Thangamayil Jewellery Q1 Results: 86% YOY Net Profit Spike, Weak Q2 Outlook

Thangamayil Jewellery, a leading Indian jewellery company, has reported a significant spike in its net profit for the first quarter of the fiscal year 2027, with a 86% year-over-year increase to Rs 85 crore. Despite this impressive growth, the company’s stock price has taken a hit, declining by 10% due to weak guidance for the second quarter.

Thangamayil Jewellery Q1 Results: Key Highlights

The company’s revenue from operations jumped 71.2% in the June quarter to Rs 2,666.4 crore from Rs 1,558 crore posted in the corresponding quarter of the previous financial year. This impressive growth was driven by a 44.4% same-store sales (SSS) growth for the three months ended June 30, 2026.

Thangamayil Jewellery’s EBITDA (earnings before interest, tax, depreciation and amortization) rose 66.2% to Rs 144.6 crore from Rs 87 crore. However, the company’s margins for the quarter under review stood at 5.4%, compared with 5.6% in the corresponding period last year.

Factors Contributing to Weak Q2 Outlook

The company attributed the weak Q2 outlook to several factors, including a steep increase in import duty from 6% to 15% from May 13, 2026, and significant depreciation in the Indian rupee. These factors led customers to postpone purchases in anticipation of a future decline in gold prices in U.S. dollar terms.

The uncertainty caused by the West Asia war also weighed on demand, with the company reporting a slowdown in gold purchases by expatriates driven by lower inward remittances in the areas where it operates.

Market Impact and Details

The company’s stock price has declined by 10% due to weak guidance for the second quarter.
Thangamayil Jewellery expects the deferred demand to return once the war and gold price situation improves.
The company remains hopeful of seeing a recovery in demand in the second half of FY27.

Key Takeaways

Thangamayil Jewellery reported a 86% year-over-year increase in net profit to Rs 85 crore for the first quarter of FY27.
The company’s revenue from operations jumped 71.2% in the June quarter to Rs 2,666.4 crore.
Thangamayil Jewellery’s EBITDA rose 66.2% to Rs 144.6 crore from Rs 87 crore.

FAQs

What are the factors contributing to Thangamayil Jewellery’s weak Q2 outlook?

The company attributed the weak Q2 outlook to several factors, including a steep increase in import duty from 6% to 15% from May 13, 2026, and significant depreciation in the Indian rupee.

What is the impact of the West Asia war on Thangamayil Jewellery’s demand?

The uncertainty caused by the West Asia war has weighed on demand, with the company reporting a slowdown in gold purchases by expatriates driven by lower inward remittances in the areas where it operates.

What is Thangamayil Jewellery’s outlook for the second half of FY27?

The company remains hopeful of seeing a recovery in demand in the second half of FY27, once the war and gold price situation improves.

Conclusion

Thangamayil Jewellery’s Q1 results have been impressive, with a significant spike in net profit and revenue growth. However, the company’s weak guidance for the second quarter has led to a decline in its stock price. Investors should keep a close eye on the company’s performance in the coming quarters to gauge the impact of the factors contributing to the weak Q2 outlook.

As the market continues to navigate the uncertainty caused by the West Asia war and the impact of the import duty hike, Thangamayil Jewellery’s performance will be closely watched by investors and analysts.

It is essential for investors to stay informed and make informed decisions based on the company’s performance and market trends.