Titan Company shows 25% growth, but the test is productivity

Titan Company Limited reported 25% YoY growth in consumer businesses in Q2 FY27, led by jewellery, watches and eyewear. Jewellery grew about 21%, while watches and EyeCare also delivered more than 20% growth. Titan added 78 net stores during the quarter, taking its total network to 3,758. The headline growth is strong, but I would focus on the quality of this growth. Titan is simultaneously benefiting from healthy consumer demand and expanding its store footprint. That makes same-store growth and revenue productivity more important than the reported 25% number. The jewellery business is particularly important because it remains the largest contributor to Titan's growth. Studded jewellery grew in the low-30% range, while plain gold jewellery grew 20%. My concern is not demand at this stage. It is whether Titan can maintain strong growth while continuing to expand stores without diluting store-level productivity. My view: Q2 is a strong operating update and supports the long-term consumption story. However, after a strong rerating in consumer stocks, I would want to see sustained same-store growth and healthy margins before assuming the current growth rate can continue. What I am watching next: Same-store jewellery growth, jewellery EBIT margin and productivity of the 42 new jewellery stores added during the quarter.