Titan Company’s shares jumped nearly 5%, emerging as one of the top gainers on the benchmark Nifty 50 index, after the jewellery giant reported a sharp rise in quarterly revenue driven by strong demand for premium ornaments and gold coins.

The company posted a 25% year-on-year increase in standalone revenue for the fourth quarter, led by “high double-digit growth” in its higher price band jewellery offerings. The surge comes despite concerns earlier in the quarter that record-high gold prices might dampen consumer demand.

Instead, affluent consumers continued to spend on jewellery, especially for weddings and as a means of investment, with demand remaining resilient even at elevated price levels. The fourth-quarter growth outpaced the previous quarter by about one percentage point and exceeded the revenue increase from a year earlier by roughly eight percentage points.

Titan’s performance exceeded expectations from brokerages including J.P. Morgan and Axis Capital. The latter upgraded the stock to “add” from “reduce,” citing favourable valuations and stronger-than-expected jewellery sales.

While the company has faced margin pressure in recent quarters due to a shift toward lower-margin gold coin sales, analysts expect this trend to reverse. Axis Capital anticipates a normalisation in product mix and margins, which could drive improved profit growth between FY2025 and FY2027.

According to LSEG data, analysts maintain a consensus “buy” rating on Titan, while peer Kalyan Jewellers continues to hold a “strong buy” recommendation.