Thangamayil Jew. Q1 FY27 Results (NSE: THANGAMAYL)
Signal: Margin pressure
The read
Q1FY27 revenue of ₹2,662 Cr (+71% YoY) was strong on YoY basis driven by exchange gold & DigiGold scheme penetration (53% of revenue). However, gross margin compressed to 9.8% (from 11.7% YoY, and sharply from 17.4% QoQ) due to benign gold prices and the import duty hike to 15% on 13-May-2026, causing customer postponement. Including ₹31 Cr realised inventory profit (13% of gross profit), EBITDA margin fell to 5.07% (from 6.72% YoY). PAT of ₹85 Cr (+86% YoY) but down 41% QoQ reflects the margin squeeze. Management notes no visible improvement in first 28 days of Q2FY27 due to continued war uncertainty, expecting demand recovery in H2. SSS growth decelerated to 44.4% (from 72.3% QoQ). Non-gold sales mix improved to 9.69% (from 8.64% YoY).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,666.38 Cr | 71% | -6% |
| EBIT | ₹144.66 Cr | 77% | |
| Net profit | ₹85.09 Cr | 86% | |
| EPS | ₹27.38 | 86% | |
| EBIT margin | 5.07% |
P&L walk
Company is standalone only; no consolidated statement.
Segments
Single business segment (jewellery). No segment table.
Key positives
- Revenue grew 71% YoY to ₹2,662 Cr, with exchange gold/DigiGold contributing 53% of revenue (₹1,397 Cr) vs 47% (₹728 Cr) YoY, driving value improvement of ₹669 Cr.
- Non-gold sales composition improved to 9.69% from 8.64% YoY (+105bps), reflecting premiumisation mix shift.
- Interest cover improved to 8.18x from 5.79x YoY, finance cost down 17% YoY to ₹17.69 Cr.
- PAT +86% YoY to ₹85 Cr, EPS tracks PAT confirming no dilution.
- Liquidity position strong with ₹389 Cr overall liquidity including undrawn facilities.
Key concerns
- Gross margin compressed to 9.8% from 11.7% YoY and sharply from 17.4% QoQ (-759bps sequential), driven by gold price softness, import duty hike to 15% (from 6% from 13/05/26), and INR depreciation causing purchase deferrals.
- EBITDA margin fell to 5.07% from 6.72% YoY (-165bps) and from 7.42% QoQ (-235bps).
- Same Store Sales growth decelerated to 44.4% from 72.3% in Q4FY26 (-27.9pp QoQ).
- Gold volume sales declined 17% QoQ to 1,620 kgs; management flags no visible improvement in early Q2FY27.
- QoQ PAT down 41% from ₹143 Cr to ₹85 Cr due to gross margin squeeze.
Research and educational content only. Not investment advice.