Titan Company is realigning its Tanishq strategy toward 18-karat gold and lightweight diamond jewelry as gold prices average ₹1.51 lakh per 10 grams. While the jewelry division achieved 21% year-on-year growth in Q2 FY27, the company is managing shifting consumer habits where old gold exchange now drives over half of all transactions.
Titan Company is adjusting its strategy for the Tanishq brand in response to record-high gold prices, which averaged ₹1.51 lakh per 10 grams in September 2026. To maintain consumer interest, the retailer is placing a greater focus on 18-karat gold pieces and lightweight diamond jewelry, which carry a lower entry price for customers. This move is designed to keep products accessible to shoppers who are currently sensitive to the high cost of the metal.
A key pillar of this strategy is the increase in exchange-based transactions. Customers are increasingly trading in old gold to fund new purchases, a trend that now accounts for more than 50% of the jewelry division’s business. This model helps the company keep existing customers engaged, even when outright purchasing of new jewelry becomes difficult due to high market costs. By encouraging customers to recycle legacy assets, Tanishq manages to keep footfall high despite the price environment.
Despite the pressure on consumer wallets, the company’s jewelry division posted a 21% year-on-year revenue growth in the second quarter of the 2027 fiscal year. The company also continues its retail expansion, adding 42 net stores in the domestic jewelry business during the same period, bringing its total network to 1,269 stores. From a financial management perspective, Titan has prioritized liquidity, successfully redeeming ₹825 crore in commercial papers on October 8, 2026.
Investors are keeping a close watch on how the current price environment impacts discretionary spending. While Titan has shown resilience, the broader market remains cautious, especially as high premium valuations require consistent growth to justify investor expectations. Competition remains a significant factor, as both large organized players and unorganized regional jewelers compete for the same customer base. Additionally, geopolitical uncertainties could pose risks to the company's international operations, including its Damas portfolio.
The next important monitorable for shareholders will be how the company balances its profit margins while shifting toward lower-karat and more affordable product collections. The market will also track whether the high rate of gold exchange transactions remains sustainable as the festive season progresses.