Titan Share Price Crash: What Triggered Rs 900 Crore Loss for Jhunjhunwala Portfolio?

2025-07-09

On July 8, 2025, Titan Company witnessed a sudden stock price drop of over 6% on the Bombay Stock Exchange (BSE), becoming the day’s worst-performing stock on both Sensex and Nifty. The decline wiped out more than Rs 20,000 crore from Titan’s market capitalization in just half an hour, with the Jhunjhunwala family’s holdings alone suffering a blow exceeding Rs 900 crore.

While Titan remains a blue-chip stock admired for its consistent returns and strong brand equity, the market’s reaction to its Q1 FY26 business update reveals deeper concerns about short-term headwinds and shifting consumer behavior in India’s premium retail sector. The jewellery segment, which contributes the majority of Titan’s revenue, failed to inspire confidence despite a double-digit growth figure.

Titan Q1 FY26 Earnings: Revenue Growth vs Market Expectations

Titan reported a 20% year-on-year increase in standalone revenue for the June quarter. However, investor sentiment soured due to underwhelming growth metrics in the jewellery segment — the company’s primary revenue driver. The jewellery division recorded 18% YoY growth but faced flat buyer activity, signaling a concerning trend for flagship brands like Tanishq, Mia, and Zoa.

Consumer demand was affected by high gold prices, leading to a shift in preferences toward lightweight and lower-karat products. While the value of sales increased, this was driven more by larger ticket sizes than an expanding customer base — a subtle red flag for long-term demand momentum.

Segment-Wise Breakdown: Watches, EyeCare, and Global Expansion

While jewellery underperformed market expectations, other segments showed notable progress. Titan’s watches business posted an impressive 23% YoY growth, thanks to robust sales of Sonata, Titan, and Fastrack. The EyeCare segment also grew by 12%, though it saw a net store count shift due to closures and new openings.

A key highlight was the international business, which expanded by nearly 49% year-on-year, bolstered by Tanishq’s retail push in the United States. This strong overseas growth reinforces Titan’s strategic diversification and resilience beyond the domestic market.

Market Sentiment: Technical Signals and Bearish Cues

Despite being up over 7% for the year, Titan’s stock has declined over 7% in the past week and around 2.5% in the past month. Technical indicators, including MACD crossovers and moving average trends, suggest continued bearish pressure. The stock hovered around Rs 3,440–3,446 during July 8–9, indicating market hesitancy amid mixed signals.

Traders are closely watching resistance zones and momentum indicators, as Titan’s next move could either reinforce the bearish trend or present a buying opportunity if support levels hold.

Analyst Outlook: Short-Term Concerns vs Long-Term Value

Despite the sharp drop, analysts remain cautiously optimistic. Many maintain Buy or Hold ratings, with target prices ranging from Rs 3,550 to Rs 3,725. They cite Titan’s powerful branding, retail network expansion, and growth in non-jewellery segments as long-term positives.

However, concerns persist about gold price volatility, stagnant buyer growth, and near-term pressure on discretionary spending. The real test for Titan lies in sustaining high-margin growth across segments while adapting to evolving consumer trends.

Conclusion

Titan’s recent stock dip serves as a reminder that even the most resilient companies are vulnerable to market sentiment and macroeconomic pressures. While the Q1 FY26 report highlighted strong topline growth, the muted response from investors shows the importance of qualitative factors like buyer trends and segment diversification. For investors in both traditional equities and tokenized securities, Titan’s case underscores the value of reading beyond headline numbers — especially in a high-volatility environment.

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FAQs

Why did Titan shares fall suddenly in July 2025?

Titan’s Q1 FY26 business update disappointed investors due to flat buyer growth in its jewellery segment, despite overall revenue growth. Gold price volatility also weakened consumer demand.

How much did the Jhunjhunwala family lose in Titan stock?

The family’s holdings in Titan dropped by over Rs 900 crore within 30 minutes following the stock’s over 6% fall on July 8, 2025.

Is Titan still considered a blue-chip stock after this decline?

Yes, Titan remains a blue-chip stock due to its strong fundamentals, brand value, and consistent long-term performance, despite recent short-term volatility.