Titan Shares Drop Nearly 6% After Q1 Update—But Here’s the Bigger Picture

Titan Company, the jewellery and watchmaking gem in the Tata Group’s crown, faced a rough start to the trading week. Following its Q1 FY26 business update, the company’s stock slipped by nearly 6% on Tuesday, sending investors into a mild panic. But is this a sign of deeper trouble—or just market mood swings?

Q1 Update Triggers Selloff

On July 8, Titan shares opened lower at ₹3,579 on the BSE, compared to the previous close of ₹3,666.85, and dropped further to an intraday low of ₹3,457.25. The NSE also saw a similar trajectory, with the stock hitting ₹3,455.90 during early trade. This marks a two-day decline of 5.64% for the counter, which last traded at ₹3,477.90—pushing Titan’s market cap to ₹3.08 lakh crore.

Investors seem to have responded to muted commentary in the update, especially regarding a dip in domestic jewellery demand due to rising gold prices. While Titan did report 18% year-over-year (YoY) growth in domestic operations, the company acknowledged a softening in customer purchases, which spooked the street.

International Growth Still Shines

Interestingly, the update wasn’t all gloomy. Titan’s international business grew a stellar 49% YoY, with its flagship jewellery brand Tanishq nearly doubling its presence in the US market. That’s a big leap for the brand’s global aspirations and could act as a long-term bullish signal despite the short-term dip.

Additionally, Titan added 10 new stores under its Tanishq, Mia, and Zoya (TMZ) umbrella, bringing its total store count in this segment to 755 as of June 2025.

Stock Still in Strong Territory

Despite the recent slide, Titan’s share performance over the years tells a more encouraging story. It’s currently trading above its 100-day and 200-day moving averages—though below the 5-day, 20-day, and 50-day indicators. The stock had hit its 52-week high of ₹3,867 back in September 2024, while the 52-week low of ₹2,925 was seen just this April.

Looking at the long-term view, Titan has delivered a whopping 250% return over five years, 62% over the last three, and a respectable 10% over the past year.

Short-Term Pain or Structural Concern?

While the current dip may rattle nerves, it’s important to note that Titan is still fundamentally strong. The company’s strategic expansion, especially in international markets, could cushion short-term headwinds in domestic demand.

For long-term investors, the coming quarters will reveal whether this is just a valuation cool-off—or an early signal of shifting consumer behavior in the premium jewellery space.