Thangamayil Jewellery Ltd (THANGAMAYL) Q2 FY27 Results Analysis: Revenue Jumps 39.7%, Margin Compresses 153 bps
Thangamayil Jewellery Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 2,380.87 Cr (+39.70% YoY) and PAT growth of +1.60% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 04, 2026 |
|---|---|
| Revenue (Q2) | Rs. 2,380.87 Cr (+39.70% YoY) |
| PAT (Q2) | Rs. 59.45 Cr (+1.60% YoY) |
| EBITDA margin | 4.95% (-153 bps YoY) |
| EPS (Q2) | Rs. 19.13 (+1.60% YoY) |
Quarter Snapshot
Revenue grew 39.7% YoY to Rs.2,380.87 crore but PAT was flat at Rs.59.45 crore, with EBITDA margin on retail sales down 153 bps YoY and normalized PAT down 34.7% after stripping a Rs.28.54 crore inventory gain. Growth was price-led (gold volume −1%, silver −28%) and working-capital-financed, with H1 CFO at negative Rs.542.04 crore and net debt up Rs.589.68 crore. The H2 recovery thesis remains conditional on post-quarter gold/silver price softening, with SSSG of 35.93% and diamond volume +27% the offsetting positives.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Revenue ahead YoY but sharply decelerating vs Q1's +71%; value-led | +39.7% YoY, −10.6% QoQ; gold volume −1% YoY | Played out |
| EBITDA margin flat-to-compressing underlying; reported flattered by inventory gain | EBITDA/retail 4.95% vs 6.48% YoY; ex-gain GP margin 8.37% vs 11.27% | Played out |
| Duty-hike inventory gain (~Rs.60 Cr guided) books in Q2 | Rs.28.54 Cr in Q2; Rs.59.27 Cr H1 ≈ the guided ~Rs.60 Cr | Played out |
| Funding cost trackable vs 5.5–5.75%; interest pressure | 5.27% H1 average (inside guide), but finance cost +37.2% YoY in absolute | Partially |
| Rollout on track (9 showrooms, Phase II by 31/12/2026) | 4 opened in H1 + 4 planned by March 2027 = 8 vs 9 | Partially |
| H2 recovery helped by post-quarter price falls; silver hedge to rise | Filing reiterates H2 thesis; silver hedging 49% | H2 not yet observable / Played out |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| 9 new showrooms FY27 (~Rs.600 Cr outlay); Phase II by 31/12/2026 | Chairman's statement (May 2026) and AGM outlook; Q1 filing sequencing | Filing: 4 Chennai-metro outlets opened in H1, "another four outlets by March 2027" — 8 vs 9 — with a one-outlet shortfall signal | On Track |
| Blended external funding cost 5.5–5.75% p.a. | FY26 Annual Report guidance | 5.27% average cost of borrowings in H1 — better than guided | Met |
| Duty-hike inventory gains ~Rs.60 Cr | FY26 Annual Report guidance | Rs.59.27 Cr realized in H1 (Q2: Rs.28.54 Cr) | Met |
| Demand recovery in H2 FY27 | Q1 FY27 filing commentary, reiterated in Q2 filing | Q2 sales −10.6% QoQ; filing: "pent-up demand may come back in the second half… subject to softening of other head winds" | Too Early |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|
| Gold vol (kg) | 1,513 | 1,620 | 1,500 |
| Silver vol (kg) | 5,636 | 5,727 | 4,049 |
| Diamond vol (ct) | 4,184 | 4,987 | 5,296 |
| Inv. turnover (×) | 2.87 | 3.20 | 2.86 |
| Interest cover (×) | 6.52 | 8.18 | 5.14 |
| Gold hedge % | 95.05 | 96.0 | 95.0 |
Key Investment Insights
Key Positives
- Net sales grew 39.7% YoY to Rs.2,380.87 crore; retail sales +41% YoY to Rs.2,303 crore
- H1 sales of Rs.5,043.31 crore grew 54.7% YoY with PAT of Rs.144.55 crore (+38.7% YoY)
- Diamond volumes grew 27% YoY to 5,296 carats
- SSSG of 35.93% in H1 vs 10.31% a year ago; revenue per sq.ft +34%
- Average cost of borrowings improved to 5.27% in H1, inside the guided 5.5–5.75% band
- Duty-hike inventory gains of Rs.59.27 crore realized in H1, matching the ~Rs.60 crore guidance
- Silver hedging raised to 49% from 43% ahead of post-quarter silver price fall
Risk Factors
- EBITDA margin on retail sales compressed 153 bps YoY to 4.95%; ex-inventory-gain gross margin fell ~290 bps YoY to 8.37%
- Normalized PAT of Rs.38.20 crore declined 34.7% YoY after stripping the Rs.28.54 crore inventory gain
- H1 CFO was negative Rs.542.04 crore (CFO/PAT −3.75×) driven by a Rs.744 crore inventory build
- Net debt rose Rs.589.68 crore since March to Rs.1,034.02 crore; interest cover fell to 5.14× from 6.52×
- Gold volume −1% YoY and silver volume −28% YoY; sales fell 10.6% QoQ
- Rollout tracking to 8 of 9 planned showrooms for FY27 (4 opened in H1, 4 more by March 2027)
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.