Thangamayil Jewellery Ltd Reports Stellar Q2FY26 Results, Recommends Profit Booking Amidst 50% Stock Surge

Thangamayil Jewellery Ltd has posted exceptionally strong results for the second quarter of fiscal year 2026 (Q2FY26), exceeding market estimates across all key performance indicators.

**Q2FY26 Performance** Revenue saw a robust 45 percent year-on-year (YoY) growth. Gold jewellery sales increased by 44 percent YoY to Rs 1,501 crore, boosted by a significant rise in realisations primarily due to higher gold prices, with volumes showing a marginal 2 percent YoY increase. The non-gold jewellery segment performed even better, growing by 52 percent YoY to Rs 135 crore. Both Gross and EBITDA margins improved significantly on a YoY basis, attributed to operating leverage and sales from newly opened urban stores, and a lower base from the previous year impacted by inventory losses.

**Robust Demand Traction** Jewellery demand continues to be strong. Thangamayil Jewellery crossed the Rs 1,000-crore sales mark for the first time in October 2025, with sales for the month being 2.8 times higher than October 2024, showing a 77 percent YoY volume growth in gold ornaments. The early Diwali in October contributed to this performance. A moderation in gold prices post-Diwali highs and the upcoming wedding season are expected to further fuel demand in the second half of FY26 (H2FY26).

**Aggressive Network Expansion** The company is actively expanding its presence in Tamil Nadu, its home state and the largest jewellery market in India. In H1FY26, nine new stores were opened, bringing the total store count to 66. Thangamayil Jewellery plans to open an additional 10 stores over the next 15 months, with a focus on urban centers like Chennai. The share of urban stores in total revenue has risen from 29 percent in H1FY25 to 40 percent in H2FY26, indicating a successful strategy to enhance non-gold sales and improve margins.

**Valuations and Investor Recommendation** At the current market price, the stock is trading at 34 times its projected earnings for FY27. Thangamayil Jewellery's stock price has surged by approximately 50 percent in the past month. Consequently, analysts are recommending that investors book profits and exit their positions, while suggesting that long-term investors may consider adding the stock during market declines.

**Impact** This news has a significant positive impact on Thangamayil Jewellery Ltd's revenue, profitability, and market share expansion plans. However, the rapid stock price appreciation and subsequent profit booking recommendation suggest potential short-term volatility. The strong performance and expansion plans are positive indicators for the Indian jewellery retail sector. Impact rating: 7/10

**Difficult Terms**

* **EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation):** A measure of a company's financial performance before accounting for financing costs, interest, taxes, and non-cash expenses like depreciation and amortisation. It indicates the company's operational profitability. * **YoY (Year-on-Year):** A method of comparing data over a specific period to the same period in the previous year to identify trends and growth. * **Realisations:** The average price at which a company sells its products or services. In this context, it refers to the price of gold jewellery per unit sold. * **Operating Leverage:** The extent to which a company's costs are fixed rather than variable. A company with high operating leverage will see its profits increase or decrease more significantly with changes in sales volume compared to a company with low operating leverage. * **Urban Stores:** Retail outlets located within cities and metropolitan areas, as opposed to rural or semi-urban locations.