Thangamayil Jewellery Q3 Profit Doubles to ₹105 Crore

Introduction

Thangamayil Jewellery Ltd, a prominent Tamil Nadu-based retail jewellery chain, announced a remarkable financial performance for the third quarter of fiscal year 2026. The company's net profit more than doubled, supported by a significant surge in revenue, signaling strong consumer demand and effective operational management. This performance reinforces the company's growth trajectory and its solid standing in the competitive jewellery market.

Stellar Quarterly Performance in Detail

For the quarter ending December 31, 2025, Thangamayil Jewellery posted a net profit of ₹105 crore, marking a substantial 119% increase from the ₹48 crore reported in the corresponding period of the previous year. This impressive profit growth was fueled by a 112% jump in revenue, which soared to ₹2,406 crore compared to ₹1,132.5 crore a year ago. The results reflect strong retail sales momentum, particularly during the festive season.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter stood at ₹172.2 crore, a significant rise from ₹83.3 crore in Q3 FY25. Despite the massive increase in sales volume, the company maintained stable operating margins, which came in at 7.2%, only slightly lower than the 7.4% recorded in the same quarter last year. This indicates efficient cost control and operational discipline.

Consistent Growth Trajectory

The strong Q3 performance is not an isolated event but part of a sustained growth pattern. For the nine months ending December 31, 2025, the company reported its highest-ever revenue of ₹5,661 crore, a 60% year-over-year increase. The profit after tax for this nine-month period grew by an even more impressive 140% to ₹209 crore. This follows a solid second quarter (Q2 FY26), where the company had reported a net profit of ₹58 crore on revenues of ₹1,704 crore, setting the stage for a strong second half of the financial year.

Upward Revision in Annual Guidance

Reflecting its confidence in the sustained demand, Thangamayil's management had earlier revised its full-year revenue guidance for FY26. In November 2025, the company raised its revenue target to ₹7,000 crore from the earlier estimate of ₹6,000 crore. SM Lakshmanan, VP of Finance & Accounts, noted that the company had already achieved a turnover of ₹3,260 crore in the first half of FY26, registering a 36% year-on-year growth in retail revenue. He also pointed out a favorable shift in product mix, with diamond sales increasing by 20% and silver volumes growing by 16%.

Key Financial Highlights

Operational Strength and Expansion

Thangamayil's growth is supported by its strategic operational execution. The company expanded its retail footprint by opening 10 new outlets during the first nine months of the fiscal year, bringing its total store count to 66. Its entry into the Chennai market has been successful, with metro outlets now contributing 17% to total sales. Furthermore, the company's digital initiatives are gaining traction, with the customer advance base for its Digi Gold schemes increasing by 108%.

The company's business model, which focuses on Tier II and Tier III cities, allows it to tap into high-demand markets with lower operational costs. This strategy, combined with a high inventory turnover and prudent risk management through hedging in gold and silver, has been central to its success.

Market Reaction and Analyst Commentary

The market responded positively to the strong earnings report. Following the announcement, shares of Thangamayil Jewellery were trading at ₹3,851.40 on the BSE, up 3.68%. Analysts view the stock's performance as a decisive breakout from a year-long consolidation phase, supported by exceptional trading volumes. Ajit Mishra of Religare Broking noted that the spike in volume confirms strong institutional participation. However, analysts also advise caution, suggesting that investors might wait for a brief consolidation period before taking new positions, given the sharp rally.

Conclusion

Thangamayil Jewellery's Q3 FY26 results underscore its robust business model and strong execution capabilities. The significant growth in both revenue and profitability, coupled with stable margins, positions the company for a strong finish to the fiscal year. While the company has temporarily deferred the opening of new metro outlets due to price volatility in precious metals, its focus on expanding in its core markets and enhancing operational efficiencies continues to drive value for its shareholders.