Titan CFO Bullish on FY26 Despite Gold Price Volatility
Indian jewellery giant Titan Company remains optimistic about closing its current financial year on a strong note, despite ongoing volatility in gold markets, according to Chief Financial Officer Ashok Sonthalia. The Tata Group subsidiary's confidence stems from robust demand for studded jewellery and sustained consumer engagement during its Festival of Diamonds campaign.
The company's resilience in navigating market fluctuations demonstrates the strength of private enterprise when left to operate without excessive government interference. Titan's ability to adapt its product mix and pricing strategies showcases how free markets naturally adjust to changing conditions.
Strong Q3 Performance Drives Optimism
Titan delivered impressive third-quarter results for October-December 2025, with net profit surging 48.5% year-on-year to ₹1,470 crore, compared to ₹990 crore in the same period last year. Revenue from operations climbed 40% to ₹22,522 crore, up from ₹16,097 crore previously.
The Bengaluru-based company's market capitalisation stands at approximately ₹3,84,633.35 crore, with shares gaining nearly 30% over the past year. This performance reflects investor confidence in management's ability to navigate challenging market conditions without requiring government bailouts or subsidies.
Gold Price Dynamics Shape Strategy
Sonthalia acknowledged the impact of gold price fluctuations on the business, noting that prices have risen 60-70% compared to last year. "Gold prices have been spiking up for the last few months, but January saw, for the first time, a major correction," he explained, referencing the drop from $5,600 per ounce to $4,700 before recovering toward $5,000.
The company has responded by introducing lower-carat options including 14-karat, 18-karat, and nine-carat modern jewellery to maintain accessibility for consumers. This market-driven innovation exemplifies how businesses naturally adapt to economic pressures without requiring regulatory intervention.
International Expansion Continues
Titan's growth strategy includes international expansion, with the recent completion of a 67% stake acquisition in Damas Jewellery. The company plans to convert select Damas stores to its Tanishq brand in the GCC market while expanding its US presence after resolving tariff concerns.
"We have also decided on Canada as the next geography for us," Sonthalia revealed, indicating plans for one or two Tanishq stores in Canada during FY27.
Innovation Through Market Forces
The launch of beYon, Titan's affordable lab-grown diamond business, represents organic market innovation. With eight to ten stores planned over the next four to five months, the initiative demonstrates how private companies identify and serve emerging market segments without government direction.
Regarding EBIT guidance, Sonthalia maintained the company's target of around 11% for FY26, though acknowledged that sustained high gold prices might create margin pressure. This honest assessment reflects the transparency that characterises well-managed private enterprises operating in competitive markets.
Titan's performance underscores the benefits of allowing businesses to operate freely in competitive markets, adapting their strategies based on consumer demand and economic conditions rather than government mandates or artificial market interventions.