Titan shares crash 6% after Q4 results. What are Goldman Sachs, Morgan Stanley, Bernstein, other brokerages saying?

Shares of Titan Company tanked as much as 6% to their day’s low of Rs 4,245 on the BSE on Monday despite reporting a consolidated net profit of Rs 1,179 crore in the March-ended quarter of FY26 versus Rs 871 crore in the year-ago period, implying a 35% growth.

The company’s total income in Q4FY26 was up 46% to Rs 20,300 crore versus Rs 13,891 crore in the corresponding quarter of the previous financial year.

The jewellery business recorded another exceptional quarter of 50% growth over the year-ago period. The watch business achieved a total income of Rs 1,222 crores for the quarter, growing 8% over Q4FY25 and achieving an EBIT of Rs 143 crores at 11.7% margin. Domestic eyecare business achieved total income of Rs 227 crores in Q4FY26, growing 17% over Q4FY25 and recording an EBIT of Rs 21 crores at 9.2% margin.

Titan shares: Should you buy, sell or hold?

Morgan Stanley maintained its “Overweight” rating on Titan Company shares and raised its target price to Rs 5,212 from Rs 5,102, an upside of 15.4%. The brokerage said Titan’s jewellery business delivered a top-line and margin performance that exceeded expectations during the March quarter. Morgan Stanley noted that elevated gold prices supported ticket-size expansion and wedding-related purchases.

The brokerage added that the earnings miss at the overall level was largely due to higher losses in emerging and international businesses. Management reiterated its guidance of 15-20% CAGR in jewellery revenue over the next 3-5 years, and Morgan Stanley expects the stock to continue outperforming on the back of strong growth visibility and relatively attractive valuations.

Goldman Sachs maintained its “Buy” rating on Titan Company and kept a target price of Rs 5,400 (20% upside). Management guided for a 15-20% CAGR in jewellery sales over the next 3-5 years, while Titan also estimated a 50-60 basis points gain in jewellery market share during FY26. Goldman Sachs said international jewellery margins were impacted by Damas consolidation and disruptions in the Middle East. The brokerage raised its FY27 and FY28 revenue estimates by 7-8%, driven by a stronger jewellery outlook, although earnings per share upgrades were relatively lower because of higher interest costs and the drag from Damas.

Bernstein retained its “Outperform” rating on Titan Company share price with a target price of Rs 5,000 (11% upside). The brokerage said concerns around growth, buyer demand and margins have now eased meaningfully. However, margins saw some contraction due to a lower studded jewellery mix and the impact of the Damas consolidation. The brokerage also pointed out that CaratLane’s growth moderated to 22% after delivering over 30% growth in previous quarters, while the watches segment reported growth of just 8%, below the expected 15-20% range. Despite these factors, Bernstein said it remains constructive on Titan, citing the company’s ability to navigate uncertain demand cycles effectively.Nuvama retained its “Buy” rating on Titan Company and raised the target price to Rs 5,240, implying an upside potential of 16%. The brokerage said the Indian retail landscape continues to evolve amid the interplay of several demographic and economic factors. According to Nuvama, long-term prospects remain strong as changing consumer behaviour increasingly favours higher discretionary spending, creating a healthy growth runway for the retail sector over the next five years. The brokerage added that the biggest opportunity lies in the rising share of organised retail, supported by consumers allocating a larger portion of income toward consumption alongside gradual lifestyle improvements.

Elara Capital maintained its “Buy” recommendation on Titan Company with a target price of Rs 5,350. The brokerage said the company’s underlying consumer business revenue grew 46% year-on-year, supported by robust jewellery demand. Analysts expect strong momentum to continue in the second half of FY27, supported by elevated gold prices.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)