and foreign watch brands. Titan opened 9 new watch stores.
– Eyewear: Sales went up 12%, though the company closed 20 stores and opened 12 new ones.
– New businesses boomed:
– Fragrances grew 56%,
– Women’s bags rose 61%,
– Taneira sarees gained 15%.
– International sales increased ~49%, especially in the U.S., where Tanishq is expanding. Titan also opened new stores in the UAE.
Market Reaction
Investors reacted to the slowing jewellery growth and flat buyer numbers. The result was a drop of over 5% in the stock price. But many experts believe that Titan’s strategy of growing in new product categories and global markets shows its long-term strength.
Final Takeaway
Titan’s Q1 numbers show that while gold price swings hurt jewellery sales for now, the company is strong in other areas. Its diverse product mix, store expansions, and international focus could help stabilize growth, even if gold price changes continue to impact short-term investor mood.