Thangamayil Jewellery shares fell 5% on Tuesday, hitting the lower circuit at ₹4,723 on BSE and extending their one-week decline to 35% despite the company reporting robust quarterly earnings and strong festival performance. According to The Economic Times, the stock has been under pressure for over a week now, declining sharply by 34% during the past week and tanking over 23.4% in the past month. The continued decline suggests that while the company's operational performance remains strong, investor sentiment remains weak due to ongoing market concerns and weak guidance.
The company reported ₹344.16 crore in sales during the three-day Aadi Perukku festival period from August 1 to August 3, 2026, representing a remarkable 119.55% year-on-year increase compared to ₹156.75 crore in the corresponding period last year. This strong festival performance suggests that demand has remained resilient at the start of August, potentially providing further support to the company's business momentum in the current quarter. However, the company anticipates this deferred demand to return once the war and gold price situation improves, with hopes of seeing recovery in demand in the second half of FY27.
The company stated that the business 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 rupee. As reported by The Economic Times, these factors led customers to postpone purchases in anticipation of a future decline in gold prices in U.S. dollar terms. Geopolitical uncertainties about the U.S.-Iran war also weighed on demand, with the resulting slowdown in gold purchases by expatriates driven by lower inward remittances in the company's operating areas.
Despite current challenges, the company reported strong quarterly results for the period ended June 30, 2026. Revenue from operations jumped 71.2% to ₹2,666.4 crore from ₹1,558 crore posted in the corresponding quarter of the previous financial year. EBITDA rose 66.2% to ₹144.6 crore from ₹87 crore, though margins for the quarter stood at 5.4% compared with 5.6% in the corresponding period last year. The company's same-store sales growth slowed down to 44.4% for the three months ended June 30, 2026, compared with 72.3% growth on a quarter-on-quarter basis, indicating weakening underlying business momentum despite strong top-line growth.
The stock is currently trading at a price-to-earnings multiple of 39.5 times with a market cap of ₹14,662.9 crore as at the end of the previous trading session. Despite the recent decline, the company's strong festival performance and robust quarterly earnings indicate underlying business strength, though investor sentiment remains cautious due to ongoing market concerns and weak guidance. The company expects this deferred demand to return once the war and gold price situation improves, with management remaining hopeful of seeing a recovery in demand in the second half of FY27.
