{"id":25819,"date":"2026-05-11T11:19:56","date_gmt":"2026-05-11T05:49:56","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=25819"},"modified":"2026-05-11T12:18:51","modified_gmt":"2026-05-11T06:48:51","slug":"titan-falls-6-jpm-upgrades-after-q4-miss","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/titan-falls-6-jpm-upgrades-after-q4-miss\/","title":{"rendered":"Titan Falls 6%: JP Morgan Upgrades to \u20b95,400 Despite Miss"},"content":{"rendered":"

Titan Company<\/a> shares plunged 6.29% to \u20b94,225.30 on the NSE on May 11, 2026, as investors digested the real number that mattered from Q4 FY26 results: a profit of \u20b91,179 crore that fell short of the analyst consensus estimate of \u20b91,392 crore, according to LSEG data, a 15% miss. The 35% YoY growth looked good on paper. The QoQ collapse made it impossible to celebrate.<\/p>\n

The Real Reason Behind Titan’s 6% Crash<\/h2>\n

\"TITAN<\/strong><\/h2>\n

Profit after tax in Q4 FY26 stood at \u20b91,179 crore, compared to \u20b91,684 crore in Q3 FY26, a sequential decline of 30%. Profit before tax fell 29.06% QoQ from \u20b92,223 crore to \u20b91,577 crore. That’s the number the Street modelled a recovery on after Q3’s strong showing. It didn’t come. Total expenses rose 85% YoY to \u20b925,579 crore, driven by higher raw material costs and elevated advertising spend as gold prices sustained their rally through the quarter. Revenue growing 80% while costs grow 85% is not the margin story anyone wanted.<\/p>\n

Jewellery Segment: Strong Sales, Painful Cost Pressure<\/h2>\n

\"Revenue<\/strong><\/h2>\n

Also Read: TITAN COMPANY NSE Stock Price Today<\/a><\/p>\n

Jewellery saved the quarter from looking worse. The jewellery portfolio excluding bullion and digi-gold grew 50% YoY to approximately \u20b918,195 crore. Domestic gold and studded product portfolios both grew 35% YoY. India operations grew 46%, led by Tanishq, Mia, and Zoya. Despite a sharp rise in gold prices, the business recorded high single-digit buyer growth during the quarter, recovering from nearly flat trends seen in the previous three quarters of FY26.<\/p>\n

Watches grew 8%, with analogue watches up 16% on premiumisation trends, while smartwatches declined sharply. EyeCare revenue rose 17% YoY. Overall Watches’ EBIT stood at \u20b9143 crore with a margin of 11.7%.<\/p>\n

What jewellery also hid: the international segment’s 156% YoY surge is entirely Damas-driven. Titan completed its 67% acquisition of Damas Jewellery for a consideration of \u20b91,190 crore during the quarter, which added 123 stores to the international network. Strip out the Damas consolidation effect, and international growth normalises considerably. That’s not a small asterisk.<\/p>\n

\u00a0Brokerages Divided: JP Morgan Buys, Emkay Sells<\/h2>\n

\"turbulent<\/strong><\/h2>\n

Against the selling, JP Morgan<\/a> made the most significant post-results move on May 11. J.P. Morgan upgraded Titan to Overweight from Neutral, assigning a target price of \u20b95,400, implying 19.54% upside from the current market price, and raised FY27\u201328E EPS estimates by 4% and 6%, respectively, led by revenue upgrades.<\/p>\n

The analysts cited Titan’s strong FY26 exit, with Q4 top-line growth showcasing broad-based momentum, reinforcing confidence in execution strength and brand equity. JP Morgan expects 13% revenue CAGR and 20% EPS CAGR over FY26\u201328E. On the Damas concern specifically, JP Morgan said there is definite headroom to improve international margins from 1.6% in FY26 to mid-single digits as scale increases and the acquisition gets streamlined.<\/p>\n

Nuvama maintained a Buy rating with a target price of \u20b94,509 post-results, citing jewellery momentum as the structural anchor. Morgan Stanley’s pre-results Overweight call with a \u20b95,102 target (issued April 10, 2026) remains standing; no post-Q4 update has been published as of this writing.<\/p>\n

Emkay is the outlier, maintaining its Reduce rating and arguing that the Damas acquisition is not cheap, potential value creation is insignificant relative to Titan’s scale, and the deal may consume disproportionate managerial bandwidth. The brokerage models EPS accretion only from FY29.<\/p>\n

The Market Share Data Nobody Is Leading With<\/strong><\/h2>\n

JP Morgan’s research note cited Titan gaining 50\u201360 basis points of market share in the organised jewellery segment during FY26, a number that doesn’t appear in Titan’s own press release. In a formalising jewellery industry where the total addressable market is expanding and unorganised players are losing ground to GST compliance pressure, consistent market share gains at Tanishq’s scale are the compounding factor that supports the long-term premium valuation. This is the angle that justifies JP Morgan’s upgrade even on a quarter where the PAT missed by 15%.<\/p>\n

Full-Year FY26 Picture<\/strong><\/h2>\n

For the full year FY26, consolidated PAT surged 52% to \u20b95,073 crore, while total income rose 33% to \u20b976,078 crore, crossing the \u20b975,000 crore revenue milestone for the first time. Earnings per share for FY26 were \u20b957.14 versus \u20b937.59 in FY25, reflecting 52% growth. Operating margin improved from 9% in FY25 to 10% in FY26. The board declared a dividend of \u20b915 per share for FY26.<\/p>\n

Managing Director Ajoy Chawla said the company enters FY27 with caution due to macro volatility and a fragile geopolitical situation, while reiterating focus on agility and long-term value creation.<\/p>\n

Read Next: SBI Q4 FY26: Powerful Profit Hits \u20b980,032 Cr, NIM Drops Below 3%<\/a><\/p>\n

FAQs<\/strong><\/h2>\n

Q. Why did Titan stock crash 6% on May 11 despite 35% profit growth?<\/h3>\n

Q4 PAT of \u20b91,179 crore missed the analyst consensus of \u20b91,392 crore by 15%, per LSEG data. Additionally, sequential PAT fell 30% from \u20b91,684 crore in Q3 FY26, the Street had priced in a sequential recovery that didn’t materialise. Friday’s 6% post-results rally to a 52-week high of \u20b94,585 set up Monday’s profit-booking.<\/p>\n

Q. Will Titan’s Damas acquisition hurt FY27 earnings?<\/h3>\n

Emkay maintains that EPS accretion is only expected from FY29, with Damas requiring major operational overhauls across its Gold segment and KSA expansion. JP Morgan takes the opposite view, building in margin improvement for international operations from 1.6% in FY26 to mid-single digits as scale increases. The \u20b91,190 crore deal cost is confirmed. Which view proves right depends almost entirely on Titan’s execution speed in converting Damas Gold stores to the Tanishq format.<\/p>\n

Q. What is Titan’s jewellery growth target for FY27?<\/h3>\n

Jewellery business head Arun Narayan guided 15\u201320% jewellery sales growth in FY27, noting that preponement of wedding purchases is a sustained trend rather than a one-time pull-forward. JP Morgan models 13% revenue CAGR and 20% EPS CAGR over FY26\u201328E as the base case for the upgrade.<\/p>\n

All figures are sourced from the NSE\/BSE filing of May 8, 2026; Business Standard; ICICI Direct; LSEG; JP Morgan India research note May 11, 2026; the Nuvama post-results note of May 9, 2026; and Emkay Global. For informational purposes only. Not investment advice.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Titan Company shares plunged 6.29% to \u20b94,225.30 on the NSE on May 11, 2026, as investors digested the real number that mattered from Q4 FY26 results: a profit of \u20b91,179 crore that fell short of the analyst consensus estimate of \u20b91,392 crore, according to LSEG data, a 15% miss. The 35% YoY growth looked good […]<\/p>\n","protected":false},"author":11,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[1637,1636],"ppma_author":[1523],"class_list":{"0":"post-25819","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news","8":"tag-jpmorgan","9":"tag-titan"}," _eael_post_view_count":0,"authors":[{"term_id":1523,"user_id":11,"is_guest":0,"slug":"nikki","display_name":"Nikki Lodha","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/ae2e265bd56e0e890c866fbaa55d29846ba20cc5372adf666652268816af117e?s=96&d=mm&r=g","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/25819","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=25819"}],"version-history":[{"count":9,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/25819\/revisions"}],"predecessor-version":[{"id":25834,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/25819\/revisions\/25834"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/25822"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=25819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=25819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=25819"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=25819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}