Thangamayil Jewellery shares tumbled 10% to hit the lower circuit at ₹5,807 on Thursday, extending losses to 18.99% over two sessions after the company warned of a weak Q2 FY27. According to Business Standard, the stock crash followed the company's guidance for a challenging second quarter, with investors focusing on the cautious outlook rather than strong Q1 results. As of 14:46 IST, there were 40,069 shares traded on the counter, significantly higher than the average daily volumes of 17,573 shares in the past one month, indicating heightened selling pressure. The sharp decline represents a continuation of the selling pressure that began after the company's quarterly results announcement, with the stock hitting the 10% lower circuit at ₹6,461 on Wednesday's trade. Despite the recent correction, the stock remains up 46.66% over the past three months and 203.23% over the past one year.
Thangamayil Jewellery delivered exceptional financial results for the June quarter of financial year 2027, with consolidated net profit soaring 86.2% year-on-year to ₹85.1 crore from ₹45.7 crore in Q1 FY26, though it declined 40.4% sequentially from ₹142.7 crore in Q4 FY26. Revenue from operations rose 71.2% YoY to ₹2,662.5 crore from ₹1,555.3 crore in the corresponding quarter last year, but declined 6.2% QoQ from ₹2,838.2 crore in Q4 FY26. However, the company's Same Store Sales (SSS) growth for the 3 months ended June 30, 2026 was at 44.4% on a year-on-year basis, though it was lower at 72.31% on a quarter-on-quarter basis. As reported by Business Standard, the company saw no visible improvement in sales during the first 28 days of Q2 FY27, with the slowdown attributed to continued uncertainty around the West Asia war and customer expectations of a moderate decline in international gold prices. Despite the strong Q1 performance, the company noted that despite benign gold prices in the June quarter, volume in gold segments of business was relatively lower, hit by a steep increase in import duty and rupee depreciation that made customers postpone purchases.
The company's operational performance remained strong despite some margin pressures. Thangamayil Jewellery's gross profit increased 48.1% YoY to ₹247 crore in Q1FY27 from ₹167 crore in Q1FY26, though gross margin as a percentage of retail sales declined to 9.81% from 11.10% a year ago and 11.39% in Q4 FY26. The company's profit before tax stood at ₹115.5 crore in Q1 FY27, down 36.6% QoQ and up 77.3% YoY. Reported EBITDA rose 66.7% YoY to ₹145 crore from ₹87 crore in Q1 FY26, with EBITDA margin as a percentage of retail sales at 5.76% compared with 5.78% a year ago. The company's Same Store Sales (SSS) growth for the 3 months ended June 30, 2026 was at 44.4% on a year-on-year basis, though it was lower at 72.31% on a quarter-on-quarter basis. The company noted that "the uncertainty caused by West Asia war and the consequential slowdown in virgin purchases of gold by expatriates' remittances inwardly in the areas we operate also mainly contributed to this sluggish offtake on QoQ basis."
The company's diversified product portfolio showed strong growth across segments during Q1FY27. Gold jewellery sales increased 65% to ₹2,273 crore, while non-gold sales (Silver, Diamonds, other products) rose 88% to ₹244 crore. The contribution of non-gold products to retail sales improved to 9.69% from 8.64% a year ago. Retail sales grew 67% YoY to ₹2,517 crore, while wholesale sales surged 190% to ₹145 crore. Gold ornament volumes increased 9% YoY to 1,620 kg, while diamond volumes rose 23% to 4,987 carats. However, silver product volumes declined 6% to 5,727 kg. The company explained the sequential weakness by stating that "in spite of benign gold price prevailed internationally in this quarter as against escalated price prevailed in QOQ, the volume in gold segments of business was relatively lower." The company attributed the quarter-on-quarter decline to international gold price volatility, steep increase in import duty from 6% to 15%, and significant rupee depreciation that made customers postpone purchases.
The company faced headwinds from international gold price volatility and regulatory changes during the quarter, with challenges persisting into the current quarter. According to Business Standard, the slowdown was primarily due to a steep increase in import duty from 6% to 15% from May 13, 2026, along with significant depreciation in the Indian rupee. The uncertainty caused by the West Asia war also weighed on demand, with the company noting that slowdown was primarily due to steep increase in import duty from 6% to 15% from May 13, 2026, along with significant depreciation in the Indian rupee. The company expects postponed demand to return once the war and price situation improves, with management hopeful of recovery in the second half of FY27. However, management indicated that the weakness has persisted into the current quarter, with the company not witnessing any visible improvement in sales during the first 28 days of Q2 FY27. The company opened two stores in Chennai during June 2026 and plans to add four more in the Chennai region by September 2026. Gold hedging stood at 96% and silver hedging at 43% as of June 30, 2026, while overall liquidity stood at ₹389 crore, including eligible undrawn bank facilities.
