Thangamayil sees H2 gold-demand recovery after Q1 retail revenue rises 67%

High gold prices and West Asia uncertainty are expected to temper Q2 demand, but Thangamayil Jewellery is banking on festive and wedding-led recovery in H2 FY27. Diamond and non-gold sales are also gaining share, supporting its 6% FY27 EBITDA margin target.

— Source publishedThu, 30 Jul, 2026, 12:57 IST·First seen Thu, 30 Jul, 2026, 13:03 IST·Source CNBC-TV18 · Companies

What happened

Thangamayil Jewellery expects deferred gold purchases to revive in H2 FY27 after a moderate Q2 start caused by high prices and West Asia uncertainty. It

Key facts

  • Q1 FY27 turnover/revenue: ₹2,662 crore
  • Q1 FY27 profit after tax: ₹85 crore
  • Q1 retail revenue growth: 67% YoY
  • Gold volume growth: 9% YoY
  • Diamond volume growth: 23% YoY
  • Same-store sales revenue growth: 44.40%
  • Non-gold revenue growth: 88% YoY
  • Q1 retail EBITDA margin: 5.76%
  • FY27 EBITDA margin target: 6%
  • Chennai revenue contribution: over 20%
  • Market capitalisation: ₹18,075.13 crore

Why this matters

Thangamayil’s accelerating diamond and non-gold sales signal an opportunity to deepen assortment, supplier partnerships and adjacent-category expansion as it targets higher margins beyond its core gold jewellery business.

What to watch

  • Monthly gold-price direction and volatility in India.
  • Q2 same-store sales, gold-volume growth and average selling price trends.
  • Festive-season footfalls, bridal bookings and exchange transactions.
  • Share of diamond and non-gold revenue, along with making-charge realization.
  • Gross margin, inventory days, net working-capital intensity and progress toward the 6% EBITDA-margin target.
  • Competitive discounting and store-opening activity in South Indian jewellery markets.
  • Prioritize lightweight, lower-ticket and exchange-led gold collections to preserve conversion during elevated-price periods.
  • Accelerate diamond, silver and other non-gold categories through festive merchandising to improve mix and reduce reliance on gold-volume growth.
  • Tighten gold inventory replenishment and hedging discipline ahead of H2 to protect working capital and gross margins.
  • Use Q2 demand data to calibrate store expansion pace and marketing spend before the wedding season.
  • Target existing customers with bridal booking, advance-purchase and installment programs to pull forward festive demand.