Titan Company reported a solid performance for the third quarter of FY2026, helped by robust jewellery sales, smart product positioning, and progress in expanding its presence beyond India. The Tata Group company managed to maintain growth momentum even as the jewellery market faced pressure from rising gold prices and evolving customer preferences.
Jewellery Business Continues to Power Growth
Titan’s jewellery division remained the key contributor to overall performance, recording around 40 percent year-on-year growth during the quarter. Strong festive demand and a busy wedding season played a major role in driving customer purchases across markets.
The company also adapted quickly to shifting buying patterns. By introducing jewellery made from 9-carat and 14-carat gold, Titan provided customers with more affordable options without compromising on design appeal. This strategy helped sustain demand at a time when higher gold prices could have discouraged buyers.
Another noticeable trend was the growing popularity of lightweight jewellery. Customers are increasingly choosing designs that balance style with affordability, and Titan’s expanding product range appears to be meeting this demand effectively.
Higher Spending Reflects Changing Consumer Trends
Titan recorded its highest-ever average transaction value at approximately ₹1.9 lakh. The rise in ticket size suggests that customers are willing to spend more, especially during weddings and special occasions where jewellery remains an essential purchase.
The company also witnessed an increase in new customer participation, which accounted for about 45 percent of total jewellery sales during the quarter. At the same time, Titan’s loyalty and exchange programmes continue to play a vital role in maintaining repeat purchases. Exchange transactions now contribute more than half of the company’s jewellery revenue, underlining the importance of such initiatives in today’s market environment.
Damas Acquisition Strengthens International Expansion
Titan’s decision to acquire a 67 percent stake in Middle East-based jewellery brand Damas marks a significant step in strengthening its global footprint. The financial performance of Damas is expected to be reflected in Titan’s results starting from the upcoming quarters, providing an additional boost to revenue visibility.
The company’s international jewellery operations are also gradually improving in terms of margins and brand recall. Titan is actively exploring expansion opportunities in overseas markets, particularly in regions where demand for premium jewellery continues to grow steadily.
Gold Price Fluctuations Shape Buying Behaviour
Rising and unpredictable gold prices remained a key factor influencing jewellery demand during the quarter. While higher prices typically impact profit margins, Titan managed to balance the situation through product diversification and steady demand from wedding-related purchases.
Customers are increasingly turning to structured jewellery savings schemes such as Golden Advantage, which allows buyers to accumulate funds and secure gold prices over time. These programmes now account for nearly one-fourth of Titan’s jewellery sales, reflecting their growing acceptance among buyers looking to manage price volatility.
Despite price fluctuations, wedding jewellery purchases have remained stable, as such spending is often considered necessary rather than optional.
Margin Pressure Remains a Challenge
Although revenue growth remained strong, Titan faced pressure on operating margins due to rising gold prices and changes in product mix. Increased demand for plain gold jewellery and gold coins, which usually carry lower margins compared to studded jewellery, also influenced profitability levels.
However, the company expects improved scale and operational efficiency to support long-term profit growth. Titan is currently focusing more on increasing absolute profits rather than maintaining margin percentages alone.
Other Business Segments Show Stable Performance
Titan’s subsidiary CaratLane delivered encouraging results, supported by strong sales growth and better cost control, leading to double-digit operating margins. The eyewear division also posted steady growth, helped by premium product offerings and partnerships with global brands.
These segments are helping Titan build a diversified portfolio and reduce reliance on its core jewellery business.
Positive Outlook for Future Growth
Titan’s management remains confident about future prospects, supported by continued product innovation and expansion into new markets. The company plans to strengthen its presence across different price segments while maintaining focus on customer engagement and brand loyalty.
With gold prices expected to remain firm in the long term, consumer buying behaviour may continue to evolve. However, Titan’s strong brand reputation, diversified product portfolio, and global expansion strategy position the company well for sustained growth in the coming years.
Titan’s Q3 FY2026 performance highlights its ability to adapt to market challenges while maintaining steady demand and expanding its global reach.