Thangamayil Jewellery (THANGAMAYL) Q1 25/26 earnings summary

Executive summary

• Retail sales grew 28% year-over-year to Rs. 1,505 Cr, with total sales at Rs. 1,555 Cr.

• Gross profit increased 29% YoY to Rs. 167 Cr, maintaining an 11.10% margin despite a 4% drop in gold volume sales due to higher gold prices.

• EBITDA stood at Rs. 87 Cr, down 5% YoY, with margin at 5.78% versus 7.81% YoY.

• Profit before tax (PBT) was Rs. 65 Cr, down 16% YoY, mainly due to higher promotional, depreciation, and employee expenses linked to expansion.

• Net profit (PAT) was Rs. 46 Cr, a 19% YoY decrease, attributed to increased costs and expansion-related investments.

Financial highlights

• Total income from operations for Q1 FY26 was Rs. 1,55,786 lakh, up from Rs. 1,22,207 lakh YoY and Rs. 1,38,073 lakh sequentially.

• Gross profit margin on retail sales was 11.10%, up 15 bps YoY.

• EBITDA margin declined to 5.78% from 7.81% YoY but improved sequentially from 4.33%.

• EPS for the quarter was Rs. 14.71, compared to Rs. 20.61 YoY and Rs. 10.18 in the previous quarter.

• Non-gold sales grew 34% YoY, now 8.64% of retail sales.

Outlook and guidance

• Management expects volume to improve if gold prices stabilize or decline in upcoming quarters.

• Expansion in Chennai is expected to yield enduring benefits, with new outlets performing satisfactorily.

• Persistent high gold and silver prices may moderately impact volume but support realizations.