India's Titan falls to 3-month low as jewellery growth misses lofty expectations (updated)

Titan

07/10/2026 05:15

Recasts to add details, analysts' comments and context
By Saikeerthi .
Oct 7 (Reuters) - Shares of Titan TITN.NS slid to a 3-month low on Wednesday after the Indian retailer posted slower growth in its mainstay jewellery business in the September quarter, missing lofty expectations built up after three quarters of strong performance.                
Analysts attributed the slowdown largely to a shift in the festive calendar and a high base from a year earlier, and said the company's long-term growth outlook remained intact.
Titan's shares were down 3.8% at 4,377 rupees and posted their biggest intraday fall since May 11. The benchmark Nifty 50 .NSEI was down 0.35%, as of 12:09 pm IST.
"The market was used to seeing a very high number in the last two to three quarters. They expected this trend to continue, because of which a little slowdown due to the festive season has taken a big backslide," said Aishvarya Dadheech, CIO and founder, Fident Asset Management. 
The slowdown follows three consecutive quarters in which Titan's jewellery business grew between 40% and 46%, compared with 25% growth in the July-September period.
Analysts also downplayed the slowdown in investment-led coin sales, citing a high year-ago base when consumers flocked to physical gold due to rising prices.
They added that timing-related disruptions masked healthy underlying demand in segments such as watches and eye care, which grew 30% and 28%, respectively, in the second quarter.
"Premiumisation and discretionary spending is continuing in India. Both the businesses (watches and eye care) will continue to grow but the contribution to margins will eventually play out when they get to scalable sizes," Dadheech said, adding that until then, a large part will be dictated by jewellery.
Festival-related purchases that typically bolster sales were pushed to later in the year, deferring some consumer spending and softening demand toward the end of the September quarter, analysts said.
"People are obviously delaying purchase for the more auspicious season, which is essentially during festivals that will come up now," said Akshay D'Souza, ​an independent consumer sector consultant.        
    
       
    
    

 (Reporting by Saikeerthi in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((Saikeerthi@thomsonreuters.com;))