Shares of the Tata conglomerate face turmoil following Natarajan Chandrasekaran’s resignation, with investor focus shifting to succession plans, new business performance, and strategic changes, while Titan and Trent show robust growth in their latest quarters.
Tata group shares remained under pressure after Natarajan Chandrasekaran’s resignation triggered a sell-off, with investors now focused on succession risk, capital allocation in new businesses that are still loss-making and any shift in strategy at key listed companies. According to Business Standard, the near-term mood around the conglomerate will also be shaped by first-quarter FY27 results and management guidance for the rest of the year.
Among the group’s listed names, Titan stood out as the strongest performer. Business Standard said the jewellery maker posted sales growth of 29% and a 63% jump in net profit, while separate broker commentary highlighted an even stronger consumer-business update, with consolidated sales excluding bullion up 41% year-on-year. Titan added 77 stores in the quarter to take its network to 3,680, and brokerages cited broad-based gains across jewellery, watches, eyewear and international operations. Nomura reiterated its bullish stance on the stock, while also arguing that the company is still taking share in a fragmented market.
Titan’s outlook remains supported by a shift from unorganised jewellers to branded chains, store expansion into smaller towns and steady demand for better design and assured purity. Analysts cited by Business Standard said the company could keep growing faster than the industry and lift its market share towards 10% by FY28 from roughly 8% to 9% now. Some researchers, however, have warned that gold prices and higher import duties could slow jewellery growth in FY27, even if watches and eyewear continue to expand.
Trent also delivered a strong quarter, with revenue growth of about 18% and operating profit up 28%, helped by continued expansion in apparel-led formats such as Zudio and Westside. Bernstein expects the business to sustain growth in the 18% to 20% range with margins holding near current levels. Over the past five years, Trent has been the fastest-growing Tata group company on this measure, with sales up 50% and operating profit rising 65%.
Elsewhere in the group, Tata Steel showed resilience in India even as Europe remained weak. Business Standard said stronger domestic realisations helped offset losses in its European arm, while consolidated margins reached a 16-quarter high. Tata Consultancy Services continued to face softer demand, with sequential constant-currency growth of just 0.4% and weakness in parts of its international business. Tata Consumer Products posted a solid quarter as well, with revenue up 12% and operating and net profit both rising by double digits, supported by premiumisation, distribution gains and new products.
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