Titan Company Limited: Long-Term Investor Report (Q1 FY26)
1. Company Overview
Titan Company Limited, part of the Tata Group, is India’s leading lifestyle & consumer goods company with presence across Jewellery (Tanishq, Mia, CaratLane, Zoya), Watches & Wearables (Titan, Fastrack, Sonata), Eyewear (Titan Eye+), and Emerging Businesses (Fragrances, Taneira, TEAL). Over decades, Titan has transformed itself from a watch company into a retail powerhouse, with jewellery contributing over 85% of revenues.
2. Industry & Growth Prospects
Jewellery Industry: Driven by rising disposable incomes, hallmarking regulations, and the shift from unorganized to organized retail. India is now the second-largest diamond market globally.
Watches & Wearables: Analog remains strong, while smartwatches saw a correction in FY24, with Titan retaining market share.
Eyewear: Growing through Titan Eye+ with a multi-brand, multi-price strategy.
TEAL (Titan Engineering & Automation Ltd.): Expanding in aerospace, EV, automation, and semiconductor-related solutions, recognized by global clients like Raytheon.
Long-term drivers: Premiumization, retail expansion, digital sales, and international expansion (GCC + US jewellery markets).
3. Historical Financial Performance
Sales & Profit Growth (₹ Cr)
FY2001: ₹8,035 | ₹315
FY2010: ₹43,854 | ₹5,451
FY2020: ₹1,45,452 | ₹9,549
FY2025: ₹2,55,734 | ₹17,687
Trailing FY26: ₹2,64,292 | ₹18,572
Titan has delivered 20%+ CAGR in revenues and profits over 25 years, with margins improving from ~4% to ~7%.
4. Profit Margins
FY2001: 3.9%
FY2010: 12.4%
FY2025: 6.9%
Q1 FY26: 7.4% vs 5.8% YoY
Margin expansion is led by better cost control, higher studded mix, and premium watches.
5. Q1 FY26 Results Highlights
Revenue: ₹14,814 Cr (↑21% YoY)
Profit: ₹1,091 Cr (↑53% YoY)
EPS: ₹12.3 vs ₹8.1 YoY (↑53%)
Jewellery growth: +24% YoY, led by studded jewellery campaigns & festive activations.
Watches: Strong double-digit growth with premiumization (Sonata, Fastrack).
Eyewear: Growth despite store rationalization – focus on consumer value proposition.
International Jewellery: Expansion into GCC + US; tariffs being managed.
TEAL: Recognized by Raytheon as a top global supplier, long-term annuity contracts.
6. Peer Comparison
Titan vs Kalyan Jewellers / Rajesh Exports / PC Jeweller: Titan commands premium valuations due to brand, scale, and governance.
Global Benchmark: Still trades below global peers like LVMH (luxury retail PE >40), highlighting potential re-rating if international expansion succeeds.
7. Valuations
Historical PE Range: 11x – 147x (high volatility).
PBV Range: 0.8x – 36x.
Current (Trail FY26): PE ~26–32x, PBV ~4.0–5.1x.
Fair Value Estimates:
FY26 Blended FV: ~₹3,152/share
FY30 Blended FV: ~₹5,036/share
FY35 Blended FV: ~₹8,347/share
This suggests Titan could compound ~12–14% annually over the next decade.
8. Retail & Store Expansion
Jewellery: Added 3 new Tanishq stores in Q1, alongside 8 store relocations/expansions to larger formats.
Watches: Multi-brand expansion & e-commerce traction.
CaratLane: Aggressively scaling in affordable diamond jewellery, especially 9K & 14K segment.
9. Risks & Challenges
Gold price volatility & regulatory changes.
High valuations leave less margin of safety.
Competition from regional & national jewellery chains.
Smartwatch market correction affecting wearables.
10. Conclusion – Long-Term Risk & Reward
Titan remains a structural compounder in India’s consumer & lifestyle space. With 20%+ CAGR history, premium valuations, market leadership in jewellery, and strong execution in watches & eyewear, it offers long-term compounding potential till FY2035. However, investors should track margins, global expansion risks, and valuation discipline.
✅ Disclosure: This report is for educational purposes for long-term investors. Profit Finstock Pvt Ltd is a SEBI-registered advisor.
