How Rakesh Jhunjhunwala's old Tata bet created Rs 80,000 crore wealth after two years of flat returns
Titan Co has returned to investors' radar in 2026 after nearly two years of weak stock returns, with the Rakesh Jhunjhunwala-linked marquee holding adding nearly
Titan Co has returned to investors' radar in 2026 after nearly two years of weak stock returns, with the Rakesh Jhunjhunwala-linked marquee holding adding nearly Rs 80,000 crore in market value this year. The rally has been driven by a mix of factors including steady jewellery demand, stable gold prices, market share gains by organised jewellers, strong execution at Tanishq and CaratLane, and renewed confidence that Titan can build more growth engines beyond jewellery.The stock had spent the past two years delivering almost flat returns, even as the company remained one of India’s strongest consumer discretionary franchises. Elevated valuations, rising gold prices, weak discretionary spending and concerns over demand had kept investors cautious.What changed in 2026One of the biggest positives that analysts saw this year was jewellery demand stayed stronger than expected. Titan benefited from the continued shift of customers from unorganised jewellers to organised chains. This shift has helped large branded players gain share, especially in urban and semi-urban markets where trust, design range, exchange offers and store experience have become stronger selling points.HSBC, which has a target price of Rs 5,290 on Titan, said the outlook for India’s jewellery segment remains stronger than the broader consumption market.
The brokerage said the shift from unorganised to organised jewellery continues to help Titan. It added that a sharp correction in gold prices could hurt demand for a short period, but demand should recover later through higher footfalls and buyer growth.Gold prices also played a role in Titan’s recovery. A relatively stable gold price environment helped buyers return to stores during the June quarter. High volatility in gold usually delays purchases as consumers wait for better prices. Stability helps both wedding and non-wedding demand.Also Read: FIIs now backing India's consumers, not cape July data reveals major rotationTitan’s exchange programmes have also supported growth. These programmes allow customers to exchange old jewellery for new purchases, helping the company bring more consumers into its organised retail network.Q1 earnings support thesisThe company’s June-quarter numbers added fresh momentum to the stock rally. Titan reported a 63% growth rise in net profit to Rs 1,777 crore for Q1 over last year, while total income, excluding bullion and digi-gold sales, rose 40% to Rs 20,753 crore..Jewellery remained the main engine. The jewellery portfolio grew 43% year-on-year to Rs 18,253 crore, excluding bullion and digi-gold sales. India jewellery revenue rose 38% to Rs 16,943 crore.
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