Titan shares shine as Macquarie reiterates ‘outperform’; jewellery outlook brightens

Shares of Titan Company rallied on Tuesday, June 25, 2025, after global brokerage Macquarie reiterated its 'Outperform' rating on the Tata Group firm, citing robust demand trends and improving profitability in the jewellery segment. The brokerage firm set a price target of ₹4,150 for the stock, suggesting an upside potential of nearly 18 percent from its last close.

Jewellery Momentum Drives Bullish View

Macquarie said its industry checks suggest healthy demand for jewellery in the current quarter, even amid elevated global gold prices. While footfalls may have eased slightly in June, Titan is expected to report over 21 percent year-on-year growth in both jewellery revenues and EBIT in the first quarter of FY26. The brokerage added that jewellery EBIT margins likely bottomed out in FY25 and are poised to improve, supporting the company's FY26 EBIT margin guidance of 11–11.5 percent.

Macquarie highlighted that Titan’s recovery in discretionary spending and growing consumer preference for branded jewellery make it a long-term structural play in India’s formalisation story. The brokerage also flagged improving product mix and a revival in demand for mined diamonds as positives, even as lab-grown diamonds may face some headwinds due to potential changes in GIA certification.

Structural Growth Opportunity in Jewellery

Titan holds an estimated 7 percent share in India’s jewellery market, a segment that has expanded at a CAGR of 13 percent over the past 15 years. Macquarie believes this provides a strong runway for sustained growth. Brands under Titan such as Tanishq, Mia, and Zoya continue to benefit from growing urbanisation, rising income levels, and the shift towards organised retail.

Gold prices globally have remained elevated, with spot prices nearing all-time highs of over $3,500 per ounce in April amid increased geopolitical tensions and economic uncertainty. Despite this, Titan’s consumer traction in the high-value jewellery segment has remained strong, underlining brand loyalty and pricing power.

Titan's Q4 Performance Highlights

For the quarter ended March 2025, Titan reported a net profit of ₹870 crore, marking an 11 percent increase over the same period last year. Revenue from operations rose 20 percent year-on-year to ₹13,477 crore, supported by broad-based growth across business verticals.

The jewellery business posted a 25 percent jump in revenue to ₹11,232 crore, led by a 30 percent rise in gold and coin sales and a 12 percent increase in studded jewellery. The watches and wearables segment saw a 20 percent uptick to ₹1,126 crore, while the eyewear division added ₹192 crore, up 16 percent. Titan’s emerging businesses—comprising Taneira, fragrances, and fashion accessories—grew 5 percent to ₹102 crore.

Stock Price Trend

Following Macquarie’s bullish note, Titan shares rose 3.7 percent to an intraday high of ₹3,659 on the NSE. The Tata Group stock is now just 5 percent away from its 52-week high of ₹3,866.15, touched in September 2024. It had hit a 52-week low of ₹2,947.55 in April this year.

The stock has gained over 3 percent in the last one year. In the ongoing June month alone, Titan is up around 3 percent, following a 5 percent rise in May and a 10 percent rally in April. This comes after modest consolidation earlier in the year, including an 11.8 percent fall in February and a 0.5 percent dip in March.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.