Financial Results (₹ in Lakhs)

Income Statement Highlights:

  • Net Sales: ₹266,245 (Q1 FY27) vs ₹155,532 (Q1 FY26) - 71% increase YoY
  • Other Operating Income: ₹393 (Q1 FY27) vs ₹254 (Q1 FY26)
  • Total Income from Operations: ₹266,638 (Q1 FY27) vs ₹155,786 (Q1 FY26)
  • Cost of Raw Materials Consumed: ₹277,617 (Q1 FY27) vs ₹157,943 (Q1 FY26)
  • Employee Benefit Expenses: ₹4,048 (Q1 FY27) vs ₹3,235 (Q1 FY26)
  • Interest and Finance Costs: ₹1,769 (Q1 FY27) vs ₹1,502 (Q1 FY26)
  • Depreciation and Amortization: ₹7,147 (Q1 FY27) vs ₹682 (Q1 FY26)
  • Profit Before Tax: ₹11,549 (Q1 FY27) vs ₹6,513 (Q1 FY26) - 77% increase YoY
  • Tax Expenses: ₹3,040 (Current Tax: ₹2,973; Deferred Tax: ₹67)
  • Profit After Tax: ₹8,509 (Q1 FY27) vs ₹4,571 (Q1 FY26) - 86% increase YoY
  • Total Comprehensive Income: ₹8,487 (Q1 FY27) vs ₹4,548 (Q1 FY26)

Earnings Per Share:

  • Basic EPS: ₹27.34 (Q1 FY27) vs ₹14.71 (Q1 FY26)
  • Diluted EPS: ₹27.34 (Q1 FY27) vs ₹14.71 (Q1 FY26)

Comparative Performance:

Quarter-over-Quarter (QoQ) Comparison (Q1 FY27 vs Q4 FY26):

  • Total Sales decreased 6% from ₹2,838 Cr to ₹2,662 Cr
  • Retail Sales decreased 8% from ₹2,730 Cr to ₹2,517 Cr
  • Gross Profit decreased 21% from ₹311 Cr to ₹247 Cr
  • Gross Profit Margin declined 158 bps from 11.39% to 9.81%
  • PAT decreased 41% from ₹143 Cr to ₹85 Cr

Operational Highlights

Sales Performance:

  • Retail Sales: ₹2,517 Cr (95% of total sales)
  • Wholesale Sales: ₹145 Cr (5% of total sales)
  • Gold Jewellery Sales: ₹2,273 Cr (90% of retail sales)
  • Non-gold Sales (Silver, Diamonds, other products): ₹244 Cr (9.69% of retail sales)
  • Non-gold sales increased 137 bps compared to Q4 FY26 (8.32%)

Volume Metrics:

  • Gold Ornament Volume: 1,620 Kgs (decreased 11% QoQ from 1,812 Kgs)
  • Silver Products Volume: 5,727 Kgs (increased 16% QoQ from 4,918 Kgs)
  • Diamond Products Volume: 4,987 Carats (unchanged QoQ from 4,994 Carats)

Financial Ratios:

  • Inventory Turnover (Annualized): 3.20 times (vs 3.45 times QoQ)
  • Interest Cover: 8.18 times (vs 10.63 times QoQ)

Business Environment Challenges

The company faced several headwinds during the quarter:

  • Benign international gold prices compared to previous quarter
  • Import duty increase from 6% to 15% effective January 13, 2026
  • Significant INR depreciation affecting customer purchase decisions
  • West Asia war impacting expatriate remittances and gold purchases
  • Customers postponing purchases expecting future gold price declines

Positive Business Developments

  • Exchange Gold Schemes and DIGI GOLD contributed 53% of revenue (₹1,397 Cr) vs 47% (₹728 Cr) in YoY quarter, representing ₹669 Cr value improvement
  • Realized inventory profit on gold and silver due to import duty hike and INR depreciation: ₹31 Cr (13% of gross profit)
  • Same Store Sales Growth: 44.40% for 3 months ended June 30, 2026 (vs 72.31% QoQ)
  • Strong liquidity position: ₹389 Cr inclusive of undrawn banking facilities
  • Hedging coverage: Gold at 96%, Silver at 43% as of June 30, 2026

Expansion Plans

  • Opened 2 new retail outlets in Chennai in June 2026
  • Planning to open 2 more outlets in Chennai on August 23, 2026
  • 2 additional outlets under construction, likely to open on September 13, 2026
  • Total of 6 new outlets planned in Chennai surrounding areas
  • Company operates 66 retail outlets across Tamil Nadu

Tax Matter Update

Appeal on disallowance treating entire beaten gold as 18 Carats for Assessment Year 2022-23 is pending for disposal. The company received favorable noting in the Review committee as stated in previous disclosures.

Early Q2 FY27 Performance

No visible improvement in sales witnessed in the first 28 days of second quarter FY27 due to continued uncertainty in war front and customer expectations of moderate fall in gold prices internationally.

Management Outlook

The Company believes that postponed demand will return when war/price situation improves and is hopeful of recovery in the second half of FY27.

Company Background

Thangamayil Jewellery Limited is a ₹8,500 Crores turnover company engaged in manufacturing and retailing of Gold Ornaments, Silver Articles, and Diamond Products. The company has over 45 lakh customers and operates 66 retail outlets across Tamil Nadu.