Titan Company shares fell up to 4.7% to ₹4,335.60 apiece on the NSE in early trade on Wednesday, October 7, after the company’s Q2 FY27 business update showed domestic jewellery growth of around 21% year‑on‑year, below several analysts’ expectations. The softer performance was largely attributed to the shift in festive demand into the December quarter, high gold prices and a decline in investment‑led gold coin sales, rather than a broad‑based weakening in underlying jewellery demand. Analysts noted strong growth in studded jewellery, CaratLane, watches and eyecare, while remaining largely positive on the stock.

CITI highlighted that domestic jewellery growth, excluding bullion, came in at around 20%, below its estimate of 27%. The investment firm attributed the miss primarily to the festive season shifting into Q3 FY27 and weaker investment‑led gold coin demand, which declined in the high single digits from a high base. Excluding coins, CITI estimates underlying jewellery growth at 24‑25%, suggesting that demand remained resilient. Buyer growth stayed positive in the mid‑single digits, while average ticket size grew in double digits.

Studded jewellery growth was in the early 30s, significantly ahead of the roughly 20% growth in plain gold jewellery. CITI estimates this could translate into a 250‑300 basis point improvement in the studded jewellery mix, which should support margins. Citi also highlighted Titan’s store expansion, with Tanishq, Mia, Zoya and beYond adding 29 stores, while CaratLane added 32. Watches & Wearables, EyeCare and Emerging Businesses grew 30%, 28% and 21%, respectively, driving 25% growth in the consolidated consumer business excluding bullion.

CLSA said Titan’s domestic jewellery division grew 21% in Q2FY27, ahead of its 19.3% consensus estimate. Tanishq, Mia and Zoya grew 20%, while CaratLane delivered a stronger 32% growth. Buyer growth was in the mid‑single digits, while average ticket size increased in double digits. Studded jewellery grew in the low 30s, compared with around 20% growth in plain jewellery. CLSA noted that consumer demand remained healthy for most of the quarter, with some moderation towards the end as the festive season shifted into the next quarter.

HSBC said Titan’s Q2 sales were below expectations, partly because of the shift in festive timing, although the exact impact has not yet been disclosed. The investment firm noted that buyer growth was slightly muted, but expects the product mix to improve, supported by lower gold coin sales and a higher contribution from studded jewellery. HSBC has trimmed its jewellery revenue estimate by 1%. Morgan Stanley flagged weaker‑than‑expected India jewellery growth in Q2, but highlighted positives including a better product mix and continued momentum in buyer growth.

JPMorgan said Q2 FY27 revenue was below expectations, with domestic jewellery growth moderating to 21% from its estimate of 25%. The moderation was attributed to softer buyer growth, a high single‑digit decline in gold coin sales from a high base, some consumption being deferred to Q3 because of the festive shift, and a lower year‑on‑year increase in gold prices compared with Q1. However, JPMorgan noted that studded jewellery continued to deliver strong early‑30s growth, while demand remained healthy through most of the quarter. Nomura said Titan’s consumer business grew 25% in Q2FY27, broadly in line with its expectations, while jewellery sales grew 21%, below estimates.