The analysts noted that sequential weakness and muted volumes have kept the stock confined within its current trading band.
Titan Company shares gained nearly 2% on Friday after the company released its first-quarter (Q1) results for FY26, which saw growth on a year-on-year basis in all its segments, even as there was some sequential softness.
Q1 Earnings Review
Titan Company reported revenue of ₹11,411 crore, which was up 9.5% year-on-year but down 17.7% sequentially. EBITDA was at ₹1,494 crore, up 4.4% year-on-year and down 25.3% sequentially.
Profit after tax was ₹777 crore, up 3.7% year-on-year and down 31.7% from the fourth quarter (Q4) in FY25. Jewellery revenue grew 8% year-on-year, watches rose 15%, and eyewear increased 11%. Taneira sales advanced 29%.
SEBI-registered analyst Rajneesh Sharma said growth was supported by strong performance in new-age lifestyle formats such as Taneira and EyeCare, store expansion with 78 new outlets during the quarter, double-digit growth in watches, and international traction in the GCC.
Sharma also pointed to a sharp sequential drop in margins and profit, jewellery growth below street estimates, lack of material operating leverage despite higher revenue, and high inventory levels.
The company remains confident of double-digit jewellery growth in FY26, expects watches and wearables to sustain over 20% growth, and plans to add more than 250 stores in FY26.
SEBI-registered analyst Varunkumar Patel said gold inventory levels remain optimal to manage price volatility and sees no major margin headwinds unless gold prices spike sharply.
Technical Breakdown
Sharma said Titan continues to trade in a tight range between ₹3,256 and ₹3,546, with multiple failed breakouts near ₹3,545 and bounces from ₹3,256 support.
He described a potential diamond pattern forming, with the relative strength index at 48.7 and volume muted. A breakout above ₹3,550 with volume could lead to higher levels; otherwise, the range may persist.
Patel said immediate supply is near ₹3,500, with the critical breakout at ₹3,550, which has been rejected twice in the past quarter. A close above this could open the doors towards the ₹3,650 and ₹3,750 levels.
Supports are at ₹3,300–₹3,320, with ₹3,220 or ₹3,150 up for grabs if the bears get a grip below this zone.
The relative strength index (RSI) is around 54.
He added that positional long entries could be considered above ₹3,500 with a stop-loss below ₹3,320, while swing shorts could target ₹3,220–₹3,150 if ₹3,300 breaks.
Sharma said Titan remains in a compression phase with no clear directional breakout, and Patel said the medium-term outlook depends on a confirmed breakout above ₹3,550.
On Stocktwits, retail sentiment for Titan was ‘bullish’ amid ‘normal’ message volume.
Titan’s stock has risen 6.9% so far in 2025.
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