Thangamayil Jewellery Limited sales rise 55%, margins fall

Thangamayil Jewellery Limited reported Rs 5,043 crore of total sales in the first half of FY 2026-27, up 55% year on year, while gross profit margin fell 146 basis points to 9.71% and EBITDA margin declined 77 basis points to 5.37%. Higher same-store sales and productivity accompanied the revenue and absolute-profit growth.

How much did TMJL's first-half sales and profit grow?

TMJL's total sales rose 55% year on year to Rs 5,043 crore in HY1 FY 2026-27, from Rs 3,260 crore in HY1 FY 2025-26. Retail sales increased 53% to Rs 4,820 crore, while wholesale sales grew 87% to Rs 223 crore. Gold jewellery accounted for Rs 4,392 crore of retail sales, up 53% from Rs 2,876 crore a year earlier.

Non-gold sales, comprising silver, diamonds and other products, rose 62% to Rs 428 crore from Rs 265 crore. Consequently, non-gold products represented 8.88% of retail sales, compared with 8.44% in HY1 FY 2025-26, a 44-basis-point increase. A basis point is one-hundredth of a percentage point.

TMJL's reported gross profit increased 33% to Rs 468 crore, and earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 34% to Rs 259 crore. Profit before tax grew 35% to Rs 194 crore. Profit after tax increased 38% to Rs 144 crore from Rs 104 crore, meaning absolute profit increased despite the lower reported margins.

Why did TMJL's gross and EBITDA margins decline?

TMJL's reported gross profit margin as a percentage of retail sales was 9.71% in HY1 FY 2026-27, down from 11.17% in HY1 FY 2025-26. The 146-basis-point reduction was larger than the 44-basis-point increase in non-gold sales as a share of retail revenue. The filing reports the margin movements but does not specify a cause for them.

EBITDA margin declined to 5.37% of retail sales from 6.14%, a 77-basis-point fall, although EBITDA in rupee terms rose by Rs 66 crore. Expenses as a percentage of sales fell to 5.62% from 6.65%, a 103-basis-point decline. TMJL therefore reported lower expenses relative to sales at the same time as gross margin narrowed.

The half-year result differed from the second-quarter comparison. In Q2 FY 2026-27, gross profit margin was 9.60%, compared with 11.25% in Q2 FY 2025-26, while EBITDA margin was 4.95%, compared with 6.48%. Q2 profit after tax was Rs 59 crore, unchanged year on year, even as quarterly retail sales rose 41% to Rs 2,303 crore.

Did TMJL improve store productivity in the first half?

TMJL reported same-store sales growth of 35.93% for the six months ended September 30, 2026, compared with 10.31% in the first half of FY 2025-26. The 25.62-percentage-point difference shows that sales at comparable stores rose faster than in the prior-year period.

Annualised retail sales per square foot rose 34% to Rs 6.44 lakh from Rs 4.82 lakh. Annualised sales per employee increased 41% to Rs 2.60 crore from Rs 1.85 crore. These operating measures accompanied the 53% increase in retail revenue to Rs 4,820 crore.

TMJL operated 67 retail outlets across Tamil Nadu, according to the company description in the filing. Its stated customer base was more than 45 lakh customers. The announcement does not provide first-half store additions, closures or a store-opening target, making comparable-store growth the disclosed measure of underlying outlet sales performance.

How did TMJL's product volumes and working-capital measures change?

TMJL sold 3,120 kilograms of gold ornaments in HY1 FY 2026-27, 4% more than 2,999 kilograms in HY1 FY 2025-26. Diamond-product volume increased 25% to 10,293 carats from 8,242 carats. In contrast, silver-product volume fell 17% to 9,776 kilograms from 11,740 kilograms, even as non-gold sales in rupee terms increased 62% to Rs 428 crore.

Annualised inventory turnover improved to 3.03 times from 2.84 times, a 7% increase. Interest cover rose 5% to 6.49 times from 6.17 times. TMJL also reported an average borrowing cost of 5.27%, compared with 6.08% in HY1 FY 2025-26, a 13% reduction on its stated comparison.

The balance-sheet indicators showed net worth of Rs 1,505.03 crore in HY1 FY 2026-27, up 29% from Rs 1,167.29 crore. Book value per share, based on a Rs 10 face value, was Rs 484.21 versus Rs 375.55. Return on equity was 19.79%, compared with 18.37%, while liquid assets made up 92.48% of the balance sheet against 91.17% a year earlier.

What liquidity and inventory hedging did TMJL disclose?

TMJL said it had overall liquidity of Rs 749 crore as of November 3, 2026, including eligible undrawn drawing facilities from member banks. The company described the liquidity position as strong, which is management's assessment. This disclosure date is later than the September 30, 2026 half-year reporting date.

As of September 30, 2026, TMJL said 95% of gold inventory and 49% of silver inventory were hedged. Its operating-performance table put inventory hedging at 94.88%, compared with 95.05% in HY1 FY 2025-26. The filing separately noted that shareholders approved a Rs 18 per share dividend on July 29, 2026, and the company paid Rs 55.95 crore during the September quarter.

Conclusion

TMJL's first-half results show that a 55% rise in sales, 35.93% same-store sales growth and higher retail productivity lifted reported gross profit, EBITDA and profit after tax in absolute rupee terms. At the same time, gross profit margin declined to 9.71% and EBITDA margin to 5.37%, making profitability ratios the principal counterpoint to revenue and earnings growth.

Next, readers can watch whether the reported 95% gold and 49% silver hedging levels, Rs 749 crore liquidity position and 5.27% average borrowing cost are maintained after September 30, 2026. The filing does not give a specific sales or margin target and cautions that forward-looking statements are subject to risks and uncertainties, with actual results potentially differing from expectations.