Thangamayil Jewellery shares dive 19% in two days; here is why

Shares of Thangamayil Jewellery continued their steep fall for the second straight session on Thursday, sliding another 10 per cent to hit a low of Rs 5,815.30. At this level, the stock has tumbled 18.99 per cent in two days. The drop comes even as the company reported a strong year-on-year (YoY) performance for the June quarter.

The jewellery retailer posted an 86.15 per cent YoY rise in consolidated net profit at Rs 85.09 crore for Q1 FY27, compared with Rs 45.71 crore in the corresponding quarter last year.

Revenue from operations surged 71.16 per cent YoY to Rs 2,666.38 crore from Rs 1,557.86 crore in the year-ago period.

However, on a quarter-on-quarter (QoQ) basis, the performance was weaker. Net profit declined 40.35 per cent from Rs 142.66 crore reported in Q4 FY26, while revenue slipped 6.09 per cent from Rs 2,839.17 crore in the previous quarter.

Explaining the sequential weakness, the company said, "In spite of benign gold price prevailed internationally in this quarter as against escalated price prevailed in QOQ, the volume in gold segments of business was relatively lower. This was mainly due to steep increase in import duty from 6 per cent to 15 per cent (from 13/O5/26) and also due to significant INR depreciation that made customers to postpone their purchases on the expectation of future fall in gold prices in US dollar terms."

It added, "The uncertainty caused by the West Asia war and the consequential slowdown in virgin purchases of gold by expatriates' remittances inwardly in the areas we operate also mainly contributed to this sluggish offtake on a QoQ basis."

Thangamayil also said, "No visible improvement in sales witnessed in the first 28 days of the second Quarter '27 due to continued uncertainty in war front and expectations of moderate fall in gold prices internationally by the customers that made them to postpone the purchases."

It further stated, "The Company believes that the postponed demand will come back when the war/price situation improves and is hopeful of the same in the second half of 27'FY."

Thangamayil mentioned that its Same Store Sales (SSS) growth for the three months ended June 30, 2026, stood at 44.40 per cent compared with 72.31 per cent on a QoQ basis.

Despite the recent sharp decline, the stock has been a multibagger, rallying 203.23 per cent over the past one year.