1QF27: Broadly in line; A quarter of ‘one-offs‘ in margins

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M

Update

August 7, 2026 03:42 PM GMT

Morgan Stanley India Company Private Limited+

Titan Company Ltd | Asia Pacific

Archana Menon, CFA

Equity Analyst

1QF27: Broadly in line; A quarter

of "one-offs" in margins

Shravan Vohra

Equity Analyst

Gaurav Varma

Research Associate

AlphaSignals Earnings Reaction

Unchanged

In-line

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Titan Company Ltd (TITN.NS, TTAN IS)

Key Takeaways

Top line was known. Tanishq, Mia and Zoya (TMZ) 1Q EBIT margin: 10.9% (oneoffs adjusted), vs 1QF26: 11.3% (MSe 11%). Strong margins across segments.

July growth trends continued to remain healthy across businesses. Management

sounded confident of delivering stated long-term guidance (link below).

During 1Q, jewellery growth in May was impacted by the PM's comments, Custom

Duty (CD) hike and Adhik Maas; which recovered in June.

Competitive intensity remains stable at higher levels. Studded growth that picked

up in 4Q, remained strong, at 34% YoY. Buyer growth was 5% YoY.

Our view: Continued strong execution momentum in TMZ with stable margins,

and improving mix and buyer growth should support stock outperformance. OW.

Top line was known

TMZ reported-EBIT margin, at 14%, had the below one-offs (adjusted 10.9%):

• Gains on inventory of Rs4.07bn, post the CD cut.

• 80bps impact of advanced procurement of gold and mark-to-market gains,

which will reverse in the coming quarters.

Buyer growth was 5% for TMZ. Studded buyer growth has also been improving.

A key discussion point on the call was around jewellery growth in a falling gold

price scenario. Management sounded confident of acquiring more customers and

Top Pick

India Consumer | India

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 7, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (mn)

EV, curr (mn)

Avg daily trading value (mn)

Fiscal Year Ending

Overweight

In-Line

Rs5,483.00

11

Rs4,941.00

Rs5,005.00-3,303.10

888

Rs4,386,551

Rs4,458,671

Rs4,062

…