Why Thangamayil Jewellery shares plunged 10% after Q1 results

Shares of Thangamayil Jewellery Ltd tumbled 10 per cent in Wednesday's trade despite the company reporting a strong year-on-year (YoY) performance for the June quarter. The stock fell 10 per cent to hit a day low of Rs 6,461.40.

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 further added, "The uncertainty caused by 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 QoQ basis."

Thangamayil also said 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 Wednesday's sharp decline, the stock has been a multibagger, rallying 249.03 per cent over the past one year.

Commenting on the stock, market veteran Arun Kejriwal said Thangamayil's inventory turn is the secret behind its success. "With a concentrated inventory on display, customers tend to make purchases more readily. You have to be nimble-footed to make money in this high-priced stock," he stated, adding that investors should maintain a trailing stop loss to protect profits.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said the stock may suit investors with a high-risk appetite, recommending a 'buy-on-dips' and 'sell-on-rallies' approach.